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How to start an LLC in Arizona

Date: 11/05/2024 | Category: | Author: developers

How to start an LLC in Arizona

Arizona is quite popular amongst first time business owners as it has a very pro-business environment as well as regulations. You can form several types of businesses in the state although entrepreneurs prefer to start an Arizona LLC. A limited liability company provides a variety of advantages from the ownership as well as operational perspective. Hence, we have created this article to provide you all necessary information that will help you to fulfill your Arizona LLC filing requirements. The article covers areas like registration process, business name, business licenses and permits, operating agreement, and LLC bank account among others.

LLC in Arizona

If you have a business idea and want to start a company then a limited-liability company would be a good choice in terms of structure. You can opt for Arizona LLC filing online or offline. Apart from advantages to this type of entity structure, you can even leverage state business incentive programs. The state of Arizona provides several useful and important resources that will assist you to grow your business and minimize initial startup costs. The state is home to diverse industries and so you can file an LLC in Arizona for any of the top and advanced industries. The state is also home to innovation hubs, technology parks, and research centers that encourage collaboration amongst existing and new businesses.

What is Arizona LLC?

An Arizona limited liability company (LLC) is a type of corporate structure that protects its owners in many ways. As the name suggests, this type of private company limits the possibility of its members or owners to be held personally liable for the debts of the company. When it comes to taxes, the IRS defines a limited-liability company as a “pass-through entity”. This is also known as a flow-through entity and it simply means that the individuals will be taxed on the revenue and not the entity or LLC. You can start an Arizona LLC in the form of a single-member LLC or a multi-member LLC.

Benefits of forming an LLC in Arizona

An Arizona limited liability company has lower formation costs as compared to those formed in several other states. The formation and operations are governed by the Arizona Revised Statutes. If you want to file an LLC in Arizona then it is important to identify the benefits of this type of structure. Let’s look at some of the top advantages:

  • Limited Liability – If you are planning to file an Arizona LLC application then one of the top advantages of this structure is a limited liability protection. This simply means that the private assets of owners and members will be protected if the LLC incurs a debt or faces a lawsuit. The personal assets cannot be seized when there is a legal claim.
  • Separate legal identity – One of the salient highlights of a limited liability company (LLC) is that it is separate from its owners. When you file an LLC in Arizona, it will have its separate legal identity, rights, liabilities, and responsibilities. The company will also be able to purchase, own, and even use its own personal or real property.
  • Perpetual existence – One of the less talked about advantages of an LLC is perpetual existence. This means that if the owner or member of an LLC retires or dies then this will not trigger a dissolution. The LLC will not cease to exist or operate. It will exist unless specified in the article differently.

Start an LLC in Arizona

Once you have taken the decision to form a limited liability company, there are several processes and steps to consider. You can opt for Arizona LLC filing online in accordance with the state laws. You will need to fulfill different Arizona LLC filing requirements in order to conduct business in this state with ease. Let’s take a look at some of the important aspects of starting your LLC in this state.

1. Choose Arizona LLC name

If you have a strong business idea then it’s time to establish a company. If you want to form a limited liability company then conducting an Arizona LLC search for a business name becomes important. This is because the name of your company will play a key role in registering the business, applying for licensing and permits, and for marketing and branding. The chosen name will be the identity of your business.

When thinking of a name, it is important to ensure it is compliant with the 2022 Arizona Revised Statutes, Title 29 – Partnership, § 29-602 Limited liability company name. Some of the Arizona LLC filing requirements for a business name will include –

  • According to AZ Rev Stat § 29-602 (2019), the name of a limited liability company should contain the words like “limited liability company” or “limited company”. It may also contain abbreviations like “LLC”, “L.L.C.”, “LC”, or “L.C.”.
  • The state provides a list of restricted words and you need to ensure such words are not used in the business name as a part of Arizona LLC filing requirements for name reservation.
  • The company name should be unique or distinguishable from any other name in the records of the state. This is possible through conducting an Arizona LLC search also known as name availability search.

If the chosen business name is available then you need to file the “Application To Reserve Limited Liability Company Name” along with a filing fee of $10. The fee for online name reservation is $45.

2. Choose Arizona LLC registered agent/statutory agent

If you want to file an Arizona LLC application or register your business then you will be required to follow Arizona statutes. One of the important laws is to hire and continuously maintain an Arizona LLC registered agent pursuant to AZ Rev Stat § 29-604 (2019). The primary role of your registered agent in this state will be to provide service of process.

IncParadise can be your Arizona LLC registered agent in the state. We are committed to providing service of process as well as all important services like assisting with Arizona LLC filing online and helping you fulfill other state annual requirements like submission of annual reports.

