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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 some legal requirements that must be met. Here is an overview of the relevant legal requirements:

  1. Choose a Business Type: The first step in starting a small business in Ohio is to choose the business type. Some popular business structures in Ohio are Sole proprietorship, partnership, Limited Liability Corporation (LLC), S corporation, and C corporation.
  2. Register the Business: Ohio businesses need to register with the Ohio Secretary of State's office. As per the Ohio Secretary of State’s requirements, you will need to provide an official business name, a statement of purpose, and a registered agent who will receive legal documents on behalf of your business.
  3. Obtain State and Local in Business Licenses and Permits: Depending on the type of business you plan to start, you may need to secure local and state business licenses and permits in Ohio.
  4. Obtain Federal Licenses and Permits (if necessary): Based on the nature of your business, you might also need to obtain additional federal licenses and permits like an Employer Identification Number (EIN) from the Internal Revenue Service.
  5. Register for Taxes: Most businesses in Ohio must register for various federal and state taxes. You can obtain state tax registration information from the Ohio Department of Taxation.
  6. Comply with Employment Laws: If you plan to hire employees in Ohio, make sure to follow both federal and state employment laws. Some of these employment law requirements include the Fair Labor Standards Act, the Ohio Minimum Wage Law, and Ohio Workers’ Compensation System.
  7. Obtain Insurance: Acquiring liability insurance and acquiring Medicaid is beneficial when starting a business in Ohio. Acquiring the liability insurance will protect your business from any physical harm, and Medicaid will cover your employees if they get injured during work.

It is important to note that each business has unique requirements, and additional permits or licenses may be required based on the type of business. Any legal concerns or queries must be consulted with an attorney in Ohio to ensure full legal compliance.