Doing Business As or DBA in Ohio

Ohio is home to several small companies, startups, home-based businesses, and even medium-sized enterprises that have successfully sustained themselves and are earning profits. You can also choose from various structures like partnerships, LLCs, and sole proprietorships, among others. When you decide on the structure, the next step will be to choose a business name under which your company will operate. You can either choose to use the owner’s legal name, Sam Anderson LLC or LLP as the business name or proceed with filing a DBA in Ohio like Anderson’s Pizza. If you are wondering how to look up a DBA in Ohio, you must go through a specific process. The first step, though, is to identify the conditions under which you can use a DBA in this state.

What is DBA in Ohio?

Most first-time entrepreneurs often confuse between a DBA name and a traditional business name. Business owners may sometimes ask, why apply for Ohio DBA online instead of reserving a business name with the state? In reality, you can choose to go with either. DBA is the abbreviated form of ‘doing business as’ and is also known as a trade name, fictitious name, or assumed name. It is considered to be a registered name that is different from the legal name of the owner. Most single-ownership companies or partnerships prefer to file an Ohio DBA online application for a new business or start another company connected to the parent company. Let’s look at an example to understand a DBA name.

When do you need a DBA?

A business name is the identity of any company, and without it, no business can operate in the state of Ohio or the nation. Hence, it becomes important to file a trade name in Ohio after ensuring that the said name is compliant with all state laws. DBA is known as a trade name or a fictitious name in the state of Ohio and is governed by the 2023 Ohio Revised Code, Title 13 – Commercial Transactions, Chapter 1329 – Labels and Marks, Section 1329.01 – Registration of Trade Name Definitions – Registration of Trade Name or Report of Fictitious Name.

• Operating Multiple Businesses – Any company, like a corporation or a limited-liability company, may need to operate multiple businesses as a part of its expansion or diversification plan. In such a scenario, the only way to avoid creating separate legal entities for each type of business is by filing a DBA in Ohio. Essentially, the reason why businesses file a trade name in Ohio is to enjoy the benefit of being able to focus on the expansion of the business while minimizing costs and paperwork.

  For Example: Emily Watson set up a corporation or an LLC with a generic name like Emily Watson LLC. She now plans to open several restaurants or an e-commerce store. She will need to conduct an Ohio trade name search and file a trade name application for each restaurant or e-commerce store.

• Your Business Structure – The structure of a business plays a key role in defining the business name. If you establish a sole proprietorship or general partnership company, you can use your own name or legal name. If you don’t want to use your own name, filing an Ohio DBA online application becomes important. A trade name can also be used by other entity structures like limited-liability companies and C corporations.

Filing DBA in Ohio for LLC and Corporation

A DBA (doing business as) is known as a trade name in Ohio. If you want to start a sole proprietorship or a limited liability company and don’t want to use your legal name, then you will need to apply for Ohio DBA online. There is a specific process for filing a trade name, including a name availability search or an Ohio trade name search. The process and the fee may be different from that of the traditional business name reservation process.

Do Ohio Trade Name Search

If you are planning to register a trade name in Ohio, then the first step is to identify a proper name. This will be followed by conducting a DBA name search. If you are wondering how to look up a DBA in Ohio, then we will take you through it, as it is almost the same as conducting a name availability search for traditional business names. There are certain aspects that you need to consider, and they are:

• In order to file a trade name in Ohio, you need to follow the naming rules and regulations as prescribed by the office of the Secretary of State.
• In the state of Ohio, fictitious names are not required to be distinguishable on the records, so it is easier to conduct a name availability search.
• You can also conduct a search for trademarks or federally registered names using the trademark database also known as Trademark Electronic Search System (TESS).

Register your Ohio DBA

Once you have chosen a fictitious name for your company after conducting an Ohio trade name search, the next step is to apply for registration of the name. Registration of a trade name is an important process as it will help notify the general public regarding the existence of your company and also inform them that you are conducting your business under the said assumed name. The process for filing a DBA in Ohio is the same for both domestic and foreign entities.

• Regular Filing (non-expedited)
  P.O. Box 670
  Columbus, OH 43216
  Phone – 614.466.3910

Register your Ohio DBA with ease!

Managing Ohio DBA

Once you apply for Ohio DBA online or offline, it will help facilitate your company’s ability to transact within this state using the said trade name or fictitious name. Each state has its own laws and regulations pertaining to a trade name or DBA. These laws are also applicable for the renewal, changing, or canceling of an assumed name in a specific jurisdiction or state. Let’s look at the various processes applicable to managing Ohio DBA online applications.

How to renew Ohio DBA?

A trade name or DBA (Doing Business As) name is valid for a period of 5 years in the state of Ohio from the date of registration or report of such a name. Normally, the office of the Secretary of State shall notify the company or individuals who have registered reported fictitious names or trade names within the six months preceding the expiry date of the said trade name pursuant to OH Rev Code § 1329.04 (2023). You can file an Ohio DBA online application for renewal or download form 523a – Renewal of Trade Name or Fictitious Name Registration. The form should be accompanied by a Filing Form Cover Letter and a renewal fee of $25. The cost is the same for all entities.

