How Much Does It Cost to Start an LLC in Ohio?

Ohio LLC Online Filing Fee: $99

The main cost to start an LLC in Ohio is the $99 fee to file your LLC's Articles of Organization online with the Ohio Secretary of State.

For a look at LLC cost in every state, read our other Cost to Start an LLC and How to Form an LLC guides.

Ohio Commercial Activity Tax: Varies

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.

The following are the Ohio LLC tax brackets and details:

• LLCs with between $150,000 and $1 million in gross receipts pay $150.
• LLCs with more than $1 million 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 million but less than $2 million, you pay an $800 minimum tax.
• If your taxable gross receipts total more than $2 million but less than $4 million, you pay a $2,100 minimum tax.
• If your taxable gross receipts exceed $4 million, you pay a $2,600 minimum tax.

You also pay a 0.26% tax rate on all gross receipts beyond $1 million

0.26% x (Taxable Gross Receipts - $1 million)

A late filing incurs a penalty of $50 or 10% of the tax due, whichever is greater. Interest may be assessed on unpaid taxes.

LLCs can file their commercial activity tax online or by mail.

Cost to Form a Foreign LLC in Ohio

If you already have an LLC that is registered in another state and you’d like to expand your business into Ohio, you’ll need to register your LLC as a foreign LLC in Ohio.

The cost for registering an Ohio foreign LLC is $99. You can register a foreign LLC in Ohio by filing a Registration of a Foreign Limited Liability Company (Form 617) online or by mail.

Optional LLC Formation Costs

There are optional fees associated with LLC formation:

LLC Name Reservation

Reserve your name for up to 180 days prior to LLC formation by filing a Name Reservation / Transfer / Cancellation form (Form 534B) and paying the $39 fee.

Trade Name

File a Name Registration (Form 534A) and pay the $39 filing fee to create a name other than your legal LLC business name.

Six Basic Steps to Start an LLC in Ohio

Step 1: Name Your Ohio LLC
Step 2: Choose a Statutory Agent
Step 3: File the Articles of Organization
Step 4: Create an Operating Agreement
Step 5: Get an EIN
Step 6: Keep Your Company Compliant

Step 1: Name Your Ohio LLC

When you name your Ohio LLC, you’ll need to choose a name that:

1. Is available for use in the state of Ohio
2. Meets Ohio naming requirements
3. Is available as a web domain

Recommended: Visit our Start an LLC in Ohio guide for detailed naming rules and instructions for registering a business name in Ohio.

Not sure what to name your business? Check out our How to Name a Business guide and free LLC Name Generator.

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 create a business website today, you may want to buy the URL in order to prevent others from acquiring it.

Step 2: Choose a Statutory Agent

All LLCs in Ohio must appoint a statutory agent. A statutory agent primarily acts as your LLC’s main point of contact with the state. But most importantly, they are responsible for accepting service of process in the event your business is sued.

Your Ohio statutory agent must be:

• At least 18 years or older
• Have a physical address in Ohio
• Available during normal business hours to accept service of process

In Ohio, your statutory agent must consent to their appointment by signing the Articles of Organization.

Step 3: File the Articles of Organization

Ohio Form 610 - Articles of Organization is a document that is filed with the Ohio Secretary of State to form an LLC. The fee for filing the Articles of Organization is $99 online and by mail.

For detailed instructions for completing the Articles of Organization, visit our How to File the Ohio Articles of Organization guide.

Step 4: Create an Operating Agreement

An operating agreement isn't required for Ohio LLCs, 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.

Step 5: Get an EIN

What is an EIN? An EIN or Employer Identification Number is a nine-digit number issued by the Internal Revenue System (IRS) to identify a business for tax reporting purposes. An EIN is essentially a Social Security number (SSN) for your company.

Why do I need an EIN? An EIN number is required for the following:

• Opening a business bank account
• Hiring employees

Step 6: Keep Your Company Compliant

To keep your Ohio LLC compliant, you must ensure all business licenses and permits are in order, maintain current taxes, and follow appropriate hiring practices. Here's a summary:

• Acquire the necessary business licenses and permits. These requirements will depend on your business type.
• Keep up to date with state and federal LLC tax requirements. These will depend on your business activities and income. If you sell physical goods, register for a seller's permit. If you have employees, register for Unemployment Insurance Tax and Employee Withholding Tax. If your gross receipts exceed $150,000 per year, you'll also need to pay the Commercial Activity Tax (CAT).
• Ohio's individual income tax rates are based on a graduated structure, and the rate can range from 0% to 4.797%. Federal income tax should be reported using Form 1065 (multi-member LLC) or Form 1040 Schedule C (single-member LLC).
• If you plan to hire employees:
• Verify their eligibility to work in the US.
• Report them as "new hires" to the state.
• Provide workers' compensation insurance.
• Withhold employee taxes.
• Display workplace compliance posters in your workspace.