Online Business in Ohio

Ohio is one of the top states when it comes to providing the right business environment and platform. This is one of the reasons why the state is witnessing an e-commerce revolution. Due to ease of access to advanced technology and high-speed internet, home-based online startups are mushrooming across the state. The state has even introduced online business licenses in Ohio, especially for e-commerce companies. This is not all; there are numerous small online businesses that are using bigger e-commerce platforms to sell their products or services, like through the eBay Marketplace. This means you can also start an e-commerce business in Ohio and go global.

What are the biggest benefits of doing business online in Ohio?

You can start an online business in Ohio with ease, as there are many advantages of this type of business. As the name suggests, you will need to operate this online. An online business doesn’t necessarily require a physical location, and that can cut down overhead costs. Certain online businesses are also known as home-based businesses. Some of the benefits of starting an online business from home in Ohio are:

• Flexibility – One of the top benefits of an online business is the freedom and flexibility it offers. Online businesses are flexible in terms of opening or closing hours. Since all products are available online, customers can purchase whenever they want.
• Low operating costs – When you start an online business in Ohio, the overall operating costs are low as compared to brick-and-mortar businesses. The most common operating cost components are:
  • Cost of website
  • Cost of internet connection
  • Legal fees
  • Energy costs
  • Software costs
  • Cost of business licenses
  • Marketing costs
• Low startup costs – Whether you start an e-commerce business in Ohio or an online consultancy, the startup costs will be much lower than those of traditional businesses. The costs will also depend on the type of business model and the amount of inventory.
• Easy to scale – Internet-based businesses are extremely easy to scale as you are not bound by any specific physical location. The ease of scaling will also depend on the business model.

Top online business ideas in Ohio

Internet and technology work hand-in-hand to make business processes highly efficient. They are also responsible for creating opportunities and platforms for online businesses. Today, the possibilities of starting an online business are limitless. Some of the top business ideas are:

• Dropshipping is a type of order fulfillment option. To be a drop-shipper, you will need an online business license in Ohio. This idea revolves around a high-efficiency and low-overhead business model.
• Freelance Services – This is one of the most popular online options. As a freelancer, you can offer a wide variety of services depending on your skill sets. The options can vary from online tutorials to graphic design, coding, writing, and content development, among others.
• Subscription Box Services – This industry has seen tremendous growth recently. If you want to start an online business from home in Ohio, then this idea can be quite profitable. Through this, you can offer your customers a categorized selection of products that can be delivered to their doorsteps on a regular basis.
• Virtual Event Planner – Remote work options and virtual gatherings have created this form of online virtual event planning company.
• Virtual Assistant (VA) – A virtual assistant specializes in completing administrative tasks from a remote location. You will be an independent contractor and will be able to perform a wide range of tasks over the Internet.

Form your online Ohio business Today!

Starting an Online Business in Ohio

If you have a good online business idea, then this is a good time to put on your working shoes. You can start an online business in Ohio with ease by ensuring all business requirements are met. You will also need to be compliant with the state laws. Let’s look at some of the key areas to focus on.

1. Prepare your Ohio online business idea and plan

If you want to know how to start an online business from home in Ohio, then you need to start from the very basics. Create a business plan! A good business plan will enable you to validate your existing business idea. It will also help assess your financial position while creating a concrete strategic action plan. Some of the important components of your plan will include:

• Executive Summary
• Your business idea
• Business Opportunity
• Industry and market analysis
• Target Market
• Competition
• Operations
• Timeline for key milestones
• Marketing and advertising
• Financial plan

2. Choose your Ohio online business name

The name of your company will create a unique identity in the market. This name will be used to register the entity and apply for an online business license in Ohio. You can go with a traditional business name or opt for a trade name or DBA (Doing Business As). While choosing a name, ensure it follows the naming guidelines as mentioned in the 2022 Ohio Revised Code. The naming guidelines will vary according to the type of entity structure you choose. Here are some steps toward choosing a company name.

