You can use a different name for your company if you run a Limited Liability Company (LLC) in Ohio by submitting a “Doing Business As” (DBA) name application. You can conduct business under a name other than the legal name of your LLC if you have a DBA. This can be helpful if you want to give your company a name that is more marketable or memorable.
You must submit a registration form to the Ohio Secretary of State’s office in order to register a DBA in Ohio. The form requests your LLC’s name, address, and the new DBA name you intend to employ. A filing fee, which is presently $39, is also required.
It’s crucial to understand that a DBA doesn’t turn your LLC into a different legal entity. All obligations and liabilities incurred while conducting business under the DBA name will still be the responsibility of your LLC. To reflect the new name, you’ll also need to alter all contracts, marketing materials, and other business documents.
How do I use my LLC to pay myself?
There are a few ways you can pay yourself as the owner of an LLC. One choice is to work for the LLC and accept a pay. Taking a profit distribution as an LLC member is an additional choice. Your personal tax situation and the overall financial health of your company may influence the technique you choose.
It’s vital to remember that LLCs are “pass-through” tax entities, which means that the business’s gains and losses are transferred to the owners’ individual tax returns. Accordingly, you will be liable for paying taxes on any income derived from the LLC.
You must pay self-employment taxes as a sole owner, which include contributions to Social Security and Medicare. Your net self-employment income, which is your business revenue less expenses, is used to determine your current self-employment tax rate, which is 15.3%.
Do sole proprietorships need to be registered?
Ohio does not need sole proprietorships to register with the state. But in order to function lawfully, you might need to acquire specific licenses and permits depending on the type of your business. For instance, the Ohio Department of Health will need you to obtain a food service license if you are operating a food service business.
Furthermore, you should be aware that, as a sole owner, you will be entirely responsible for any debts or legal problems resulting from your business operations. This implies that if your company is sued or incurs debt, your personal assets may be at danger.
In Ohio, a “LLC license” does not exist. Instead, LLCs must submit their articles of formation and pay a $99 filing fee to the Ohio Secretary of State’s office. Additionally, depending on the nature of their business, LLCs could require particular licenses and permits to operate legally. Depending on the sector and location, these criteria change.