How to Start an LLC in Ohio (Step-by-Step Guide)

If you’re considering forming an Ohio LLC, you’re making a smart choice for protecting your assets while enjoying flexibility in business operations in the state.

To establish your LLC successfully, you must choose a unique business name, designate a registered agent, and file Ohio Articles of Organization.

But there’s more.

Filing your LLC Articles of Organization in Ohio costs about $99, and the documents are approved in 3 – 7 business days.

This guide compiles all the information you need to start an LLC in Ohio today.

What Are the Steps to Start an LLC in Ohio?

To start an LLC in Ohio, you need to:

• Step 1. Search and choose a name for your Ohio LLC
• Step 2. Designate a registered agent in Ohio
• Step 3. File Ohio LLC Articles of Organization
• Step 4. Create an Operating Agreement
• Step 5. Get an EIN from the IRS
• Step 6. File a BOI Report
• Step 7. Pay the Ohio Commercial Activity Tax

Let us dive more in-depth into these steps so I can show you how to get them:

Step 1: Search and Choose a Name for Your Ohio LLC

When you start your Ohio LLC, the first step is to pick a name that stands out. Your business name must be unique, recognizable, and different from other companies in Ohio.

Use the Ohio Secretary of State Business Name database to check if your desired name is available. This tool will show you if any other business uses the same name. If your name is available, you’re ready to go!

Your name must contain specific words or abbreviations to meet state requirements. You can include:

• Limited Liability Company
• LLC
• L.L.C.
• Limited
• Ltd

If your name is too similar to another business’s, it could lead to legal issues. Take your time to choose a name that reflects your company and its purpose.

Once you select a name, consider reserving it. To do this, fill out a Name Reservation form and submit it to the Ohio Secretary of State. It costs $39 to file; you can do this online or by mail.

If you plan to operate under a different name, file a DBA (Doing Business As). This is optional, but many businesses find it useful.

The DBA registration form is simple and costs $25. It can be submitted alongside your business name reservation.

Next, register your business’s name, logo, and relevant product or service names for a trademark. This can be done for a fee of $125. However, you can’t necessarily trademark general, everyday things. This protects your intellectual property from being used by other companies, particularly your direct competitors. 

Step 2: Choose a Statutory or Registered Agent for Your Ohio LLC

A registered agent is a person or service that acts as your business’s official contact for your Ohio LLC. In Ohio, it is called a Statutory agent. Registered agents receive essential legal documents, tax notices, and other official mail.

Who Can Be a Registered Agent?

You have a few options for who can be your Registered Agent in Ohio:

• You: You can act as your registered agent, but remember you must be available during business hours to receive documents.
• A Family Member: A trusted family member can be your registered agent.
• An LLC Formation Service: Professional services offer expertise in handling official correspondence and ensuring compliance with state regulations.
• A Lawyer: A legal service firm can also serve as your registered agent, providing additional legal support if needed.

Requirements for Ohio Registered Agents

Ohio law requires registered agents to have a physical street address, not just a P.O. Box. The address must be where the agent can consistently receive legal documents and official mail during regular business hours.

Additionally, the registered agent must be at least 18 years old and available to accept service of process. This means they must be present to handle any legal notices or court documents delivered to the LLC.

What registered agents do I recommend for Ohio?

I highly recommend Northwest registered agent services for obvious reasons.

They offer a range of benefits that set them apart, including a free year of registered agent service, which helps you save (about $300) on initial costs.

You’ll receive a complimentary operating agreement essential for outlining your LLC’s internal structure. My favorite part? Northwest also allows you to use their office address for your LLC filing, keeping your address off public records and enhancing your privacy.

Their free email forwarding service ensures you stay on top of important correspondence, and their exceptional customer support is always available to assist you whenever needed.

Step 3: Prepare and File Ohio LLC Articles of Organization

To start your LLC in Ohio, you must file the Articles of Organization. This document provides essential details about your business, including its name, purpose, and the registered agent’s contact information.

To file your Articles of Organization in Florida, follow these steps:

Step #1. Complete the Form: Obtain and complete the Articles of Organization for a Domestic Limited Liability Company (Form 610) from the Ohio Secretary of State website.

