Ohio Corporation

If you have an idea which you want to turn into a business then the state of Ohio provides you with just the right business climate that will support overall growth. Now, there are several types of entity structures that you can choose from, including that of a traditional corporation, also known as a C Corp. This type of entity structure has several advantages, from offering share options to electing S Corporation status. There is a process to register a corporation in Ohio, and it is governed by the state statutes. You can choose to form a domestic or a foreign entity and even register an Ohio Corporation online or offline.

What is an Ohio Corporation?

A C corporation is a type of legal structure where the owners or shareholders, will be taxed separately from the company. It is one of the most popular business structures in the USA as well as Ohio. If you are planning to form a corporation in Ohio, then it is important to note that this type of entity is required to hold at least one initial director or shareholder meeting each year and maintain the minutes of the meeting. There are several benefits of incorporating in Ohio, and one of them is that there are different forms of corporations that can be formed in this state. The most common forms are:

• Business Corporations (C-Corp)
• S-Corporation
• Foreign Corporations
• Nonprofit Corporations
• Professional Corporations
• Benefit Corporation
• Educational Corporations
• Development Corporations

What are the benefits of incorporating in Ohio?

If you are an entrepreneur and are planning to register a corporation in Ohio, this type of business structure can provide you with advantages over other common entity structures. Some of the top advantages are:

• Limited liability protection – One of the biggest benefits of incorporating in Ohio is that you can enjoy limited liability protection. This simply means that the personal and corporate liability will remain separate, and you will not be held responsible for the liabilities or debts of the company. Thus your personal assets cannot be taken, nor can you be sued.
• Deduct Fringe Benefits – Entrepreneurs choose to incorporate in Ohio as a C corporation, which makes it easier to deduct any fringe benefits, like prescription medical requirements and dental, as taxes from total business expenses. A C corporation can leverage Health Reimbursement Arrangements (HRAs), which are tax-advantaged benefits that help employers and employees save on the overall cost of healthcare.
• Perpetual Existence – One of the most talked about benefits of incorporating in Ohio is that this type of entity can live on indefinitely. Even if the owner of a corporation passes away, the said corporation will still continue to exist.

Starting an Ohio Corporation

The Ohio economy has not only been experiencing growth but is also diversifying thanks to the state’s strategic focus on multiple industries. A large number of companies in these industries include corporations, and today, the state’s Industrial Diversity is ranked #8 in the nation. If you are also planning to form a corporation in Ohio, then there are several important processes and strategies that you need to focus on, as this will ensure smoother and faster integration and operation of the business.

1. Name Ohio Corporation

If you are wondering how to form a corporation in Ohio, then one of the first steps will be towards finalizing the name of your company. There are certain aspects to consider when identifying a business name like being compliant with the 2022 Ohio Revised Code. Let’s take a look at the important steps in this process.

• The name of your company must include a word, phrase, or abbreviation like “company,” “corporation,” “incorporated,” “co.,” “corp.,” or “inc.” pursuant to OH Rev Code § 1701.05 (2022)
• Unless it is a benefit corporation, you cannot include the word “benefit” in the name as a prefix to “corporation” or “inc.”
• You must ensure the name is distinguishable from any other name in the Secretary of State database, including names of any other profit or non-profit corporation, limited liability company, or limited partnership.
• The chosen business name should not contain any word or phrase that implies or indicates that the said corporation is connected with a government agency anywhere in the United States.
• You need to conduct an Ohio business name search, also known as a name availability search, with the SOS.
• If the chosen corporate name is available, then you can file form 534b, also known as the Name Reservation / Transfer / Cancellation Application.
• You must submit this form along with a $39 fee to reserve the chosen name.

2. Appoint an Ohio registered agent

You can convert an idea into a growing business, but first, you must comply with certain processes and state regulations. In the initial stage, a business needs to be incorporated in the state and to register a corporation in Ohio, you will first need to ensure you meet all legal requirements as prescribed in the 2022 Ohio Revised Code. One such requirement is to hire and maintain a Statutory Agent in the state pursuant to OH Rev Code § 1701.07 (2022). A statutory agent is basically a registered agent, and a statutory agent can be an individual or a company.

3. File Articles of Incorporation with the Ohio Secretary of State

This is the most important step in the how to form a corporation in Ohio process. Once you have reserved a business name, you will be able to file the application for incorporation. You will be required to prepare and submit the Articles of Incorporation pursuant to OH Rev Code § 1701.04 (2022). This is also known as the Initial Articles of Incorporation for Profit Domestic Corporation and has to be filed with the Ohio Secretary of State along with a fee of $99.

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4. Prepare bylaws for Ohio Corporation

One of the significant requirements of a new corporation is creating the corporate bylaws. The primary role of these bylaws is to provide a road map for operating your company. Bylaws need to be well thought out and take into account various aspects of an entity, including the number of people on your board, handling the board, shareholder meetings, and the duties of each officer. After you register an Ohio Corporation online, if any issue arises with the operational aspect of the company, then the corporate bylaws can provide clear guidance on reaching a proper solution by minimizing disagreements.

• Statement of Purpose
• Board of directors
• Officers are in charge of day-to-day business
• Voting or non-voting shareholders
• Committee, committee members, and responsibilities
• Procedure and timeline for annual meetings
• Conflicts of interest
• Procedure for amendment of the bylaws

5. Appoint initial Directors & Hold an organizational meeting

If you are wondering how to form a corporation in Ohio, then it is important to understand that this type of entity has to undergo several different processes in order to become operational. One of the important processes is appointing the initial directors, followed by holding an organizational meeting. Corporate law requires each and every corporation to elect a Board of Directors who will not only represent the entity but also make valuable decisions on behalf of the shareholders. The initial directors will be elected through an organizational meeting. The initial directors are required to serve until the shareholders of the said corporation hold their first meeting to elect their successors.

• Establish the corporate structure of the company
• Authorizing issuance of shares
• Approving business banking account
• Election of officers
• Establish a principal place of business
• Approving the corporate seal
• Presenting stocks of certificates
• Special resolutions, if any

6. Get an EIN

If you are planning to register an Ohio Corporation online then one of the key aspects to focus on will be corporate and state business tax. As a corporation, you will be required to apply for and obtain an Employer Identification Number (EIN). This is also known as the Federal Employer Identification Number (FEIN) and is assigned by the Internal Revenue Service (IRS). It is a nine-digit unique ID number that also enables corporations to open a business banking account. The EIN number may also be required when applying for a business license in Ohio or a sales tax permit.

7. Open a bank account

Once you register a corporation in Ohio, one of the first steps to take is to open a business bank account. In fact, opening a bank account will require joint approval from the initial directors or shareholders. Once the approval is done, it is important to check out the various features a checking account offers. Some business checking accounts even offer merchant solutions that enable you to carry out a POS or “Point of Sale” transaction or a digital financial exchange, also known as an e-commerce transaction. One of the primary reasons for corporations to prefer a business checking account is that it helps improve the overall credit score of the entity while keeping track of all income and expenditures.

8. Comply with other tax and regulatory requirements

Once you register an Ohio Corporation online, you will be required to comply with various annual maintenance requirements of this state. One of the important requirements is that of an annual report but the good news is that domestic corporations are not required to file any yearly report in Ohio. A domestic professional corporation, on the other hand, may be required to file a Biennial Report pursuant to OH Rev Code § 1785.06 (2022). This report has to be filed with the Ohio Secretary of State along with a fee of $25.