How to change Ohio DBA?

Once you file a trade name in Ohio, it is registered for a period of 5 years. Now, within 1 year, if you want to change the existing DBA, is it possible? Actually, the state of Ohio only allows certain updates to be made to the trade name, such as changing the registrant of the said trade name. This is possible through using the Change of Registrant Name (form 558). If you want to change the DBA name, then you will need to cancel the existing DBA and go through the entire process of applying for a new trade name.

How to cancel Ohio DBA?

If you are asking yourself the question, how do I look up a DBA in Ohio for cancellation, then the answer lies with the office of the Secretary of State! According to the 2023 Ohio Revised Code, OH Rev Code § 1329.08 (2023), the secretary of state can cancel a DBA if they receive a voluntary request in writing for cancellation of the trade name registration from the registrant of record. The form generally used for cancellation is the Name Reservation / Transfer / Cancellation form (form 534b). The cancellation fee is $25.

Need Any Assistance in Filing Ohio DBA?

The process to apply for Ohio DBA online or offline requires you to provide precise information while ensuring full compliance with the 2023 Ohio Revised Code, Title 13, and federal trademark laws. The process of conducting an Ohio trade name search can be quite complex, and this is where IncParadise can assist you. We have expertise and knowledge regarding Ohio business regulations and can help you file an Ohio DBA quickly and efficiently.

Sole Proprietorship in Ohio

There are over 28 million non-farm sole proprietors in the USA today and this includes freelance professionals, independent contractors, and different types of self-employed individuals and economy workers. According to the Internal Revenue Service (IRS), there has been a 1.9 percent increase in this type of entity since 2018-2019. There are several reasons why more and more entrepreneurs prefer to form a sole proprietorship in Ohio, and one of the prime reasons is that of diverse industries. You can create and successfully operate this type of entity in any industry, from advanced manufacturing to aerospace, advanced mobility, logistics & distribution, cybersecurity, financial services, and technology, among others. There are certain other factors that also aid in the growth of a sole proprietorship, like the availability of a talented workforce, a robust startup ecosystem, low business costs, and access to state incentive programs.

What is a sole proprietorship in Ohio?

If you are wondering how to start a sole proprietorship in Ohio, then it’s important to gain some insight into the type of entity it is. A sole proprietorship is also known as an individual entrepreneurship or sole tradership business and has been on the rise as far as new businesses formed in the state of Ohio are concerned. This entity type can be established easily as opposed to other entity types like a limited-liability company or a C Corporation. If you want to start a sole proprietorship in Ohio, then this type of entity will be considered an unincorporated business. This simply means that the owner of such a company will be responsible for any liabilities and profits earned by the said entity. A sole trader business will also have a different type of tax structure and will not be required to file any corporate taxes.

Important features of sole proprietorship in Ohio

When you search for a sole proprietorship in Ohio, you will find that this type of company is always operated independently and managed by an individual. This is considered to be quite a favored structure as it has several promising features and characteristics. Some of the top key features are:

• As a sole proprietor, you will enjoy complete autonomy and full control over your entire business, from strategic to operational processes, including decision-making.
• A sole proprietorship in Ohio will enjoy a higher degree of privacy as such a business is not obligated to disclose confidential reports to state government agencies or authorities.
• When you form this type of entity, since you are the company’s owner, you will not have to share any profits earned by the company, unlike in a corporation or partnership.
• One of the salient features of a sole proprietorship is that it is required to fulfill minimal or basic administrative and filing obligations; thus, documentation in such entities is minimal.
• When you look for the advantages of a sole proprietorship in Ohio, you will find that this type of structure benefits small businesses, including home-based entities.
• The tax structure of a sole proprietorship is quite simple and hence different from that of other entity structures.
• The process of dissolution or closure of a sole proprietorship in Ohio is also quite simple.

Steps to Start Sole Proprietorship in Ohio

One of the most important questions that entrepreneurs are confronted with is how to start a sole proprietorship in Ohio. Although this type of entity is easy to form, certain state and business requirements must be fulfilled to ensure the smooth operation of the company in the long run. Let’s examine the important areas to focus on before starting a sole proprietorship in Ohio.