Include the following:

• Your LLC’s principal place of business (street and mailing address)
• The registered agent’s name, address, and signature names and addresses of managers (if your LLC is manager-managed)
• The effective date of the LLC (up to five business days before or 90 days after the filing date)
• Signature of an authorized representative or member

Step #2: File Online or by Mail: You can file your Articles of Organization online through the Ohio Secretary of State online portal or by mailing the completed form to:

Regular Filing (non-expedited) 
P.O. Box 670 
Columbus, OH 43216

OR

Expedite Filing 
P.O. Box 1390 
Columbus, OH 43216

Step #3: Pay the Filing Fee: The filing fee is $99. If you choose regular filing speed, your formation documents will be processed in three to seven business days.

For faster processing, you can opt for one of three expedited options: within two business days for an additional $100, within one business day for an additional $200, or within four hours for an extra $300.

Step 4: Prepare Your LLC Operating Agreement

An LLC Operating Agreement is an essential internal document for your Ohio LLC. It outlines how your business will be run and the responsibilities of its members, helping prevent misunderstandings among members.

While Ohio does not require an operating agreement, having one is wise.

Here are some key components to include in your operating agreement if you choose to prepare one:

• Ownership Structure: Listing all members and their ownership percentages.
• Management Roles: Specify who will manage the LLC. This can be member-managed or manager-managed.
• Voting Rights: Define how decisions will be made. Will all members have equal votes?
• Profit Distribution: Explain how profits and losses will be shared among members.
• Meeting Procedures: Outline how often meetings will occur and how members will be notified.
• Amendment Process: Describe how changes can be made to the agreement in the future.

Creating an operating agreement may feel complex, but it’s essential for clarity.

It serves as your LLC’s rulebook, guiding operations and avoiding conflicts down the line. Keeping everyone on the same page is even more vital if you have partners.

Step 5: Obtain an EIN for Your LLC

An Employer Identification Number (EIN) is a unique nine-digit number the IRS assigns. It identifies your business for tax purposes.

You will need an EIN to open a bank account, hire employees, file taxes, and apply for business licenses and permits.

How to Apply for an EIN:

• Online: Visit the IRS website. This is the fastest way to get your EIN.
• By Mail: Fill out Form SS-4 and send it to the IRS. This option takes longer.
• By Fax: You can also fax the completed Form SS-4.
• Phone: U.S. residents can call the IRS at 1-800-829-4933 to apply.

How Much Does It Cost To Get EIN?

Obtaining an EIN is free. However, some services charge $100 or more to help you with the entire process.

How Does it Take to Obtain my EIN?

• Online: Get it immediately.
• By Mail: Expect 4 to 6 weeks.
• By Fax: Usually within 1-2 weeks.

Step 6: File a BOI Report

After setting up your LLC in Ohio, you must file a Beneficial Ownership Information (BOI) report. This is a federal requirement for new LLCs.

You must submit this report to FinCEN within 90 days of forming your LLC. Filing is free and can be done online at the FinCEN website.

Here’s what you need to prepare:

• Company Information: Name, address, and formation date.
• Beneficial Owners: Full names, addresses, dates of birth, and identification numbers.

Gather this information along with your LLC formation documents. This will help streamline the filing process.

Completing the BOI report is essential for maintaining compliance with federal regulations. It ensures transparency about who owns and controls your LLC. Take the time to do this correctly to avoid any potential penalties.

Step 7: Pay the Ohio Commercial Activity Tax

Most Ohio businesses must pay the Ohio Commercial Activity Tax (CAT). The CAT is an annual privilege tax, which means it taxes businesses for the privilege of doing business in Ohio.

The amount you owe for Commercial Activity Tax is based on your Ohio LLC’s taxable gross receipts made in Ohio in the previous calendar year. And this payment is the Annual Minimum Tax.

Taxable Gross Receipts include all income your business receives from goods and services in Ohio.

If your LLC makes over $150,000 in taxable gross receipts annually, you must file the CAT and pay an Annual Minimum Tax.

If your LLC makes less than $150,000 annually in taxable gross receipts, you don’t have to file the CAT or pay an Annual Minimum Tax.

The Annual Minimum Tax costs $150, is due by May 10th of the current tax year, and must be paid with your annual return each year.

Businesses exceeding $1 million in gross receipts should be ready for quarterly payments of $800 or more.

Register for Commercial Activity Tax online with the Ohio Department of Taxation using the Ohio Business Gateway.

Awareness of these tax requirements will help your business comply and avoid penalties. Track your gross receipts accurately to determine your obligations.

What are the Different Methods To Start an Ohio LLC?

You have several options for forming an LLC in Ohio. Each method has pros and cons, which can affect your decision on how to proceed. Here’s a look at three standard methods: doing it yourself, using an online service, or hiring an attorney.