• Choose a name
• Conduct a name availability search or entity search
• If the chosen name is available, then file the Name Reservation / Transfer / Cancellation Application along with a fee of $39
• If you want to register a DBA or trade name, then you will need to submit the Name Registration form (form 534a) along with a fee of $39

3. Register your online business with Ohio SOS

It is important to understand that your idea and entity structure are different aspects of the same business. The entity structure will define your company’s registration process. If you choose a sole proprietorship company, you will not be required to register with the Ohio Secretary of State. Let’s look at an example to understand this.

Are you ready to form your online business in Ohio?

4. Obtain all necessary licenses and permits for online business

After you register a company, it will not be operational unless you apply for and obtain an online business license in Ohio. It is important to note that the licensing regulations and requirements vary from one state to another. The type of licenses required by your company will vary according to the business activity and location of your company. You will need to conduct a search through the following to determine which licenses are applicable to your company.

• Professional and Occupational License – If your work involves specific skills or professions, you will need to apply for this type of license. Such licenses are issued by different government or state agencies. The process to obtain this license and fee vary according to the license.
• Vendor’s License/Sales Tax Permit – If your business requires you to offer taxable services or are selling tangible personal property, then you may need to apply for a sales tax permit. If you start an e-commerce business in Ohio, you will require this type of license.
• Local Zoning Laws and Permits – When you start an online business from your home in Ohio, you will need to check the local zoning laws. The zoning laws are different for each city or county. You may also be required to apply for local permits and licenses based on the activity of your company.

There are different categories of online business licenses in Ohio that may be applicable to your company, and this can be quite confusing. You can opt for our “Business License Research Report” service. As a part of this service, IncParadise provides a detailed report containing a list of filing instructions, supporting document requirements, and fees for all business licenses and permits in this state.

5. Buy a website domain and build an e-commerce website

If you plan to start an e-commerce business in Ohio or any online business, then there are two important areas to focus on – domain name and website hosting. You need first to check whether your chosen domain name is available. You will also need to compare various web hosting plans in advance. Book your domain name and web hosting plan depending on your requirements. You can take help from freelance website designers to design the website. Alternatively, you can also use various third party Online Store Builders.

6. Get EIN and File your taxes for Ohio business

If you plan to start an online business in Ohio or an e-commerce store, it is recommended that you apply for an employer identification number (EIN). This is a unique 9-digit number, also known as the Federal Employer Identification Number (FEIN). The Internal Revenue Service (IRS) will assign it to your business. The EIN is used primarily for filing taxes and opening a bank account.

7. Open a bank account

When you start an online business from home in Ohio, there are certain areas that play a key role in the management of finances. One such area is banking. However small your business may be, it is recommended that you always open a business bank account. It is also known as a checking account and is beneficial from a tax perspective. A business bank account will also make your company look professional and help reduce the vulnerability of your personal assets.

8. Comply with taxes and other regulatory requirements

Once you start an e-commerce business in Ohio, you will need to ensure complete compliance with state annual requirements. This will ensure you enjoy a good standing in the state. One of the important requirements is that of an annual report. Certain entities in the state are required to file biennial reports, although LLCs and corporations are not required to file this report.

9. Market your business

Marketing is integral to the growth of your online business through increased sales. You can start an online business in Ohio as a consultant or as an e-commerce store but without proper marketing; you may not be able to reach out to your target market or consumers. You can take advantage of digital marketing, go with traditional methods of branding or even use salient aspects of both. The bottom line is to engage your audience and also create a strong brand online. The following strategies, tools, and methods can be quite useful:

• Create a website that showcases all products or services
• Search Engine Optimization of all content on your website
• Provide additional value to your customers through blogs, articles, videos, and other resources
• Create a powerful email campaign showcasing whitepapers, ebooks, and webinars
• Send promotional emails directly to customers with discounts
• Use banners and posters on social media platforms
• Digital advertising like PPC (Pay-Per-Click)
• Partner with another company to promote your business

Looking to start an online business in Ohio?

Starting an online business can be easy, although it is necessary to maintain compliance with state requirements. After choosing the right entity structure, you can start an online business from home in Ohio. This will help determine the advantages and benefits that you can derive in the long term. If you want to operate an online business successfully, our experts can provide the necessary guidance.

