How to Start an LLC in Ohio: Step-by-Step Guide
Last Updated:byTRUiC Team
To start anLLC in Ohio, 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.
Follow our step-by-stepHow to Start an LLC in Ohioguide to get started today.
- Name Your Ohio LLC
- Choose a Statutory Agent
- File the Articles of Organization
- Create an Operating Agreement
- Get an EIN
Learn more about LLCs and their benefits in our118bet金博宝
guide. To form an LLC in any state, visit ourHow to Set Up an LLCguide.
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 aname searchon the State of Ohio's website.
To learn more aboutsearching for an Ohio LLC name, read our full guide. Find name ideas using our freeLLC name generator.
3. Is the URL available?我们建议你检查在线,看看你business name is available as a网络域. 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.
Once you have verified your name is available, you may now select a professional service to complete the LLC formation process for you.
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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. Read our118bet金博宝 guide for more information.
Or, watch our two-minute 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 ourLLC 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, get a unique logo using ourFree Logo Generator.
Do I need to get a DBA or trade name for my business?
Most LLCs do not need a DBA, known as a trade name in Ohio. 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 ourHow to File a DBA in Ohioguide.
Step 2: Choose a Statutory Agent in Ohio
You arerequiredto appoint anOhio statutory agentfor your LLC. A statutory agent is more commonly known as aregistered agentin 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 aregistered agent service, authorized to transact business in Ohio. You may elect an individual within the company, including yourself.
Recommended:Check out thesebest registered agent services.
FAQ: Nominating a Registered 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 aboutbeing 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. Using a professional service allows LLC owners to focus on the other responsibilities of business ownership.
For more information, read our article onOhio statutory agents.
Step 3: File Your Ohio LLC Articles of Organization
To register your LLC, you'll need to fileForm 610: Articles of Organizationwith the Ohio Secretary of State. You can apply online or by mail.
Now is a good time to determine whether your LLC will bemember-managed vs. manager-managed.
File the Articles of Organization
OPTION 1:File Online With the Ohio Secretary of State
- OR -
OPTION 2:File Form 610 by Mail
State Filing Cost:$99, payable to the Ohio Secretary of State (Nonrefundable)
Mailing Address:
Ohio Secretary of State
P.O. Box 670
Columbus, OH 43216
For help with completing the form, visit ourOhio Articles of Organizationguide.
If you’re expanding your existing LLC to the state of Ohio, you will need to form aforeign 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 seven 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 a foreign LLC?
An LLC is referred to as a "domestic LLC" when it conducts business in the state where it was formed. A foreign LLC must be formed when an existing LLC wishes to expand its business to another state.
Read ourWhat Is a Foreign LLCarticle 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 thecost to form an Ohio LLC.
Step 4: Create an Ohio LLC Operating Agreement
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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 ourOhio LLC operating agreementguide.
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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
You can get an Employer Identification Number (EIN) from the IRS for free. It is used to identify a business entity and keep track of a business’s tax reporting. It is essentially a Social Security number (SSN) for the company.
Why do I need an EIN?An EIN number is required for the following:
- To open abusiness bank accountfor the company
- For federal and state tax purposes
- 雇佣employees for the company
Where do I get an EIN?An EIN is obtained from the IRS (free of charge) by the business owner after forming the company. This can be done online or by mail.
FOR INTERNATIONAL APPLICANTS:Youdo not need an SSNto get an EIN.Learn more here.
Get an EIN
Option 1: Request an EIN from the IRS
- OR -
Option 2: Apply for an EIN by Mail or Fax
Mail to:
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999
Fax:(855) 641-6935
Fee:Free
FAQ: Getting an EIN
How do I get an EIN if I don’t have a Social Security number?
An SSN isnotrequired to get an EIN. You can simply fill outIRS Form SS-4and leave section 7b blank. Then call the IRS at (267) 941-1099 to complete your application. Read our guide forinternational EIN applicants.
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 ourDo I Need an EIN for an LLCguide.
What tax structure should I choose for my Ohio LLC?
When you get an EIN, you will be informed of the differenttax classification optionsthat are available. Most LLCs elect the default tax status.
However, some LLCs can reduce their federal tax obligation by choosing theS corporation (S corp) status. To learn more, read ourLLC vs. S Corpguide.
Considering Using an LLC Formation Service?
We reviewed and ranked the top LLC formation services. Find out which is best for you.
How to Maintain Your LLC
Steps After LLC Formation
阅读所有你需要保持你的步骤C’s personal liability protection, open a business bank account, get business insurance, and stay up to date with state reporting requirements.
Visit ourAfter Forming an LLCguide to learn more.
What is the corporate veil?
Business entities, such as LLCs and corporations, protect their owners from personal liabilities for the business’s debts. This protection is often referred to as the corporate veil. Learn how to protect your LLC's corporate veil in ourguide.
Keep Your Company Compliant
Ohio LLC Business Licenses & Permits
LLC owners must comply with federal, state, and local government regulations. Fees and requirements for licenses and permits will vary depending on what sort of business license you need.
Find out how to get the necessary business licenses and permits for your LLC with ourOhio Business Licenseguide.
Recommended:If you are a first-time entrepreneur, consider having a professional service research your business’s licensing requirements. Read ourbest business license services回顾创业学者。
Ohio LLC Tax Filing Requirements
In order to keep your business in good standing, it's important to stay up to date on yourOhio LLC taxes.
Depending on the nature of your business, and your business income, you may be required to register for one or more forms of state tax:
Sales Tax
If you are selling a physical product, you’ll typically need to register for aseller's permitthrough theOhio Department of Taxationwebsite.
Ohio's base state sales tax is 5.75%. Counties and cities can add an additional local sales tax of up to 3%.
Employer Taxes
If you have employees in Ohio, you will need to register forUnemployment Insurance Taxthrough the Ohio Department of Job and Family Services. You will also need to sign up forEmployee Withholding Taxthrough the Ohio Business Gateway.
Commercial Activity Tax
In Ohio, LLCs with gross receipts exceeding $150,000 per year are required to pay the state'sCommercial Activity Tax(CAT). LLCs with less than $150,000 in gross receipts are exempt from this tax:
You can pay this taxonlineor submit a returnby mailby May 10 of the current tax year.
Income Tax
State:
Ohio uses a graduated tax structure for its individual income tax rates. Depending on your LLC’s income, your tax rate could range from 0% to 4.797%.
State tax returns are due each year by April 18. To calculate your tax or determine your tax bracket, visit theOhio Department of Taxation website.
Federal:
You’ll also need to report your federal income tax using eitherForm 1065(multi-member LLC) orForm 1040 Schedule C(single-member LLC).
What is the Ohio Commercial Activity Tax?
The Commercial Activity Tax is a state tax levied on each LLC formed in Ohio. The tax rate varies depending on your LLC’s income.
What are the LLC income brackets for the Commercial Activity 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))
LLCs with less than $150,000 in gross receipts do not pay this tax
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 areable to work in the US
- Report employeesas "new hires" to the state
- Provideworkers' compensationinsurance for employees
- Withhold employee taxes
- Printworkplace compliance postersand place them in visible areas of your workspace
Interested in more? Have a look at theOhio State Website.
Check out ourHiring for Your Small Business Guidefor resources like sample job descriptions, payroll service reviews, and more.
What is the minimum wage in Ohio?
The minimum wage in Ohio is $10.10 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.