3. File an Article of Organization

Once you have reserved your business name and hired an Arizona LLC registered agent in this state, the next step is to register your business. You can opt for Arizona LLC filing online or even submit a paper form offline. In order to form a limited-liability company, you will need to submit the Articles of organization pursuant to AZ Rev Stat § 29-632 (2019). The articles have to be submitted with the Arizona Corporation Commission – Examination Section along with a fee of $50. It is important to note that you will need to also submit the Statutory Agent Acceptance (form M002) along with the Articles of Organization.

Form an Arizona LLC Today!

4. Prepare Arizona LLC operating agreement with the Arizona Corporation Commission

An Arizona LLC Operating Agreement is one of the important business documents for any limited liability company – domestic or foreign. If you want to start an Arizona LLC then it is essential to draft this document. It is a legally binding agreement where-in the organizational structure of your business will be established. This document also sets forth other procedures that the LLC will be required to follow like operating procedures, decision-making processes, and management structure. The Arizona Revised Statutes provides a brief insight into the LLC operating agreement and is governed by AZ Rev Stat § 29-682 (2019). This is an internal document and is not submitted with the state. Some of the important sections that the agreement includes are as follows:

  • Statement of intent
  • Members’ ownership or ownership percentages
  • Duty of members and member benefits
  • Management and their powers and responsibilities
  • Distribution of profit and loss
  • Voting rights
  • New member admissions
  • Tax considerations
  • Transfer provisions

5. Complete publication requirements

Once you file an LLC in Arizona, it is important to issue a notice of existence of the said limited liability company. This is also known as the publication requirement and includes a short summary of key LLC information. You will need to publish this information in a local newspaper prior to transacting business in this state. This requirement is governed by AZ Rev Stat § 29-3201(G). You will have to publish this notice within 60 days of receiving the approval letter. It is also important to note that this notice has to be published in 3 consecutive issues of an ACC-approved newspaper like the Arizona Daily Sun especially in the county or city where your registered agent is based.

6. Obtain EIN for Arizona LLC

An Employer Identification Number (EIN) is a unique nine-digit number that is assigned to an Arizona limited-liability company by the Internal Revenue Service (IRS). It is also known as the Federal Employer Identification Number (FEIN). A single-member LLC may not be required to apply for this number or if the said LLC doesn’t have any employees. Once you start an Arizona LLC, you will need to file different business or state taxes and the EIN will be required for filing the same.

Do you want to obtain an EIN in Arizona?

7. Check local licenses and permits

Once you file an LLC in Arizona, it is time to make your business operational. Legally, this would be possible only if you possess the necessary state licenses and permits. Some states have general state licenses but Arizona doesn’t have any statewide general licenses. Instead, operating in this state will require you to apply for a variety of licenses or permits. You can conduct an Arizona LLC search for types of licenses based on your occupation and location. Your company may require a single or multiple licenses based on certain factors. Let’s take a look at the applicable licenses in this state.

  • Transaction Privilege Tax License – This type of license is also known as a sales tax license or vendor license. When you start an Arizona LLC and if your primary activity revolves around selling, wholesale, or vendor then you will need this license. Products sold or services rendered by you will be subject to transaction privilege tax in the state.
  • Professional or Occupational License – You may be required to apply for a professional or occupational license in the jurisdiction you are operating from. This is applicable if your business activity focuses on a specific profession or occupation. It is important to remember that different boards or government agencies are responsible for issuing licenses based on profession. For example – if you file an LLC in Arizona as a law firm then the Certification and Licensing Division of the Arizona Judicial Branch will be responsible for issuance of the relevant licenses.
  • City or County License – Whether you opt for Arizona LLC filing online or offline, you may be required to apply for local licenses. The type of license will vary predominantly according to business activity and location or jurisdiction. For example – If you start a public service franchise in Maricopa County then you will need to obtain a business license pursuant to A.R.S. §40-283. This license will be issued by the Maricopa County Clerk of the Board.

The Arizona LLC filing requirements for business licensing including the application process may be quite extensive for a first time entrepreneur. A top Arizona LLC registered agent like IncParadise can provide meaningful assistance through the “Business License Research Report” service. This is basically a detailed report containing a list of filing instructions, supporting document requirements and fees for all business licenses and permits in this state.

8. Open Arizona LLC bank account

Banking is crucial to businesses. Many business owners prefer to use their personal bank accounts to accept and make payments, which can be troublesome especially in the tax season. Maintaining a personal savings account can be quite inconvenient too as it will be difficult to separate personal and business expenses. Hence, it is highly recommended to open a separate business bank account before or after you file an Arizona LLC application. This will help make your LLC tax preparation smooth by automating bookkeeping.

Now, you can even open an LLC account online through Cheqly. This account can be opened remotely and the salient benefit is that it is a US business bank account. This business banking account works just like any other checking account. You can also use their physical or virtual debit cards to make payments with ease.

9. Comply with taxes and other regulations

Once you file an LLC in Arizona, it will be treated as a pass-through entity. This is the default tax status of a limited liability company. As a result, the owners or members of the LLC will be taxed instead of the company. LLC members will be taxed at a rate of 15.3 percent. In addition to this, an LLC may be required to file other taxes depending on primary business activity and location. Some of the taxes include transaction privilege tax, industry-specific taxes, and city or county taxes.

