Start an LLC In Ohio 2023: The Ultimate Guide

Start An LLC In Ohio

Forming an LLC in Ohio is a pretty straightforward process and doesn’t require a heap of documents or large investments to make it happen.

Establishing an LLC in Ohio makes a profitable option to consider, given the perks of low fees and clear-cut state requirements.

To become an LLC owner in Ohio, certain guidelines should be followed – here is a comprehensive guide that’ll smooth out any wrinkles on your way to creating an LLC in Ohio.

But first, let’s see how Ohio compares to its neighboring states as a place to start an LLC.

State	Ohio	Illinois	Kentucky	Pennsylvania	US Average
Population	11,780,017	12,671,469	4,505,836	12,964,056	6,619,825
LLC Filing Fee	$99	$150	$40	$125	$130.38
LLC Annual/Biennial Fee	$0 (no fee and no information report)	$75 (every year)	$15 (every year)	$70 (every 10 years)	$89.34 (every year)
Corporate Tax Rate	0%*	9.50%	5.00%	9.99%	5.60%
Nominal GDP per capita	$62,517	$74,052	$52,002	$64,751	$64, 773.08

Before You Set Up An LLC In Ohio

Because the state of Ohio does not require hefty documentation to establish an LLC, the process is rather simple, and all a prospective LLC owner in Ohio has to do is file the Articles of Organization with the Ohio Secretary of State.

How Much To Start An LLC In Ohio?

Since Ohio does not impose strict LLC-establishing rules, the cost for starting an LLC in Ohio is set at $99. Compared to other states, which require a mandatory registration fee of up to $250, creating an LLC in Ohio is rather affordable.

However, when forming an LLC in Ohio, you need to reserve a name for your company at an additional cost of $39.

If anyone is wondering how to start an LLC in Ohio for free, you simply can’t – there are certain mandatory fees to pay, regardless of how small they are.

Steps To Start An LLC In Ohio

To establish an LLC in Ohio, here are the different steps to take.

Pick A Name For Your LLC

When you first decide to establish an LLC in Ohio, the initial step to take is to choose a company name.

The state of Ohio requires several aspects to be considered here:

The phrase “Limited Liability Company” or abbreviations like LLC/L.L.C/Ltd or Limited must be a part of your company’s name, ideally in the second half;
The name of your company should not be mistaken with any government agency like the FBI, Treasury, State Department, etc.;
If your name consists of words like “bank”, “attorney”, or “university”, Ohio will require additional documentation;
Your name must be unique and separate from any other LLC as required by Ohio’s Secretary of State.

If you have chosen a name for your LLC and want to reserve it, the state of Ohio allows you to do that for up to 180 days in advance and a fee of $39. To reserve the name you have chosen for your LLC, submit the Name Reservation Form titled Form 534B to the Secretary of State.

The Name Reservation Form can be submitted by mail or through the Secretary of State’s website, with the same cost of $39.

When creating an LLC in Ohio, if the name you want is not available, under Ohio law, you are allowed to use a trading name, also known as “assumed name”, or “DBA” (Doing Business As).

Register your trade name with Ohio’s Secretary of State by filing a Name Registration Form titled Form 534A;
Include a $39 non-refundable fee;
and submit your claim online or by mail;

Although not a requirement per se, setting up a URL for your company is a smart move to make, and be sure that you have established an online presence for your LLC – just make sure the domain is available.

Find A Statutory Agent In Ohio

The next thing to do before fully starting your LLC in Ohio is to appoint a statutory agent, also known as a registered agent.

The state of Ohio allows a person (yourself or an employee in your LLC) or an entity to act as a statutory (registered) agent that will receive and forward any legal paperwork, tax notices, or any other legal documents instead of you.

To become a statutory agent in Ohio, the following requirements should be met:

The agent has to be either an Ohio resident or a domestic or foreign corporation licensed to do business in Ohio;
Have a valid physical address of residency in Ohio (an individual agent is allowed to provide a P.O. box as an agent address);
Must be physically present on-site, during business days, and during working hours to deliver services.

Do You Need A Statutory Agent In Ohio?

Yes, under Ohio law, an LLC must have a statutory (registered) agent, but you can also act like one yourself. If you wish to hire a professional statutory agent, some companies offer such services – many LLC owners opt to hire a statutory agent because they wish to preserve their privacy.

ZenBusiness – $49 + state fees to register your LLC (read review)

Incfile – $0 + $50 state fees to register your LLC (read review)

Articles Of Organization

The single most important, and compulsory document to be filed for creating an LLC in Ohio is the Article of Organization – a legal document including all relevant information on your company.

Known as the Articles of Organization for a Domestic Limited Liability Company, Form 533A, this document should be filled in and submitted to the Ohio Secretary of State, either online or by mail, along with a $99 filing fee.

The article about the organization includes the following information:

The name of your LLC;
The intention for forming the LLC;
Start date of the LLC;
The address of the LLC’s central location of business;
The time of the duration of the LLC (commonly, this stance is included as indefinite but if the LLC operates for a limited period, the date remains disclosed);
Personal information and contact details of the statutory agent, along with a signature;
Signature and name of a member, a manager, or a legal representative of the LLC.

Filing the article of organization costs $99, but if your LLC operates outside of Ohio and is also licensed to do business within the state, you need to file the Forreign LLC Form, aka Form 533B.

