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What are the legal procedures for registering a sole proprietorship or limited liability company (LLC) in Ohio?

Picture of Chris Battis By   ·  1 minute read

In Ohio, the legal procedures for registering a sole proprietorship or limited liability company (LLC) are as follows:

Sole Proprietorship:

  1. Choose a business name: The business name must be unique and not in use by another business in Ohio.
  2. Register for taxes: Obtain a federal Employer Identification Number (EIN) from the Internal Revenue Service (IRS) and register with the Ohio Department of Taxation for state taxes.
  3. Obtain necessary licenses and permits: Depending on the type of business and location, a business may need additional permits and licenses.
  4. File a trade name: If the business will operate under a name different from the owner’s name, a trade name must be filed with the county recorder.

LLC:

  1. Choose a business name: The business name must be unique and not in use by another business in Ohio.
  2. Complete and file Articles of Organization: Ohio law requires LLCs to file Articles of Organization with the Ohio Secretary of State. The Articles of Organization must include the name of the LLC, the business purpose, the address of the registered office, the name and address of the registered agent, and the names and addresses of the LLC’s organizers.
  3. Obtain necessary licenses and permits: Depending on the type of business and location, a business may need additional permits and licenses.
  4. Draft an operating agreement: Although Ohio doesn't require LLCs to have an operating agreement, it's still a good idea to draft one as it outlines the company’s internal rules and management structure.
  5. File annual report: LLCs are required to file an annual report with the Ohio Secretary of State.

Limitations or exceptions:

  • Sole proprietors do not have liability protection for their personal assets, while LLC owners have limited liability protection.
  • Some professions in Ohio require professionals to form a professional LLC or PLLC.
  • The process for registering a business may differ depending on the location and nature of the business.

Further action:

  • Consult with a licensed attorney for specific legal advice tailored to your business needs.
  • Conduct thorough research on the requirements and regulations for operating a business in Ohio.
  • Contact the Ohio Secretary of State's office for further guidance and assistance with registering a business.