1. Prepare a business plan

Once you have decided to form a sole proprietorship in Ohio, it becomes extremely important to list every aspect of your business in order to create a clear blueprint. This process is integral to your query of how to start a sole proprietorship in Ohio and will help you identify state resources as well as the operational and financial aspects of the business. The plan will provide a brief overview of every aspect, from the business idea to products or services being offered, unique value propositions, target customers, and competition. The sole purpose of creating a business plan or a strategic plan is to ensure good decision-making and enable maximum resource allocation. Some of the most common aspects of a sole proprietorship business plan are:

• Executive Summary
• Business Concept
• Company Description
• Competition and Market Analysis
• SWOT analysis
• Marketing and Sales Strategy
• Product or Service Line
• Organization and Management
• Operational Plan
• Financial Projections

2. Choose an Ohio business name

If you are planning to start a sole proprietorship in Ohio then one of the first requirements will be reserving or registering a business name. A sole proprietorship company can use the name of the owner as the company name. Such a name will help create a brand image or identity, e.g., if you choose your company name as John Dixon PC Repairs, then your targeted audience will know the type of service you offer. This will help in creating a niche in the market. This will also ensure proper communication of business objectives and the nature of business activity to all present and future customers. It is also important to search sole proprietorship in Ohio for the availability of the chosen name. Here are some easy tips that you can follow while selecting a sole proprietorship name:

• Follow Ohio state’s naming guidelines
• The sole proprietorship name cannot be similar to that of any other company or competitor
• Try to avoid company names that are hard to pronounce or spell
• The chosen name should be easy to remember
• You should consider the products or services being offered when choosing a name
• When you think of a name, ensure it is appropriate and remains relevant as the business grows or evolves
• Always conduct a search for sole proprietorship in Ohio for availability as a domain name for a website
• You can use AI-powered business name generators like Namelix, BrandCrowd, Wix, Renderforest, etc., to create brandable business names

3. File a trade name

You can form a sole proprietorship in Ohio using the owner’s name (your name) as the name of the company. However, if a sole proprietorship company wishes to conduct its business under any other name that is different from that of the owner’s name, then such a company will be required to file an Ohio trade name with the Secretary of State’s office. This is also known as a “DBA” (doing business as) or fictitious name. There are certain aspects to consider while choosing a trade name and name registration. Let’s look at some of them:

• You will need to follow trade name or fictitious name rules and regulations
• Choosing a trade name or Ohio DBA name and filing the application will be governed by OH Rev Code § 1329.01 (2023)
• It is important to ensure that the chosen name is not similar to that of any other company in state database
• Conduct a trade name search or a business entity search
• If your chosen name is available, then file the Ohio trade name application

Do you want to start a sole proprietorship in Ohio?

4. Get EIN

If you start a sole proprietorship in Ohio, then you will have to file personal income tax along with other state taxes. Since a single individual runs a sole proprietorship company as the owner, hence filing of income taxes is done by using a Social Security Number (SSN). Alternatively, obtaining an Employer Identification Number (EIN) can also be quite beneficial. According to the Internal Revenue Service (IRS), there are certain criteria to be fulfilled by a sole proprietorship in order to apply for an EIN, and they are:

• When a sole proprietorship company hires employees
• The company plans to open a business bank account
• If you have a Keogh plan
• You have to file excise tax returns
• When you convert or change the entity structure from a sole proprietorship to a partnership or LLC
• If you file Chapter 7 (liquidation) or Chapter 11 (reorganization) bankruptcy

5. Obtain necessary licenses and permits

When you create a how-to-start a sole proprietorship in Ohio checklist, one of the important state processes to include is that of business licenses and permits. The importance of licensing lies in the fact that it ensures you are able to operate your company or conduct your business smoothly. Different states have different licensing requirements, and Ohio licensing can vary from the state level to the local or municipal level. When you file a sole proprietorship in Ohio, you may need to apply for and obtain the following types of licenses:

• Professional licenses
• Sales Permits
• Vendor’s license
• Local Zoning Permits

6. Open a bank account for your Ohio business

When you start a sole proprietorship in Ohio, one of the most important areas of your business will be financial transactions. More often than not, sole proprietors prefer to use their personal savings accounts to carry out business-related transactions, which can create complexity in the future, especially when it comes to filing taxes. Hence, if you apply for a business checking account, you can maintain a separate account for all company-related financial transactions. This will also ensure proper organization of all expenses, thus making the entire process of getting audited by the IRS easier. If you open a business bank account, it will increase your credibility amongst your clients and suppliers.

7. Report and pay taxes

Generally, the tax requirements would vary according to the business structure chosen and operated. If you form a sole proprietorship in Ohio, then the taxes of this type of entity may be different from those of a corporation. Since it is a single-owner entity, the profits generated will be taxed as personal income. You will be required to file graduated individual income tax, and the rate ranges from 2.765 percent to 3.990 percent. There are certain jurisdictions in the state where local income taxes have to be filed. In order to identify such areas, you will need to search sole proprietorship in Ohio for local taxes. If your business activity focuses on selling certain products or services, then you will have to file sales and use tax as well as Commercial Activity Tax (CAT). You may also be required to file self-employment tax at a rate of 15.3 percent.

Ready to Start a Sole Proprietorship Business in Ohio

If you have made a decision to start a sole proprietorship in Ohio, then it is definitely quite easy to form and operate. You will not be required to register this type of entity with the office of the Secretary of State, unlike other types of entity. It is important to remember, though, that there are several state requirements, including annual compliances, that a sole proprietorship in Ohio needs to fulfill in order to enjoy a good standing with the state.