Know more about starting an Ohio Corporation

If you have decided to form a corporation in Ohio, you may be faced with several questions. Hence, we have created a special section to help address some of the common queries that first-time business owners have. This section deals with queries related to forming an S Corporation, startup costs, dissolution, and foreign corporations, among others.

How do I form a “C” corporation and an “S” corporation in Ohio?

You can form a C Corporation in Ohio by filing the Articles of Incorporation. Since S Corporation is a tax designation, you can opt for it after creating your C Corp in this state. In order to elect the S Corp designation, you will be required to submit a completed Form 2553 (Election by a Small Business Corporation). It is important to note that you file this form only after you have received your employer identification number (EIN).

How much does it cost to start a corporation in Ohio?

If you want to register an Ohio Corporation online, then you will be required to submit Articles of Incorporation for a domestic entity. The initial cost to incorporate is $99. If you want to expedite the process, then there will be an additional fee depending on the expedited service chosen. Like the fee for processing within 2 days is $100, while that of four (4) hours of service is $300. Apart from this initial incorporation cost, there will be other costs like reserving a corporate name, Certificate of Amendment, and application for business licenses and permits, among others.

How do I look up a corporation in Ohio?

You can register a corporation in Ohio only after you have reserved your corporate name. It is important to note that if your chosen name is not available, you will have to reserve another name. Once you identify a name in compliance with state naming guidelines, you must conduct an Ohio Corporation search, also known as a name availability search. This search looks up names of all forms of entities and indicates whether your chosen name is available or is already in use.

Do I need a business license for my Ohio Corporation?

Yes. Depending on your industry, business activity, company location, and profession, you may require a single or multiple business licenses.

Can I register with a foreign corporation in Ohio?

Yes. You must apply for foreign qualification to operate your business in this state. You will need to submit a Foreign For-Profit Corporation Application for License (Form 530A) along with a fee of $99 pursuant to OH Rev Code § 1703.03 (2022). You will also be required to attach a Certificate of Good Standing from the jurisdiction of incorporation, also known as the home state. You can opt for a Permanent License or apply for a Temporary License; the latter would be valid for a period of six months.

How do I dissolve a corporation in Ohio?

If you want to dissolve your corporation at any time, you will need to submit a Certificate of Dissolution -For-Profit, Domestic Corporation along with a $50 fee. The state has two types of dissolution processes: voluntary Dissolution and Judicial Dissolution.

Ready to Start an Ohio Corporation?

There are different types of business structures that you can choose to form, although the benefits of incorporating in Ohio far outweigh the benefits of registering for any other form of business. If you want to create a corporation in Ohio, a domestic or foreign entity, then IncParadise can assist you with the process of registering or moving your business to this state.

LLC in Ohio

If you have a brilliant idea and want to start a new business, then one of the best entity structures that you can form in Ohio is a limited liability company. The state provides several benefits that will not only support business growth but also help lower your overall formation and operational costs. You can opt for Ohio LLC filing online or offline, and there are several processes that you may need to undertake before applying for new business registration. You can even form a foreign LLC in the state especially if you plan on moving or expanding your business in this state.

What is Ohio LLC?

If you are planning to file an Ohio LLC application for registration, then it is important to understand what an Ohio limited liability company is. It is a type of business structure that is prevalent in the USA because it protects the assets of the owners from creditors and lawsuits, especially in the case of business debts. This type of entity is also considered to be a hybrid entity as it combines certain characteristics of a sole proprietorship, partnership, or corporation. You can choose to form a single-member LLC in Ohio or register a multi-member LLC. Once you file an LLC in Ohio, you can even opt for S Corporation tax status.

Benefits of forming an LLC in Ohio

As a business owner, you can choose to form a variety of entities, but if you start an Ohio LLC then, there are several distinctive advantages this type of entity structure offers. Let’s look at some of the top benefits:

• Separate legal identity – One of the important features of a limited liability company that you can leverage is that this type of entity is separate from its owner. An LLC has its own set of responsibilities, rights, as well as liabilities. This type of entity can own or use any real or personal property and is capable of investing funds or lending money.
• Limited liability protection – One of the greatest features of an LLC is that it offers liability protection to the company’s owners. So, if you file an LLC in Ohio, your personal assets cannot be used by creditors to satisfy the company’s debts or other financial obligations. Thus, the risk of loss for an LLC owner is minimized.
• Perpetual existence – If you file an Ohio LLC application, one of the advantages is that this type of entity will enjoy perpetual existence unless mentioned otherwise in the articles of organization. This means that if the company witnesses a change in ownership, that will not trigger any dissolution or cease to operate.

Start an LLC in Ohio

If you want to start an Ohio LLC, it is one of the best decisions. However, it is important to note that several processes will be involved in making the entity operational. Let’s take a look at some of the important aspects of starting your LLC in this state.

1. Choose the Ohio LLC name

One of the most important Ohio LLC filing requirements is a business name. The LLC name needs to be in the new business registration documents. Hence, it becomes important first to identify a business name and ensure it is compliant with the 2022 Ohio Revised Code. Let’s take a look at the important steps in this process.

• The name of your company must include a word, phrase, or abbreviation like “limited liability company,” “limited,” “ltd.,” “LLC,” or “L.L.C.,” pursuant to OH Rev Code § 1706.07 (2022).
• You must ensure the name is distinguishable from any other name in the state database.
• Certain business names are restricted in the state. For example, if you want to use the words ‘trust’ or ‘bank,’ you will first need approval from the Ohio Department of Commerce—Division of Financial Institutions. Hence, it is important to check the restricted name list or the words prohibited for business names in Ohio.
• You need to conduct an Ohio LLC search, also known as a name availability search, with the SOS.
• If the chosen LLC name is available, then you can file form 534b, also known as the Name Reservation / Transfer / Cancellation Application.
• You will need to submit this form along with a $39 fee to reserve the chosen LLC name.

2. Choose an Ohio LLC registered agent

If you have conducted an Ohio LLC search and reserved your business name, the next step is to choose a registered agent in the state. The law states that an LLC or any new or existing business operating within this state has to hire and continuously maintain an Ohio LLC registered agent pursuant to OH Rev Code § 1706.09 (2022).

3. File Article of Organization with the Ohio Secretary of State

Every new business needs to be registered in the state of Ohio. You can opt for Ohio LLC filing online or download Form 610 – Articles of Organization for a Domestic Limited Liability Company, fill it out and submit the same to the office of the secretary of state. You will need to submit Articles of Organization along with a fee of $99 and a cover letter pursuant to OH Rev Code § 1706.16 (2022). It is important to note that the Articles also contain a section called “Original Appointment of Statutory Agent or Acceptance of Appointment,” wherein you need to disclose information pertaining to Ohio LLC registered agent.

Form an Ohio LLC Today!

4. Prepare the Ohio LLC operating agreement

If you are thinking of establishing your limited liability company in Ohio, then one of the important steps is to ensure you have an LLC operating agreement in place. This is an essential legal document, also known as a contract, that outlines the internal structure of a limited liability company. This document also provides in detail the responsibilities of each member and how the company will be managed. If you are filing an Ohio LLC application, then you can create the LLC operating agreement before or after filing of the articles. The information contained in the operating agreement should be in compliance with OH Rev Code § 1706.08 (2022).

