Moving Your Business to Ohio

Introduction – Why Ohio?

Whether you want to expand your business or are thinking of moving your business to Ohio then the location does matter. Ohio is often considered one of the top states for starting a company as the local laws are pro-business. The overall business climate is conducive, and the state provides different types of resources to enable your company to sustain itself in a competitive environment. You have to consider the logistic aspect of moving and also ask yourself if Ohio allows domestication. The state provides numerous advantages like location and infrastructure. Let us try and identify the primary benefits of moving your company to this state.

Business-friendly taxes

Taxes play a crucial role, especially if you are considering entity domestication in Ohio. Irrespective of the type of business you may have, there will be certain forms of taxes applicable. In fact, each and every state in the USA has business taxes and it’s the rate that is different. Some states also don’t levy certain taxes. If you plan on relocating a business to Ohio, then here is the ground reality –

• The state of Ohio does not have a corporate income tax
• Ohio does not have an estate tax or even any inheritance tax
• There is no business personal property tax in Ohio
• The graduated state individual income tax rate ranges from 2.750 percent to 3.500 percent and is one of the lowest
• The total range of sales & use tax rates in Ohio is lower than in several top states like California and Illinois
• The gross receipts tax in Ohio is as low as 0.26%

Diverse and growing economy

The state of Ohio has a growing economy, and its real gross domestic product (GDP) was $698.22 billion U.S. dollars in 2023. Moving your business to Ohio is beneficial because it has a diverse industry base. This will ensure your return on investment initially and in the long term is quite good. Industries like automotive, manufacturing, energy and chemicals, food processing, and logistics and distribution represent the state’s historic strength.

Global market access

Ohio, situated in the Midwestern region of the USA, shares its borders with Pennsylvania, West Virginia, Kentucky, Indiana, and Michigan. Relocating a business to Ohio means getting access to the international markets for increasing trade. You can benefit from the robust transportation infrastructure that the state has, which includes the fourth largest interstate highway system in the nation. If your area of specialization is import and export, then you can transfer LLC to Ohio Foreign Trade Zone (FTZ). FTZs have been created to provide opportunities to help you lower your costs while boosting profits through various duty savings benefits. One of the key industries in the state is logistics and distribution, and is currently ranked among the top 10 freight destination states.

Driven workforce

One of the important factors driving business success is committed employees. If you are thinking of moving a corporation to Ohio, then you may require a talented local workforce. The state is known to have a massive workforce ecosystem. Ohio is also home to several Innovation Districts that enable businesses, ideas, and people to grow together. The STEM (Science, Technology, Engineering, and Mathematics) network in the state has also witnessed positive growth.

Affordable living

Why is affordable living important, especially if you are moving your business to Ohio? It has often been seen that places with higher costs of living lead to reduced consumer spending and higher energy costs. Both are not good for business growth. Thankfully, the average cost of living in Ohio is 8% lower, while utilities are 3% lower than the national average.

Steps to Move Corporation to Ohio

If you are thinking of relocating a business to Ohio, the state offers several benefits, from small business incentive programs to special industrial zones and districts. While moving your business, you may have several questions, like whether Ohio allows domestication and the applicable relocation processes. There are primarily three options for moving your corporation to this state. Let us look at these options in detail.

Register as a foreign corporation

One of the first options for moving a corporation to Ohio is registering it as a foreign company. This is a good option for you if you want to operate your existing company in the home state (state of incorporation) as well as Ohio. There is a process for relocating a corporation and is governed by the 2022 Ohio Revised Code, Title 17 – Corporations-Partnerships, Chapter 1703 – Foreign Corporations. The process for foreign qualification is as follows:

• Designate a registered agent in Ohio for handling service of process pursuant to OH Rev Code § 1703.041 (2022)
• Conduct a name availability search and register the name of the corporation pursuant to OH Rev Code § 1703.31 (2022).
• File the Foreign For-Profit Corporation Application for License pursuant to OH Rev Code § 1703.04 (2022)
• You must also submit a Certificate of Good Standing issued by the home state or state of incorporation.

Do you want to start a foreign corporation in Ohio?