When you start an Arizona LLC, you will be required to maintain compliance with all state annual requirements. Most states require new and existing businesses to file annual reports. Arizona is an exception as LLC’s are not required to file annual reports. Another annual requirement is that of renewal of business licenses.

Know more about starting an LLC in Arizona!

An Arizona LLC registered agent can provide necessary guidance and assistance towards forming a limited liability company in this state. Even then, you may have several queries regarding this type of entity. Hence, we have created a special section of “Frequently Asked Questions” for addressing some of these queries.

Is Arizona a good state to form an LLC?

The state of Arizona is one of the top states for starting a new business. Once you file an Arizona LLC application for new business registration, you will be able to leverage the several benefits offered by this state. Some of reasons why entrepreneurs prefer to form an LLC here are:

  • Arizona is ranked 6th in the nation in terms of business friendliness
  • The state is ranked 7th in terms of human capital and small business growth
  • Overall cost of doing business is much lower as compared to several other states
  • The per-capita income going to taxes is 8.4% as compared to the national average of 9.9%
  • The state has business friendly and streamlined regulation
  • Arizona boasts of an outstanding infrastructure that provides access to major world markets
  • The state is home to a high workforce

How do I know if my Arizona LLC name is available?

Once you have identified or chosen a business name in compliance with the state naming guidelines, you need to conduct an Arizona LLC search. This is basically a name availability search in the database of Arizona Corporations Commission. If the chosen name is available then you can go ahead and reserve the same.

How much does an LLC cost in Arizona?

If you want to file an LLC in Arizona then you will have to submit Articles of Organization. The state fee for the same is $50. You will have to publish an announcement regarding formation of your LLC in a local newspaper and this cost can vary from $50 to $300. You will also have to reserve an LLC name and the fee for the same is $10. Apart from this, there is a cost associated with business licenses, statutory agent fee, and Certificate of Good Standing among others.

Do I need a business license for my Arizona LLC?

Yes. A business license is required for making your LLC operational. You may have to incur a penalty if you conduct business without proper licenses or permits.

Can I set up a single-member LLC in Arizona?

Yes. You can set up a single member LLC (SMLLC) in Arizona. As the name suggests, a single-member LLC has one owner or member. The documentation required will remain the same as that of a domestic LLC. You will need to reserve a business name after conducting an Arizona LLC search. You will then be required to file articles of organization and apply for relevant licenses.

What taxes does an LLC pay in Arizona?

Since you want to file an LLC in Arizona, you will be subjected to personal income tax. This is because an LLC is a pass-through entity. You may be required to file other taxes applicable in the state depending on the primary business activity like transaction privilege tax (TPT).

Can I register a foreign LLC in Arizona?

Yes. You can register and operate a foreign LLC in the state of Arizona. The registration of a foreign LLC will be governed by 2019 Arizona Revised Statutes, Title 29 – Partnership, Chapter 4 – Arizona Limited Liability Company Act, Article 9 – Foreign Limited Liability Companies. You will have to file a Foreign Registration Statement along with a fee of $150.

How do I dissolve my Arizona LLC?

Once you start an Arizona LLC, you may have reasons for dissolving the said company. According to state laws, AZ Rev Stat § 29-3702 (2023), you will be required to file Articles Of Termination – Limited Liability Company along with a non-refundable fee of $35. It has to be submitted with the Arizona Corporation Commission – Examination Section.

Ready to form an Arizona LLC?

A Limited Liability Company is considered as one of the popular structures in the nation due to the many advantages it has over other structures. You can form a single-member or a multi-member LLC as well as a domestic or foreign entity in the state. If you want to file an LLC in Arizona then IncParadise can assist you with the entire process of registration of your LLC in the state.

IncParadise is a highly reputable statutory agent and we have helped with the registration of hundreds and thousands of businesses. We also offer a wide variety of additional services like foreign qualification, EIN assistance, and certificate of good standing among others.

Do you want to register your LLC in Arizona?

Start a Business in Arizona

Date: | Category: | Author: developers

Start a Business in Arizona

The state of Arizona has a strategic location from a business perspective. It shares its borders with Utah, Colorado, New Mexico, Nevada, and California. The state offers a pro-business environment thus attracting entrepreneurs to start a business in Arizona. The state also has a strong and diverse economy. If you are planning to register a domestic or foreign entity in Arizona then this guide will provide you with necessary information. The guide covers a range of areas related to business formation and operations. Some areas include hiring an Arizona registered agent, incorporation or registration, business licenses, company name, and taxes among others.

Entrepreneur’s guide to forming a business in Arizona

You have a brilliant idea and want to now transform that idea into a business. Since you are starting a company for the first time, your perspective would be different from those managing multiple startups. The first and foremost aspect to consider is the location. The state of Arizona provides just the right infrastructure, support and resources to small businesses and large corporations. If you register a business in Arizona then you can leverage the state’s favorable business climate.

