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What legal steps do I need to take in Ohio if I want to start a small business?

Picture of Chris Battis By   ·  1 minute read

To start a small business in Ohio, there are a few legal steps that need to be taken. Here are some steps to consider:

  1. Choose a Business Structure: The first step in starting a small business in Ohio is to choose a legal structure for the business. There are various types of business structures available, such as a sole proprietorship, partnership, limited liability company (LLC), or corporation. Each structure has its own advantages and disadvantages, so it is important to speak with a legal professional to determine which entity is best for your business.
  2. Register Your Business: Once you have chosen your business structure, you will need to register your business with the state of Ohio. You will need to register with the Ohio Secretary of State by filing the appropriate forms and paying the necessary fees. You will also need to obtain any necessary permits or licenses for your business from the local government.
  3. Obtain Identification Numbers: You will need to obtain federal and state tax identification numbers for your business. You can get your federal Employer Identification Number (EIN) from the Internal Revenue Service (IRS) website. Additionally, you will need to register with the Ohio Department of Taxation and obtain a state tax ID number.
  4. Set Up Your Business Finances: You will need to open a separate bank account in the name of your business to separate your personal and business finances. You may also choose to obtain a business credit card to keep your expenses separate.
  5. Obtain Insurance: To protect your business, you will need to obtain insurance coverage. The type of insurance you will need depends on the nature of your business. For example, if you are starting a construction business, you will need liability insurance to protect against lawsuits.
  6. Draft Legal Documents: Finally, it is important to draft legal documents to protect your business's interests. This includes a business plan, partnership agreements, employment agreements, and any necessary contracts or leases.

It is important to note that the legal steps required to start a small business in Ohio can vary depending on the nature of the business and the location. It is recommended to consult with a licensed attorney to ensure that all legal requirements are met.