Business License in Ohio

When you register a company in any state in the USA, the operations of such an entity will be governed by the laws of that particular state. Hence, when you register a business in the state of Ohio, it becomes essential to apply for and obtain an Ohio business license. The importance of this license lies in the fact that it will allow your company to conduct its activities legally within specific jurisdictions or the state like a city or a county. The requirements and process of applying for Ohio business licenses and permits may vary significantly according to the location of the said business. There is also a possibility that your company may be penalized if it conducts its business without proper licenses.

Who needs an Ohio business license?

Entrepreneurs and first-time business owners often choose states that provide them with a good business climate, and Ohio is one such state. Today, Ohio is considered to be an international hub due to the availability of a talent pool, high quality of life, robust transportation and logistics infrastructure, business development support, and innovation investments. If you want to be a part of this growing economy, then you will need to register a company and apply for a relevant Ohio business license. You can form any type of entity, any size of business, and pursue any activity. It is also important to note that you will need to obtain an Ohio business license even if you are a foreign entity planning to expand your business in this state.

What business license do I need in Ohio?

If you have made a decision to form a new company or move your existing business to Ohio, then depending on the jurisdiction where your company is based and the primary activity; you will need to conduct an Ohio business license search. This type of search will enable you to identify the type of permits or business licenses necessary for your company to operate. Most US states require entities to apply for a general business license at the state level, but Ohio doesn’t have that requirement. In fact, when you register your company with the office of the Secretary of State, this process and application becomes a general business license. If you are planning to operate a general partnership or sole proprietorship, then SOS registration is not required, and in such a scenario, you will need to apply for an Ohio business license and permit. Let’s look in detail at the various categories of licenses in this state.

Ohio Business Licenses for Specific Occupations and Professions

Whatever business you start in Ohio, the business activity may be connected to a specific profession or occupation. If the said business activity requires specialized knowledge, formal education, skills, or training, then such an activity will be defined as a profession. Occupations, on the other hand, encompass specific activities or tasks and may not require continuing education, e.g., salesperson. There are certain professions or occupations in this state that require you to apply for a license. You will need to conduct a proper Ohio business license search based on your profession or occupation. Let’s try and understand the types of professions or occupations that require licensing in Ohio.

• Acupuncturist
• Advanced Cosmetologist
• Architect
• Certified Chemical Dependency Counselor
• Certified Public Accountant (CPA)
• Certified Residential Real Estate Appraiser
• Commercial Fisherman
• Dental Hygienist
• Merchant Marine
• Lawyer
• Engineer
• FAA License
• Electrical Contractor
• Professional Surveyor
• Professional Counselor
• Private Investigator
• Social Worker
• Veterinarian

Other Ohio Business Licenses

Apart from professional and occupational licenses, a business in the state of Ohio may require other licenses. Sometimes, a company may need multiple licenses and permits. In order to determine the permits required by your company, you must conduct an Ohio business license search. So, let us take a look at some of the other licenses and permits that may be relevant to making your business operational in this state.

Vendor license/Seller permits

When you register a new company in the state of Ohio, you will need to apply for certain types of licenses. A vendor license is an important type of permit that is mandatory for entities that make retail sales of tangible personal property or provide some form of taxable services. Such an entity needs to obtain an Ohio business license and this process is also known as sales tax registration. There are three types of vendor licenses in the state, and they are:

• County Vendor’s License – A County Vendor’s License is required by entities having a fixed location of business for selling taxable services or goods. This type of Ohio business license is issued by the County Fiscal Officer. You will be required to fill and submit form ST 1 – Application for Vendor’s License to Make Taxable Sales, along with a fee of $25. The form and payment is the same for all counties.
• Transient Vendor’s License – If a company or vendor transports their goods to a temporary place of business within a county and sells from the temporary location, then a transient vendor’s license is required. The Department of Taxation issues this type of Ohio business license and permit. You will have to fill and submit the form ST 1T – Application for Transient Vendor’s License along with a fee of $25. The form and payment for this license are the same for all counties.
• Service Vendor’s License – There are certain services considered to be taxable, and if your company offers such services, then you will be required to obtain an Ohio business license for them. The taxable services include landscaping and lawn care service, automatic data processing, taxable telecommunications service, exterminating service, computer services or electronic information services, information service (I-900 telephone calls), employment service, private investigation and security services, building maintenance and janitorial service, and employment placement service. The Department of Taxation issues this license, and there is a filing fee of $25.

Local Ohio business licensing and permits

Once you have formed a business in Ohio and it is located in a specific city or county, then you will need to check, identify, and obtain local licenses. This is separate from the vendor’s license. Each city or county has its own laws pertaining to permits and licenses. You also need to conduct an Ohio business license search for zoning permits and regulated licenses. The type of license, fee, and renewals will vary from one county to another. Let’s look at an example to understand how to obtain a license and permits from a specific county.

Ohio home-based business license

If you are thinking of starting and running a company from your residence, you will save thousands of dollars in overheads and other operational costs. At the same time, it is important to conduct an Ohio business license search for your home-based business. The regulations and license requirements may vary according to the business activity and the company’s operational jurisdiction.