• Statement of intent
• Relation among the members
• Duties of manager or members, including fiduciary duties
• Elimination or limitation of any and all liabilities
• The time period of operation
• Specified penalties or consequences subjected to member or assignee
• Eliminating or reducing proportionate interest in LLC for any defaulting member or assignee
• How it will be taxed
• Sharing of profits

5. Obtain EIN for Ohio LLC

Once you start an Ohio LLC, one of the important annual requirements will be to file state or business taxes on time. During the filing of taxes, you will need to include your employer ID number, also known as Employer Identification Number or EIN, in the tax return documents. This helps the IRS to associate the return being filed with the said LLC. This is a unique nine-digit number issued to a limited liability company by the Internal Revenue Service (IRS) for the purpose of identifying that entity. An EIN is also known as the federal tax ID number (FEIN).

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6. Check local licenses and permits

Once you have registered your limited liability company or applied for registration, the next area to focus on is applying for and obtaining relevant business licenses and permits. You will need to conduct an Ohio LLC search for licenses, as they can vary according to business activity and the location of your company. The importance of obtaining licenses and permits lies in the fact that you are able to operate in the state with ease. The business licenses for an Ohio LLC are categorized as under:

• Licenses issued by state agencies – Certain business activities require licenses and permits issued by a specific government agency as well as the county. For example, the Ohio Department of Agriculture (ODA) and the Ohio Department of Health (ODH) are responsible for conducting safety checks and issuing certain Food Establishment licenses. The Ohio Administrative Code, OH Admin Code 3701-21-02.1, governs the license fee and categories.
• Licenses according to Profession or Occupation – If you file an LLC in Ohio and you or your business are pursuing a specific profession or occupation, then licenses will be issued by different state agencies. Let’s look at an example to understand how this works.

  Example: If you start a business focusing on real estate appraisal, you will need to apply with the Ohio Division of Real Estate and Professional Licensing, Appraiser Section, for the relevant license. Similarly, if your business requires the expertise of professional engineers and surveyors, you need to ensure proper licenses have been obtained from the State Board of Registration for Professional Engineers and Surveyors.

• Licenses issued by City/County – Once you have filed an Ohio LLC online, you must also check whether your company requires any local permits. These are also known as city or county licenses. The types of licenses, fees, and renewals will vary according to the city or county your company is based.

7. Open an Ohio bank account

Whether you file an Ohio LLC application or register any other form of entity, managing finances is never an easy task. The financial aspect will take into account operational costs, expansion budgets, marketing costs, incoming and outgoing payments, and loans or grants, among others. Hence, it becomes extremely important to segregate your income and expenses from that of the business. This is where opening a business bank account can provide distinct advantages. It will not only help clean and automate bookkeeping but also ensure your company enjoys a good credit history.

8. Comply with taxes and other regulations

Once you file an LLC in Ohio, you will be required to comply with state annual maintenance requirements. One of the important requirements is that of a yearly report. The good news is that limited liability companies formed in this state are not required to file any annual report. If you create a domestic professional LLC, then you may be required to file a Biennial Report, which will cost $25.Apart from this, your company will be required to file different federal, state, and local taxes. Some of the taxes that you may be required to file as an entity include Commercial activity tax, sales and use tax, and withholding tax.

Learn more about starting an LLC in Ohio!

An Ohio LLC registered agent can help you register a limited liability company in this state, but you may have several questions about LLC formation, the cost of formation, and other aspects. Hence, we have created a special section called “Frequently Asked Questions” to address some of these queries.

Is Ohio a good state to form an LLC?

The state of Ohio is home to several top companies including several on the coveted Fortune 500 list. Some of the top names include Progressive Corporation, Sherwin-Williams, Cleveland-Cliffs, and Goodyear Tire & Rubber Company, among others. The state provides new and existing LLCs with several small business incentives, and there are other advantages as well. Some of the reasons why entrepreneurs prefer to start an Ohio LLC are:

• The combined state and federal corporation tax rate is the lowest among all 50 states.
• A growing talent pool
• Highly affordable cost of living
• There is a 0% state tax on corporate income
• Its proximity to major cities like Pennsylvania, West Virginia, Kentucky, Indiana, and Michigan
• Strong transportation and logistics infrastructure
• Ohio’s international trade is proliferating and is home to several Foreign Trade Zones (FTZ)
• The state offers several business incentive programs, including JobsOhio Workforce Grant, Community Reinvestment Areas
• Business Innovation Ohio Loan Fund, and Ohio Job Creation Tax Credit.

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

Once you have identified or chosen a business name in compliance with the LLC naming guidelines, you need to conduct an Ohio LLC search. This is also known as a name availability search and helps check the SOS database for name distinguishability. If the chosen name is available, then you can go ahead and reserve it.

How much does an LLC cost in Ohio?

If you want to start a limited liability company in Ohio, then you will be required to submit Articles of Organization for a domestic entity. The initial cost to file an LLC in Ohio is $99. If you want to expedite the process, then there will be an additional fee depending on the expedited service chosen. For example, the fee for 2 business day service is $100, while that of a four-hour service is $300. Apart from the initial cost, there will be other costs as well for different processes like name reservation, Certificate of Correction, and application for business licenses and permits.

Do I need a business license for my Ohio LLC?

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

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

Yes. You can set up a single-member LLC (SMLLC) in Ohio. The process and documentation will remain the same. You will need to reserve a business name and then file Articles of Organization with the Ohio SOS. You will also have to apply for appropriate permits and licenses.

What taxes does an LLC pay in Ohio?

One of the important Ohio LLC filing requirements annually is that of taxes. Since it is a pass-through entity, you will need to file personal income tax. You may also be required to file other taxes applicable in the state depending on the business activity, location, and employees.

Can I register a foreign LLC in Ohio?

Yes. You can register and operate a foreign LLC in Ohio. The process and forms for Ohio LLC application for foreign entities are different from that of domestic entities. You will have to file Form 617 – Registration of a Foreign Limited Liability Company, For a Foreign (Non-Ohio) Limited Liability Company, along with a fee of $99 pursuant to OH Rev Code § 1706.51 (2022).

How do I dissolve my Ohio LLC?

After filing Ohio LLC online, your company will be registered in the state. If you want to dissolve the limited liability company at any point in time, you will be required to file a Certificate of Dissolution for a Domestic Limited Liability Company. The filing fee for the same is $50.

Ready to form an Ohio LLC?

A Limited Liability Company is one of the popular structures in the USA as it offers several advantages over other entity structures. You can form a single-member or multi-member LLC and even register a domestic or foreign entity. If you want to form an LLC in Ohio, IncParadise, a reputable Ohio LLC registered agent, can assist you with the entire process of LLC registration in this state.

Entrepreneur’s guide to forming a business in Ohio

If you are planning to register a business in Ohio, then it is a good decision and at the same time, it is also important to understand what the state offers to new businesses. The state boasts of an evolving startup ecosystem where the key focus areas vary from making highways safer to manufacturing radio frequency generators and sustainable microbe inoculant systems. The state has been divided into various regions, with each region playing a key role in contributing to the overall economy of the state, the Northeast Ohio Region is home to the logistics sector and advanced manufacturing industry.

Why companies prefer to register business in Ohio?

