The Ohio Department of Taxation states that you must apply for a vendor’s license if you want to sell tangible personal goods (such as apparel, gadgets, or books) online. You are permitted to gather and send sales tax on the goods you sell thanks to this license. Through the Ohio Business Gateway, you can submit an online application for a vendor’s license. A vendor license is available for $25, and it is good for three years.
On the other hand, you might not require a vendor’s license if you’re providing services (like web design or freelance writing) online. However, you’ll still need to register your company with the government and secure any licenses or permits required by your industry.
In Ohio, you are permitted to use more than one trade name, sometimes referred to as a DBA name or “doing business as” name. A DBA name is a business’s operating name that differs from its legal name. If your formal company name is “John Smith LLC,” for instance, you might conduct business under the trade name “Smith Consulting.” Each DBA name must be registered with the Ohio Secretary of State’s office.
Operating under a DBA name has a number of drawbacks. First off, a DBA offers no legal defense for your company. Your personal assets may be at danger if you conduct business under a DBA and are sued. Second, using a DBA may be perplexing to clients and vendors who may not be aware of the connection between your legal business name and your DBA name. Last but not least, a DBA offers no trademark protection, so someone else might use your DBA name in another state or nation.
The needs of your particular firm will determine if obtaining a DBA name is worthwhile. A DBA might be an excellent choice if you’re a solo entrepreneur and wish to conduct business under a different name than your own. However, it could be preferable to establish a corporation or limited liability company (LLC) if you’re worried about liabilities or want to safeguard your business name.
A DBA does not submit a different tax return. Your personal tax return (Form 1040), utilizing a Schedule C, should be used to disclose your business revenue and expenses if you operate under a DBA. You will need to submit a separate tax return for your firm if you want to incorporate as an LLC or corporation.
Depending on the region and type of business, different business licenses in Ohio have different prices. The price often falls between $25 and $500. For exact pricing information, it is recommended to check with your local municipal or county administration.
You could be needed to register your home-based business with your neighborhood zoning authority if you operate one in Ohio. The criteria, however, could change depending on the kind of business you’re doing and where you’re doing it. To find out if you need to register your home-based business, it is advised to contact your local government agency. To sell online in Ohio, you might additionally need to have a business license or permit.