DIY LLC Formation in Ohio

Forming your LLC on your own is straightforward if you follow the steps. You will fill out and submit the Ohio Articles of Organization and pay the required filing fee.

All by yourself, no third party!

Pros:

• Cost-Effective: You save money by not hiring anyone.
• Control: You have complete oversight of each step.
• Learning Opportunity: You gain knowledge about the process.

Cons:

• Time-Consuming: It may take longer if you are unfamiliar with the process.
• Complexity: You must ensure all forms are correctly filled out.
• Privacy issue: If you serve as your registered agent, you risk having your address out there.
• Lack of Guidance: You might miss the necessary steps.

Using a Professional/Online LLC Formation Services

Many online services can help you form your LLC. These platforms guide you through the entire process, handling most paperwork.

Pros:

• Convenient: They manage the filing, saving you time.
• User-Friendly: Most platforms have easy-to-understand instructions.
• Support Available: Many offer customer service for questions.
• Privacy benefits: Most services allow you to use their address for free, so your address doesn’t get compromised

Cons:

• Costs: You’ll pay a service fee.
• Variable Quality: Some services may not be as reliable as others.

Hiring an Attorney

Working with an attorney is another option for forming your LLC. This method ensures you have professional legal guidance throughout the process.

Pros:

• Expertise: An attorney knows the legal requirements and can avoid pitfalls.
• Customization: Your LLC can be tailored to your specific business needs.
• Support with Complex Situations: Ideal for businesses with unique circumstances.

Cons:

• Higher Costs: Legal fees can be expensive.
• Dependence on Others: You may rely heavily on the attorney’s schedule.
• Potential Delays: The process may take longer due to attorney workloads.

What is The Cheapest Alternative Way to Form an LLC in Ohio?

If you’re looking to start an LLC in Ohio on a budget, the most affordable option is to do it online. By filing the Articles of Organization directly with the Ohio Department of State, you can keep costs between $99 and $120, depending on your needs.

This DIY approach helps you avoid the extra fees of hiring a service or lawyer, saving you money for other business expenses.

However, while DIY is cost-effective, it requires some effort. You’ll need to understand all the forms and regulations, and missing a detail could delay your application or create problems later.

Consider using a registered agent if you prefer not to handle everything yourself.

They can make the process smoother by ensuring you receive important documents and helping you stay compliant with state requirements. Although this adds a bit to the cost, it can provide valuable support and peace of mind.

Who Provides the Best LLC Services in Ohio?

There are a myriad of Ohio LLC services from which to choose. Choosing the wrong one can affect your Ohio LLC formation timeline—I know this from my experience using a few and researching a dozen over the years.

Here are some top-rated options you should consider:

Best Ohio LLC Service	Google Rating	LLC Formation Cost	Registered Agent Fee
Northwest Registered Agent	4.7/5	$39	Free for one year
Doola	4.6/5	$0 (plus state fees)	$297/year
Tailor Brands	4.4/5	$0 (plus state fees)	$199/year
ZenBusiness	N/A	$0 (plus state fees)	$199/year

Besides, the fact that other services bill you for their registered agent in the first year, and Northwest offers it for free, is a HUGE plus for me.

Northwest Registered Agent stands in Ohio LLC formation due to its commitment to transparency, customer service, and privacy. Using their address helps protect your personal information, making them a reliable choice.

How Much Does It Cost To Form an LLC in Ohio?

Forming an LLC in Ohio costs around $99, which covers the formation fees of the Ohio LLC. However, there are other fees you need to be aware of.

Here is a table that outlines the costs involved in forming an LLC in Ohio:

Requirement	Cost
Filing Articles of Organization	$99
Name Reservation	$39
DBA Filing	$25
Trademark Filing	$125
LLC Formation Service	$39 (via Northwest)
Registered Agent Fee (optional)	$0 (via Northwest)
Annual Minimum Tax	$150
Total Estimated Cost	$249 – $500

When forming a new company in Ohio, it is ideal to budget about $249-$500 for the first year. Then, if you want to go further, you can get other bells and whistles like a virtual mailbox, custom website, trademark services, premium EIN services, etc.

The most significant (and essential) expense for every Ohio business owner is filing the Articles of Organization, which costs $99.

Pros and Cons of Forming an LLC in Ohio

5 Important Things To Do After Creating Your Ohio LLC

After forming your Ohio LLC, you need to complete several necessary steps. These actions will help ensure that your business is compliant with laws, financially sound, and correctly set up for success.