Need any Assistance in Obtaining Your Ohio Business License?

If you are planning to register a new company in Ohio, then it is absolutely essential to obtain the right Ohio business license and permits, as they will allow you to transact in this state. The type of licenses will vary according to the location of your company and primary business activity. The application, fee, and laws for an Ohio business license will vary according to the license type, jurisdiction, and issuing authority.

Ohio Business Entity Search

When you are planning to start a new company in Ohio, you will need to choose a structure first. The entity structure plays a crucial role in defining several aspects of incorporation or business formation and takes into account the governing laws or Ohio business name rules. Most states, including Ohio, would require you to reserve or register your business name with the office of the Secretary of State. There is a process for the same and includes:

• Identifying a business name
• Conducting an Ohio business name search
• Reserve the name if available

• It is important to follow Ohio business name rules or governing laws while choosing a name
• Check your state’s laws for a restricted word list. Such words cannot be used in the name
• Don’t use a name that is similar to another entity’s name
• You can conduct an Ohio business name search to check the similarity with other names
• Choose a name that can be pronounced easily, like “Jimmy’s Kitchen”
• Your company name should convey a business purpose or activity like “Alice AutoRepairs”
• Try to keep a company name that is consistent with your brand
• You can use business name generators easily available online
• Your chosen name should not in any way cause trademark infringement
• You can go with a traditional business name or opt for a DBA (doing business as) name
• Ensure your chosen name is web-friendly, and domain name is easily available

What is an Ohio business name search?

It all starts with a business name. Whether you are in the ideation phase or have decided to launch a new company, either way, the foremost step would be to identify a business name as it will become the cornerstone of your brand. It is a known fact that a business name has the power to influence certain assets and aspects of any business as they enable the growth of brand equity. Once you have identified a name, an Ohio business name search will help you determine whether your chosen name is unique or not. This is also known as the Ohio business name availability search. Let’s look at an example to understand how this process really works.

Naming your Ohio LLC

If you have taken a decision to start a limited liability company in Ohio then the first move should be towards choosing a company name. The chosen name is what the LLC will be identified with during formation, branding, and marketing among others. This will be the official as well as the legal name of the entity. This name will be mentioned in the articles of organization as well as other important business related documents. Hence, it becomes important to ensure that the chosen name complies with the Ohio business name rules and guidelines. You must also reserve the business name after conducting a proper Ohio LLC name search. There are important aspects to consider when it comes to naming your limited liability company, as mentioned below.

General Ohio LLC naming rules

It is imperative to follow Ohio business name rules and guidelines, as not adhering to these laws may lead to the cancellation of the said name. The naming of your limited-liability company is governed by the 2022 Ohio Revised Code, Title 17 – Corporations-Partnerships, Chapter 1706 – Ohio Revised Limited Liability Company Act, Section 1706.07 – Naming of Limited Liability Company. The general rules for an LLC name are:

• The chosen name should be distinguishable from the name of any other entity on the records of the secretary of state like any domestic or foreign limited liability company. You can check for distinguishability by conducting an Ohio LLC name search.
• The chosen name should also be distinguishable from the name of any domestic or foreign corporation, limited liability partnership, and limited partnership pursuant to OH Rev Code § 1706.07 (2022).
• If you plan to use a name in a foreign language, then it should not conflict with the English translation of such a name. For example, “Le Café de la Montagne” means “The Mountain Cafe” when translated into English. However, Le Café de la Montagne will not conflict with any previously registered businesses that have been named “The Mountain Cafe.”
• Ohio business name rules also state that a company cannot use words restricted by the state, and this includes:
  • A name that contains profanity
  • A name that improperly implies the said business is affiliated with a government agency like the N.S.A
  • Certain words, such as banking, bank, trust, etc., should not be included in your business name without prior approval.

Search LLC name availability on the Ohio Secretary of State’s website

Once you have identified a name that is in compliance with the state laws, the next step is to conduct an Ohio business entity search or name availability search. The website of the Ohio Secretary of State offers a simple and single online search option for conducting this search. Let’s look at how this search is conducted.

Search by company name or any name

This is the only method for conducting an Ohio LLC name search. You can search for a company name that is starting with a specific word or a phrase. You can conduct this search without using a designator like LLC as the database will reveal names of every type of entity. You can choose to search for all entities, active entities only, and canceled and dead entities only. Let’s look at an example to understand this process.

Do you want to form an LLC in Ohio?

Naming your Ohio Corporation

There are a variety of entities that you can form in the state of Ohio, and one of the most popular is a business corporation. If you are planning to establish a corporation, then it’s time to choose a name, which will be the primary identifier of your company in the near future. You have to follow Ohio business name rules and guidelines as governed by the 2022 Ohio Revised Code, Title 17 – Corporations-Partnerships, Chapter 1701 – General Corporation Law, Section 1701.05 – Corporate Name – Transfer – Reservation. You will need to conduct an Ohio Corporation name search to also ensure the chosen name is available for reservation. Let’s look at the various aspects to consider when naming your new company.

