To legally start a small business in Ohio, the following steps need to be taken:
- Decide on a business structure: Firstly, you need to decide on the structure of your business such as a Sole proprietorship, Partnership, Limited Liability Company (LLC) or Corporation, and register your business accordingly with the Ohio Secretary of State's office.
- Choose a business name: You need to ensure that the chosen business name is unique and available in Ohio. Furthermore, you need to register the name with the Ohio Secretary of State's office.
- Obtain Necessary Licenses and Permits: Most small businesses, depending on the type of business, must obtain licenses and permits to operate legally. It is best to check with the Ohio Department of Commerce to find out the exact licenses and permits needed for your specific industry.
- Obtain an Employer Identification Number (EIN): An EIN is a unique identifier assigned by the IRS. It is essential for businesses that hire employees or pay taxes. You can apply for an EIN by contacting the IRS.
- Register for Taxes: With the Ohio Department of Taxation, businesses must register for applicable taxes such as sales and use tax or commercial activity tax.
- Obtain Business Insurance: Although not required by law, it is advisable for small businesses to obtain liability and workers’ compensation insurance to protect the business and its employees in case of accidents, injuries, or negligence.
- Develop contracts and agreements: To protect your business, it is best to consult with an attorney to prepare supplier, employment, and/or freelancer/work-for-hire agreements.
In conclusion, to start a small business in Ohio, it is necessary to carefully research and follow the above steps to ensure legal compliance. Additionally, each business is unique and may have additional requirements or regulations to adhere to. Therefore, it is always recommended to seek legal advice from a licensed attorney to avoid potential legal problems.
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