Ohio has often been considered as a perfect choice for entrepreneurs when it comes to moving their business from another state or simply forming a new company. The economy of the state plays a key role and is one of the key points attracting sole proprietors to start a business in Ohio. The Real Gross Domestic Product (GDP) of the Buckeye State is $638.91 billion with a variety of industries making valuable contributions to this growing economy. So, when you incorporate in Ohio, there are numerous benefits that you will be able to enjoy. Some of the top benefits are:

• Economic development incentives – One factor motivating entrepreneurs to register Ohio businesses online is the variety of small business incentive programs that they can participate in. Some of the most popular programs include the Job Creation Tax Credit (JCTC), International Market Access Grant for Exporters (IMAGE), Ohio Opportunity Zones Tax Credit program, Ohio Enterprise Zone Program, and Jobs Ohio Revitalization Program.
• Availability of top talent – The first requirement of business operations is always employees. A talented and committed workforce plays a crucial role in overall business development and growth. If you register a business in Ohio, you will be able to leverage the top talent pool available in this state. The state is home to several top universities, including Ohio State University and Case Western Reserve University.

Thinking of how to start a new business in Ohio?

Steps to start a business in Ohio

It is never easy to start a business in Ohio as there are several aspects to be factored in. Depending on the type of entity structure, the requirements, processes, and other aspects may vary. There are certain elements that remain the same for all types of business and are termed general requirements. The Ohio Secretary of State provides a comprehensive list of such requirements. So, let’s take a look at some of the facets of starting a company in Ohio.

1. Prepare a Business Plan for Your Ohio-Based Business

Just like you need GPS directions for traveling; similarly, each business requires some form of a road map for identifying the path it needs to take in order to reach from point A (startup stage) to point B (profit or growth stage). This type of road map is also known as a business plan or a blueprint for small businesses. The plan would take into consideration factors that may affect the business performance and operations from a short and long-term perspective like marketing, employees, finances, competition etc. This type of strategic plan is a must on your Ohio business checklist and should constitute the following:

• Executive summary
• Business Overview
• Organization, ownership, & management
• Industry analysis
• Market analysis
• Products and services
• Competition analysis
• Marketing and sales
• Logistics and operations
• Financial projection

2. Attend Entrepreneurial Training or Development Programs in Ohio

As an entrepreneur, there are several areas to focus on before you register a business in Ohio. One such key area is searching for entrepreneurial training and development programs in the state and attending them. These programs cater to first-time business owners in diverse industries and the objective is to get necessary training in different areas of operating a company like business planning, sales and marketing, financial management, as well as leadership. Some of the top programs in Ohio will help you to handle business operations effectively and turn your focus in the following areas:

• Development of managerial, financial, technical, and marketing skills
• Supportive roles like registration of a business and procurement of funds
• Entrepreneurial behavior and values
• Guidance and mentorship by industry experts
• Create an understanding of modernization, diversification, and expansion
• How to best channel available latent resources for enterprise building

3. Choose a Business Structure for Ohio Business

One of the most important points to include in any Ohio business checklist is choosing the right structure for your new enterprise. The entity structure plays an important role as it controls several aspects like how a business will operate, the type of management and hierarchy, and will also define legal and tax considerations to be made. Each entity structure has different processes, documentation, and fees, especially if you want to register a business in Ohio. These structures also have their own set of advantages and disadvantages. The following structures can be opted for in this state:

• Sole Proprietorship
• Domestic and foreign LLC
• Domestic and foreign corporations
• Nonprofit Corporation
• General partnership
• Limited partnership
• Limited Partnership Associations
• Business Trusts
• Domestic and foreign Limited liability partnership (LLP)
• Professional Corporation
• Benefit Corporation

4. Naming Your Ohio Business

One of the important requirements that will help you to start a small business in Ohio is the reservation of an appropriate business name. Appropriate company name refers to a name that follows all state laws and is available, especially if you conduct an entity name search. The company name has to be reserved or registered with the state and is used to register a business in Ohio and also while applying for EIN, business licenses, permits, loans, and filing of taxes. The business name is also at the heart of any marketing or branding strategy. When choosing the right name, you will need to consider the following:

• Depending on the type of entity structure, you need to ensure compliance with the state naming guidelines.

  For example: – If you are planning to incorporate in Ohio then naming your company and the reservation process will be governed by 2022 Ohio Revised Code Title 17, Corporations-Partnerships, Chapter 1701 – General Corporation Law, Section 1701.05 – Corporate Name.

• The company name should be distinguishable in the records of the office of the Secretary of state.

  For example: – A corporate name should not be similar to the name of any other domestic or foreign corporation, Limited Liability Company, or limited liability partnership among others.

• Once you have chosen a name, it is mandatory to conduct a Business Identity Search, also known as name availability search.
• If your chosen name is available, then you need to apply for a reservation of the said business name by filing Form-534B for Name Reservation / Transfer / Cancellation, along with a fee of $39.

5. Choose Your Location for Ohio Business

If you want to start a business in Ohio then one of the most important areas of consideration is the location of your company. Yes, location matters! Whether you want to establish a brick-and-mortar retail store offer specialized services online or make inroads into newer markets, the vetting and selection of a proper business location is often fraught with several challenges. Of course, there are certain factors that will play a key role in deciding the right location. They are:

• Nature of your business – The primary business activity often plays a key role in choosing a location.

  For example: – you register an Ohio business online and its primary activity is export and import. The best location would be a foreign-trade zone (FTZ) within the state. The top FTZ is Columbus, Ohio (FTZ 138) as it is considered to be a high-speed international logistics hub. You will also be able to participate in the FTZ program which offers several benefits.

• Proximity to the end market – Whether you are planning to promote a specialized service or sell goods or other manufactured products, it always pays to be located closer to the market.

  For example, if you offer professional services or operate in the technology sector, Cincinnati, OH, would be an ideal location. Cincinnati is home to a cost-competitive innovation corridor that provides resources and support to a variety of tech companies and startups.

• Zoning Ordinances – It is a known fact that location plays a critical role in determining the financial success of any company. Hence, it is important to choose a ‘business-friendly’ location, and such a location has pro-business zoning ordinances. If you register a business in Ohio, especially in Hamilton, OH then you need to check their zoning map as it highlights areas where you can operate your company. They also provide a ‘Zoning Land Use Chart‘ that defines different types of businesses under categories like permitted use of specific land or area, conditional use, accessory use, and specific approval required.

• Cincinnati
• Columbus
• Hamilton
• Akron
• Springfield
• Dayton
• Canton
• Youngstown

6. Register Your Ohio Business

If you want to start a business in Ohio or register a foreign company, then you will be required to undergo certain processes in compliance with the 2022 Ohio Revised Code, Title 17 – Corporations-Partnerships. The type of registration documents to be filed will be determined by the type of entity structure. The new business incorporation or registration documents have to be filed with the office of the Ohio 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 OH Rev Code § 1701.04 (2022). The processing fee for the incorporation documents will be $99. Similarly, if you want to register a business in Ohio as a limited liability company, then you will be required to file Articles of Organization along with a filing fee of $99 pursuant to OH Rev Code § 1706.16 (2022).

Do you want to start a new company in Ohio?

7. Get Your EIN

Whether you start a small business in Ohio or a large corporation, one of the important annual requirements in this state is that of business taxes. Some taxes have to be filed with the state while some businesses or owners may be required to file with the Federal government. This is where having an Employer Identification Number (EIN) can be advantageous. The EIN is a unique ID that is assigned by the Internal Revenue Service (IRS) to businesses and it allows the IRS to identify entities for the purpose of tax reporting. The employer identification number is also required when applying for a loan or towards opening a business banking account.