General Corporation naming rules

The Ohio business name rules vary according to the type of entity structure, and hence the guidelines for corporations will differ from that of a limited liability company. It is important to follow the state business name rules and regulations, as this will minimize the risk of your chosen business name getting rejected. It is necessary to also conduct an Ohio Corporation name search to check for the availability of the chosen name. Otherwise, you will not be able to reserve such a name. The general rules for a corporate name in Ohio are:

• If you are planning to establish a C Corporation, your chosen name should contain words like “corporation,” “incorporated,” “limited,” or “company.”
• The name may also contain abbreviations like “corp.”, “inc.”, “co.”, or “ltd.,” pursuant to OH Rev Code § 1701.05 (2022)
• If you are starting a traditional C Corporation, then the name should not contain the word “benefit”
• The name should be unique and distinguishable from the name of any other company operating in the state, and you can check this by conducting an Ohio business name availability search
• You should also check the list of restricted words, especially those associated with specific professions or industries, such as banking or insurance.

Search Corporation name availability on the Ohio Secretary of State’s website

Once you have finalized a name for your corporation, the next step is to conduct an Ohio business entity search. The website of the Ohio Secretary of State offers you access to conduct this type of search for both domestic and foreign corporations. Let’s look at how a corporate name search is conducted.

Search by corporate name or any name

This is the only option available for conducting an Ohio Corporation name search. It is fairly simple and can be carried out by using a specific name or abbreviation. You can conduct this search without using a designator like Inc. or Corp., as the database will reveal the names of all entity structures. You can choose to search for all entities, active entities only, and canceled and dead entities. Let’s look at an example to understand this process.

Are you thinking of registering for a corporation in Ohio?

Need any Assistance in an Ohio Business Name Search?

The name of a limited liability company or that of a corporation will be at the company’s core. The contribution of a business name to any company is significant as it helps introduce the company to probable customers. Such a name is also required to carry out all business-related work and documentation, including getting business licenses. Hence, it’s important to choose the right name for your company and an Ohio business name search will help you to do just that. This process looks laborious and this is where IncParadise can provide meaningful assistance.

Ohio LLC Annual Filing Requirements

The annual requirements for limited-liability companies being formed in Ohio will be governed by the 2022 Ohio Revised Code Title 17 – Corporations-Partnerships, Chapter 1706 – Ohio Revised Limited Liability Company Act. The Ohio LLC annual requirements may be different from those of other forms of entities like sole proprietorships, Corporations, and partnerships. If you start a limited liability company in this state then the important annual requirements are categorized as under.

No annual report for Ohio LLCs

The annual report as required by most states in the USA, should not be confused with the financial statement released by companies at the end of a financial year. This report is a type of basic information record that contains facts related to your company like names and addresses of your registered agent as well as members or managers. It is often considered to be a comprehensive report regarding the activities of a limited liability company throughout the preceding year. The LLC annual filing in Ohio laws doesn’t require you to submit any annual report. It is simply not required for a traditional LLC, but if you form a domestic Professional LLC then you will have to be compliant with the Ohio LLC annual requirements for a yearly report.

Ohio LLC Taxes

Ohio LLC taxes are an important annual requirement for all new and existing companies in this state. A limited liability company is considered a pass-through tax entity. Hence, federal income tax for the LLC actually passes through from the company to the individual members. The end result is that the limited liability companies don’t pay any federal income taxes. Instead, the members have to file the same on their individual tax returns. Apart from this, as a part of Ohio LLC’s annual requirements, the company may be subjected to a variety of state taxes:

• Commercial activity tax (CAT) – One of the important Ohio LLC taxes is the commercial activity tax, also known as the annual privilege tax or even franchise tax. This tax will be applicable if the taxable gross receipts of a limited-liability company doing business in Ohio are more than $150,000.
• Ohio employer tax – The laws pertaining to LLC annual filing in Ohio may require you to file state employer taxes, which are also known as payroll taxes. LLCs in Ohio are obligated to collect, report, remit, and document taxes that have been withheld from employees. This simply refers to the fact that employers conducting business in Ohio are responsible for withholding individual income tax from the salary of their employees. The percentage of wages being withheld is 6.2%.
• Sales and Use Tax – The third important tax as part of Ohio LLC’s annual requirements is the sales and use tax. The statewide sales tax base rate is 5.75 percent, and regional transit authorities and counties may levy additional sales or use tax as applicable. The maximum local sales tax rate, however, is 2.25 percent.

Ohio Corporation Annual Filing Requirements

Once you establish a corporation in Ohio, you must adhere to Ohio Corporation’s annual requirements. These requirements have to be fulfilled in order to maintain good standing in the state. These requirements can vary according to the type of domestic or foreign corporation you form. Corporation annual filings and requirements are governed by the 2022 Ohio Revised Code, Title 17 – Corporations-Partnerships, Chapter 1701 – General Corporation Law. If you start a business corporation in this state then the important annual requirements are categorized as under.

