In Ohio, establishing a sole proprietorship is a rather easy process. In a sole proprietorship, the owner is individually liable for all business-related obligations, including debts and liabilities. The procedures to set up a sole proprietorship in Ohio are as follows.
Select a business name in the first step. The first step in establishing a sole proprietorship in Ohio is to give your company a name. This name has to be original and not being used by another company in Ohio. By conducting an online search for the Ohio Secretary of State, you can determine whether a business name is available.
Step 2: Declare Your Company
Once you’ve decided on a name for your company, you must register it with the Secretary of State’s office in Ohio. You can do this via mail or online. In Ohio, establishing a sole proprietorship costs $39 to do so.
Obtain an EIN number in step three. The IRS issues a unique nine-digit number called an EIN (Employer Identification Number) to identify your business for tax purposes. Although sole entrepreneurs are not required to have an EIN, getting one is advised for a number of reasons. You will require an EIN, for instance, if you intend to recruit staff, open a business bank account, or apply for particular permissions or licenses. An EIN can be obtained for free in Ohio.
Opening a business bank account is step four. Having a separate bank account for your sole proprietorship is strongly advised even though it is not legally needed. Keeping track of your business funds and filing your taxes would be simpler if you have a separate account.
It is not necessary to maintain a different bank account for each DBA if you operate under more than one. You can conduct all of your business operations with one account. The income and costs for each DBA should be tracked individually, though, and correct records should be kept at all times.
Depending on the particular requirements of your organization, having many LLCs or DBAs is either better or worse. Setting up separate LLCs to reduce your liability may be advantageous if you conduct several diverse company ventures. However, creating many DBAs under a single LLC might be more cost-effective if your company’s operations are related.
If a DBA satisfies the criteria for trademark protection, you may trademark it. Your DBA needs to be distinctive and unlikely to be confused with another business name in order to qualify for trademark protection. Through the United States Patent and Trademark Office, you can request trademark protection.
Finally, establishing a sole proprietorship in Ohio is a rather easy procedure. You can quickly form your company and begin operations by adhering to these guidelines. Keep thorough records, get an EIN if required, and think about setting up a separate business bank account.