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What steps do I need to take before starting a new business in Ohio?

Picture of Chris Battis By   ·  1 minute read

To start a new business in Ohio, individuals must follow specific steps and meet certain legal requirements. These requirements include, but are not limited to:

  1. Choosing a Business Structure: Before starting a new business, one must decide on the legal structure of their business. Ohio allows for various types of business structures, including sole proprietorships, partnerships, corporations, and limited liability companies (LLCs). Different business structures provide different levels of liability protection for the owners and management, and have different requirements for formation and management.
  2. Registering the Business: After deciding on a business structure, individuals must register their business with the Ohio Secretary of State. Registration requirements depend on the type of business structure chosen. For example, sole proprietors do not need to register their business with the Secretary of State, but all other business structures do.
  3. Obtaining Licenses & Permits: Depending on the type of business and location, individuals may need to obtain specific licenses or permits before they can legally operate. Some businesses may also be required to obtain zoning permits or meet other local regulations.
  4. Paying Business Taxes: All businesses operating in Ohio are required to pay state and federal taxes. Business owners must obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS) and register for state tax purposes with the Ohio Department of Taxation.
  5. Complying with Employment Laws: If the business will have employees, individuals must comply with state and federal employment laws, such as those related to hiring, wages, and benefits.
  6. Obtaining Insurance: Many businesses are required by law to carry certain insurance policies, such as workers’ compensation and liability insurance. Other types of insurance may be recommended, such as property or health insurance.

It's important to note that these are general steps, and additional requirements or regulations may apply depending on the specific business or industry. It’s best to consult with a licensed attorney or business advisor to ensure full compliance.