8. Open a Business Bank Account for Ohio

Once you register a business in Ohio, it is important not to lose sight of the budgetary expenses and overall finances associated with running your company. Now, your personal savings account may sound good enough, but it is not and can make tax preparation extremely challenging. Hence, maintaining a separate business bank account is not only good from a tax perspective but also beneficial for the entity. Such a banking account will not only make your business look professional but also help reduce the vulnerability of your personal assets, thus providing liability protection.

9. Obtain Business License and Permits

Once you register a business in Ohio, there will be several important state requirements that need to be fulfilled in order to operate your business smoothly. One such requirement is that of business licenses and permits. It is important to note that the licensing regulations and requirements vary from one state to another, but more often than not, the type of license depends on the primary business activity. Permits and licenses are an important aspect of your Ohio business checklist and are categorized as under:

• General Business license – Some states have a requirement for a general business license, but one of the biggest benefits you will have if you start a small business in Ohio is that there is no need for any general business license. When you register your company with the SOS, the process itself is considered to be an application for a general business license.
• Professional and Occupational License – If you start a business in Ohio that revolves around a specific occupation or professional like architecture or Certified Public Accountant (CPA) then you will need to apply for a professional or occupational license. Such licenses are issued by different government or state agencies and the application process and fee would vary according to the license.
• Vendor’s License – Another type of licensing prevalent in the state of Ohio is that of a vendor’s license. If you incorporate in Ohio and your company is involved in retail sales of any tangible personal property or even taxable services, then you will be required to apply for a vendor’s license. You may require this license even for internet or online sales from a fixed or transient location. The Ohio Department of Taxation is responsible for the issuance of this license.
• Local Zoning and Building Permits – When you start a business in Ohio in any city or county, you need to check the local zoning laws. This is more so because the zoning laws are different for each county, and you may even be required to apply for local permits and licenses based on the location of your company.

10. Register for Taxes

Once you register a business in Ohio, depending on the primary business activity, you may be required to register for annual taxes in the state. There are different types of taxes applicable for new and existing businesses, but if you have a sales tax nexus in this state, then you will need to register for sales taxes, also known as a Sales Tax Permit. You can apply for it using the Ohio Business Gateway Portal and will be required to provide business activity information including a brief description of your service or products along with an estimated monthly or annual sales volume.

11. Obtain Business Insurance

Different types of businesses have different requirements, especially when it comes to registration and licensing. One of the important areas that new companies fail to focus on or address is business insurance. Insurance actually helps small businesses to cover costs especially those associated with property damage and liability claims. If you register for Ohio business online, then the most common forms of business insurance that you can choose from are:

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

12. Annual and Ongoing Requirements

Once you register a business in Ohio, you will need to ensure complete compliance with state annual requirements. Different states in the USA have different annual requirements, and fulfilling them will ensure good standing in the state. When you establish a new entity in the state, one of the requirements is that of an annual report. Ohio requires certain entities to file a biennial report, although corporations and LLCs are not required to file the same.

Some Important Quick Resources for an Ohio Business

Each business being formed in the state of Ohio has its own set of requirements and challenges. As a first-time business owner or an entrepreneur, you may need all possible resources and information pertaining to the formation and operations of your company. The following state or private agencies will provide you with information and help address any queries you may have.

Ohio Secretary of State

The office of the Ohio Secretary of State is one of the most important websites as you will find all types of information and resources pertaining to starting a new business, operating a business, licensing, taxes, business record searches, business name reservation, forms and fees, and service of process among others. They also have a dedicated section for small business resources.

• Ohio Secretary of State
  Client Service Center
  180 Civic Center Dr.
  Columbus, Ohio 43215
  Phone – (614) 466-2655
  Email: MAmato@OhioSoS.gov
  Website – https://www.ohiosos.gov/

Ohio Department of Taxation

The Ohio Department of Taxation is the administrative section of the Ohio state government. This department is primarily responsible for administering and collecting state taxes and various local taxes. On its website, you will find valuable resources regarding any type of business tax.

• Ohio Department of Taxation
  30 E Broad St #22,
  Columbus, OH 43215
  Phone – 1 800-282-1780
  Website – https://tax.ohio.gov/

Ohio Treasurer’s Office

If you are searching for information and resources regarding investors and financial institutions in the state, the Ohio Treasurer’s Office will be a useful place to start. They also provide a detailed list of forms and documents related to Investment Policies, Collateral Policies, Trustee Agreements, Merchant Services Setup, and the ACH Financial Transaction Device, among other topics.

• Ohio Treasurer’s Office
  30 E. Broad Street – 9th Floor
  Columbus, Ohio 43215
  Phone – (614) 466-2160
  Email – CDprograms@tos.ohio.gov
  Website – https://tos.ohio.gov/

Ohio Chamber of Commerce

When you start a business in Ohio, a visit to the website of the Ohio Chambers of Commerce is recommended as it provides a wealth of resources for businesses and entrepreneurs. You can find information pertaining to discounts, marketing, and relationships that businesses can leverage to grow their company. If you join a chamber of commerce, then it can help boost overall sales while significantly improving the visibility and credibility of an entity.

• Ohio Chamber of Commerce
  34 S. Third St.,
  Suite 100
  Columbus, OH 43215
  Phone – (614) 228-4201
  Website – https://ohiochamber.com/

Ohio Small Business Development Center

One of the agencies providing valuable resources on new business development is Ohio Small Business Development Centers (SBDC). You will have access to tools, resources, business experts and consultants, and information on small business funding options.

• Ohio Small Business Development Center
  320 N Grant Ave #1062,
  Columbus, OH 43215
  Phone – (614) 287-5294
  Website – https://clients.ohiosbdc.ohio.gov/

Ready to Start a Business in Ohio?

Ohio is one of the favored states thanks to the low cost of doing business and is home to the third largest manufacturing workforce in the nation. Once you register a business in Ohio, you will also be able to leverage different state programs, including financial incentives and grants.

Who is a Colorado registered agent?

A registered agent is normally an individual or a company who is also known as a resident agent, statutory agent, or simply as an agent for service of process. A resident agent is a company or individual designated towards receiving all types of legal correspondence on behalf of a business entity like corporations or limited-liability Company. Top registered agent services in Colorado will be client focused and offer customized services while ensuring all business requirements are taken care of. When choosing an agent to represent your company, you will need to conduct a Colorado registered agent search based on several criterias like physical address, services offered, reputation, and knowledge of state laws.

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

The roles and responsibilities of a registered agent in Colorado have been well defined by the federal as well as state business laws. They are more or less the same in all states including Colorado. It is important to note that registered agent services in Colorado may vary amongst different agents in this state as well as those from other states. The roles and responsibilities of a Colorado registered agent primarily include the following:

• Service of Process – If you conduct a Colorado registered agent search, you will notice that all RA’s provide service of process as this is the most important and basic service. If another business or even an individual takes any kind of legal action against your company, they will need to provide service of process. This notifies your company of a suit that has been filed. The delivery of the documentation is known as service of process and may also refer to delivery of additional legal documents like a subpoena. Hence, when you appoint RA in Colorado, their responsibility is to receive such documents.
• Business Related Documents – If you decide to form a new business in Colorado, there are two areas to focus on. The first being formation or operations and the second is annual state requirements. New business formation requires filing of different types of documentation, which has to be submitted with the state. When you appoint a RA in Colorado, they will help you with the filing of formation or operational documents. They will also receive any documents sent by the state on your behalf. Each business irrespective of their legal structure has to meet annual compliances as required by the state. It is the responsibility of your chosen registered agent in Colorado to ensure you are aware of these requirements and are able to fulfill compliances in accordance with state laws and requirements.

