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What are the legal requirements for starting a small business in Ohio?

Picture of Chris Battis By   ·  1 minute read

To start a small business in Ohio, there are various legal requirements that must be met. Some of the legal requirements for starting a small business in Ohio are as follows:

  1. Business Entity Formation: The first step in starting a small business in Ohio is to decide on a business structure, such as a sole proprietorship, partnership, limited liability company (LLC), corporation, or nonprofit. Each of these business structures has its own legal requirements, advantages, and disadvantages.
  2. Business Name: Once the business structure has been chosen, the next step is to register the business name with the Ohio Secretary of State. This can be done online, by mail, or in person. The registration fee for a business name in Ohio is $39.
  3. Federal Tax Identification Number: All businesses in Ohio are required to have a Federal Tax Identification Number (also called an Employer Identification Number). This can be obtained from the Internal Revenue Service (IRS) and is necessary to pay federal taxes, hire employees, or open a business bank account.
  4. State Tax Registration: In addition to federal taxes, all businesses in Ohio are required to pay state taxes. To do so, a business must register with the Ohio Department of Taxation and obtain a tax ID number. This number is used to file state tax returns and pay taxes.
  5. Business Licenses and Permits: Depending on the type of business, it may be necessary to obtain additional licenses and permits from the state or local government. This could include licenses for specific professions or industries, zoning permits, or health and safety permits.
  6. Business Insurance: Business owners in Ohio are not legally required to carry insurance, but it is strongly recommended. Insurance protects a business against potential accidents, damages, and lawsuits.
  7. Employment Laws: If a business plans to hire employees, there are additional legal requirements that must be met. These include minimum wage and overtime laws, workplace safety regulations, and anti-discrimination laws.

In summary, starting a small business in Ohio requires careful consideration of the legal requirements and obligations. Hiring a licensed attorney or consulting with a business advisor may be necessary to ensure compliance with all relevant laws and regulations.