What legal steps should I take before starting a new business in Ohio?
Legal Steps for Starting a Business in Ohio
Before starting a new business in Ohio, there are several legal steps that should be taken to ensure that the business complies with all applicable laws and regulations. These steps include:
- Choose a Business Name: Before starting any business, it is necessary to choose a name that is not already in use by another Ohio corporation or registered with the Ohio Secretary of State. Choosing a unique business name is important, as it ensures that customers recognize the company and prevents any confusion with other businesses in the same industry.
- Select a Business Structure: One of the major decisions that entrepreneurs make when starting a new business is selecting the appropriate business structure. This could be a sole proprietorship, partnership, LLC or corporation. It's important to research the advantages and disadvantages of each structure, and select one that closely suits the business’s goals.
- Register for an Ohio Tax Account: The Ohio Department of Taxation requires all businesses operating within the state to have an Ohio tax account. By registering with the Ohio Department of Taxation, a business can obtain a business ID, file for state tax hauls, and remit taxes on businesses, equipment and so on.
- Obtain Necessary Licenses and Permits: Certain businesses require specific licenses or permits before they can legally operate in Ohio. These licenses range from sales tax permits to health, environmental and safety permits, and can vary according to industry and location.
- Get Registered with Ohio Secretary of State: All companies conducting business in Ohio must also register with the Ohio Secretary of State. This doesn't just include domestic businesses registered in Ohio, but also foreign (out-of-state) corporations looking to conduct business within Ohio.
- Draft All Necessary Business Agreements: Every business – no matter how small – should have legally-binding agreements, such as vendor contracts, marketing agreements or employment contracts, that regulate how business is to be conducted between parties.
- Get an Attorney: Starting a business in Ohio can be complicated and at times, overwhelming, especially for individuals with little legal experience. Thus, it's advisable to consult a knowledgeable Ohio business attorney who has experience in helping entrepreneurs launch their businesses successfully.
In conclusion, starting a new business in Ohio requires completing several legal steps. Carefully completing these steps sets the course for a well-managed business, reduces the possibility of legal disputes and potential of penalties, and increases the chances of success. Even after complying with all legal requirements, it’s important to review the performed steps from time to time for compliance updates.