This guide has been specifically created for entrepreneurs, small business owners, and even seed and growth stage startups. There are several aspects of operating a business right from preparing a business plan to choosing the right business structure and fulfilling state annual requirements among others. This guide will help you create an Arizona business checklist and help you make informed choices related to your company.

Why do companies prefer to register a business in Arizona?

There are several key factors that are driving startups and entrepreneurs to start a business in Arizona. One of the key areas is the state’s thriving economy with a Real Gross Domestic Product (GDP) of $414.27 billion. Today, the state is home to over 650 thousand small businesses. It is also home to several Fortune 500 companies like Avnet and Freeport-McMoRan. This is due to the several advantages the state offers. If you incorporate in Arizona then some of the top benefits will be:

  • Tax Incentives – When you start a small business in Arizona, you can leverage the low tax rates. Apart from this, the state offers a wide variety of tax incentive programs to support business growth and expansion. Some of the top programs include the Quality jobs tax credit and the R&D tax credit. Tax incentive programs in the state have been designed to help offset your overall tax liability.
  • Skilled Workforce – One of the important elements of business success is recruiting the right talent. The state of Arizona boasts of a diverse and talented workforce. The state emphasizes strongly on innovation through education. It is home to several renowned universities and institutions offering specialized training and education.

If you want to register an Arizona business online or move your business, there are several benefits that you can enjoy right from robust transportation infrastructure to low cost of living.

Thinking of how to start your company in Arizona?

Steps to start a business in Arizona

In order to register a business in Arizona there are several steps and processes to follow. There are key areas to focus on right from finances to meeting state requirements. It is never an easy task to make your business operational. So, let’s take a look at the various components of your Arizona business checklist.

1. Prepare Arizona Business Plan

One of the important things that will help you start a business in Arizona is creating a business plan. It is like a strategic roadmap or a blueprint of the path intended for a new company. The plan may vary from one business to another but there are some common areas it will focus on. It will outline how you can achieve your short-term and long-term business objectives while including information pertaining to your product, finances, and marketing strategy. A strategic plan will include the following components:

  • Executive summary
  • Business Overview
  • Market analysis
  • Products and services
  • Competitive analysis
  • Marketing and sales strategy
  • Operational strategy
  • Financial plans and projection

Starting a new business is not an easy path for first time entrepreneurs. There are known and unknown issues that a business owner might face. Attending entrepreneurial development training programs can help prepare you for future problems and address issues related to the business in a smooth manner. You can choose from several entrepreneurial training and development programs being offered in the state. These programs will help in strengthening your existing skills and also promote development of entrepreneurial abilities. Most of these programs provide structured training that takes into consideration short-term and long-term objectives.

2. Choose Business Structure for Arizona Business

If you are planning to register a business in Arizona then there are several aspects that you need to consider. One important aspect is that of choosing the right business structure. This selection will often determine long-term sustainability and growth of a company. It should be in your Arizona business checklist as different entity structures have different legal and tax considerations. Each entity structure has its own advantages as well as disadvantages.

The most popular forms of business structures in Arizona are:

  • Limited Liability Company (LLC) – A popular form of business also known as a pass through entity. This type of company offers liability protection.
  • Corporations (INC) – This is another popular form of entity which has several advantages like access to capital through issuance of shares.
  • Sole Proprietorship (SP) – One of the simplest forms of business and is easy to form. Owners are not required to file any annual report although licenses will be required.

Some of the other entity structures that you can form in Arizona are:

3. Naming Your Arizona Business

One of the important requirements prior to registering a company in Arizona is choosing a business name. The name of your company will also be the brand name. You may also need to use this name to obtain business licenses, file taxes, open a bank account and apply for loans among others. Hence, when choosing a name before you start a business in Arizona is important. Here are some aspects to consider:

  • It is important to follow the state naming requirements and guidelines. These are governed by 2022 Arizona Revised Statutes, Title 10 and 29.
  • Your company name should be distinguishable from the name of any other company in Arizona.
  • There are certain restricted words like “bank”, “credit union”, or “trust”.
  • You should not use words that have similarities with government agencies.
  • Once you have chosen a name, it is time to conduct a State Entity Search also known as name availability search.
  • It is important to reserve the name before you register an Arizona business online.
  • You will need to file the name reservation form for an LLC or corporation depending on the legal structure chosen. If you don’t want to use your legal name then you will need to register a trade name. This name also known as DBA (Doing Business As) will be registered pursuant to A.R.S. § 44-1460.

