Skip to content
Ask a question
All posts

What are the different types of business structures available in Ohio, and which one would be best for my new business?

Picture of Chris Battis By   ·  1 minute read

There are several types of business structures available in Ohio, each with its own advantages and disadvantages. The most common business structures include:

  1. Sole Proprietorship: A sole proprietorship is a business owned and run by a single individual. This type of business structure is easy to set up and has low operating costs. However, the owner is personally liable for any debts or obligations incurred by the business.
  2. Partnership: A partnership is a business owned by two or more individuals who share profits and losses. Partnerships can be general or limited, which determines the level of liability each partner has. Partnerships are easy to form and have low operating costs, but each partner is personally liable for any debts or obligations incurred by the business.
  3. Limited Liability Company (LLC): An LLC is a hybrid business structure that provides the liability protection of a corporation and the tax benefits of a partnership. LLCs are flexible and easy to form, but they require more paperwork and legal formalities than sole proprietorships and partnerships.
  4. Corporation: A corporation is a legal entity that is separate from its owners. This type of business structure provides the greatest level of liability protection for owners, but it also requires more legal formalities and paperwork than other business structures.

Determining the best business structure for your new business will depend on several factors, including the size of your business, the level of liability protection you need, and the tax implications of the different business structures. It is important to consult with a licensed attorney or accountant to ensure that you choose the right business structure for your specific needs.

Some potential limitations or exceptions to the advice given include state-specific laws and regulations, as well as the specific circumstances of your business. It is important to consult with a licensed attorney to ensure that you are in compliance with all relevant laws and regulations.

If you need further assistance in determining the best business structure for your new business, a licensed attorney can provide guidance and advice. They can also help you draft and file the necessary legal documents to establish your business.