What kind of business entity to form is one of the first choices you’ll need to make if you want to launch a business in Ohio. A sole proprietorship is frequently the easiest and most clear-cut choice for small business owners. We’ll walk you through the methods and legal requirements for establishing a sole proprietorship in Ohio in this post.
The first step is to select a business name. Making a name decision is the first step in establishing a sole proprietorship in Ohio. This name needs to be original and not being used by another company in Ohio. On the website of the Ohio Secretary of State, you can look up available company names. Once you’ve decided on a name for your company, you might choose to register it with the state as a trade name or “doing business as” (DBA) name.
You might need to apply for specific permits and licenses from the state of Ohio or your local government, depending on the type of business you’re beginning. For instance, the Ohio Department of Health will require that you obtain a food service license if you plan to launch a food service company. You can check with the Ohio Business Gateway, a one-stop shop for Ohio business owners, if you’re unsure what permissions and licenses you’ll need.
You must register with the Ohio Department of Taxation and acquire a tax ID number if you are a lone proprietor in Ohio. You will then be able to charge sales tax on any items or services you sell in Ohio and collect it. Registration is free and can be done online or by mail.
Your firm will be taxed as a pass-through entity if you decide to establish an LLC in Ohio. This indicates that the business’s gains and losses are distributed to the individual proprietors for personal income tax purposes. However, if an LLC in Ohio satisfies specific criteria, it may also elect to be taxed as a corporation. Does my LLC require a registered agent?
Yes, a registered agent is needed by all LLCs in Ohio. A person or business named as the LLC’s registered agent will receive court documents and other formal correspondence on its behalf. A member of the LLC or a third-party registered agent service can serve in this capacity. Can you form an LLC without starting a business?
No, an LLC is a particular kind of corporate entity, and it is established for business purposes. You must have a legal business purpose and register with the Ohio Secretary of State in order to create an LLC in Ohio.
Whether you hire an attorney or use an internet formation service, among other things, affects how much it costs to incorporate an LLC in Ohio. The Ohio Secretary of State charges a filing fee of $99 to form an LLC, and there may be additional costs for services like name reservations or expedited processing. Additionally, you might have to make recurring payments for franchise taxes and annual reports.
The IRS issues a unique nine-digit number known as an EIN, or employer identification number, to identify a business organization for tax reasons.