More than one million limited liability companies (LLCs) have been formed in Ohio. You might be interested in the liability protection and pass-through taxation an LLC brings. Starting a business may sound daunting, but our guide on how to start an LLC in Ohio can help.
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- How to start an LLC in Ohio
- How much does it cost to start an LLC in Ohio?
- Do I need a lawyer to start an LLC in Ohio?
- What documents do I need to set up an LLC in Ohio?
- Can I set up an LLC in Ohio online?
- How long does it take to get an LLC in Ohio?
- Do you have to renew your LLC every year in Ohio?
- Do LLC owners pay themselves?
- How much tax does an LLC pay in Ohio?
- Is Ohio a good state for LLC?
- How to form an LLC in Ohio: Checklist
How to start an LLC in Ohio
Setting up an LLC in Ohio involves several steps, such as naming your entity and filing the Articles of Organization with the state.
Follow the steps below to begin the process—and make your business dream a reality.
How to start an LLC in Ohio:
- Name your LLC.
Research and choose a name for your LLC that is distinguishable from other registered businesses in Ohio. End your business name with “Limited Liability Company” or an abbreviation (e.g., “LLC).
You can also operate under a doing business as (DBA) name that you can use for advertising and sales. - Appoint a statutory agent.
Your statutory agent is the person or corporation that accepts legal documents for your LLC. Your agent must be a resident of Ohio or a business with an address in the state.
You must list your statutory agent on your LLC application. - File the Articles of Organization.
File Form 610, Articles of Organization, with the Ohio Secretary of State online or by mail. Also, pay the $99 filing fee.
- Create an operating agreement.
You do not need to file an operating agreement with the state of Ohio. However, a business operating agreement is your LLC’s guidelines to ownership and operation.
An operating agreement can protect and formalize your LLC, resolve conflict, and give you more control over your business. - Obtain business licenses and permits.
You may need licenses and permits to operate your LLC in Ohio legally. Examples include professional licenses, building permits, and a liquor license.
- Apply for an EIN.
An Employer Identification Number (EIN) is a taxpayer ID number that identifies your business. Your LLC needs an EIN if you have employees, must file certain excise tax forms, or meet other requirements.
- Register for taxes.
New employers in Ohio must register for a state unemployment insurance account using the Employer Resource Information Center (ERIC).
Also, obtain workers’ compensation insurance from the state if you have at least one employee. - Open a business bank account.
Your LLC is a separate legal entity, which means you need to open a separate business bank account.
- Set up your accounting books.
Set up your accounting books to ensure your records are accurate and up-to-date. Choose your accounting method, set up a chart of accounts, and sign up for accounting software.
How much does it cost to start an LLC in Ohio?
It costs $99 to start an LLC in Ohio—this is the cost of filing your Articles of Organization. You can also expedite the filing for an additional fee:
- $100 for a turnaround time of 2 business days
- $200 for a turnaround time of 1 business day
- $300 for a turnaround time of 4 hours (if submitted before 1:00 p.m.) or the next business day (if submitted after 1:00 p.m.)
Want to reserve your business name, but aren’t ready to file the Articles of Organization? You can reserve the name for 180 days by paying a $39 filing fee.
Do I need a lawyer to start an LLC in Ohio?
No, you don’t need a lawyer to start an LLC in Ohio. Generally, you can set up your LLC online through the Ohio website.
However, you may hire a business tax attorney to help you set up your LLC correctly. They can also provide legal advice and protect your personal assets. You can also consult your accountant for guidance.
What documents do I need to set up an LLC in Ohio?
File Form 610, Ohio’s Articles of Organization to set up your LLC in Ohio. Form 610 replaces Form 533A as of October 2024.
Ohio’s Articles of Organization form is relatively short. You need to provide information such as the:
- Name of your LLC
- Effective date
- Purpose
- Name of your statutory agent
You can file the Articles of Organization online at Ohio Business Central. Want to view the PDF version? Check out Form 610 here.
Can I set up an LLC in Ohio online?
Yes, you can set up an LLC in Ohio through the Ohio Secretary of State’s Ohio Business Filings portal.
How long does it take to get an LLC in Ohio?
Forming your LLC in Ohio takes three to seven business days. Or, you can opt for expedited services to reduce the waiting time to as little as four hours.
Do you have to renew your LLC every year in Ohio?
No, you do not need to renew your LLC annually in Ohio. There is no annual filing fee for your LLC.
You may need to renew other aspects of your business, like licenses or permits.
Do LLC owners pay themselves?
Single-member LLCs are taxed as sole proprietorships. Multi-member LLCs are taxed as partnerships. You’ll pay yourself an owner’s draw if treated like a sole proprietorship or partner, which is where you take a portion of your profits as payment.
You can elect to have your LLC taxed as a corporation. You’ll receive a salary if you actively work in the business and are treated like a corporation.
How much tax does an LLC pay in Ohio?
Single-member and multi-member LLCs taxed as sole proprietorships and partnerships are pass-through tax entities. Taxes pass through the LLC and onto you, so you only pay income taxes once.
LLCs that elect corporation status are subject to double taxation, which means the business itself is taxed, and the owner(s) pay taxes. Your LLC would only pay the federal corporate tax rate in Ohio, as the state does not have a state corporate tax.
Regardless of how you structure your LLC for taxes, you may also be responsible for Ohio’s commercial activity tax (CAT), a franchise tax. CAT only applies if your gross receipts exceed $6 million dollars per year.
Is Ohio a good state for LLC?
Ohio is a good state to start a business, ranking 26th in Wallethub’s best state to start a business study.
Forming an LLC in Ohio has several benefits, such as low startup costs, no annual report filing, and reasonable tax rates. You enjoy liability protection, pass-through taxation, and the increased flexibility of structuring as an LLC.
Ohio also has a relatively low cost of living, which impacts everything from salary expectations to office space expenses.
How to form an LLC in Ohio: Checklist
Ready to start your LLC in Ohio? Use the following simple steps to start your Ohio LLC:
- Choose a business name
- Appoint a statutory agent
- File Form 610, Articles of Organization and pay the filing fee
- Create an operating agreement
- Obtain business licenses and permits
- Apply for an EIN
- Register for taxes
- Open a business bank account
- Set up your accounting books
