---
title: What type of legal structure should I use when starting a small business in Ohio?
description: Looking to start a small business in Ohio and not sure which legal structure is right for you? Look no further than Legal Faqs! Our experts break down the pros and cons of each structure to help you make the best decision for your business.
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---

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 May 16, 2023

# What type of legal structure should I use when starting a small business in Ohio?

![Picture of Chris Battis](https://www.legalfaq.ai/hs-fs/hubfs/battis-mug.jpg?width=50&name=battis-mug.jpg) By  [Chris Battis](https://www.legalfaq.ai/faqs/author/chris-battis)  ·   1 minute read

## Legal Structures for Small Businesses in Ohio

When starting a small business in Ohio, you have several legal structure options to choose from. The following are the most common business structures available in Ohio and their respective advantages and disadvantages:

1. ### Sole Proprietorship:
   
   This is the simplest and most common form of business structure, in which a single individual owns and operates the business. It does not require any formal registration with the state, but the proprietor is personally liable for all debts and liabilities of the business. As such, it may not be the best option if you want to protect your personal assets.
2. ### Partnership:
   
   A partnership is formed when two or more people agree to share the profits and losses of a business. There are two types of partnerships: general and limited. In a general partnership, all partners share equal responsibility for the debts and liabilities of the business. In a limited partnership, one or more partners are only liable up to the amount of their investment. Partnership agreements should be drafted to avoid disputes.
3. ### Corporation:
   
   A corporation is a separate legal entity owned by shareholders. It offers limited liability protection for its owners, meaning the shareholders' personal assets are usually protected from company debts and liabilities. However, corporations are subject to more regulations than other business structures and are taxed separately from their owners.
4. ### Limited Liability Company (LLC):
   
   An LLC offers the advantages of limited liability protection and pass-through taxation, meaning the company's income passes through to the owner's personal tax return. It also has fewer formalities than a corporation.

Ultimately, the best legal structure for your small business will depend on several factors, including the size and type of business, the number of owners, tax considerations, liability exposure, and the level of control you want to maintain over the business. You should consult with an attorney or tax professional to determine which structure is best for your specific situation.

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