How to start an LLC in Ohio in 2024

Jackie Lam

BLUEPRINT

Updated 1:27 p.m. UTC May 23, 2024

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If you’re thinking of starting a business in Ohio, depending on the nature of your business, forming an LLC can give you valuable tax benefits and protect your personal assets. LLCs are also flexible to manage and tend to be a good fit for small businesses with one member. They are not subject to double taxation like a corporation. Instead, members report business taxes on their personal income tax returns.

“The ease or difficulty of the LLC filing process can vary depending on individual circumstances and prior knowledge of the legal requirements,” says Mike Schmidt, a partner at law firm Schmidt & Clark, LLP. “While some individuals may find the process straightforward, others might encounter challenges navigating the legal intricacies.”

This guide aims to demystify the process. Here are the steps to start an LLC in Ohio:

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7 steps to start an LLC in Ohio

1. Name your LLC

Your first step is to choose a unique business name that is not already registered by another Ohio business. As you brainstorm business names, incorporate Ohio’s naming guidelines. For information on ensuring your name is nationally available and marketable, also read our guide on how to name a business.

Next, before your heart is set on a particular name, do a search to make sure it’s still available. You can do so by conducting a business name search on the Ohio Secretary of State’s website. If your chosen name appears in this database, you must choose another name or change the name to make it distinguishable from already-existing names. To properly distinguish the name, refer back to Ohio’s naming guidelines.

If you are not yet ready to form your LLC, fill out and submit form 534A to reserve the name for 180 days. There’s a filing fee of $39, which is due when you submit your form.

2. Choose a registered agent

When you submit your LLC formation paperwork with the Ohio Secretary of State, you are required to appoint a business or person to serve as your registered agent (called a ‘statutory agent’ in Ohio). A registered agent is responsible for receiving and passing along correspondence and important legal, financial and tax-related documents from entities such as the IRS, the Ohio Department of Taxation and the Ohio Secretary of State.

To learn more about selecting a registered agent and fulfilling this duty, read our registered agent guide. If you wish to hire a registered agent, read our best registered agent service list to find the best fit for your business needs.

3. Submit your LLC articles of organization

With your approved business name and a selected registered agent, you are ready to register your LLC. To legally form your LLC in Ohio, fill out and submit an articles of organization form. You can access and file it online through Ohio’s business filings portal. There’s a $99 filing fee that’s due upon submission. This form takes three to seven days to process.

To learn more about how to prepare this form, read our LLC articles of organization guide.

New LLC reporting requirement alert

The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has implemented a new reporting requirement for all non-exempt LLCs starting on January 1, 2024.

The requirement is called the Beneficial Ownership Information (BOI) report and it is estimated to only take about 20 minutes to complete.

Here’s what you need to know:

LLCs formed before January 1, 2024 have until January 1, 2025 to file.

LLCs formed between January 1, 2024 and January 1, 2025 have 90 days to file from the confirmed date of the businesses’ registration.

New LLCs formed after January 1, 2025 will have 30 days to file from the confirmed date of formation.

For all details, FAQs and to file, visit FinCEN’s BOI website.

4. Apply for an EIN

An employer identification number (EIN) is issued by the IRS to identify a business for tax administration purposes. It is also useful for completing key business tasks, such as hiring employees, opening an LLC bank account, accessing business funding and applying for some business licenses.

To obtain an EIN, visit the IRS website between 7 a.m. and 10 p.m. EST. The form takes about 15 minutes to fill out and is free to file. You will immediately receive an EIN upon submission of this online form.

5. Create an operating agreement

An LLC operating agreement is a detailed playbook that lays out how your small business will be managed, how it will operate and its financial rules. Typically, an operating agreement outlines basic information about your business, voting procedures among members, its management structure, operating procedures and a succession plan.

Though not required in Ohio, an operating agreement is strongly recommended for all LLCs as it protects LLC members’ limited liability status, helps to prevent an LLC’s dissolution as a result of member disputes and is useful for performing key business tasks, such as accessing business funding.

6. Apply for business licenses and permits

If you’re a retailer that sells products, offers taxable services or sells or leases tangible property, you’ll need to apply for a vendor’s license. This license allows you to collect sales tax, which you will then remit to the Ohio Department of Taxation as required. The base sales tax in Ohio is 5.75% of sales but can vary depending on your LLC’s location. You can register and obtain a vendor’s license through the Ohio business gateway. There is a $25 filing fee.

