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What legal steps should I take before starting a small business in Ohio?

Before starting a small business in Ohio, there are several legal steps you should take to ensure that your business is lawful and compliant with the state's regulations. Here are some of the most important steps you should take:

  1. Choose a Business Structure: The first step is to determine the legal structure of your business. Ohio law recognizes several business structures, including a sole proprietorship, partnership, limited liability company (LLC), or corporation. Each structure has its advantages and disadvantages, so you should consult with an attorney to determine which is best for your particular business.
  2. Register Your Business: Once you have determined your business structure, you will need to register your business with the Ohio Secretary of State. You can do this online or by mail, and you will need to provide the name of your business, your business structure, and other basic information.
  3. Obtain a Federal Employer Identification Number (EIN): If your business has any employees or if you want to open a bank account in your business's name, you will need to obtain an EIN from the IRS. You can apply for an EIN online, by mail, or by fax.
  4. Obtain any Required Business Licenses: Depending on the nature of your business, you may need to obtain additional licenses or permits from federal, state, or local government agencies. For example, if you plan to sell food or alcohol, you will need to obtain a permit from the Ohio Department of Health. You should also check with your local zoning board to ensure that your business location is zoned for commercial use.
  5. Obtain Insurance: Depending on the type of business you are starting, you may need to obtain insurance to protect your business. For example, if you own a restaurant, you will need liability insurance to protect against customer injuries. You should consult with an insurance agent to determine what types of insurance you need.
  6. Establish a Business Bank Account: Once you have registered your business and obtained an EIN, you should set up a business bank account. This will help you keep your personal and business finances separate, which is important for tax purposes.

In addition to these steps, you should also consult with an attorney to ensure that you are complying with all relevant laws and regulations. An attorney can help you draft contracts, leases, and other legal documents, and can advise you on issues such as intellectual property, employment law, and tax law. By taking these legal steps before starting your business, you can help ensure its success and avoid legal problems down the line.