Who can be a registered agent for your Colorado business?

A registered agent can be an individual or even a company and they should provide the most basic service, which is the service of process. You can conduct a Colorado registered agent search to determine the agent or agency that you want to hire depending on the gamut of services offered. The owner of a company can also be their own registered agent like in the case of a sole proprietorship, partnership, or even a single-member LLC.

Looking for professional Registered Agent Services?

What are the requirements of a Colorado registered agent?

Each state has different requirements for a registered agent. If you want to hire an agent in this state then you will need to check whether the chosen company fulfills all Colorado registered agent requirements or not. According to the Colorado Revised Statutes, 2022 Colorado Code, Title 7 – Corporations and Associations, Article 105 – Office and Agent; your chosen Colorado registered agent can be an entity or even an individual.

• They should be over the age of 18.
• The individual should have a primary residence in Colorado i.e., they need to reside in Colorado

• The usual place of business for the RA should be in Colorado.
• If the RA is a foreign entity (registered outside Colorado) then such an entity should possess necessary authority to transact business in this state

Can I be my own registered agent in Colorado?

Yes, you can be your own registered agent if you meet the Colorado registered agent requirements. As an individual, the criteria’s that you need to be compliant with are:

• To be a Colorado agent, you should have a physical street address in the state. It is important to note that a P.O box address is not valid
• You should be over 18 years of age
• You need to be available during working hours through the week

How to choose a registered agent in Colorado?

You are forming a new LLC or corporation in Colorado or maybe you have decided to move your existing business to this state. Either way, you will need to choose the right registered agent services in Colorado. This is an essential requirement of the state and is governed by the Colorado Revised Statutes. The most important assistance a resident agent offers is to provide service of process but there are several other types of assistance and services provided by a RA. Hence, it is recommended to conduct a detailed Colorado registered agent search, so that you can choose an agent according to your specific requirement. Here are some tips you should consider:

• First and foremost, the chosen agent should have a proper physical street address within Colorado
• You need to look for a professional service especially when it comes to keeping business hours
• It is important to choose a reputable agent with a proven track record of providing registered agent services in Colorado.
• If you are planning to conduct business in multiple states including Colorado then look for an RA service that is present in several states like IncParadise
• When you conduct a Colorado registered agent search, look whether the agent provides state-of-the-art processes that aid in the delivery of sensitive documents on time and also do a follow-up if and when required.
• You should looks for agents offering additional state or business compliance tools like Entity Management Software by IncParadise

Why choose a professional registered agent service in Colorado?

The 2022 Colorado Code, Title 7 – Corporations and Associations, Article 105 – Office and Agent, states that it is necessary for any new or existing business to appoint a RA in Colorado. A registered in the state is the official representative of the business entity in the state. They play multiple roles right from providing guidance and information to assisting an entrepreneur or business owner to remain compliant with state requirements. Hence, it is recommended to conduct proper Colorado registered agent search and choose a highly reputable and professional RA service in the state. Some of the top reasons to choose a registered agent service are:

• The primary role of a registered agent is to provide service of process and also receive any and all legal and official documents on behalf of their clients
• When you appoint a registered agent in Colorado they will also play a key role in ensuring important documents are forwarded to the entrepreneur, business owner, directors, or members on time.
• Since a resident agent maintains regular business hours they will be able to ensure that legal documents especially those that are hand-delivered and require the signature of the addressee get immediate attention.
• A top RA service possesses knowledge of your state’s business entity laws and annual compliance requirements.
• Reputable registered agent services promises protection of your private information
• You will also be able to benefit from mail forwarding services as well as offsite storage facilities
• Registered agent services in Colorado have incorporated state-of-the-art systems to send automated reminders regarding annual filing deadlines e.g., due date for periodic report or annual report.

Want to hire us as your Colorado registered agent?

How to change a registered agent in Colorado?

If you have registered a limited liability company, a traditional corporation or any other entity and have already designated a registered agent but for some reason want to change the agent now, is it possible? Yes, there would be the process for the same. The process to change a resident agent may vary from one state to another although certain requirements remain the same across all states like notifying your existing agent. Let us take a look at the process through which you can change registered agents in Colorado with ease.

Fill out a Statement of Change form

If you are thinking of changing your registered agent services in Colorado then the first step is filling and submitting the Statement of Change – Changing the Registered Agent Information form online. This form has to be filed pursuant to § 7-90-305.5 and § 7-90-702 of the Colorado Revised Statutes (C.R.S.). There is a fee of $10. You can also file the change of registered agent in Colorado along with your periodic report.

Hire us and we will complete the change of agent form for you

If you are thinking of changing registered agent services in Colorado then IncParadise is one of the most reputable agents in the state. We offer a plethora of general and customized services for all types of entities including service of process (SOP). If you hire us then we will help you complete the change of agent form. We will also provide information pertaining to the entire process of changing your RA right from informing your previous resident agent to submission of the change of agent form.

Choose IncParadise as Your Colorado registered agent

If you are planning to incorporate or form a new business in the state of Colorado then it is mandatory to maintain a registered agent in this state. Thus, it becomes necessary to conduct a proper Colorado registered agent search so that you can find a professional service. IncParadise is one of the reputed and top registered agents in this state and adheres to the Colorado registered agent requirements as established by state statutes.

Introduction – Why Colorado?

Colorado is a centrally located state that shares its borders with Wyoming, Nebraska, and Kansas among others. The real gross domestic product (GDP) of Colorado is $385.83 billion and it is home to over 600,000 small businesses as well as large enterprises. The state is also home to several top facilities run by the federal government including NORAD (North American Aerospace Defense Command). If you have been thinking of moving your business to Colorado then it would be a good decision as the state takes pride in its robust transportation infrastructure and logistics chain. Today, there is a rise in entity domestication in Colorado as it is home to innovation and growth oriented industries with focus on STEM-based advanced industries as well. Small business incentive programs as well as easy access to loans and grants make the state an obvious choice for entrepreneurs. Let us look at some of the top benefits this state offers.

Best workforce

Whether you are moving your business to Colorado or simply starting a new business, one of the foremost requirements of every company is the need for skilled employees. The type of employees your business requires will depend on the services or products being offered, the niche or the industry requirements. This is where the highly dedicated and talented workforce of Colorado comes into the picture. The state boasts of a high concentration of talent in knowledge-based areas like computer or IT, engineering, and life sciences. The state also has a strong STEM (Science, Technology, Engineering and Mathematics) workforce. There are top universities and educational institutions in the state like the University of Colorado Boulder, Colorado School of Mines, Colorado Mesa University, and Fort Lewis College among others.

Diverse and growing economy

One of the top benefits of moving a corporation to Colorado or an LLC is the diverse and growing economy. There are several factors that play a crucial role in the ever growing economy of the state but the most important of them are the diverse industries. There are 14 major industry sectors and these include 7 STEM-driven advanced industry sectors. The state has been ranked number 6 in terms of concentration of creative class occupations, number 4 for concentration of STEM Workers, and number 2 for Technology & Science (Milken Institute, 2020). If you are thinking of relocating a business to Colorado then you should check out the top industries, their markets, growth, innovation, and future. Some of the growing industries include advanced manufacturing sector, transportation and logistics industry, tourism & outdoor recreation (4 percent of the state’s GDP), and Technology & information (7.2% of the state’s GDP) among others.

