Legal Steps to Consider When Starting a Small Business in Ohio

Before starting a small business in Ohio, there are several legal steps that you must take to ensure that your new enterprise complies with state and federal laws. Some of the most important legal steps that you should consider include:

1. Choose a Business Structure

   The first step you need to take is to decide on a legal structure for your business. The type of business structure you select can have significant implications on your business, such as tax liability, personal liability, and management structure. Some of the most common business structures include sole proprietorships, partnerships, limited liability companies (LLCs), and corporations.

2. Register Your Business

   Once you have selected a business structure, you will need to register your business with the Ohio Secretary of State's office. This will typically involve filing the necessary paperwork and paying the appropriate fees. Depending on your business structure, you may also need to register with other state and federal agencies.

3. Obtain Necessary Licenses and Permits

   Depending on your business type, you may need to obtain various licenses and permits from state and local governments. For example, if you plan on selling alcohol, you will need to obtain a liquor license. If you plan on offering professional services, you may need to obtain a professional license.

4. Obtain an Employer Identification Number (EIN)

   If you plan on hiring employees for your business, you will need to obtain an EIN from the IRS. This number is used to identify your business for tax purposes.

5. Secure Appropriate Insurance

   Depending on your business type and industry, you may need to obtain various types of insurance. For example, if you plan on operating a construction business, you may need to obtain liability insurance to protect against accidents and injuries on the job site.

6. Establish Accounting and Bookkeeping Procedures

   As a small business owner, it is important to establish proper accounting and bookkeeping procedures. This will help you keep track of your finances and ensure that you are complying with all tax and legal requirements.

7. Comply with Employment Laws

   If you plan on hiring employees, it is important to comply with a variety of federal and state employment laws. These laws cover everything from minimum wage and overtime requirements to discrimination and harassment in the workplace.

It is essential to consult with an experienced attorney who specializes in Ohio small business law to ensure that all the necessary steps are taken before starting your business.