The Buckeye State of Ohio provides not only a positive business environment but also financial support and business incentives to help small and medium sized enterprises to grow and expand. You can register a startup company Ohio in the famed Columbus Region as it is home to global mega brands like Victoria’s Secret and Honda. Ohio has been ranked #3 in business climate and #9 as a logistic hotspot. Some of the key industries in the state include Advanced Energy & Environmental Technologies, Agriculture and Food Processing, Motor Vehicle and Parts Manufacturing, Distribution and Logistics, Aerospace and Aviation, and Bioscience and Bio-products.
What industry would you like to set up your business in?
Advantages of setting up an LLC or Corporation
One of the reasons why there are over 940,000 businesses registered in Ohio is the availability of dedicated and skilled work force, strong transportation infrastructure, and a variety of business incentives. The business climate drives the need to register a new business in Ohio and today, the private sector consists of more than 921,000 employers and they have hired almost 50.4% of the non-farm workforce.
Advantage#1: Salient benefits of Corporation or LLC
- Tax incentives & Credits: If you register a new company in Ohio, you will benefit from:
– No state corporate income tax
– No inventory tax
– No personal property tax
Apart from this, you can leverage the various tax credits available including the Ohio Job Creation Tax Credit. As a part of this program, you can derive refundable tax credit on creating a minimum of 10 new jobs within a span of 3 years
- Pass through taxation: If you register a new company in Ohio as an S corporation then the corporation or firm will not pay any income tax. Instead, the income or loss of the corporation will be passed on to the stockholders.
- Independent Life: One of the salient advantages of an S Corporation in Ohio is that it enjoys an independent life. The death or incapacity of a stockholder will not disturb operations of the business.
- Loan Programs: If you register a limited liability company in the state of Ohio, you can benefit from different forms of financial assistance like loan programs. Some of the prominent loan programs that exist include:
– Business and Industry Guaranteed Loans (USDA)
– 166 Direct Loan (Development Services Agency)
– Certified Development Company, a 504 loan program (SBA)
– Basic 7(a) Loan Guarantee (Small Business Administration)
– Rural Business Development and Opportunity Grants (USDA)
– Community Connect Grants (USDA)
– Community Development Program (Ohio Development Services Agency)
- Limited Liability: If you register a new business in Ohio as a LLC then you will be able to enjoy limited liability protection. This means claimants can sue the LLC and not the owner or investors.
- Flexible Profit Distribution: An LLC has the benefit of being able to select different ways of distribution of profits.
Advantage#2: Business Incentives
There is a variety of business incentive programs available for small and medium enterprises or a startup company Ohio. Let’s look at some of the top programs in Ohio.
- Ohio Enterprise Zone Program (OEZ): The Ohio Enterprise Zone Program is being administered by municipal as well as county governments. If you register a new company in Ohio EZ then you can leverage the real and personal property tax exemptions offered by the program. You can also benefit from the tax incentives especially on non-retail projects as well as corporate franchise tax benefits. You can choose from two types of Enterprise Zones, which are Distress Based (Full Authority Zones) and Non-Distress Based (Limited Authority Zones). More Information
- Ohio New Markets Tax Credit Program: The Ohio New Markets Tax Credit program provides tax incentives to businesses that are situated in low-income communities. A startup company Ohio can also receive below-market, flexible, or non-traditional loans for their projects. More Information
Are there any Disadvantages of Incorporating in Ohio?
When you register a new company in Ohio, one thing is for sure: the state offers one of the best business environments and a variety of funding and incentive programs. Are there any disadvantages? There are only a few! Disadvantages are mostly limited to the type of business entity you form like an LLC can get dissolved when a member dies or if it undergoes bankruptcy. Similarly, the process of incorporation may lead to higher overall taxes.