Global market access

If you plan on moving your business to Colorado and if your business entails selling, manufacturing and distribution to international markets then yes, the state does have a robust system in place to support your goals. The transportation and logistics industry in Colorado, enabled by multimodal transportation elements are publicly and privately owned and operated. North America’s longest commercial runway located at the Denver international airport connects to more than 150 domestic as well as international destinations, which includes Asia, Europe, Mexico, Central America, and Canada. Colorado enjoys a central location with easy access to global markets while ensuring low transportation costs.

Collaborative and stable ecosystem

One of the advantages of moving an LLC to Colorado or any other entity is the collaborative and stable ecosystem. This ecosystem is made up of individuals, organizations, and professionals who share common goals and interests towards creating a shared value for their clients, the industry, and the communities at large. A stable collaborative ecosystem helps in creating a versatile and efficient workforce and helps entrepreneurs to scale faster. Colorado is also focusing on strengthening the existing entrepreneurial ecosystems while attracting and retaining growth oriented entrepreneurship.

Steps to move your corporation to Colorado

If you are thinking of relocating a business to Colorado then there are several benefits that the state offers, which can help you in achieving your short-term and long-term goals. You can leverage state sponsored research and development programs and also have access to various incentive programs initiated by government agencies and private organizations. You may have several questions like, does Colorado allow domestication? as well as the various processes applicable for moving a business to this state. Let us take a look at the various options in detail.

Register as a Foreign Corporation

The first option for moving your business to Colorado is to register it as a foreign entity. This option is favorable for those business owners who want to operate their corporation in their home state (state of incorporation) as well as Colorado. There is a process for moving a corporation to Colorado and is known as foreign qualification. The process is governed by 2022 Colorado Code, Title 7 – Corporations and Associations, Article 90 – Colorado Corporations and Associations Act, Part 8 – Foreign Entities. The process for foreign qualification is as follows:

• Designate a registered agent in Colorado for handling service of process pursuant to CO Code § 7-105-101 (2022)
• If your existing true name is not available then you will be required to register a trade name pursuant to CO Code § 7-71-103 (2022)
• File the Foreign Entity Authority Statement pursuant to the provisions of CO Code § 7-90-803 (2022) along with a fee of $100.

Do you want to start a foreign corporation in Colorado?

Convert a Foreign Corporation to Colorado entity

There are two types of conversion possible in Colorado and they are:

• Domestic entity to domestic entity
• Foreign entity to domestic entity

• You need to identify a true name or a trade name if the true name is not available. Conduct a name availability search and if the name is available then reserve it pursuant to §7-90-301, et seq. and §7-90-602 of the Colorado Revised Statutes (C.R.S.). There is a fee of $25.
• You need to hire and maintain a registered agent in the state for service of process
• You need to file the Statement of Conversion pursuant to CO Rev Stat § 7-90-201.7 (2018). There is a fee of $50

Want to domesticate your company in Colorado?

Dissolve home Corporation and establish a new Corporation in Colorado

The third and final option for relocating a business to Colorado is through dissolving the entity in your home state and registering a new entity as a domestic corporation in Colorado. You will be required to follow the laws and process of dissolution in your original state of incorporation. The process of dissolution will also vary from one state to another and may involve voluntary, judicial, or administrative dissolution. IncParadise, one of the most reputable registered agents in the USA offers dissolution services in all the states.

Dissolution in Home State

The process of moving a corporation to Colorado through dissolution of an entity in the home state will involve:

• You will need to file Certificate of Dissolution or Article of Dissolution as mandated by your home state
• You will need to notify the Internal Revenue Service (IRS) of dissolution
• You will need to close all accounts, credit lines, and cancel business licenses

Domestic Incorporation in Colorado

The incorporation of new entity or entity domestication in Colorado involves:

• Appointing a registered agent in Colorado for service of process
• Identify and reserve a business name using the Statement of Reservation of Name
• File Articles of Incorporation with the Colorado Secretary of State
• Prepare bylaws for your corporation
• Apply for business licenses and permits

Incorporate in Colorado with ease!

Steps to Move an LLC to Colorado

If you want to transfer an LLC to Colorado then you will be able to enjoy many benefits right from central location to robust transportation infrastructure and a business friendly environment. There are different processes by which relocating a business to Colorado becomes easier. Let’s study these processes in detail.

Register as a foreign LLC

If you are thinking of relocating a business to Colorado, and if it is a limited liability company, then the first option would be to register the LLC as a foreign entity. This process is also known as foreign qualification. This process to transfer an LLC to Colorado will be governed by 2022 Colorado Code, Title 7 – Corporations and Associations, Article 80 – Limited Liability Companies,
Part 9 – Foreign Limited Liability Companies. The process encompasses:

• You will need to conduct a true name search. If the true name is unavailable then conduct and register a DBA or trade name.
• You will need to hire and maintain a registered agent in Colorado for handling service of process pursuant to CO Code § 7-80-902 (2022)
• You will need to file the Statement of Foreign Entity Authority pursuant to CO Code § 7-80-901 (2022) along with a fee of $100
• You will also be required to apply for relevant business licenses and permits in the state.

Apply for LLC foreign qualification in Colorado

Convert a Foreign LLC to Colorado entity

One of the important processes for relocating a business to Colorado is to undergo entity conversion. Since your LLC is based outside Colorado or operational in another state; you can opt for converting foreign entity to a domestic entity. This process is also known as entity domestication in Colorado. The process involves the following:

• You need to identify a true name or a trade name if the true name is not available. Conduct a name availability search and if the name is available then reserve it. There is a fee of $25.
• You need to hire and maintain a registered agent in the state for service of process
• You need to file the Statement of Conversion filed pursuant to § 7-90-201.7 (3) of the Colorado Revised Statutes (C.R.S.). There is a fee of $50
• You will also need to file Articles of Organization for moving LLC to Colorado. This has to be filed pursuant to § 7-80-203 and § 7-80-204 of the Colorado Revised Statutes (C.R.S.)

Domesticate your foreign LLC in Colorado

Dissolve home LLC and form a new LLC in Colorado

One of the final ways by which moving your business to Colorado is possible is through dissolution of the entity in the home state and forming a new domestic entity in Colorado. A limited-liability company can be dissolved voluntarily or through judicial, or administrative dissolution. IncParadise, one of the most reputable registered agents in the USA offers dissolution services in all the states.

Dissolution in Home State

The process to transfer an LLC to Colorado through dissolution involves:

• Depending on the state, you will need to file a Certificate of Dissolution or Articles of Dissolution
• You may also be required to submit a certificate of cancellation
• You will need to inform the Internal Revenue Service (IRS) and obtain necessary tax clearances
• Clear all your pending claims towards customers, vendors etc
• Surrender your business licenses and permits

New LLC Formation in Colorado

The above process will be followed by domestic LLC formation in Colorado. This is essential for moving your business to Colorado.