Besides the vendor’s license for tax purposes, depending on your LLC’s activities, location and industry, you may need a specific license, permit or certification before you can launch your business. Read our business licenses and permits guide to learn how to determine your business licensing requirements.

7. Register your LLC with the Ohio Department of Taxation

While taxes on LLC profits are passed through the entity and paid on members’ personal income tax returns, some activity or location-related taxes are covered by the LLC itself. To pay such taxes in Ohio, you’ll need to register your LLC with the Ohio Department of Taxation. You can do so using the Ohio business gateway account you set up in step six. Once you register, you can file and pay different types of taxes.

Your tax responsibilities might include:

Forwarding the taxes withheld from your employees’ wages.
Submitting state and local taxes.
Registering and filing unemployment insurance (if you hire employees).
Registering and filing municipal income taxes.

Besides a sales tax, if your small business nets taxable gross receipts of $150,000 or more in a calendar year, you’re on the hook for filing and paying Ohio’s commercial activity tax (CAT). CAT applies to service providers, businesses involved with the sale or rental of a property in Ohio and some out-of-state entities.

Featured LLC service offers

ZenBusiness

Learn More

Via ZenBusiness’ website

Free version available

Yes

Lowest published package price

$199

Live chat

Yes: Human

LegalZoom

Learn More

Via LegalZoom’s website

Free version available

Yes

Lowest published package price

$249

Live chat

Yes

Northwest Registered Agent

Learn More

Via Northwest’s website

Free version available

Lowest published package price

$39

Live chat

Yes

Find the best LLC services for Ohio: Best LLC formation services

Frequently asked questions (FAQs)

You cannot start an LLC in Ohio for free. At minimum, you must pay a $99 fee to submit your articles of organization to the Ohio Secretary of State. While state filing fees apply, there are companies that offer free LLC formation services. For example, LegalZoom and ZenBusiness are two well-known, well-regarded companies that offer no charge filing.

In addition, to form your business, you may have to pay to hire a registered agent, reserve a business name and apply for business licenses or permits. Read our cost to start an LLC guide to learn more.

An LLC is a pass-through entity, meaning that taxes on LLC profits pass through the entity to its individual members, who are then responsible for paying income tax each year by filing a personal income tax return. However, depending on the LLC’s activities, location and industry, it may be required to pay additional taxes, such as sales tax, state business privilege tax or withholding tax. Speak to a qualified tax consultant to learn more about your LLC’s tax responsibilities.

Yes, you are required to appoint a registered agent for your Ohio LLC. You must list a registered agent (called a ‘statutory agent’ in Ohio) when you file your LLC articles of organization. You can fulfill this duty yourself or hire a registered agent service provider.

No, you do not have to submit an Ohio LLC annual report. However, if you’ve formed a limited liability partnership, you need to file a report every other year.

To dissolve an LLC in Ohio, first follow the dissolution instructions in your LLC’s operating agreement. Then, pay all taxes to ensure your LLC is in good standing with the state of Ohio. Next, file a certificate of dissolution online using the Ohio business filings portal, along with a $50 filing fee. Finally, close any business accounts you have with Ohio state.

Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.

Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.

Jackie Lam

BLUEPRINT

Jackie Lam has covered personal finance for nearly a decade. Her work has appeared in TIME, CNET, BuzzFeed, Salon.com, Forbes Advisor, and others. As an AFC® financial coach and educator, she is committed to helping self-employed creatives and artists with their money.

Alana Rudder

BLUEPRINT

Alana is the deputy editor for USA Today Blueprint's small business team. She has served as a technology and marketing SME for countless businesses, from startups to leading tech firms — including Adobe and Workfusion. She has zealously shared her expertise with small businesses — including via Forbes Advisor and Fit Small Business — to help them compete for market share. She covers technologies pertaining to payroll and payment processing, online security, customer relationship management, accounting, human resources, marketing, project management, resource planning, customer data management and how small businesses can use process automation, AI and ML to more easily meet their goals. Alana has an MBA from Excelsior University.