To form a limited liability company (LLC) in Ohio, the following steps need to be taken:
- Choose a name for the LLC that is unique and not already in use by another business entity in the state of Ohio. The name should also include the phrase: “Limited Liability Company,” or its abbreviation: “LLC.” It is recommended to conduct a name search through the Ohio Secretary of State’s online business database to ensure the name is available.
- File Articles of Organization with the Ohio Secretary of State. This document officially registers the LLC with the state and includes basic information about the company such as its name, principal place of business, registered agent, and the names and addresses of the LLC’s members or managers.
- Obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). This number is used for tax purposes and is required for Ohio LLCs with more than one member or those that plan to hire employees.
- Comply with Ohio’s tax and regulatory requirements. LLCs in Ohio pay a state franchise tax and must register with the Ohio Department of Taxation to obtain the necessary state and local tax identification numbers.
- Create an Operating Agreement that outlines the company’s management structure, ownership percentages, profits and loss distribution, and other important business operations. While an Operating Agreement is not required by law in Ohio, it is recommended to avoid any potential conflicts or disputes between members in the future.
Potential limitations or exceptions to this advice may vary depending on the specific circumstances of the LLC formation, and further action may be necessary. For example, if the LLC is formed for a licensed profession such as law or medicine, additional licensing requirements may apply. It is therefore recommended to consult with a licensed attorney who specializes in business law to ensure compliance with all legal and regulatory requirements.
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