• Identify and reserve a business name using the Statement of Reservation of Name pursuant to §7-90-301, et seq. and §7-90-602 of the Colorado Revised Statutes (C.R.S.).
• Choose a colorado LLC registered agent pursuant to CO Code § 7-80-301 (2022).
• File Article of Organization with Colorado Secretary of State pursuant to CO Code § 7-80-204 (2022) along with a fee of $50
• Prepare an LLC operating agreement
• Open a business bank account
• Apply for and obtain necessary business licenses and permits in the state

Register your LLC in Colorado Today!

Move Your Business to Colorado with IncParadise

If you are wondering if Colorado allows domestication then the answer is yes. You can now move your business to this state following different processes including foreign qualification and entity conversion. We at IncParadise, one of the top registered agent services in Colorado can provide you with information pertaining to relocating a business to Colorado. We can also help you by facilitating paperwork necessary for dissolution in your home state and help you form a new business in Colorado.

Colorado Foreign Qualification

Most often than not, first time entrepreneurs get confused by the word “foreign” and think that it refers to a company that has to be formed outside the United States. In reality and from the perspective of state laws related to business entity compliance, “foreign” simply refers to any business that has been registered in any U.S. state other than an entity’s registration or domestic state. So if your entity is considered a domestic entity in New York and if you want to start a business in Colorado then you will need to undergo foreign qualification in Colorado. The process of Colorado foreign business registration will also ensure that such an entity has access to and benefits from various business incentives, grants, and tax credit programs.

What is a Colorado foreign qualification?

If you are planning to expand your corporation, LLC, limited partnerships (LPs), or limited liability partnerships (LLPs) to the state of Colorado from another state, then foreign qualification in Colorado becomes necessary. The registration of a foreign entity in the state is governed by the state laws or Colorado Code, Title 7 – Corporations and Associations. The registration process as well as requirements for foreign entities may vary according to the business structure. Hence, it is necessary to conduct Colorado foreign entity search prior to registering in this state. Let’s look at an example to understand this:

Example: You have formed a domestic LLC in Vermont by filing the Articles of Organization. Here, Vermont will be considered to be your home state or state of formation. Now, if you want to expand your business to Colorado then there are two options. One is to close your existing business and register a new domestic LLC in Colorado. The second option is to qualify for Colorado LLC foreign registration and this will essentially provide you with the authority to transact business in this state without the need to close your company in Vermont.

Doing business in Colorado

Every business whether an LLC or a corporation or any other entity is different in more ways than one! They differ in terms of formation, operations, and governing laws. One important aspect to consider is the need for Colorado foreign corporation registration or foreign qualification. The registration of an entity depends on whether such an entity is doing business in Colorado or simply conducting specific activities. The act of doing business is defined by the 2022 Colorado Code, Title 7 – Corporations and Associations, Article 90 – Colorado Corporations and Associations Act, Part 8 – Foreign Entities § 7-90-801, Authority to Transact Business or Conduct Activities Required.

• Maintaining bank accounts in this state
• Defending, settling, or maintaining any dispute or proceeding on its own behalf
• Holding any meetings of their managers or owners
• Carrying forward any activities concerning the internal affairs of such a company
• Selling products or services through independent contractors
• Owning real or personal property
• Securing or collecting debts or enforcing mortgages
• Maintaining offices for the transfer or exchange of owner’s interests or its own securities
• Conducting an isolated transaction, which is completed within 30 days

Colorado Foreign Qualification Process

If you have an existing business like an LLC or a corporation in any other state and are thinking of expanding your operations in the state of Colorado then it will be considered as a foreign entity in this state. You will be required to apply for foreign qualification in Colorado and the process will be governed by the 2022 Colorado Code, Title 7 – Corporations and Associations. Each entity based in any other state and which wishes to conduct their business in Colorado will need to apply for proper authority. There can be severe penalties of transacting business without the state authority. Let us look at the process of Colorado foreign business registration for LLCs and corporations.

Colorado Foreign Corporation Registration

If you have incorporated in another state and are currently operating in that state but have a desire to expand your operations in Colorado then you will need to apply for the process of foreign qualification. This involves applying for Colorado foreign corporation registration to get the necessary authority to transact business in this state. Let us understand in detail, what this process entails.

• Entity name or True Name – The entity name is also known as the true name in Colorado. If you are planning to transact business in this state then you will need to register a true name pursuant to CO Code § 7-90-604 (2022). You will need to conduct a Colorado foreign entity search or true name availability search. If the chosen true name is available then you can use the Statement of Registration of True Name form along with a fee of $25. If the true name is not available then you will need to file a DBA (Doing Business As) also known as an assumed name or a trade name.
• Registered Agent – Whether you are forming a domestic entity or applying for Colorado foreign corporation registration, there are certain state guidelines you have to follow. One such law is to continuously maintain a registered agent in the state pursuant to CO Code § 7-125-101 (2022). We at IncParadise are one of the top Colorado registered agents and have helped several domestic and foreign entities to incorporate in this state.
• Foreign Entity Authority Statement – The most important step towards Colorado foreign corporation registration is to get the necessary authorization to transact business in the state. You will need to file the Foreign Entity Authority Statement pursuant to the provisions of CO Code § 7-90-801 (2022). This application has to be submitted with the Office of the Colorado Secretary of State along with a fee of $100.

Do you want to register a foreign Corporation in Colorado?

Colorado Foreign LLC Registration

If you have formed a limited-liability company in another state and are contemplating the idea to expand your business operations in the state of Colorado then you have to undergo the process of foreign qualification. This process is also known as Colorado LLC foreign registration and will help you to transact business in the state without the need to register a new or domestic LLC. The Colorado foreign business registration for an LLC is governed by 2022 Colorado Code, Title 7 – Corporations and Associations, Article 80 – Limited Liability Companies, Part 9 – Foreign Limited Liability Companies. Let’s look at an example to understand this better.

• LLC Name or True Name – One of the foremost requirements of Colorado LLC foreign registration is identifying a business name. This is also known as a true name in this state and should be in accordance with the naming guidelines of the state. You will also need to conduct a Colorado foreign entity search or true name availability search to identify if your chosen name is available. If the chosen true name is available then you can use the Statement of Registration of True Name form along with a fee of $25. If the chosen LLC name is not available or doesn’t comply with state naming guidelines then you may be required to file a DBA (Doing Business As) or trade name in the state.
• Registered Agent – One of the important aspects of any new business formation including Colorado LLC foreign registration is the service of process and this is executed by a registered agent. A foreign limited liability company in Colorado will need to continuously maintain a registered agent in the state pursuant to CO Code § 7-80-902 (2022). Top registered agent services are offered by IncParadise in Colorado and this will not only help fulfill state requirements like service of process but also assist with other annual compliances.
• Foreign Entity Authority Statement – A foreign limited liability company that wishes to transact business in this state will need to go through the process of foreign qualification or Colorado foreign business registration. Foreign qualification requires an LLC to file the Foreign Entity Authority Statement pursuant to the provisions of CO Code § 7-80-901 (2022). This form has to be submitted with the Office of the Colorado Secretary of State along with a fee of $100.

Want to form a foreign LLC in Colorado?

Need Any Assistance in Applying for Colorado Foreign Qualification?

Colorado has much to offer to businesses right from a diverse industry to highly committed talent pool, pro-business climate, grants and other funding opportunities, and business incentive programs. If you are thinking of expanding your existing business to this state then you will have to undergo the process of foreign qualification in Colorado before you can begin operations. As one of the leading registered agents in Colorado, IncParadise can assist you with the process of foreign LLC registration or incorporation.