You might wish to think about setting up a S company (S Corp) if you plan to launch a business in Ohio. An S Corp is a particular kind of corporation that gives its shareholders liability protection and tax advantages. In Ohio, creating a S Corp entails following a precise process and abiding by state regulations. An instruction manual for creating a S Corp in Ohio is provided below:
Select a Name for Your S Corp in Step 1 Picking a name for your company comes before anything else while creating a S Corp in Ohio. The name must be distinctive and easy to tell apart from that of other firms in Ohio with the same registration. By conducting a search on the Ohio Secretary of State website, you can determine whether the name you want to use is available.
File Articles of Incorporation in Step 2 Articles of incorporation must then be submitted to the Ohio Secretary of State. The articles must state the name of your S Corp, the nature of your company, the initial directors’ names and addresses, as well as the amount and type of authorized shares of stock. The articles can be submitted by mail or online.
Step 3: receive an Ohio Tax Identification Number
Following the submission of the Articles of Incorporation, you must receive an Ohio Tax Identification Number from the Ohio Department of Taxation. This number is necessary to open a bank account for your S Corp., pay state taxes, and hire staff.
Create bylaws in Step 4 and hold an organizational meeting Although bylaws are not required for S Corps in Ohio, having them is nevertheless advised because they set down the policies and procedures for running your company. Your initial directors should attend an organizational meeting where the bylaws are adopted, officers are chosen, and stock certificates are distributed.
Step 5: Submit a S Corp Status Request to the IRS You must submit Form 2553 to the IRS to apply for S Corp status. Within 75 days of your S Corp’s incorporation, or within 75 days of the beginning of the tax year for which you wish the S Corp status to apply, you must submit this form. Does Ohio Recognize the S Corps? Ohio does accept S Corps and provides the same advantages as other states. S Corps are not subject to federal income tax in Ohio, but they are liable to state taxes. Instead, the S Corp’s gains and losses are distributed to the shareholders, who then report them on their individual income tax returns. In Ohio, how much does it cost to form a S corporation? The price of forming a S Corp in Ohio is determined by a number of expenses, including filing fees, legal fees, and other costs. It costs $99 to file articles of incorporation, and $25 to apply for an Ohio Tax ID number. Depending on how complicated your company is, the cost of creating rules and hosting an organizational meeting may change. How Much Does It Cost to Form an LLC in Ohio? The price to incorporate in Ohio is comparable to the price to set up a S Corp. It costs $99 to file articles of incorporation, and $25 to apply for an Ohio Tax ID number. Additionally, you could have to pay for extra costs like legal fees.
Are Bylaws Required in Ohio? Although bylaws are not required for S Corps in Ohio, having them is advised because they give your company a structure for functioning. The guidelines and processes for holding meetings, choosing officers, issuing stock, and other significant activities are outlined in the bylaws.