4. Choose Your Location for Arizona Business

One of the things to keep in mind before you start a business in Arizona is the location. There are certain cities or locations that may offer you numerous benefits like increasing brand visibility. A location is important as a bad location can hamper business growth. Here are some key factors to consider:

  • Commercial Space Costs – If you incorporate in Arizona in a location with higher real estate costs then it will have a negative impact on business finances.
  • Ease of Access – One of the key factors driving success is customers. You need to search for a location that can be easily accessed by your customers, employees, vendors, and partners among others.
  • Nature of business – You can choose a location according to your business activity. If you start a small business in Arizona in the export or import industry then the best location would be a foreign-trade zone (FTZ). Certain distressed areas known as Opportunity Zones offer businesses incentives. You can even choose from 168 opportunity zones within the state.
  • Infrastructure – When it comes to choosing the right location, transportation and other business related infrastructure should be taken into consideration.
  • Zoning Ordinances – It is not only important to choose a pro-business location but you should also check the zoning regulations in that jurisdiction. There are some places where businesses cannot operate and this can be identified through a zoning map.

5. Register Your Arizona Business

Whether you want to start a home-based company in Arizona or form a large enterprise, there is a process that you need to undergo. This is also known as new business registration or incorporation. You will be required to fill and submit documentation depending on the entity structure chosen. The documents have to be filed with the Arizona Secretary of State. Let’s look at an example to understand this.

Example: If you want to form a C Corporation then you will have to submit the Articles of incorporation pursuant to AZ Rev Stat § 10-202 (2022). The processing fee for the incorporation documents will be $40. Similarly, if you want to register a business in Arizona as an LLC then you will be required to file Articles of Organization along with a filing fee of $50 pursuant to AZ Rev Stat § 29-3201 (2022).

The most important part of the filing process is the preparation of the Articles of Organization or Incorporation. This process may seem complicated as you have to be compliant with the state laws. A reputable Arizona registered agent service like IncParadise can assist you. Whether you want to form a limited liability company or a corporation, we can assist you with new business formation requirements in the state.

Do you want to form a new business in Arizona?

6. Get Your EIN

One of the key responsibilities for any new business is obtaining an Employer Identification Number (EIN) from the IRS. This should be there on your Arizona business checklist although this is not mandatory for all types of businesses. An EIN number also considered as a tax ID number has several benefits. It will help you in filing your taxes and may also be required for opening a business bank account. This number plays an important role in branding as it will help in boosting the credibility of your company.

7. Open a Business Bank Account for Arizona Business

Once you start a business in Arizona, it is important to focus on the financial aspect of the business. The best way to ensure proper financial accounting and budgeting is by opening a business bank account. Some businesses may want to use their personal savings account but this will make tax preparation confusing and challenging. This is where having a separate business bank account can be extremely useful. It is also known as a checking account and can help in making your personal assets less vulnerable. A business bank account is also a legal requirement for specific business structures like corporations.

If you are planning to incorporate in Arizona then you can open a business bank account online with Cheqly. It is one of the fastest growing neo-banks for new age entrepreneurs and businesses. This US business bank account will help you to make and receive payments using the Cheqly platform.

8. Obtain Business License and Permits

Once you have taken a decision to register a business in Arizona then there are several steps to follow to make your company operational. One such important aspect is obtaining necessary business licenses and permits. Unlike many other states, Arizona doesn’t have the requirement of statewide general licenses. Although, general licenses may be required in different cities or counties. The licensing requirements of the state of Arizona are as under:

  • General Business license – Some states in the USA have a requirement for general business licenses. However, if you start a small business in Arizona then there you will not be required to apply for any general statewide licenses.
  • Professional or Occupational License – If you start a business in Arizona then a business license is mandatory. If your business activity refers to a specific profession or occupation then you will be required to apply for an occupational or professional license. This type of licensing is governed by 2022 Arizona Revised Statutes, Title 32 – Professions and Occupations. The issuing authority of these types of licenses will vary according to the profession or occupation. If you are planning to become an insurance producer then you will need to apply with the Department of Insurance and Financial Institutions (DIFI) for a license.
  • Arizona Transaction Privilege Tax License – This is a type of sales tax license or certificate. If you incorporate in Arizona and start selling a product or engage in providing specialized services then an Arizona Transaction Privilege Tax License (TPT) will be required. You can obtain this license from the Arizona Department of Revenue (ADOR).
  • Local licenses – This type of business license and permits are also known as city or county licenses. Each state in the USA has its own county and city legislatures and laws. Some of these laws govern local licenses and permits as well. The requirements and laws for local licenses will vary from county to county. For example – If you register a business in Arizona and operate within the City of Mesa then you will need to obtain a general business license.
  • Local Zoning and Permits – When you register an Arizona business online in any city or county, you will need to check the local zoning laws. In certain cities, specific zones have been created for businesses to operate from.

The licensing laws and requirements may look complex and this is where IncParadise, a top Arizona registered agent can help you by providing “Business License Research Report” service. This is a detailed report containing a list of filing instructions, supporting document requirements and fees for all business licenses and permits in this state.