Ohio Registered Agent

A registered agent is responsible for receiving service of process, important communications from the state communications, and legal documents on behalf of your company. They are also referred to as a statutory agent or a resident agent. All registered agents offer service of process but they also provide additional business services. These services may vary, and hence it is always recommended to conduct an Ohio registered agent search before hiring someone. The state of Ohio has, in fact, made it mandatory to hire and maintain an agent in this state.

What is an Ohio registered agent?

When choosing registered agent services in Ohio, you need to understand the functioning of a resident agent. If you are planning to start a new LLC or corporation in Ohio, then you will be required to prepare several documents and even file some of them with the state. When filing such documents, especially formation or incorporation documents, you will see that these applications require information pertaining to your chosen registered agent in Ohio.

What are the roles and responsibilities of a registered agent in Ohio?

The Ohio state business laws have defined the roles and responsibilities of a registered agent and it is almost the same in all 50 states in the country. Registered agent services in Ohio are mandatory for both new and existing businesses as well as foreign companies. The responsibilities of a statutory agent include the following:

• Primary point of contact – The role of a registered agent in Ohio is to act as the primary point of contact for your company and the state government. Hence, they will receive all your official mail and legal documents and then forward them to your company’s designated representative.
• Service of Process – This is one of the most important Ohio registered agent requirements. Service of process is a legal procedure by which your vendor or customers can give an appropriate notice of legal action. Your registered agent in Ohio receives this notice.
• Maintaining compliance – When you appoint an RA in Ohio, they will help you or your company remain compliant with all state laws and requirements. For example, one of the most common requirements is an annual report. A resident agent will ensure you are notified in advance regarding the submission and may even assist you with the process.

Who can be a registered agent for your Ohio business?

The laws regarding a registered agent vary from state to state. It is also important to note that each state, including Ohio, has its own rules regarding the qualification criteria for a registered agent. The Ohio registered agent requirements state that an individual or a firm can act as your statutory agent or resident agent if they qualify.

What are the requirements of an Ohio registered agent?

If you are wondering if anyone can be a registered agent, then the answer is that it depends on whether such an individual or firm is compliant with state laws. The Ohio Revised Code Title 17 provides an insight into the Ohio registered agent requirements. If you want to hire an agent then it is recommended to conduct an Ohio registered agent search based on certain parameters. You need to check if your chosen agent fulfills most of the following requirements –

• He/she is a natural person and is a resident of this state
• A statutory agent should have a registered office address and not a P.O.Box
• Your chosen resident agent should have their physical address on the public record
• They should be present at their mentioned address during business hours

Can I be my own registered agent in Ohio?

Yes, you can be your own registered agent in Ohio. You can opt to be your own statutory agent, especially if you plan to form a sole proprietorship or partnership firm. You can be a registered agent in Ohio if you meet all state requirements as prescribed by the Ohio Revised Code. As an individual, there are specific criteria. You can offer registered agent services in Ohio if:

• You are over 18 years of age
• You have a physical street address, as PO Box addresses are not allowed
• You should be available during working hours throughout the week

How to choose a registered agent in Ohio?

If you are planning to register a new company in Ohio, then appointing a registered agent is crucial. This is because the 2022 Ohio Revised Code, Title 17, states that each domestic and foreign entity planning to transact in this state needs to appoint an RA in Ohio. So, if you want to hire an RA, then there are hundreds of individuals and firms to choose from. This is where you can conduct an Ohio registered agent search based on certain parameters. There are certain aspects that you need to look for while choosing a resident agent. Here are some tips that you may consider:

• One of the top qualities of any RA is availability. They must be physically present at their registered address during normal business hours. This will ensure that hand-delivered and mailed legal and business documents can be received.
• If you are planning to appoint an RA in Ohio, it is recommended that you choose someone with knowledge and expertise. They should have complete knowledge of business laws in the state, including compliance regulations.
• Your Ohio registered agent search should consider state-of-the-art processes. A reputed nationwide registered agent service like IncParadise offers a reliable application system like Entity Management Software. This system provides important alerts and notifications related to your company’s annual compliances.
• Some resident agents also provide mail forwarding services. This can be quite useful, especially if your business requires you to travel a lot. Even when you are not in Ohio, you will not miss any of your business mail.

