Starting an LLC in Ohio is Easy
LLC Ohio - To start an Ohio LLC, you'll need to file the Articles of Organization with the Ohio Secretary of State, which costs $99. You can apply online or by mail. The Articles of Organization is the legal document that officially creates your Ohio limited liability company.
Follow our step-by-step How to Start an LLC in Ohio guide to get started today. You can learn more about LLCs and their benefits in our What is an LLC guide.
STEP 1: Name Your Ohio LLC
Choosing a company name is the first and most important step in starting your Ohio LLC. Be sure to choose a name that complies with Ohio naming requirements and is easily searchable by potential clients.
1. Follow the naming guidelines:
- Your name must include the phrase “limited liability company” or one of its abbreviations (LLC or L.L.C.).
- Your name cannot include words that could confuse your LLC with a government agency (FBI, Treasury, State Department, etc.).
- Restricted words (e.g. Bank, Attorney, University) may require additional paperwork and a licensed individual, such as a doctor or lawyer, to be part of your LLC.
- Your name must be distinguishable from any other Ohio limited liability company, corporation, limited liability partnership, limited partnership, or trade name.
2. Is the name available in Ohio? Make sure the name you want isn't already taken by doing a name search on the State of Ohio's website.
To learn more about searching for an Ohio LLC name, read our full guide.
3. Is the URL available? We recommend that you check online to see if your business name is available as a web domain. Even if you don't plan to make a business website today, you may want to buy the URL in order to prevent others from acquiring it.
Secure a Domain Name Instantly
Now that you have verified your name and secured the URL you may select a professional service to complete the LLC formation process for you. We recommend using one of these professional services:
Northwest ($39 + State Fees)
LegalZoom ($149 + State Fees)
FAQ: Naming an Ohio LLC
What is an LLC?
LLC is short for Limited Liability Company. It is a simple business structure that offers more flexibility than a traditional corporation while providing many of the same benefits. An LLC is one of several business structures, such as a sole proprietorship, partnership, and corporation (C corp and S corp). For more information, read our What is an LLC guide.
Watch our video: What is an LLC?
How do I name my Ohio LLC?
You must follow the Ohio LLC naming guidelines when choosing a name for your LLC:
- Include the phrase "limited liability company" or one of its abbreviations (LLC or L.L.C.).
- Do not use words that could confuse your business with a government agency (FBI, State Department, CIA, etc.).
- Receive the proper licensing when using the words such as lawyer or doctor.
If you are having trouble coming up with a name for your LLC use our LLC Name Generator. That will not only find a unique name for your business but an available URL to match.
After you get your business name, your next step is getting a unique logo. Get your unique logo using our Free Logo Generator.
Do I need to get a DBA or Trade Name for my business?
Most LLCs do not need a DBA. The name of the LLC can serve as your company’s brand name and you can accept checks and other payments under that name as well. However, you may wish to register a DBA if you would like to conduct business under another name.
To learn more about DBAs in your state, read our How to File a DBA in Ohio guide.
STEP 2: Choose a Statutory Agent in Ohio
You are required to appoint an Ohio statutory agent for your LLC. A statutory agent is more commonly known as a registered agent in other states.
What is a statutory agent? A statutory agent is an individual or business entity responsible for receiving important tax forms, legal documents, notice of lawsuits, and official government correspondence on behalf of your business. Think of your statutory agent as your business's point of contact with the state.
Who can be a statutory agent? A statutory agent must be a resident of Ohio or a corporation, such as a registered agent service, authorized to transact business in Ohio. You may elect an individual within the company including yourself.
To learn more about Ohio Registered Agents, read our full guide.
Recommended: Northwest provides the first year of registered agent service free with LLC formation ($39 + State Fees)
FAQ: Appointing an Ohio Statutory Agent
Can I be my own statutory agent?
Yes. You or anyone else in your company can serve as the statutory agent for your Ohio LLC.
Read more about being your own statutory agent.
Is a registered agent service worth it?
Using a professional registered agent service is an affordable way to manage government filings for your Ohio LLC. For most businesses, the advantages of using a professional service significantly outweigh the annual costs.
For more information, read our article on Ohio statutory agents.
STEP 3: File the Ohio LLC Articles of Organization
Now is a good time to determine whether your LLC will be member-managed vs. manager-managed.
For help with completing the form, visit our Ohio Articles of Organization guide.
If you’re expanding your existing LLC to the state of Ohio, you will need to form a Foreign LLC.
FAQ: Filing Ohio LLC Documents
How long does it take to form an LLC in Ohio?
Filing the Articles of Organization can take up to 7 business days, but processing times vary based on the number of filings received.
