Why incorporate in Ohio?

Business Information & Rankings

• Ohio ranked 13th in the U.S. for overall number of high-tech workers and 30th for average high-tech wage. (Cyberstates, 2005)
• Site Selection magazine ranked Ohio 1st in the Midwest and 2nd in the country in the number of new and expanded business facilities in 2005.
• Ohio ranked 10th for Small Tech Hot Spots in the U.S. (Small Times magazine, 2005)
• Ohio ranked 7th in the number of privately-held, 50% or more women-owned firms in 2004, 6th in employment, and 6th in sales. (Center for Women’s Business Research)

Cost of living

Crime Rate

Ohio has the 28th lowest overall crime ranking in the U.S. (FBI, 2004)

Fees & Taxes

Business Inventory Tax
Tangible personal property used in business is taxed. This includes machinery and equipment, furniture and fixtures, small tools, supplies and inventory held for manufacture or resale.

Corporate Income Tax
Ohio’s corporate tax structure consists of two brackets with all income below $50,000 taxed at 5.1% and all income above $50,000 taxed at 8.5%.

Personal Income Tax
Ohio’s personal income tax system consists of nine brackets and a top rate of 7.185% starting at an income level of $200,000. Ohio individual income tax rates were reduced by 4.2% across-the-board in 2005 and similar cuts are scheduled each year through 2009. Taxpayers with a taxable annual income of $10,000 or less owe no income tax.

Personal Property Tax
Ohio is one of the 38 states that collect property taxes at both the state and local levels. Intangible property including investments, credits, money, shares and capital are also taxed.

State Sales and Use Tax
Base Rate: 5.5%
Machinery Rate: none

There is an exemption for tangible personal property used in manufacturing a product for sale.

Unemployment Insurance
Ohio’s new employers’ rate is 2.7% for 1 year.