After you have submitted your articles of organization, the state of Ohio will begin the processing and file the articles in anywhere from 3 to 7 business days. If you’re in a hurry, you can request expedited processing but will have to pay extra.

Operating Agreement

For operating an LLC in Ohio, the state does not impose a mandatory operating agreement to be delivered, but it is, however, considered standard practice.

Essentially, operating agreements disclose the ownership and the operating practices of the LLC. The legal obligations, powers, duties, and limitations of company members and of the LLC itself are all included in the operating agreement.

This particular legal document is for internal purposes only and needs not to be filed with the Secretary of State. An operating agreement should include the following stances:

The name and address of the LLC;
The duration of the operations of the LLC;
Contact information on the statutory agent;
Details about the article of the organization;
The purpose of the LLC’s formation;
Naming members and their roles in the company;
Manners of distribution of profits and losses;
Hiring and exiting protocols;
Company management
Compensation and liability clauses.

To file one, first, choose if the LLC is Single-member or multi-member and fill out the right form:

Get An EIN

The final step of the process for starting an LLC in Ohio requires you to obtain an EIN, or Employer Identification Number.

Regardless of whether your LLC has no employees, it must obtain an EIN from the IRS through the SS-4 form, through the mail, or online, with no filing fee.

EINs are important because they allow LLC owners to perform the following actions:
Opening a business bank account;
Filing and managing Federal and State taxes;
Hiring employees.

The Forms You Need To Register An LLC In Ohio

The state of Ohio welcomes prospective LLC owners by requiring a single mandatory document – articles of organization. All a future LLC owner in Ohio needs to do to establish a company there is to file the 533A form with the Ohio Secretary of State, along with a $99 filing fee.

Did You Know?
Before 1994, LLCs in Ohio were not regulated by an official state regulating body; it was only after that the Ohio General Assembly devised a law that describes the powers, duties, obligations, and legislature of establishing an LLC in the Buckeye State.

LLC Taxes In Ohio

How Much Do LLCs Have To Pay In Taxes In Ohio?

In Ohio, LLCs are deemed pass-through tax entities, meaning that the LLC itself is not obliged to pay income taxes.

Instead, the income and losses regarding the business fall upon each of the owner’s personal tax returns, and the owners pay federal and state taxes on their percentage of the profits – the sales tax rate is set at 5.75%, while the max local and country rates are set at 2.25%.

How Much State Taxes Do LLCs In Ohio Have To Pay?

If your LLC in Ohio sells products, has employees, or collects sales taxes, you’ll need to register your LLC with the Ohio Department of Taxation (DOT). For more taxation purposes, LLCs are advised to register through the Ohio Business Gateway website.

How much federal taxes do LLCs in Ohio have to pay?

Depending on the profits and losses of individual members of the LLC, most LLCs will be required to report their income to the IRS each year using:

Form 1065 for LLCs with multiple members;
Form 1040 Schedule C for LLCs with only one member.

Is Ohio A Good Place To Start An LLC?

Yes. Forming an LLC in Ohio offers a handful of perks like tax benefits, open markets, minimum paperwork required, a skillful and professional workforce, great infrastructure, and a number of business incentives offered by the state of Ohio.

How Long To Form An LLC In Ohio

Creating an LLC in Ohio will take up as much as 2 to 3 business days for online filings, while in-mail submissions will take somewhere from 2 to 3 weeks.

To expedite your processing by mail, you can pay $100 and have it done in 2 days; the same goes for speeding up the online processing.

How Much Does It Cost To Run An LLC In Ohio?

Starting an LLC in Ohio requires a fee of $99 for filing the Articles of Organization.

Other than that, there are no additional annual fee obligations.

What To Do After Formation?

After forming an LLC in Ohio, several other aspects should be taken into consideration. Namely, filing the Articles of Organization is merely the starting point of running a fully operating LLC.

Add a logo to your brand so your company is easily recognizable by your targeted audience;
Establish a website or an eCommerce store to make your brand more accessible;
Open a separate business bank account – it’s best to keep your personal and business funds separate;
Attain business insurance – regardless of the type of business you run, having security will save you some headaches;
Keep annual reports – keeping on track with the processes going on in your LLC is always a good idea;

As the owner of an LLC in Ohio, you should always keep up with the trends to make sure you’re part of the hype and ensure your company runs for the time to come.

Resources To Start A Successful LLC In Ohio

To make sure you have all the information and resources you would need to start an LLC in Ohio, use the following links to get you started:

Start Marketing Your LLC In Ohio

Keeping up with the LLC trends in Ohio and establishing an online presence for your company can be of great help with broadening the outreach and attracting attention.

Stay relevant by posting on social media platforms and offering deals and promotions – a little goes a long way.

How To Dissolve An LLC In Ohio?

Filing a completed Certificate of Dissolution of Limited Liability Company to the Secretary of State by mail, in person, or online will have your LLC dissolved.

The fee for dissolving is $50.

How To Start An LLC In Ohio: A Final Say

And there you have it, the nitty-gritty of forming an LLC in Ohio. By filing a single document titled Articles of Organization, the state of Ohio will begin the process of enlisting your business as an LLC.

In the meantime, you can proceed to choose a name for your company, set up a bank account, hire a statutory agent, and attain an EIN, so you can become a proper LLC owner in Ohio.

We hope you found this article useful – return to it whenever to find all resources in one place.

How To Start An LLC In Ohio