Forming a Limited Liability Company in Ohio

To form a limited liability company in Ohio, there are several requirements that must be met. First, a company name must be chosen and registered with the Ohio Secretary of State. The name must not already be in use by another business entity in Ohio, and must include one of the following terms: "limited liability company," "LLC," "L.L.C.," "Limited," or "Ltd."

Next, the company must have at least one member or owner. This individual or entity must file Articles of Organization with the Ohio Secretary of State, which includes basic information about the company such as its name, address, purpose, and the name and contact information of its registered agent. The filing fee for these articles is currently $99.

Once the Articles of Organization are approved, the company must obtain any necessary licenses or permits required by the state or local government for its particular industry or operation. In addition, the company may wish to draft an operating agreement, which sets out the rights and responsibilities of the members, as well as the management and operation of the company.

There are several benefits to forming a limited liability company in Ohio. First and foremost, an LLC provides limited liability protection for its members, which means that their personal assets are generally shielded from the debts and liabilities of the company. This differs from a sole proprietorship or partnership, in which the owners can be held personally liable for any business debts or legal claims.

Second, an LLC offers flexibility in terms of taxation. By default, an LLC is considered a pass-through entity for tax purposes, which means that the profits and losses of the company are passed through to the members and reported on their individual tax returns. However, an LLC can also elect to be taxed as a corporation if desired.

Finally, an LLC allows for greater flexibility in terms of management and ownership structure. While corporations have a more rigid structure with shareholders, directors, and officers, an LLC allows for members to manage the company themselves, or to appoint an outside manager. In addition, ownership interests in an LLC can be easily transferred or sold, without disrupting the operation of the company.

It is important to note that while an LLC offers many benefits, there may be certain limitations or exceptions depending on the specific circumstances of the company. It is always advisable to consult with a licensed attorney before forming an LLC to ensure that all requirements are met and that the company's interests are protected.