No annual report for Ohio Corporations

In most US states, business entities, including corporations, have to file an annual report, which is also known as a statement of information, periodic report, or biennial report. There are, however exceptions like Corporation annual filings in Ohio states that there is no requirement for this type of entity to file a yearly report. The importance of a yearly report lies in the fact that this short document provides information pertaining to the owner of the company, products or services being sold, and other relevant information.

Ohio Corporation Taxes

One of the greatest benefits of incorporating in Ohio is that the state does not have any corporate income tax, unlike in many other states in the USA. However, the state does have what is known as the Corporation Franchise Tax, which is considered one of the foremost Ohio Corporation taxes. Let’s take a look at some of the applicable taxes in the state for business corporations.

• Ohio Income Tax – If anyone earns from the corporation, such as shareholders, they will be required to file Ohio income tax. The state’s standard rates are applicable, and they range from 2.765 percent to 3.990 percent, varying according to the amount of taxable income.
• Sales and Use Tax – This is one of the important Ohio Corporation taxes, and the current sales tax rate statewide is 5.75 percent. The sales tax will be applicable if you are selling physical products like books, electronics, appliances, furniture, etc. It also applies to certain services like Lawn Care Services or Exterminating Services. The use tax is one of the important Ohio Corporation annual requirements but is applicable only if you purchase any physical products from outside the state for use within the state. The use tax rate is a maximum of 2.25 percent, while the combined average sales and use tax rate in Ohio is 7.24 percent.
• Commercial Activity Tax (CAT) – This tax is a part of the Corporation’s annual filings and will be applicable to your corporation if the gross receipts in a calendar year are more than $150,000. It will also be applicable to out-of-state corporations with Ohio-based gross receipts amounting to more than $500,000.

Need any Assistance in Ohio LLC or INC Annual Filing?

Annual requirements, also known as annual compliances, vary from one state to another, although certain requirements remain the same. Although Corporations or LLCs’ annual filing in Ohio doesn’t mandate the filing of annual reports, certain taxes are required to be filed. If you need detailed information pertaining to taxes or annual reports in Ohio, IncParadise can assist you with the same.

Ohio LLC or Corporation

The state of Ohio is quite popular when it comes to starting a new business. Apart from the low forming cost for Ohio Corporation, the state offers just the right business climate. The state has project-ready sites for new businesses as well as those wanting to relocate to Ohio. A modern logistics and distribution infrastructure, along with skilled workforce training programs and an extensive array of small business incentive programs, provides Ohio with an edge for businesses looking towards growth and sustainability. You can choose to form an LLC or a corporation, although you will need to consider several factors before registering an entity. The overall annual maintenance cost of Ohio Corporation or LLC, tax consequences, and state laws should be taken into consideration before the incorporation process.

Which business entity should I choose for the Ohio business?

If you have a business idea that you want to transform into a working business model then the first step would be to identify an entity structure. There are several different structures that you can form in Ohio, from a sole proprietorship to a limited liability company. Each type of entity has its own advantages and disadvantages, and you need to identify how beneficial a particular structure is to the operations of your company. You will need to focus on the cost perspective, like the cost to form Ohio LLC or the total cost towards the formation and operations of a specific entity. The two most popular forms of business are corporations and limited-liability companies, and a comparative analysis of LLC vs Corporation in Ohio can be quite useful. Let us look at some of the features that will help you identify the type of company you can form in this state.

• Pass-through taxation – This is a great advantage and plays a key role in terms of taxes. If an entity has the pass-through taxation feature, then the profits and losses of such a company will essentially “pass-through” to the personal income of the owners. In a nutshell, the company will not be filing any federal taxes, but the owners of the company will have to file an income tax return.
• Limited Liability Protection – The second most important area to focus on is limited liability. Limited liability is a type of legal protection for owners of a certain type of entity, and it prevents owners or individuals of such entities from being held responsible for the company’s financial losses or debts.
• Ownership – Ownership is a key area as different types of structures have different ownership requirements and laws. For example, a C Corporation will have several shareholders considered the owners, while an LLC can have a single owner or multiple owners.
• Startup costs – Formation and operational costs can vary from one state to another and also according to the type of entity structure. For example, the cost to form an Ohio Corporation will be higher than the cost to form a sole proprietorship company. Simultaneously, operational costs will take into account the cost of licenses and permits, employees, marketing, etc.

Pros and Cons of Forming an LLC or Corporation in Ohio

The structure that you choose for your company will play a key role in influencing the formation, operations, taxes, and annual requirements in the state. The Ohio LLC cost per year or that of a corporation is one important cost component and needs to be considered when choosing the structure. If you are planning to form an LLC or a corporation in Ohio, then let’s quickly take a look at the various pros and cons of each structure, including the cost of forming an Ohio Corporation or an LLC.

