How to Form a Limited Liability Company in Ohio

If you're looking to start a business in Ohio, forming a limited liability company (LLC) can be a smart move. Here is an overview of the process:

1. Choose a Name

Your LLC name must meet Ohio's requirements, which means including the words "limited liability company" or "LLC" in the name.

2. File Articles of Organization

Prepare and file Articles of Organization with the Ohio Secretary of State, including information about your LLC's name, address, registered agent for service of process, and members.

3. Obtain Licenses and Permits

Obtain any necessary licenses or permits for your business.

4. Create an Operating Agreement

An operating agreement outlines the LLC's management structure, rules for operation, and ownership percentages.

5. Obtain an EIN

Obtain an Employer Identification Number (EIN) from the IRS, which is a unique identifier for your business.

6. File Taxes and Insurance Policies

File any necessary taxes and obtain any other required insurance policies.

The primary advantage of setting up an LLC is that it protects owners' personal assets from business liabilities. This means that if the business is sued or goes bankrupt, owners' personal assets cannot be used to pay off business debts.

However, it's important to note that an LLC isn't foolproof. There are situations where owners can still be held personally liable, such as if they commit fraud or personally guarantee a business loan. Additionally, LLCs may be subject to certain regulations depending on the type of business.

Overall, forming an LLC in Ohio can be a good option for small business owners who want protection against personal liability and flexibility in management and tax treatment. But it's crucial to consult with a licensed attorney and accountant to ensure that forming an LLC is the best structure for your specific business needs.