Are you looking for top Registered Agent Services in Ohio?

Why choose a professional registered agent service in Ohio?

The state of Ohio allows you, as the owner, to be your own agent, but it is recommended that you hire a professional service. This is because handling dual responsibilities may become difficult for you. Let’s look at an example.

• A professional RA service will maintain regular business hours. This will ensure they are able to receive all legal notices and important state documents
• An Ohio statutory agent will also forward these documents to you on time
• Professional registered agent services in Ohio will have a physical address, thus fulfilling a requirement of the state business laws.
• Some resident agent services also provide offsite storage facilities for legal and sensitive documents.
• A reputed registered agent in Ohio will send you automated reminders and notifications, such as those for filing annual reports in Ohio.
• Professional RA services help protect your company’s private information

How to change a registered agent in Ohio?

If you are planning to change your existing statutory agent, then you need first to conduct an Ohio registered agent search. Once you have identified a professional and reliable agent, you will need to notify your former RA regarding the decision to change services. There can be a variety of reasons for changing RA services. These reasons can be personal in nature or purely from the point of view of business. The 2022 Ohio Revised Code governs the Ohio registered agent requirements for changing an RA in this state. The statutes remain the same for both domestic companies and foreign entities.

Want to change your Ohio registered agent?

Choose IncParadise as Your Ohio registered agent

If you are planning to form a new company in Ohio or move your existing business, you must maintain a registered agent in this state. It is important to conduct an Ohio registered agent search so that you can find a professional service. IncParadise is one of the top and most highly reputed registered agents in this state. We comply with Ohio registered agent requirements as established by the office of the Secretary of State.

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.

Ohio Foreign Qualification

Every state offers distinct advantages, which is one of the drivers of foreign businesses moving or expanding to other states. When it comes to Ohio, the state provides plenty of reasons for you to apply for foreign qualifications in Ohio. You can benefit from overall lower taxes in this state. If you plan to incorporate a foreign entity, then there will be no state income tax. In fact, you will end up paying almost 5-10 percent less tax as compared to other states. Depending on the industry sector chosen, you can also find skilled STEM professionals and a talented workforce. They will help your company to achieve success eventually. Ohio foreign business registration means that you can also leverage the state business and transportation infrastructure. If this is not all, Ohio also offers numerous loan and grant programs as well as business incentive and tax credit programs.

What is Ohio’s foreign qualification?

Whether you are thinking of moving your existing company to Ohio or planning to expand operations, it is important to understand foreign qualifications in this state. The governing law for foreign entities in Ohio is the 2022 Ohio Revised Code, Title 17 – Corporations-Partnerships. According to state law, a foreign entity is any company that has been registered or incorporated in any other state. Such a company will have to undergo foreign qualification in Ohio in order to transact in this state. Let’s study this with an example:

Doing business in Ohio

If you are thinking of Ohio foreign corporation registration, then it is important to understand what doing business in Ohio refers to. Each state has its definitions and guidelines for transacting in the state. Some states consider having a new company branch as doing business, while others consider owning real estate.

• If your company is defending, maintaining, or settling any legal proceeding
• If you hold meetings of company partners in this state
• If your company maintains a single or multiple bank accounts in this state
• If you are selling your products or services through independent vendors or contractors
• If your company is foreclosing mortgages or collecting debts in Ohio
• If you are transacting business in interstate commerce

Ohio Foreign Qualification Process

If you have already registered an LLC, partnership, or a business corporation in another state but want to conduct business in Ohio then you will need to undergo foreign qualification in Ohio. It is important to note that all out-of-state businesses require an authority to conduct transactions in this state. If you operate your company without obtaining the required authority then your business will be considered to be breaking the Ohio Revised Code and can lead to potential penalties. Let us look at the process of Ohio foreign entity search and registration for LLCs and corporations.