Pros of an LLC or Corporation

• Members of a Limited Liability Company can choose how they can be taxed.
• An LLC can be treated as a partnership, corporation, or sole proprietorship from a tax perspective
• If you compare LLC vs Corporation in Ohio, then an LLC enjoys higher operational flexibility as compared to a corporation
• A limited liability company can be managed by a single individual or a group of people known as members
• A corporation can issue stock or shares, which act as a source of capital for handling company operations
• It is easy to attract investors or seek funding from venture capitalists in case of a corporation
• In a corporation, employee compensation can be in the form of stock options
• The cost to form Ohio LLC is lower than in most other states as you are not required to file an annual report in the state

Cons of an LLC or Corporation

• Corporations are known to have a rigid management structure as they need to have a board of directors and are required to hold annual shareholder meetings.
• Corporations are subject to double taxation, which means that income taxes must be paid twice on the same source of income.
• Corporations have a higher administrative burden as they are required to file extensive paperwork and maintain additional compliance with Ohio regulatory requirements.
• It is very difficult for an LLC to seek outside investors, and this type of entity cannot issue shares.
• Depending on the state of formation, LLC members are subjected to self-employment tax.

Ohio LLC Cost

One of the most favored entity structures in this state is a Limited Liability Company, and this is due to its salient features. If you want to register an LLC, then it is important to identify the cost of forming an Ohio LLC in advance. Let us take a look at the various expenses that you may incur in this state.

Cost for forming an Ohio LLC

The Ohio LLC cost per year takes into consideration one-time fees as well as recurring expenses. These are:

• The process of LLC formation and fee may be different from that of other entity structures in the state of Ohio. The first important cost is towards filing the Name Reservation / Transfer / Cancellation Application. There is a fee of $39.
• According to state laws, you must hire and maintain a registered agent for the service of process. The cost or fee will vary depending on the RA service you choose.
• The third and most important cost is forming Ohio LLC. You will have to file Articles of Organization along with a $99 filing fee. An additional fee is charged if you want to expedite the process.

Annual maintenance cost for Ohio LLC

Once you have registered a limited liability company in the state of Ohio; it is important to maintain compliance with all state annual requirements. The Ohio LLC cost per year for annual maintenance includes:

• Annual Report – Currently, a limited liability company in Ohio is not required to file an Annual Report, so there are no costs attached to this. If you form a Professional LLC, you will need to file a Biennial Report. The Ohio LLC cost per year or every two years will be $25.
• Taxes – A limited liability company in Ohio is required to file various taxes. Since the taxes have to be filed each year, filing them is an important component of the cost of forming an Ohio LLC and annual maintenance.
• Business Licenses – One of the important Ohio LLC costs per year is business licenses. This is a recurring cost, as licenses and permits have to be renewed each year. The fee will vary according to the license type and the number of licenses or permits an LLC requires.

Form your new LLC in Ohio Today!

Ohio Corporation Cost

Most often, entrepreneurs prefer to incorporate in Ohio as this structure provides distinctive leverage over other legal structures in the state. If you are planning to establish a corporation, there will be two types of costs: the cost to form an Ohio Corporation and annual costs. Let us look at the different cost components for an Ohio Corporation.

Cost of Forming Corporation in Ohio

The cost to incorporate in Ohio is driven by several processes and is also dependent on whether you want to establish a domestic entity or a foreign company. The important costs related to incorporation in this state are:

• The first component of the cost to form an Ohio Corporation is name reservation. You will need to file the Name Reservation / Transfer / Cancellation Application. There is a fee of $39.
• You will also need to hire and maintain a registered agent for the service of the process. The cost or fee would vary according to the service chosen by you.
• The most important forming cost for Ohio Corporation is that of registration. You will have to file Articles of Incorporation along with a fee of $99. If you want to expedite the process, then there will be an additional fee varying from $100 to $300.

Annual maintenance cost for Ohio Corporation

Apart from the initial cost of forming Ohio Corporation, there will be other costs associated with the annual maintenance of your company. The costs involved are as follows:

• Annual Report – Currently, a corporation in Ohio is not required to file an Annual Report. If you choose to form a Professional Corporation or a Nonprofit Corporation then such a report becomes necessary. The annual maintenance cost of Ohio Corporation will be $25 for a Biennial Report or a Statement of Continued Existence.
• Taxes – A corporation in Ohio will be required to file different types of taxes. The type and tax rate will vary according to business activity.
• Business Licenses – Once you incorporate in Ohio, you will need to apply for and obtain business licenses and permits. The licenses have a cost component, which is considered a yearly recurring cost as they have to be renewed.

Register a Corporation in Ohio with ease!

Need any Assistance in Forming Your Ohio LLC or Corporation

Every business owner or entrepreneur has a different set of requirements when it comes to choosing an entity structure. The two most popular structures are that of a limited liability company and a corporation. The cost of forming an Ohio LLC or corporation and the annual maintenance costs may vary depending on several factors. We at IncParadise can provide valuable assistance by handling requirements pertaining to new business formation or incorporation in this state.