Expedited filings are also available for additional fees.
What is the difference between a domestic LLC and foreign LLC?
An LLC is referred to as a "domestic LLC" when it conducts business in the state where it was formed. Normally when we refer to an LLC we are actually referring to a domestic LLC. A foreign LLC must be formed when an existing LLC wishes to expand its business to another state.
Read our What Is a Foreign LLC article to learn more.
How much does it cost to start an Ohio LLC?
The cost to start an Ohio LLC is $99.
To learn more, read our guide on the cost to form an Ohio LLC.
STEP 4: Create an Ohio LLC Operating Agreement
An operating agreement is not required in Ohio, but it's a good practice to have one.
What is an operating agreement? An operating agreement is a legal document outlining the ownership and operating procedures of an LLC.
Why are operating agreements important? A comprehensive operating agreement ensures that all business owners are on the same page and reduces the risk of future conflict.
For more information on operating agreements, read our Ohio LLC operating agreement guide.
Recommended: Download a template or create a Free Operating Agreement using our tool.
FAQ: Creating an Ohio LLC Operating Agreement
Do I need to file my operating agreement with the state?
No. The operating agreement is an internal document that you should keep on file for future reference. However, many states do legally require LLCs to have an operating agreement in place.
STEP 5: Get an Ohio LLC EIN
What is an EIN? EIN stands for Employer Identification Number. EINs are a nine-digit number assigned by the Internal Revenue Service (IRS) to help identify businesses for tax purposes. It is essentially a Social Security Number for a business.
An EIN is sometimes referred to as a Federal Employer Identification Number (FEIN) or Federal Tax Identification Number (FTIN).
Why do I need an EIN? An EIN is required to:
- Open a business bank account
- File and manage Federal and State Taxes
- Hire employees
What if I already have an EIN for my sole proprietorship? The IRS requires that sole proprietorships get a new EIN when converting to an LLC.
Where do I get an EIN? You can get an EIN for free from the IRS. Getting an EIN is an easy process that can be done online or by mail.
FOR INTERNATIONAL EIN APPLICANTS: You do not need a SSN to get an EIN. For more information, read our How to Get an EIN as a Foreign Person guide.
FAQ: Getting an Ohio LLC EIN
How do I get an EIN if I don’t have a social security number?
What tax structure should I choose for my Ohio LLC?
Do I need an EIN for my LLC?
All LLCs with employees, or any LLC with more than one member, must have an EIN. This is required by the IRS.
Learn why we recommend always getting an EIN and how to get one for free in our Do I Need an EIN for an LLC guide.
Considering Using an LLC Formation Service?
We reviewed and ranked the top 5 LLC formation services.
Find out which is best for you.
Important Steps After Forming an LLC
Separate Your Personal and Business Assets
When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your Ohio LLC is sued. In business law, this is referred to as piercing the corporate veil.
You can start protecting your LLC in Ohio with these steps:
1. Opening a business bank account:
- Separates your personal assets from your company's assets, which is necessary for personal asset protection.
- Makes accounting and tax filing easier.
Need help finding your EIN for your loan application? Visit our EIN Lookup guide for help.
Recommended: Read our Best Banks for Small Business review to find the best national bank, credit union, business-loan friendly banks, one with many brick-and-mortar locations, and more.
2. Getting a business credit card:
- Helps categorize and separate all business expenses for end-of-year tax purposes.
- Helps build your business credit score — an essential step toward getting a line of credit or business loan in the future.
- Allows you to keep track of department expenses by issuing multiple cards (with multiple budgets) to your employees.
For a closer look at business credit cards and their benefits, check out our review of the best small business credit cards.
Recommended: Visit Divvy to apply for their business credit card and build your business credit quickly.
For other important steps to protect your corporate veil, like properly signing legal documents and documenting company business, please read our corporate veil article.
3. Hiring a business accountant:
- Prevents your business from overpaying on taxes while helping you avoid penalties, fines, and other costly tax errors
- Makes bookkeeping and payroll easier, leaving you with more time to focus on your growing business
- Manages your business funding more effectively, discovering areas of unforeseen loss or extra profit
Recommended: Find out how much you could be saving today by trying our recommended accounting software.
For more business accounting tools, read our guide to the best business accounting software.
Get Business Insurance for Your Ohio LLC
Business insurance helps you manage risks and focus on growing your business. The most common types of business insurance are:
- General Liability Insurance: A broad insurance policy that protects your business from lawsuits. Most small businesses get general liability insurance.
- Professional Liability Insurance: A business insurance for professional service providers (consultants, accountants, etc.) that covers claims of malpractice and other business errors.