Ohio Foreign Corporation Registration

If you are already operating a corporation in another state and want to explore opportunities in Ohio then you will need to apply for Ohio foreign corporation registration. This process is known as foreign qualification. It will be governed by the 2022 Ohio Revised Code, Title 17 – Corporations-Partnerships, Chapter 1703 – Foreign Corporations. You will have to obtain the authority necessary to transact business in this state. There are certain steps you need to follow, and they are:

1. Business Name

The first step towards Ohio foreign corporation registration is identifying a business name and registering it. The corporate name should comply with state laws and contain words like “corporation,” “incorporated,” or abbreviations like “Inc.,” “corp.,” and “co.” Once you have identified a name, it is important to conduct an Ohio foreign entity search, also known as a name availability search. This will ensure your chosen name is available for registration.

2. Registered Agent

Whether you are forming a new business or incorporating a foreign entity, your company needs to be compliant with certain state business laws. Ohio foreign business registration will be possible only if you continuously maintain a registered agent in the state for service of process. This is governed by OH Rev Code § 1703.19 (2022). We at IncParadise are one of the top Ohio registered agents and have helped several domestic and foreign entities incorporate into this state.

3. Foreign For-Profit Corporation Application for License

Once you have conducted an Ohio foreign entity search and registered your corporation’s name, the next step is to get the right authority. In most states, this is known as a certificate of authority, but in Ohio, it is known as the Application for License. This license is mandatory pursuant to OH Rev Code § 1703.03 (2022). You will not be able to transact business in this state without it.

Do you want to register a foreign Corporation in Ohio?

Ohio LLC registration

If you are already operating a limited liability company in another state then you will need to apply for an Ohio LLC foreign registration. This process will help you to expand your operations in this state. The foreign qualification is governed by the 2022 Ohio Revised Code, Title 17 – Corporations-Partnerships, Chapter 1706 – Ohio Revised Limited Liability Company Act, Section 1706.51 – Foreign Limited Liability Company Governing Law. The process for foreign qualification involves the following:

1. Business Name

A company cannot conduct its business without a proper name. Hence, it becomes important to register the name of your company if it’s an out-of-state entity. Registering the name will also ensure you are able to apply for Ohio LLC foreign registration. An Ohio foreign LLC name should contain words like “limited liability Company” or “limited company” or abbreviations like L.L.C or LLC. The chosen name should also be available, and this is possible by conducting an Ohio foreign entity search or business name search.

2. Registered Agent

One of the important aspects of any Ohio LLC foreign registration is the service of process. This is provided by a registered agent. The business laws have made it mandatory to hire and maintain a registered agent in the state pursuant to OH Rev Code § 1706.09 (2022). Registered agent services offered by IncParadise will not only help fulfill state requirements like service of process but also assist with other annual compliances. IncParadise is one of the top Ohio registered agents and has helped with several foreign business registrations in this state.

3. Registration of a Foreign Limited Liability Company

If you are planning to transact or conduct business operations in the state of Ohio, then you need to have proper authority to do so. If you transact business without proper Ohio foreign business registration, then there can be penalties. The process to register is by filing the Registration of a Foreign Limited Liability Company (Form-617) pursuant to OH Rev Code § 1706.511 (2022).

Want to form a foreign LLC in Ohio?

Need Any Assistance in Applying for Ohio Foreign Qualification?

Ohio offers a vibrant market, growing and diverse industries, a talented workforce, robust infrastructure, low taxes, and a low cost of living. The state provides support and resources to both domestic and foreign entities. As one of the leading registered agents in Ohio, IncParadise can assist you with the process of foreign qualification in Ohio for LLCs and corporations.

Doing Business in Ohio

There are over 900,000 small businesses operational in the state of Ohio and there are several reasons why entrepreneurs prefer this state. One of the top benefits is that your startup can leverage Ohio small business incentives implemented by the state and private organizations. You would be surprised to know that startups and small businesses in Ohio have been able to generate over $1.7 billion in terms of economic output, according to JumpStart’s latest economic impact report. Behind the success of small businesses is easy access to several funding opportunities, including Ohio small business loans and tax credit programs. Today, Ohio is home to several Fortune 500 companies, including Kroger, Cardinal Health, and Amazon, among others.

Why do businesses prefer doing business in Ohio?