1. Research the Best Licenses and Permits for Your Business

Depending on your business type, you may need specific licenses or permits. Check with state and local authorities to find out what is required.

For example, if you plan to open a restaurant, you may need a food service license and health permits.

Here are the steps to follow:

• Visit the Ohio Secretary of State’s website for guidance.
• Contact your local city or county office to ask about local requirements.
• Explore industry-specific regulations that may apply.

Gather all necessary documents to avoid fines and keep your business legal.

2. Create Business Accounts for Your Ohio LLC

Opening a separate bank account for your LLC is essential for keeping your business finances organized and distinct from your funds. This separation simplifies your accounting and helps safeguard your assets by clearly distinguishing between personal and business transactions.

When choosing a bank, look for one that offers business-friendly services, such as waived fees, free online banking, and other features that can benefit your business. To open the account, be prepared to provide your EIN and a copy of your Articles of Organization.

A dedicated business account streamlines your financial management and simplifies tax preparation.

Having all your business transactions in one place lets you easily track your income and expenses, ensuring everything is well-organized and accessible when tax season rolls around.

3. Understanding Ohio Tax Requirements and Managing Your Taxes

LLCs don’t pay income tax on the business income. Instead, the LLC Members pay the taxes for the LLC.

However, most Ohio businesses must pay the Ohio Commercial Activity Tax (CAT). The CAT is an annual privilege tax, which means it taxes businesses for the privilege of doing business in Ohio.

The amount you owe for Commercial Activity Tax is based on your Ohio LLC’s taxable gross receipts made in Ohio in the previous calendar year. And this payment is the Annual Minimum Tax.

If your LLC makes over $150,000 in taxable gross receipts annually, you must file the CAT and pay an Annual Minimum Tax.

If your LLC makes less than $150,000 annually in taxable gross receipts, you don’t have to file the CAT or pay an Annual Minimum Tax.

The Annual Minimum Tax costs $150, is due by May 10th of the current tax year, and must be paid with your annual return each year.

Businesses exceeding $1 million in gross receipts should be ready for quarterly payments of $800 or more.

Register for Commercial Activity Tax online with the Ohio Department of Taxation using the Ohio Business Gateway.

4. Get Business Insurance for an LLC

Just as you wouldn’t leave your home without coverage, your LLC also needs the right business insurance to guard against potential risks and liabilities. Insurance protects your company’s assets and ensures financial stability in case of unforeseen issues or legal claims.

Your insurance needs will vary based on your business operations.

For example, general liability insurance covers risks such as slip-and-fall accidents or property damage if your LLC operates from a physical storefront.

Conversely, if you run your business as a consultant and work remotely, you might only need professional liability insurance to cover potential service errors or omissions. Assessing your business needs helps you choose the appropriate coverage to protect your LLC.

5. Setup Your Business Online Presence (optional)

In today’s digital age, online presence can significantly benefit your business. Start by creating a professional website. This platform allows you to showcase your services and connect with customers.

Consider using social media to engage your audience. Platforms like Facebook, Instagram, and LinkedIn can enhance your visibility.

Ohio LLC vs. S Corp vs. Partnerships vs. Sole Proprietorship vs. Corporations

Knowing your options when choosing a business structure in Ohio is essential. Each type has its features.

Sole Proprietorship

An Ohio sole proprietorship is the most straightforward way to start a business. Imagine you’re running a lemonade stand on your own. You make all the decisions and keep all the profits.

However, there’s no legal separation between you and your business. If your lemonade stand faces financial trouble or legal issues, your assets, like your car or home, could be at risk.

It’s easy to set up and manage, but it does leave you personally responsible for any business debts.

Partnership

An Ohio partnership involves teaming up with one or more people to run a business.

Think of it as joining forces with a friend to open a café. You share the profits and responsibilities, and you both make business decisions.

However, like a sole proprietorship, each partner is personally liable for any business debts or legal issues. If the business encounters financial trouble, your assets could be at risk, too. Partnerships are relatively easy to set up but require clear agreements between partners to avoid conflicts.

LLC (Limited Liability Company)

An LLC offers a blend of flexibility and protection.

Picture it as a protective umbrella over your lemonade stand. This structure separates your assets from your business, so if your LLC faces legal issues or debts, your personal belongings are generally safe.

