Business License in Ohio

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

Who needs an Ohio business license?

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

What business license do I need in Ohio?

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

Ohio Business Licenses for Specific Occupations and Professions

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

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

Other Ohio Business Licenses

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

Vendor license/Seller permits

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

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

Local Ohio business licensing and permits

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

Ohio home-based business license

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

Need any Assistance in Obtaining Your Ohio Business License?

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

Ohio Business Entity Search

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

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

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

What is an Ohio business name search?

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

Naming your Ohio LLC

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

General Ohio LLC naming rules

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

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

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

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

Search by company name or any name

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

Do you want to form an LLC in Ohio?

Naming your Ohio Corporation

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

General Corporation naming rules

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

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

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

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

Search by corporate name or any name

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

Are you thinking of registering for a corporation in Ohio?

Need any Assistance in an Ohio Business Name Search?

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

Ohio LLC Annual Filing Requirements

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

No annual report for Ohio LLCs

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

Ohio LLC Taxes

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

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

Ohio Corporation Annual Filing Requirements

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

No annual report for Ohio Corporations

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

Ohio Corporation Taxes

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

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

Need any Assistance in Ohio LLC or INC Annual Filing?

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

Ohio LLC or Corporation

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

Which business entity should I choose for the Ohio business?

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

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

Pros and Cons of Forming an LLC or Corporation in Ohio

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

Pros of an LLC or Corporation

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

Cons of an LLC or Corporation

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

Ohio LLC Cost

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

Cost for forming an Ohio LLC

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

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

Annual maintenance cost for Ohio LLC

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

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

Form your new LLC in Ohio Today!

Ohio Corporation Cost

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

Cost of Forming Corporation in Ohio

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

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

Annual maintenance cost for Ohio Corporation

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

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

Register a Corporation in Ohio with ease!

Need any Assistance in Forming Your Ohio LLC or Corporation

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

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.

Are you thinking of starting an Ohio Corporation?

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).

Do you want to obtain an EIN in Ohio?

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.