As a first-time business owner doing business in Ohio for you can be quite beneficial. The state provides numerous benefits and advantages, especially to small businesses. To start with, the state has one of the lowest tax rates among all 50 states. The state has a thriving industry, diverse talent pool, robust transportation infrastructure, and enjoys high use of technology in most industrial and business environments to support innovation. You can even apply for Ohio small business grants, loans, and different forms of incentives. Let us take a look at some of the top advantages of conducting business in this state:

• State of Startups – The state of Ohio is considered one of the evolving startup ecosystems in the nation. Ohio companies have received over $1 billion in venture capital investment consecutively for the past 3 years. This is because the state has provided the platform and resources, including Ohio small business grants. The startup ecosystem will help you bolster cross-sector collaborations, like connecting your company to necessary expertise and talent. This will allow you to take your innovation-driven research and development to the next level. This will also ensure that doing business in Ohio has reduced challenges for your company.
• Cost of Living – One of the important factors that plays a key role when it comes to new business formation or moving a business to this state is the low cost of living. The cost of living takes into account several components like housing, utility bills, cost of food, healthcare etc. If you compare the cost of living in Ohio with the national average, then it is 8 percent lower. Similarly, the housing costs are 22 percent lower while the utility costs are 3% lower than the national average. Some of the cities with low cost of living and strong business infrastructure for your business include Columbus, Cleveland, and Cincinnati.
• Diverse Talent Pools – Companies prefer doing business in Ohio due to the availability of a diverse talent pool. The state believes that Science, technology, engineering, and math (STEM) will be the primary driver of its economic future. For example, the Ohio STEM Learning Network aims to deliver high-quality professional development and educational support to inspire the next generation of innovators in the state. Apart from this, it is home to several colleges, universities, and technical institutions that create and promote talent.

Small Business Incentive Programs and Grants in Ohio

When you start a new company in Ohio, you can leverage advantages, including benefiting from a wide variety of Ohio small business grant programs. These programs have been created to help new businesses or entrepreneurs move their companies from other states financially. These programs can be categorized into different segments. The segments are small business grants or Ohio small business loans, economic development grants, and state tax credits. Let’s study them in detail.

Small Business Grants in Ohio

Whether you form a small company or large enterprise, Ohio small business incentives will provide you with a distinct advantage. The availability of small-business grants can provide financial support in the initial stage of your business operations. A grant is a type of financial award with the objective of facilitating business goals or incentivizing performance. Grants are Ohio small business loans where you are not required to pay it back. Here is a list of the most popular grant programs in the state for you:

• The Kitty Fund – If you are a mom entrepreneur or mompreneur, then the Kitty Fund is one of the first Ohio small business grants to apply for. This is a national grant program. It is targeted at mother-owned businesses with at least 2 employees or more. You can apply for this micro-grant program here and receive an award of $1,000.
• Warrior Rising Grant – If you are a veteran planning to start your company in Ohio, the Warrior Rising Grant can be quite beneficial for you. It is considered amongst the top Ohio small business loans or grants. Warrior Rising is a non-profit organization whose objective is to empower veterans. As a veteran, you can apply for their grant program, and the grant amount awarded can be a maximum of $20,000.
• Fearless Strivers Grant – The Fearless Strivers Grant has been created specifically for black women-owned businesses. Each year, they conduct a skill-based contest, which you can participate in. The maximum grant amount of $20,000 will be divided among four participants or small businesses.
• Workplace Wellness Grant Program – This is a type of Ohio small business grants program that is targeted at businesses with 50 or fewer workers, especially those based in high-risk industries. You can participate in this program if your company has less than 50 workers. This program will also be applicable to you if your business operates in such an industry as construction, automotive repair and service, or manufacturing, among others. This program by the Bureau of Workers’ Compensation (BWC) will assist you in creating and implementing a workplace wellness program. As a part of this program, you can receive $300 per participating employee. This payment is made over a period of 4 years, and you can receive a maximum amount of $15,000 per employee policy.
• Food Supply Chain Guaranteed Loan Program – If you are seeking Ohio small business loans, then the Food Supply Chain Guaranteed Loan Program by USDA is a promising program. It is important to understand that you will have to qualify to be able to get the loan. Loans are guaranteed and can be up to a maximum of $40 million for companies or lenders who qualify. You will be able to qualify if you or your institution is planning to finance food systems projects. The list of eligible lenders includes credit unions, CDFIs, banks, Farm Credit institutions, loan funds, and others.
• Women-Owned Businesses Amber Grant – As the name suggests, Amber Grant started in 1998 and is targeted at women-owned businesses. If you have an idea and want to transform it into a company, then this may be the right grant for you. Ohio small business incentives and grant programs are currently playing a key role in supporting and promoting women’s entrepreneurship. You can apply for an Amber Grant after registering your business and can get an award amount of up to $10,000. You can even be eligible for a $25,000 grant or even the $35,000 grant normally given by the end of the current year.
• Restaurant Disaster Relief Fund – Natural calamities can happen just about anywhere. They are unpredictable. Imagine you have started a restaurant recently by taking Ohio small business loans, and then a natural disaster strikes. This could be in the form of an earthquake, fire, hurricane, or flood, among others. This is where the Restaurant Disaster Relief Fund can help you get back on your feet faster. If you or your business is eligible for this grant, then you can get a maximum of $10,000 for utilities, rent, maintenance, and other essential supplies.

