Skip to content
Ask a question
All posts

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

Picture of Chris Battis By   ·  1 minute read

The legal requirements for starting a small business in Ohio depend on the type of business entity you plan to form. Ohio law recognizes several types of business structures, including sole proprietorships, partnerships, limited liability companies (LLCs), and corporations.

Sole proprietorships and partnerships are the easiest and least expensive types of businesses to start in Ohio. As a sole proprietor, you are the only owner of your business and you are personally liable for its debts and obligations. A partnership is a business owned by two or more individuals who share the profits and losses of the business. Partnerships can be general partnerships or limited partnerships.

LLCs and corporations are considered separate legal entities from their owners, offering limited liability protection for the owners. LLCs are the most popular business entity in Ohio due to their flexibility and ease of operation. LLCs can be owned by one or more individuals and can be managed by the owners or by appointed managers.

To start a business in Ohio, you must:

  1. Choose a unique business name and register it with the Ohio Secretary of State. You can search for available business names on the Ohio Secretary of State's website.
  2. Obtain any necessary licenses and permits for your business. The specific licenses and permits required depend on the type of business you plan to operate and the location of your business.
  3. Obtain a federal employer identification number (EIN) from the Internal Revenue Service (IRS). An EIN is required for all businesses with employees or those planning to hire employees.
  4. Register for state and local taxes. Ohio has a state sales tax of 5.75%, and many cities and counties have additional local taxes that must also be collected and remitted.
  5. Register with the Ohio Secretary of State's Office. This involves filing articles of organization for an LLC or articles of incorporation for a corporation.
  6. Obtain any necessary insurance coverage for your business.

It is important to note that the legal requirements for starting a small business in Ohio may be subject to change based on updates to relevant laws and regulations. It is recommended that you seek the advice of a licensed attorney or other qualified professional to ensure that you are following all applicable laws and regulations.