9. Register for Taxes

Once you have formed a business in Arizona, there are certain state requirements that your company needs to be compliant with. One such requirement is that of taxes. After you start a business in Arizona, you will need to register for annual taxes. Depending on the type of business activity, you may need to register for sales tax. Most tax payments take place online and hence you will need to open an account on AZTaxes. It is important to understand that different entity structures will be taxed differently.

10. Obtain Business Insurances

When you start a small business in Arizona, you will not only reap the benefits but you may also be faced with different risks. The risk to a business can come from nature and also from employees, vendors, and customers. You can protect your business from different types of risks through business insurance. You can apply for insurance before or after you register an Arizona business online. The highlight of obtaining insurance is that it will save you time and money while ensuring protection to your business from known damages. The different forms of business insurance that you can choose from are:

  • Business Owner’s Policy (BOP)
  • General liability insurance
  • Employment practices liability insurance
  • Professional liability insurance
  • Business interruption insurance
  • Product liability insurance
  • Workers’ compensation insurance
  • Home-based business insurance

11. Annual and Ongoing Requirements

Once you register a business in Arizona, you will have to be compliant with state annual requirements. This will ensure your company enjoys a good standing in the state. One of the most important annual requirements is that of an annual report. This is required by new and existing businesses in most states in the USA. In Arizona however, a Limited Liability Company and professional LLC’s don’t require to submit this report. Corporations are supposed to submit it with the Arizona Corporation Commission – Corporations Division. A top Arizona registered agent can assist you with filing this report.

You will also need to renew your business licenses and permits each year. This is a mandatory requirement pursuant to state laws. Apart from this, another annual requirement is filing of state business taxes. The type of taxes will vary according to the entity structure chosen.

Some Important Quick Resources for an Arizona Business

Whether you are planning to start a small business in Arizona or simply moving an existing business, the right resources and information will be the key to growth and success. Information and resources will assist you in better decision making related to every business process. Let us look at some of the important resources.

Arizona Corporation Commission

The office of the Arizona Corporation Commission provides important resources and information to those who want to start a business in Arizona. This includes information related to filing of Articles of Organization or incorporation, business registration and Compliance, schedule of fees, business tax, annual report, and trademark among others.

  • Arizona Corporation Commission
    1300 W. Washington Street
    Phoenix, AZ 85007-2996
    Phone – (602) 542-3026
    Fax – (602) 542-4100
    Email: answers@azcc.gov
    Website – http://www.azcc.gov/

Arizona Secretary of State

The office of the Arizona Secretary of State is responsible for registering a wide variety of duties. The Business Services Division of the Arizona SOS provides information and resources pertaining to different aspects of registering and operating a company. This includes registering trade names, trademarks, and liens pursuant to the Uniform Commercial Code. This division is also responsible for issuing apostilles and filing of intergovernmental agreements. The Business Services Division is also responsible for chartering corporations and partnerships.

  • Arizona Secretary of State
    1700 W Washington St, Fl 7
    Phoenix AZ 85007
    Phone – 602-542-4285
    Website – https://azsos.gov/

Arizona Department of Revenue

The Arizona Department of Revenue as the name suggests provides information, assistance, and resources related to individual and business taxes in the state. Once you register a business in Arizona, you can download various tax forms. You can even download their Booklet X, which provides detailed information pertaining to various taxes in Arizona. The website of the Arizona Department of Revenue is also used for filing tax returns.

  • Arizona Department of Revenue
    1600 West Monroe Street
    Phoenix, AZ 85007
    Phone – (602) 255-3381
    Website – https://azdor.gov/

Industrial Commission of Arizona

The Industrial Commission of Arizona (ICA) is a type of regulatory agency that focuses on employment in the state. You will find important information and useful resources pertaining to Workers’ Compensation, Arizona Division of Occupational Safety and Health (ADOSH) training, Small Business Bill of Rights, and a variety of online services.

  • Industrial Commission of Arizona
    800 W. Washington Street
    Phoenix, AZ 85007
    Phone – (602) 542-4661
    Website – https://www.azica.gov/

Arizona Commerce Authority

The Arizona Commerce Authority provides valuable resources to new and existing businesses. It provides an insight into the top and thriving industries in the state. If you are incorporated in Arizona, this website will help you identify statewide resources, amenities, and assets across 27 different categories including education, infrastructure, land ownership, and startup resources.

  • Arizona Commerce Authority
    100 North 7th Ave., Suite 400
    Phoenix, AZ 85007
    Phone – (602) 845-1200
    Website – https://www.azcommerce.com/

Arizona Small Business Administration Office

The Arizona Small Business Administration Office also known as SBA plays a key role in supporting small businesses. You can find resources and assistance in various areas of starting a company to achieve business goals. You can find information on planning your business, managing and operating your company, buying assets and equipment, and applying for licenses and permits among others. Arizona SBA also provides business counseling and loan or funding programs.