Economic Development Grants

Each state offers in-house economic development grant programs. If you start a business in Ohio, you can benefit from the Economic Development Grant Program, which is overseen by the Department of Planning & Community Development (DPCD). If you have failed to obtain Ohio small business loans or funding, you can get first—and second-floor office spaces in prime locations through this program. As the name suggests, this is an Ohio small business grants program that promotes economic development, job creation, and business expansion.

Are you thinking of starting a New Business in Ohio?

State Tax Credits

One of the factors that have an impact on business finances is that of taxes. Each state in the USA has its own tax structure and tax rates. When you start an Ohio company, it will be subjected to some form of taxes. This is where tax credits can provide much-needed relief. Basically, a tax credit refers to a certain amount of money that you, as the taxpayer, can subtract directly from the taxes owed by you or the company. This is an important type of Ohio small business incentives. The two important state tax credits that you can benefit from are:

• Ohio Job Creation Tax Credit – This type of tax credit can be quite beneficial to your company if you are going to hire employees. It is a refundable and performance-based tax credit. This tax credit is calculated as a percentage of the created payroll and is applied to your company’s commercial activity tax (CAT) liability. Every company or individual doing business in Ohio has to file commercial activity tax. Now, if you create at least 10 jobs within a period of three years with a specified minimum annual payroll, then your company will be eligible for this tax credit.
• DataCenter Tax Exemption – This is one of the top Ohio small business incentive programs. If you open an IT infrastructure company or a data center (physical facility) that houses servers, routers, storage systems, firewalls, and application-delivery controllers, then this tax exemption will be beneficial. This is also known as the Ohio Data Center Tax Abatement program. You will need to qualify for this exemption first. It will provide a sales-tax exemption rate as well as a term which may offer a partial or full sales-tax exemption on purchases related to eligible data center equipment. The approval for this tax exemption is provided by the Ohio Tax Credit Authority.

Ready to Start a Business in Ohio?

Whether you start a sole proprietorship or a limited liability company, every business needs some amount of financial assistance upfront or in the operational stages. Ohio small business grants can provide you with the required initial funding. There are a variety of incentive and funding programs implemented in the state that provide Ohio small business loans as well.

Ohio Business Tax

Most forms of businesses, like LLCs and corporations, may be required to file annual tax returns at the federal and state levels. When we talk of Ohio business tax, then it is important to understand that this does not refer to a single tax but several forms of taxes that are levied on various entities within this state. Business taxes, in general, are small charges that the state or federal governments place on the earnings, profits, or capital of a business. Some taxes will have a flat rate, while for some taxes, you may need to use the Ohio business tax calculator. There is no one tax for all business entities, but taxes may vary according to entity structure, activity, earnings, and even location.

What taxes do businesses pay in Ohio?

Entrepreneurs consider the state of Ohio to be one of the best states in which to start a new business. This is more so because of several factors, including strategic location, rich history, robust transportation infrastructure, talented workforce, and diverse culture. On top of this, businesses can benefit from tax credits and other forms of small business incentives, including the Ohio Opportunity Zones Tax Credit. One of the salient advantages of incorporating in this state is that there are corporate income tax or Ohio Corporation taxes.

