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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, several legal steps must be taken. These include:

  1. Choosing a business entity: The first decision to make is what type of business entity to form. Ohio recognizes several forms of business entities, including sole proprietorships, partnerships, limited liability companies (LLCs), and corporations. Each entity has its own set of legal requirements and tax implications. You may wish to consult with an attorney or accountant to determine which entity is most appropriate for your business.
  2. Registering your business: Once you have chosen a business entity, you must register your business with the Ohio Secretary of State. This involves filing the appropriate paperwork, paying a registration fee, and obtaining any necessary licenses or permits.
  3. Obtaining an Employer Identification Number (EIN): If you hire employees or operate as a corporation or partnership, you will need to obtain an EIN from the IRS. This number is used to identify your business for tax purposes.
  4. Obtaining necessary licenses and permits: Depending on your type of business, you may need to obtain additional licenses or permits before you can start operating. For example, if you plan to sell alcohol, you will need to obtain a liquor license. If you plan to operate a daycare center, you will need to obtain a license from the Ohio Department of Job and Family Services.
  5. Complying with tax laws: Ohio requires businesses to register for state and local taxes, such as sales tax and income tax. You will need to obtain a Vendor's License from the Ohio Department of Taxation, and register with the local tax authority in any municipality where you will be doing business.
  6. Obtaining insurance: Depending on your type of business, you may need to obtain insurance to protect against liability or other risks associated with your business.

There may be additional legal requirements or considerations depending on the specific nature of your business. It is advisable to consult with an attorney or other professional to ensure that you are complying with all legal and regulatory requirements.