Forming a Single Member LLC in Ohio: A Step-by-Step Guide

In Ohio, if you operate as a sole proprietor, you might want to think about setting up a single member LLC (Limited Liability Company) to safeguard your personal assets and receive certain tax benefits. The liability protection of a corporation with the tax advantages of a sole proprietorship or partnership are combined in an LLC, a hybrid business structure. We’ll walk you through the steps of creating a single member LLC in Ohio in this article.

Step 1: Select a Name Choosing a name that is distinctive and identifiable from other businesses in Ohio is the first step in creating an LLC. On the website of the Ohio Secretary of State, you can look for a name’s availability. The terms “Limited Liability Company,” “LLC,” or “L.L.C.” must appear in your LLC name.

Step 2: Submit Articles of Incorporation Articles of Organization must then be submitted to the Ohio Secretary of State. Online or mail-in filing is an option. There is a $99 filing charge. The name, address, registered agent, and organizer’s name and address should all be listed in the articles of organization for the LLC. Legal notices will be delivered to the registered agent on behalf of the LLC.

Obtain an EIN in Step 3 The IRS issues each business an individual nine-digit number known as an EIN (Employer Identification Number) for the purpose of taxation. If you want to hire staff members or open a business bank account, even if your LLC just has one member, you’ll need an EIN. The IRS website offers a free online application for an EIN.

Draft an operating agreement as the fourth step. An operating agreement is a legal document that describes the LLC’s ownership and management policies. Although operating agreements are not required for LLCs in Ohio, having one is strongly advised to prevent disputes and safeguard the LLC’s liability protection. You can draft an operating agreement on your own or with the assistance of a lawyer.

What does an Ohio LLP mean? A partnership that provides liability protection to its partners is known as an LLP (Limited Liability Partnership). A Certificate of Limited Liability Partnership must be submitted to the Ohio Secretary of State in order to establish an LLP there. A registered agent and a minimum of two partners are required for an LLP. How can I establish an LLP in Ohio? You must submit a Certificate of Limited Liability Partnership to the Ohio Secretary of State in order to establish an LLP there. There is a $125 filing fee. The name, address, registered agent, and names and addresses of the partners of the LLP should all be listed on the Certificate. What occurs if I dissolve my business? The Ohio Secretary of State must receive your filed Articles of Dissolution if you desire to dissolve your LLC or LLP in Ohio. $50 is the filing fee. Before dissolving the corporation, you must also pay off all outstanding taxes and debts. How can I write a letter of business dissolution? The date, the recipient’s name and address, as well as a brief justification of the reason for dissolution, should all be included in a business dissolution letter that is written on the organization’s letterhead. Include any instructions for the recipient, such as how to return any equipment or pay any outstanding bills. To make sure that a dissolution letter complies with Ohio’s laws and regulations, it is advised to work with a lawyer when drafting one.

Last but not least, establishing a single member LLC in Ohio is a simple procedure that calls for picking a name, submitting articles of organization, obtaining an EIN, and creating an operating agreement. Following state laws and regulations is crucial whether you’re thinking of creating an LLP in Ohio or dissolving your business to prevent any legal problems.