- Workers' Compensation Insurance: A type of insurance that provides coverage for employees’ job-related illnesses, injuries, or deaths. In Ohio, businesses with one or more employees, excluding business owners, are required by law to have workers' compensation insurance.
Read our review of the best small business insurance companies.
Create Your Business Website
Creating a website is a big step in legitimizing your business. Every business needs a website. Even if you think that your business is too small or in an offline industry, if you don’t have a website, you are missing out on a large percentage of potential customers and revenue.
Some may fear that creating a business website is out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.
Here are the main reasons why you shouldn’t delay building your website:
- All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
- Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own and control.
- Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.
Using our website building guides, the process will be simple and painless and shouldn’t take you any longer than 2-3 hours to complete.
Send Out a Press Release
Press releases are among the easiest and best ways to promote your business. They are also one of the most cost-effective strategies as they:
- Provides publicity
- Establish your brand presence on the web
- Improve your website’s search engine optimization (SEO), driving more customers to your website
- Are a one-time cost in terms of effort and money
- Have long-lasting benefits
Read our review of the best press release services.
Keep Your Company Compliant
Ohio LLC Business Permits & Licenses
Does my Ohio LLC need business licenses and permits?
To operate your Ohio LLC you must comply with federal, state, and local government regulations. For example, restaurants likely need health permits, building permits, signage permits, etc.
The details of business licenses and permits vary from state to state. Make sure you read carefully. Don't be surprised if there are short classes required as well.
Fees for business licenses and permits will vary depending on what sort of license you are seeking to obtain.
Find out how to obtain necessary licenses and permits for your business or have a professional service do it for you:
- Business License Guide: Use our detailed Ohio Business License guide.
- Federal: Use the U.S. Small Business Administration (SBA) guide.
- State: Use the State of Ohio's page under Licenses & Permits.
- Local: Contact your local county clerk and ask about local licenses and permits.
Recommended: If you are a first-time entrepreneur, consider having a professional service research your business’s licensing requirements. Read our best business license services review on Startup Savant.
Ohio LLC Tax Filing Requirements
Depending on the nature of your business, you may be required to register for one or more forms of state tax.
If you are selling a physical product, you’ll typically need to register for a seller's permit through the Ohio Business Gateway website.
This certificate allows a business to collect sales tax on taxable sales.
Sales tax, also called "Sales and Use Tax," is a tax levied by states, counties, and municipalities on business transactions involving the exchange of certain taxable goods or services.
Read our Ohio sales tax guide to find out more.
If you have employees in Ohio, you will need to register for Unemployment Insurance Tax through the Ohio Department of Job and Family Services. You will also need to sign up for Employee Withholding Tax through the Ohio Business Gateway.
Federal LLC Tax Filing Requirements
Most LLCs will need to report their income to the IRS each year using:
- Form 1065 Partnership Return (most multi-member LLCs use this form)
- Form 1040 Schedule C (most single-member LLCs use this form)
How you pay yourself as an owner will also affect your federal taxes. Visit our guide to learn more about how to pay yourself from your LLC.
Read our LLC Tax Guide to learn more about federal income taxes for LLCs.
FAQ: Additional Taxes
What is the Ohio Commercial Activity Tax?
There is a Commercial Activity Tax for each LLC formed in Ohio which varies depending upon your LLC’s income.
Commercial Activity Tax
In Ohio, LLCs with gross receipts exceeding $150,000 per year are required to pay a commercial activity tax. LLCs with less than $150,000 in gross receipts are exempt from this tax.
OPTION 1: File Online with the State of Ohio
- OR -
OPTION 2: File by Mail
Ohio Department of Taxation
Business Tax Division
P.O. Box 16158
Columbus, OH 43216
Due Date: May 10th of the current tax year (the CAT is a prepaid tax)
Late filing penalty: A late filing incurs a penalty of $50 or 10% of the tax due, whichever is greater. Interest may be assessed on unpaid taxes.
FAQ: Ohio LLC Commercial Activity Tax
What are the LLC income brackets for the Commercial Activity Tax?
- LLCs with less than $150,000 in gross receipts do not pay this tax
- LLCs with between $150,000 and $1 million in gross receipts pay $150.
- LLCs with $1,000,000+ in gross receipts file and pay returns on a quarterly basis,
- If you form an LLC during the second half of the year, your first year's CAT is $75.
- If your taxable gross receipts total more than $1,000,000 but less than $2,000,000, you pay an $800 minimum tax.
- If your taxable gross receipts total more than $2,000,000 but less than $4,000,000, you pay a $2,100 minimum tax.
- If your taxable gross receipts exceed $4,000,000, you pay a $2,600 minimum tax.