Arizona Chambers of Commerce

The primary objective of the Arizona Chambers of Commerce is to promote statewide business advocacy. They provide valuable news and resources on labor, infrastructure, jobs, and taxes. They also publish a Business Agenda each year, which provides an insight into some of the important public policy issues that are faced by all Arizona employers.

Arizona Small Business Development Center

Once you start a business in Arizona, the Small Business Development Center (SBDC) can provide important resources towards business operation and growth. AZSBDC provides guidance programs by experienced business advisors and can also help you to identify your funding requirements. You can even participate in their training webinars and workshops that are customized based on specific business requirements.

Ready to Start a Business in Arizona

Arizona has an extremely pro-business environment that offers a myriad of opportunities in a diverse industrial landscape. When you register a business in Arizona, you will also be able to benefit from a wide range of state programs including small business incentives and grant programs. The new company registration process will require you to submit several documents and who better to assist you in this process than IncParadise, one of the top Arizona registered agents.

IncParadise has already helped thousands of businesses to form a corporation or a limited-liability company in the state. We also provide a wide variety of additional services like EIN assistance, and foreign qualification among others.

IncParadise can help you to start a small business in Arizona!

How to start an online business in Ohio

Date: 07/09/2024 | Category: | Author: developers

How to start an online business in Ohio

The USA and global markets have changed a lot in the last decade, especially since Covid. There has been a steady growth in the number of online businesses. Some of these are home-based companies, while others have transformed into mega e-commerce portals. If you are planning to start an online business in Ohio, then this is just the right time. Our guide will provide you an insight into online business ideas and benefits. This guide will provide the necessary steps to start an online business from home in Ohio. You will get to learn about business plans, registration of a company, licenses and permits, business bank accounts, and local zoning laws.

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.

Example: If you want to start an e-commerce business in Ohio as a Limited Liability Company, then you will have to submit the Articles of Organization pursuant to OH Rev Code § 1706.16 (2022). The processing fee will be $99. Similarly, if you want to establish your online business as a corporation, then you will be required to file Articles of Incorporation pursuant to OH Rev Code § 1701.04 (2022).

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.

Since you plan to start an online business in Ohio, you can open a business bank account online. Cheqly is a modern-day banking alternative. It is a neo-bank for startups, and you can open a US bank account online. The Cheqly platform will help fulfill all your banking requirements, like ensuring you can receive and make payments globally.

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.

In addition, your company will be required to file various federal, state, and local taxes. The type of tax to be filed will depend on the primary business activity and entity structure. The most common taxes in the state for new businesses include graduated individual income tax, commercial activity tax (CAT), sales and use tax, withholding tax, and self-employment tax.

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.

IncParadise is one of the top new business formation and registered agent service providers in Ohio. We also offer additional services that will help you with any other requirements associated with a home-based business, such as obtaining an EIN and foreign qualifications.

Register an Ohio online startup with IncParadise!

How to Choose a Registered Agent in Ohio

Date: | Category: | Author: developers

How to Choose a Registered Agent in Ohio

You have an idea and want to start a business. There are several aspects to consider like getting a business name and applying for business licenses. One such important requirement of every new and existing business is that of a registered agent in Ohio. Some state laws have made it essential while in some states, this is an optional requirement. We have created this guide to help you understand Ohio registered agent requirements, the need to hire one, the services offered, and changing your registered agent.

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.

So, who is a registered agent in Ohio? They can be an individual as well as a firm. If your company is ever served a lawsuit, then the processing authority will deliver the legal paperwork directly to the RA appointed by you. The duty of the registered agent will be to then forward the paperwork to you securely and quickly.

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.

For example – Imagine a situation where there is an extremely important meeting in Seattle or Austin. On the same day, you have to receive an important business document from the state. If you cancel your meeting, then it might affect business growth and profits. If you fly out for the meeting, then you will be unable to receive the document sent by the state. But, if you appoint RA in Ohio, a dedicated registered agent service, then you will be able to make the best of both situations.

There are several benefits to hiring a professional registered agent in Ohio, such as IncParadise. Some of the top benefits are:

  • 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

IncParadise can be your chosen RA in Ohio as we are not only a highly professional service but also have several happy clients. We are well-versed with the state laws and requirements for all forms of entities. IncParadise also fulfills the requirement of maintaining business hours.

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.

The process of changing a registered agent can vary from state to state, although some laws and regulations remain the same. Let’s examine the process for appointing an RA in Ohio.

The first step is filling and submitting the Statutory Agent Update (Form 521). The form has to be submitted to the office of the Ohio Secretary of State (SOS). There is a filing fee of $25 and you can submit it online or through postal mail. You will need to submit this form along with a filing form cover letter. You can also opt for regular service or expedited services. You will be required to submit an additional fee for the latter. The appointment of a new registered agent in Ohio will be governed by Ohio Revised Code sections 1701.07, 1702.06, 1703.041, 1782.04, 1706.09, and 1746.04.

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.

IncParadise will accept service of process related to business and legal communications on your behalf. We also provide Entity Management Software to all our clients, which provides access to email notifications for agent renewal and other registered agent services in Ohio.

