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

Picture of Chris Battis By   ·  1 minute read

Before starting a small business in Ohio, there are several legal steps that should be taken:

  1. Choose a legal structure: You should decide whether to register your business as a sole proprietorship, partnership, LLC, or corporation. This decision will have tax and liability implications, so it is important to consult with an attorney or accountant.
  2. Register your business: You must register your business with the Ohio Secretary of State by filing the necessary paperwork and paying the registration fee.
  3. Obtain necessary licenses and permits: Depending on the type of business you are starting, you may need to obtain various licenses and permits from federal, state, and local agencies. Failure to obtain the necessary permits and licenses can result in fines or even the closure of your business.
  4. Obtain insurance: To protect against potential lawsuits, you should obtain general liability insurance, workers' compensation insurance, and any other type of insurance that may be relevant to your business.
  5. Obtain an Employer Identification Number (EIN): If you are hiring employees, you will need to obtain an EIN from the IRS, which is used to identify your business for tax purposes.
  6. Set up accounting systems: It is important to establish accounting systems from the outset, including bookkeeping, invoicing, and tracking expenses. This will ensure that you comply with tax requirements and can make informed business decisions.
  7. Comply with labor laws: If you plan to hire employees, you must comply with federal and state labor laws, including minimum wage, overtime, and anti-discrimination laws.
  8. Protect your intellectual property: If your business involves any type of intellectual property, such as trademarks or patents, you should take steps to protect your rights and register with the appropriate authorities.

It is important to note that these steps are not exhaustive and may vary depending on the specific type of business you are starting. It is recommended to consult with an attorney or business advisor to ensure that all necessary legal steps have been taken.