Starting a business in Ohio? Forming a Limited Liability Company (LLC) is one of the best ways to protect your personal assets while establishing your company legally. In this guide, we'll walk you through the process of registering an LLC in Ohio step-by-step.
What is an LLC and Why Choose Ohio?
An LLC (Limited Liability Company) is a business structure that combines the flexibility of a partnership with the liability protection of a corporation. Ohio offers a business-friendly environment, affordable filing fees, and straightforward registration processes, making it an ideal state for entrepreneurs.
Step 1: Choose a Business Name
Your LLC's name must comply with Ohio state guidelines:
- Must include "LLC," "L.L.C.," or "Limited Liability Company."
- Must be distinguishable from other registered names in Ohio.
- Cannot imply affiliation with a government agency.
You can check name availability through the Ohio Secretary of State's Business Search Tool.
Step 2: Appoint a Statutory Agent
A statutory agent (also known as a registered agent) is responsible for receiving legal documents on behalf of your LLC. Requirements include:
- Must have a physical address in Ohio.
- Can be an individual or a business entity authorized to operate in Ohio.
Step 3: File Articles of Organization
To officially register your LLC, file the Articles of Organization with the Ohio Secretary of State. Here's how:
- File online or via mail.
- Pay the $99 filing fee.
You can complete this step through the Ohio Secretary of State's website.
Step 4: Create an Operating Agreement
While not legally required in Ohio, an Operating Agreement is highly recommended. This document outlines:
- Ownership structure.
- Member responsibilities.
- Operating procedures.
Having this agreement helps prevent internal disputes and protects your LLC status.
Step 5: Obtain an EIN (Employer Identification Number)
An EIN is a federal tax ID number issued by the IRS. You'll need it to:
- Open a business bank account.
- Hire employees.
- File federal and state taxes.
You can obtain an EIN for free from the IRS website.
Step 6: File Your Beneficial Ownership Information (BOI) Report
Starting in 2024, the Corporate Transparency Act (CTA) requires most LLCs to file a Beneficial Ownership Information (BOI) Report with the Financial Crimes Enforcement Network (FinCEN). Here’s what you need to know:
- The BOI report identifies individuals who own or control at least 25% of the LLC.
- Filing is free and must be completed online through the FinCEN website.
- Failure to file may result in significant penalties.
This report must be filed within 30 days of registering your LLC.
Step 7: Comply with State and Federal Regulations
Depending on your business type, you may need:
- Business licenses and permits.
- Sales tax permits.
- Industry-specific certifications.
Ensure you're also compliant with federal, state, and local tax regulations.
Step 8: Maintain Your LLC
After registration, you’ll need to:
- File a biennial report with the Ohio Secretary of State.
- Keep accurate financial records.
- Renew permits and licenses as needed.
Forming an LLC in Ohio is a straightforward process that offers significant benefits for entrepreneurs. By following these steps, you'll ensure your business is legally compliant and set up for success.
