Who Must File an Ohio Corporate Tax Return?

If a corporation conducts business in Ohio or receives money from Ohio sources, it is required to file a tax return. Both C corporations and S corporations fall under this category. The 15th day of the fourth month after the end of the corporation’s taxable year is when the Ohio corporate tax return is due.

S companies are pass-through entities, thus they are exempt from paying income taxes. Instead, the shareholders receive a pass-through of the income, which they then disclose on their own tax filings. S businesses must still submit Form 1120S, an informative tax return, to the IRS. The income, deductions, and credits of the corporation as well as the shareholders’ portion of the income, losses, and credits are reported on this form. S corporations with income from Ohio must also file an IT 4708 tax return for the state of Ohio.

An S corporation may still be required to file a tax return even if it engaged in no activity during the year, which means it incurred no income or expenses. Even if a S corporation is inactive, the IRS requires them to file a tax return. Although the corporation must submit a “no activity” report, the Ohio Department of Taxation does not require a tax return in this case.

Articles of Incorporation must be submitted to the Ohio Secretary of State in order to register a S corporation in Ohio. Name, purpose, duration, and registered agent information for the corporation should all be included in the articles of incorporation. The cost to file the articles of incorporation is $125, and you can do it online or by mail.

Although filing articles of incorporation with the state is not required in Ohio, doing so is advised. The Articles of Incorporation are a legal document that declares the existence of the corporation and lays out its fundamental structure and regulations. Additionally, they defend the brand of the company and stop others from using it. You can still create a corporation even if you choose not to file Articles of Incorporation, but you won’t have the legal security and clarity that they offer.

In conclusion, all businesses operating in Ohio or receiving income from Ohio-based sources must submit an Ohio corporate tax return. Even if they have no activity, S companies must submit an informative tax return to the IRS. While filing Articles of Incorporation with the Ohio Secretary of State to register a S corporation is not required, it is strongly advised in order to protect the name and legal standing of your corporation.