Commercial Activity Tax (CAT)

The Ohio commercial activity tax (CAT) is the most important state tax that new and existing businesses are required to file. This is also known as an annual privilege tax that is measured based on taxable gross receipts emerging from most forms of business activities. This can be categorized as Ohio LLC Taxes or corporation taxes as it is levied for the privilege of doing business in the state of Ohio.

Sales and Use Tax

One of the important Ohio corporation taxes or LLC taxes is the sales tax as well as the use tax. According to the 2022 Ohio Revised Code, Title 57 – Taxation, OH Rev Code § 5739.01 (2022), essentially, sales tax will be levied on individuals and businesses that are involved in selling, buying, or using tangible personal property. It is also applicable to certain services like laundry and dry cleaning services, private investigation and security services, and telecommunications services, among others. The sales tax rate state-wide is 5.75 percent, although certain cities, counties, or even local or municipal authorities may choose to apply additional sales and use tax rates that vary from 0.75 to 2.25 percent.

Local Ohio taxes

Apart from the use tax, several different forms of local taxes may be applicable to businesses operating in this state. The local Ohio business tax will vary according to the business activity.

Are you thinking of forming a new company in Ohio?

How are Ohio Businesses taxed?

Whatever entity structure you prefer to operate in the state of Ohio, one of the foremost annual requirements will be that of filing Ohio business tax returns. There are different types of taxes that any new or existing company may be required to file, although the good news is that Ohio corporation taxes, like the corporate income tax, are nonexistent in this state. You may be required to file more than one form of tax return, depending on the business activity and location. Let us look at the various entities and their tax obligations in Ohio.

Taxes for an LLC

If you are planning to start a limited liability company in Ohio, it will be considered a pass-through entity for taxation purposes, and hence, Ohio LLC taxes or state taxes will not be applicable. This simply means that the income will pass through to the owners and other members, and they will have to file individual income tax returns. It is important to note that Ohio has a progressive income tax.

Taxes for a C Corporation

If you are considering establishing an Ohio C Corporation, your company will be subject to the Ohio Commercial Activity Tax (CAT). This is a type of annual privilege tax that applies only if the taxable gross receipts from most business activities are more than $150,000.

Taxes for S Corporation

If you elect S Corporation tax status in Ohio, although it will not be subjected to corporate income tax but is a pass-through entity, the owners or shareholders will be required to file personal income tax. An S Corporation will be subjected to Ohio commercial activity tax (CAT) as well. This is a type of mandatory tax, although applicable only if the gross receipts of the said company are more than $150,000 annually.

Taxes for a Sole Proprietorship

One of the easiest businesses that you can form and operate in Ohio is a sole proprietorship. A sole proprietorship is a single owner-run business and is, hence, considered to be a small business. As a sole trader, your business will be subjected to Ohio commercial activity tax, as this privilege tax applies to all types of entities formed in this state. Apart from this, you will also be required to file graduated individual income tax with the rate varying from 2.765 percent to 3.990 percent. The taxes for a sole proprietorship are quite similar to that of Ohio LLC taxes, and hence you may be required to file local taxes like the sales tax or the use tax.

Taxes for Partnerships

If you form a partnership company in the state of Ohio, then such a company will be required to file taxes similar to Ohio LLC taxes. Ohio treats partnerships as pass-through entities, and hence partners or owners will be required to file their individual tax returns based on the income earned by the said business. A partnership company will be required to file Ohio commercial activity tax if its gross receipts are over $150,000. They will also be subjected to withholding taxes if the company has employees. Locally, sales and use tax may also be applicable.

Ready to Incorporate your Ohio Company?

You can form different types of entities in Ohio, from a partnership company to a C Corporation. You can also elect for S Corporation status. The new business formation process can be exhaustive depending on the type of structure you choose. You will also need to file all applicable Ohio business taxes each year. IncParadise, one of the top incorporation service providers in the state, can provide you with meaningful assistance. We can help to register your LLC or corporation in Ohio.