Choose Our Registered Agent Services for your company today!

Moving Your Business to Ohio

Date: | Category: | Author: developers

Moving Your Business to Ohio

If you are an entrepreneur or business owner and are thinking of opening a new branch in Ohio, then there are several ways you can relocate. Moving your business to Ohio is not about simply getting a new address. You will need to follow the procedures and laws of the new state as well as the existing state. This will also require extensive planning and hence it is recommended to start as early as possible. We have created this guide specifically to help address your queries on does Ohio allows domestication and the possible ways to move your company to this 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.

Some of the other industries that contribute to the growing and diverse economy are healthcare, technology, and financial services. Moving an LLC to Ohio means that you will become an integral part of Ohio’s Industrial Diversity, which is currently ranked #8. Your business can also be a part of the new age industries like electric vehicles, advanced manufacturing, semiconductors, and advanced mobility.

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

The process of moving your business to Ohio through domestic incorporation involves:

  • 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

The process to then transfer LLC to Ohio through new business registration involves the following steps:

  • 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.

We will not only help you with entity domestication in Ohio but also provide services that cater to a wide variety of business-related annual state requirements. These are offered as part of our additional services and include obtaining an EIN, among other things.

IncParadise can help you to move your business to Ohio!

Foreign Qualification in Ohio

Date: | Category: | Author: developers

Foreign Qualification in Ohio

If you have been wondering how to move your business from one state to another then it’s time to look at foreign qualification Ohio. This is basically a specialized process for registering a company in a state different from the state where it has been incorporated. This process will help you establish a corporation or an LLC in a new state without filing new registration documents. This guide has been created to provide information pertaining to various aspects of Ohio foreign business registration. The guide will give you with information on state laws, the process, and authorization for doing business in this state.

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:

Example: You have formed a domestic LLC in Arkansas by filing a Certificate of Organization. Here Arkansas will be considered as your home state or jurisdiction. You are now thinking of expanding your business to Ohio. If you want to move your business completely, then you will have to close your Arkansas LLC and start a new entity in this state. If you want to operate in both states then you can apply for Ohio LLC foreign registration. This process will provide you with the authority to transact business in the new state as well.

You may be required to conduct an Ohio foreign entity search before filing documents for authority to transact business in this state. These documents may vary according to the type of entity structure you have.

Once you have applied for Ohio foreign business registration, you will need to maintain state compliances like obtaining necessary business licenses and permits. You will also be required to hire and retain an Ohio registered agent like IncParadise. We can help you with all your state business formalities including annual compliances like filing of annual reports.

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.

The general point of view of doing business is if your company were to own a warehouse in the state of Ohio. If you purchase or deal in real estate within this state then that might also be considered as transacting in this state. This is considered as “doing business” in this state and will require such an entity to undergo Ohio foreign business registration. There are several activities that are not considered as transacting business in the state, and they are:

  • 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.

If the chosen name is available, you must file the Registration of Corporation Name (Foreign For-Profit or Nonprofit) application pursuant to OH Rev Code § 1703.31 (2022). The name registration application has to be submitted to the office of the Secretary of State along with a Filing Form, Cover Letter, and a non-refundable fee of $39. You must also submit a Certificate of Good Standing pursuant to Ohio Revised Code §1703.31(A)(7) and the name registration application. The name registration will be effective for a period of one year from the date of registration. You can use the same form for renewal by paying a fee of $25.

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.

Hence, you will need to file the application for a license (Form-530A) along with a filing fee of $99 pursuant to OH Rev Code § 1703.04 (2022). It has to be filed with the office of the Secretary of State and will be accompanied by a Filing Form Cover Letter, Appointment of Agent, and a Certificate of Good Standing.

You can submit the Ohio foreign corporation registration application using the Ohio Business Central online portal. You can also opt for an expedited service, which varies from 24-hour to one-hour. There will be an additional fee for the same.

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.

If the chosen name is not available, then the foreign LLC can register a trade name or DBA. If you are using a trade name or fictitious name, then it is important to conduct a search for trademarks using the Trademark Electronic Search System (TESS). If a chosen name is available after conducting an Ohio foreign entity search, then you can register it with the office of the secretary of state pursuant to OH Rev Code § 1706.513 (2022).

The application form to be filed is known as Trade Name Registration (FORM-534A). It has to be filed along with a fee of $39.

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).

You will need to submit the Ohio LLC foreign registration application to the office of the Secretary of State, along with a fee of $99. You must also submit a filing form, cover letter, and an original appointment with a statutory agent.

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.

We can also help you to acquire a Certificate of Good Standing or Certificate of Existence from your home state. We provide several other business oriented additional services that will help in fulfilling the annual requirements of the state. These can vary from filing annual reports to getting an EIN tax ID. We also provide foreign qualification services in all 50 states.

Are you ready to apply for Ohio Foreign Qualification?