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What steps do I need to take to form a Limited Liability Company (LLC) in Ohio, and what are the benefits of doing so?

Picture of Chris Battis By   ·  1 minute read

To form a Limited Liability Company (LLC) in Ohio, you must follow several steps:

  1. Choose a name for your LLC that is unique and not currently registered with the Ohio Secretary of State. You can verify the availability of your desired name on the Ohio Secretary of State website.
  2. Draft and file Articles of Organization with the Ohio Secretary of State. The articles of organization must include the name of the LLC, the name and address of the LLC’s registered agent, the purpose of the LLC, and the names and addresses of the LLC’s initial members.
  3. Obtain any necessary business licenses or permits required by your local government, state, or federal agencies to operate your LLC.
  4. Draft an operating agreement that outlines the management structure, member liability, and ownership structure of the LLC. Though not a requirement under Ohio law, it is highly recommended.

The benefits of forming an LLC in Ohio include:

  1. Limited Liability Protection: Members of an LLC are typically not personally liable for any debts or obligations incurred by the LLC. This protects personal assets such as homes, vehicles, and savings.
  2. Flexibility: Unlike corporations, LLCs can choose how they are taxed, allowing them to pick the tax structure that makes the most sense for their business.
  3. Ease of Formation: LLCs are relatively easy to form and usually require fewer formalities than other business formations such as corporations.
  4. Credibility: Forming an LLC can add a level of legitimacy and professionalism to a business, which can help when obtaining financing, negotiating contracts, or attracting customers.

It is important to note that forming an LLC does not guarantee protection from all legal liability. The personal liability protection of LLC members may be pierced if their conduct is deemed fraudulent or grossly negligent. Additionally, certain professions, such as doctors and healthcare professionals, are limited in their ability to form LLCs.

If you have any questions about forming an LLC in Ohio or need assistance with the process, it is recommended that you consult with a licensed attorney who is knowledgeable about business law.