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

Picture of Chris Battis By   ·  1 minute read

To start a small business in Ohio, there are several legal steps you need to take. The following guidelines will help ensure that your business complies with all relevant laws and regulations:

  1. Choose a Legal Structure: Determine the type of legal structure for your business. You can choose to operate as a sole proprietorship, partnership, limited liability company (LLC), or corporation. The type of legal structure you choose will determine how much you pay in taxes and the level of liability protection for you, and other members.
  2. Name Registration: Choose a name for your business and register it with the Ohio Secretary of State's Office. You can register your name online or by mail. It is important to make sure the name is not already in use and unique.
  3. Get a Tax Number: Obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). You will need this number to file taxes and to open a business bank account.
  4. Register for State Taxes: Register with the Ohio Department of Taxation for state taxes related to your business. This includes collecting and paying sales tax.
  5. Obtain Permits and Licenses: Depending on the type of business you are running, you may need specific permits and licenses. For example, if you plan on serving food or alcohol, you will need a health permit and a liquor license.
  6. Get Business Insurance: Obtain liability insurance and workers' compensation insurance if you plan to hire employees.
  7. Comply with Employment Laws: Make sure you are in compliance with all federal and Ohio employment laws, such as minimum wage and overtime rules.

There are some limitations and exceptions that may vary depending on the type of business you are starting. Some businesses may require federal or local permits or licenses. It is important to research the specific requirements related to your industry.

It is always advisable to consult with a licensed attorney who has experience with Ohio business law to ensure that your business is in full compliance with all legal requirements.