- You also pay a 0.26% tax rate on all gross receipts beyond $1,000,000 (0.26% x (Taxable Gross Receipts - $1 Million))
Avoid Automatic Dissolution
LLCs may face fines and even automatic dissolution when they miss one or more state filings. When this happens, LLC owners risk the loss of limited liability protection. A quality registered agent service can help prevent this outcome by notifying you of upcoming filing deadlines and by submitting reports on your behalf.
Hiring Employees in Ohio
If you plan to hire employees for your Ohio LLC, stay compliant with the law by following these steps:
- Verify that new employees are able to work in the US
- Report employees as "new hires" to the State
- Provide workers' compensation insurance for employees
- Withhold employee taxes
- Print workplace compliance posters and place them in visible areas of your workspace
Interested in more? Have a look at the Ohio State Website.
Recommended: Check out our Hiring for your Small Business Guide for resources like sample job descriptions, payroll service reviews, and more.
FAQ: Hiring Employees in Ohio
What is the minimum wage in Ohio?
The minimum wage in Ohio is $9.30 per hour for businesses with annual gross receipts over $305,000 and $7.25 for businesses with annual gross receipts under $305,000.
How often do I need to pay employees in Ohio?
Ohio requires wages to be paid regularly at least twice per month.
Small Business Resources
Get Help Starting a Business in Ohio
We understand that creating an LLC and getting your business up and running comes with many challenges. To help you succeed, we compiled the best local resources in every major metro area in Ohio. You can get free assistance in the following areas:
Small Business Trends
Learn about the current US business trends so you can make the most informed business decisions.
Women in Business Tools and Resources
If you have a woman-owned business, many resources are available to help you concentrate on your business’s growth:
- Funding - (ie. grants, investors, loans)
- Events - (ie. conferences, meetups)
- Guides - (ie. business formation, personal growth)
- Support - (ie. advice, communities, business strategies)
Our information and tools will provide educational sources, allow you to connect with other women entrepreneurs, and help you manage your business with ease.
Free LLC Legal Forms
TRUiC offers a number of free LLC legal forms to help with creating documents like:
- Operating agreements
- LLC resolutions
- Hiring documents, including:
- Employment contracts
- Independent contractor service agreements (ICSA)
- Non-disclosure agreements (NDA)
All you’ll need to do to download the forms is sign up for the TRUiC Business Center, which is also free, forever.
How to Build Business Credit
Learning how to build business credit can help you get credit cards and other business funding options in your business's name (instead of yours), with better interest rates, higher lines of credit, and more.
TRUiC’s Small Business Tools
TRUiC believes business tools should be free and useful. Our tools help solve business challenges, from finding an idea for your business, to creating a business plan, writing an operating agreement for your LLC, and more.
Check out TRUiC’s small business tools:
More Ohio LLC Information
Ohio Foreign LLCs
Forming a foreign LLC allows your company to operate as one entity in multiple states. If you have an existing LLC and want to do business in Ohio, you will need to register as a foreign LLC. This can be done online or by mail.
How to Obtain a Certificate of Good Standing in Ohio
A Certificate of Good Standing verifies that your Ohio LLC was legally formed and has been properly maintained. Several instances where you might need to get one include:
- Seeking funding from banks or other lenders
- Forming your business as a foreign LLC in another state
- Obtaining or renewing specific business licenses or permits
You can order an Ohio LLC Certificate of Good Standing online, by mail, or in-person.
OPTION 1: Request a Certificate Online
- OR -
OPTION 2: Request by Mail or In-Person
Fee: $5 Normal; $25 Long-Form (Both are nonrefundable)
Ohio Secretary of State
P.O. Box 670
Columbus, OH 43216
Ohio Secretary of State
180 E. Broad St, 16th Floor
Columbus, OH 43215
How to Dissolve an LLC in Ohio
If at any point in the future you no longer wish to conduct business with your Ohio LLC, it is important to officially dissolve it. Failure to do so in a timely fashion can result in tax liabilities and penalties, or even legal trouble. To dissolve your Ohio LLC, there are two broad steps:
- Close your business tax accounts
- File the Ohio LLC dissolution form
When you are ready to dissolve your LLC, follow the steps in our Ohio LLC Dissolution Guide.
Read More about LLCs & How to Run a Business
LLC: An LLC is a US business structure that offers the personal liability protection of a corporation with the pass-through taxation of a sole proprietorship or partnership.
DBA: A DBA, or doing business as name, is any name a business operates under that isn't its legal name.
Partnership: A partnership is an informal business structure owned by more than one individual that doesn't provide personal liability protection.