How to Form an LLC in Ohio
Forming an LLC in Ohio is a straightforward process that provides liability protection and tax flexibility for business owners. The initial filing fee is $99, filed with the Ohio Secretary of State.
Step 1: Choose Your Business Name
Your LLC name must be distinguishable from existing business entities registered in Ohio. The name must include "LLC" or "Limited Liability Company." Check name availability through the Secretary of State's website before filing.
Step 2: File Articles of Organization
Submit your Articles of Organization to the Ohio Secretary of State with the $99 filing fee. This document establishes your LLC as a legal entity. Processing times vary but typically take 5-10 business days.
Step 3: Obtain an EIN
Apply for a federal Employer Identification Number (EIN) from the IRS at no cost. This is required for tax filing, opening a business bank account, and hiring employees.
Step 4: Register for State Taxes
Register with the Ohio Department of Taxation for applicable tax accounts. You will need a sales tax permit to collect the 5.75% state sales tax. Ohio has no state income tax, a significant advantage for LLC owners.
Ongoing Costs
Ohio does not impose an annual franchise tax on LLCs, keeping ongoing costs low.
Ohio LLC Tax Advantages
One of Ohio's biggest advantages is the absence of state income tax. LLC members keep more of their earnings compared to states with income tax. The 5.75% state sales tax requires proper collection and remittance procedures.