LLCs are more formal than sole proprietorships or partnerships but offer management and tax treatment flexibility. They are ideal for small—to medium-sized businesses that want liability protection without the complexity of a corporation.

S-Corporation

An S Corporation is a more structured business form.

Think of it as a business where owners are shareholders, much like a small-scale company with multiple investors. It protects liability and allows profits to pass through to your tax return, avoiding double taxation.

This means you report the income and losses on your tax return, which can be beneficial for tax purposes. However, S Corps have stricter operational requirements and formalities compared to LLCs.

Corporation

An Ohio corporation is the most complex structure, suitable for larger businesses aiming for significant growth. Imagine a big company with many shareholders. A corporation offers robust liability protection and is a separate legal entity from its owners, meaning your assets are protected.

Corporations can raise capital more efficiently by issuing stock and can offer employee benefits.

However, they come with extensive regulatory requirements, formalities, and paperwork, making them more suitable for businesses with significant resources and expansion plans.

My Final Thoughts: Forming an LLC in Ohio

Starting an LLC in Ohio is an exciting step toward bringing your business idea to life. Although it might seem like many steps initially, breaking them down makes the process more manageable and ensures you cover all the essential bases.

Starting an LLC in Ohio involves several key steps:

• Name your Ohio LLC
• Choose an Ohio statutory/registered agent
• File the Articles of Organization
• Create an LLC operating agreement
• Obtain an Employer Identification Number (EIN)
• File a BOI Report
• Pay the Commercial Activity Tax

The cost to file your LLC in Ohio is $99. This fee is paid when you submit your Articles of Organization.

Every LLC in Ohio that makes over $150,000 in taxable gross receipts must pay an annual minimum tax of $150.

An LLC can protect personal liability and help you maintain a professional image. Taking these steps ensures you’re on the right path for your business in Ohio.

Learn More About Starting an LLC in Ohio

If you need additional help to start an LLC in Ohio, check out these valuable resources:

Frequently Asked Questions

Can I change my registered agent in Ohio?

Yes, you can change your registered agent in Ohio. You must complete and submit the appropriate form to the Ohio Secretary of State. There may be a small fee for this change.

How do I change my Ohio LLC’s name?

To change the name of your LLC, you need to file an amendment with the Ohio Secretary of State. This process involves completing the necessary form and paying the required fee.

How do I renew my Ohio LLC?

Ohio does not require LLCs to renew annually. However, you need to file your Ohio Commercial Annual Tax every year. This keeps your information up to date in the state records.

How do I dissolve an LLC in Ohio?

To dissolve your LLC, you must file articles of dissolution with the Ohio Secretary of State. It’s essential to settle any debts and obligations before completing this process.

How do I add a member to an Ohio LLC?

To add a member to your Ohio LLC, you must update your Operating Agreement and notify the Ohio Secretary of State by filing an amendment if necessary. Make sure all members agree to this change.

How do I add a DBA to an LLC in Ohio?

To add a Doing Business As (DBA) name, you must file a Certificate of Assumed Name with the Ohio Secretary of State. There is a fee for this filing.

Can a minor own an LLC in Ohio?

Yes, a minor can own an LLC in Ohio, but there are restrictions. Generally, a parent or guardian must manage the LLC until the minor reaches the age of majority.

When is the Ohio Commercial Annual Tax due?

The Ohio Commercial Annual Tax is due each year on May 15. Please submit it on time to avoid penalties.

Does LLC expire in Ohio?

An LLC in Ohio does not expire as long as you continue to file your Commercial Annual Tax and pay any required fees. Failure to do so may result in your LLC being declared inactive.

Can a non-resident open an LLC in Ohio?

Yes, a non-resident can open an LLC in Ohio. However, the LLC needs a registered agent with a physical address in Ohio to receive legal documents.

Can I buy a house or car with my LLC in Ohio?

You can buy a house or car through your LLC in Ohio. This can offer liability protection and potentially tax benefits. Always consult a financial advisor for personalized advice.

Can you have multiple businesses under one LLC in Ohio?

Yes, you can have multiple businesses under one LLC in Ohio. However, you must ensure that each business operates similarly and complies with state regulations.

Is Ohio a good state to form an LLC? Is it worth it?

Ohio has a favorable business environment and reasonable fees, making it a good option for starting an LLC. Evaluating your specific needs and business plans can help determine the right choice.

Can one person form an LLC in Ohio?

Yes, one person can form an LLC in Ohio. This is called a single-member LLC, which provides the same liability protection as a multi-member LLC.