Convert a Foreign Corporation to an Ohio entity

The second option facilitates entity domestication in Ohio through the process of entity conversion. You can use this option if you want to change the status of a foreign entity to domestic. You will be required to file a Certificate of Conversion pursuant to Ohio Revised Code §§1701.811, 1706.722, 1776.72, and 1782.4310. When you convert your existing company into a domestic corporation, you will have to file the necessary organizational documents as well. You will need to specify the converting entity type in the application. The certificate of conversion will be filed along with a fee of $99 and an affidavit of personal property. This process makes moving your business to Ohio easier and more efficient.

Dissolve the home Corporation and establish a new Corporation in Ohio

The third option for moving a corporation to Ohio is through dissolution. You will need to dissolve your existing company in the home state (state of incorporation) and then apply for incorporation in Ohio. This process of relocating business to Ohio will require you to follow the laws and process of dissolution of the home state. Although the process of dissolution varies according to the state here are some general procedures:

• Approval of dissolution of a corporation by incorporators, directors, or shareholders
• Filing Articles of Dissolution in the home state
• File any federal, state, and local taxes and claims outstanding
• Publication of notice of dissolution, if applicable
• Wind up all affairs in the home state, like canceling business licenses and permits

• Appoint a registered agent in Ohio for service of process pursuant to OH Rev Code § 1701.07 (2022)
• Identify and reserve a business name using the Name Reservation / Transfer / Cancellation Application
• File Articles of Incorporation pursuant to OH Rev Code § 1701.04 (2022) along with a fee of $99
• Prepare bylaws for your Ohio Corporation
• Apply for business licenses and permits

Incorporate in Ohio with ease!

Steps to Move an LLC to Ohio

Relocating a business to Ohio will require you to comply with state laws and follow different business processes. The state of Ohio has a strong business support system and provides numerous resources to help you form and operate your company with ease. Certain queries you may have regarding relocation, like whether Ohio allows domestication and the possible ways of moving an LLC to Ohio. There are three ways you can relocate. Let us look at each of the methods in detail.

Register as a foreign LLC

The first method that will facilitate the moving of your LLC to Ohio is to register it as a foreign LLC. This process is also known as foreign qualification. You can transfer LLC to Ohio using this method if you want to operate your existing company in the home state (state of registration). There will be different steps involved in moving your business to Ohio through foreign qualifications. The process is as follows:

• Hire and maintain a registered agent in Ohio for handling service of process pursuant to OH Rev Code § 1706.09 (2022)
• You can keep the existing name of your foreign LLC only if it is available. If the said name is unavailable, then you can choose a DBA or trade name by filing a Trade Name Registration application.
• File the Registration of a Foreign Limited Liability Company to transfer an LLC to NC through foreign qualification pursuant to OH Rev Code § 1706.511 (2022)
• Apply for necessary business licenses and permits

Apply for LLC foreign qualification in Ohio

Convert a Foreign LLC to an Ohio entity

The second option for moving your company to Ohio is through the process of entity conversion. This is also known as entity domestication in Ohio. You will be required to file a Certificate of Conversion pursuant to Ohio Revised Code §§1701.811, 1706.722, 1776.72, and 1782.4310. When you convert your existing company into a domestic limited liability company, you must file the necessary relevant organizational documents. You will also need to specify the converting entity type in the application. The certificate of conversion will be filed along with a fee of $99.

Dissolve the home LLC and form a new LLC in Ohio

The third option or method of relocating a business to Ohio is by dissolving your existing company and registering a new LLC in Ohio. You will be required to file a certificate or articles of dissolution, depending on the state. Different states have different laws, procedures, documents, and fees for dissolution. Some of the most common steps to follow during dissolution are:

• You need to get approval for the dissolution of your LLC through member consent
• You will need to file Articles or Certificate of dissolution in your home state
• File any outstanding claims as well as federal, state, and local taxes
• Publish a notice of dissolution if applicable
• Cancel business licenses and permits

• Appoint a registered agent in Ohio to handle service of process
• Conduct an LLC name availability search and reserve a business name pursuant to OH Rev Code § 1706.07 (2022)
• File Article of Organization pursuant to OH Rev Code § 1706.16 (2022) along with a fee of $99
• Prepare Ohio LLC operating agreement
• Open a business bank account
• Apply for relevant business licenses and permits

Register your LLC in Ohio Today!

Move Your Business to Ohio with IncParadise

IncParadise is one of the top registered agent services in Ohio. We provide a variety of services to fulfill different types of business requirements. We can help you with the process of moving your business to Ohio by facilitating dissolution paperwork in your home state, foreign qualification, as well as new business registration in Ohio.