Legal Requirements for Starting a Business in Ohio

To legally start a business in Ohio, there are several requirements that must be met. These requirements can vary depending on the specific type of business entity that is being formed. However, some general requirements and steps are necessary regardless of the type of business being formed.

1. Choose a Business Structure

First, you must choose the type of business structure that best suits your needs. The most common business structures are sole proprietorship, partnership, limited liability company (LLC), and corporation. Each structure has its own benefits and drawbacks. Your choice will depend on factors such as the number of owners, liability protection, tax implications, and cost.

2. Register Your Business Name

Next, you will need to register your business name with the Ohio Secretary of State. This can be done online or by mail. A fee of around $50 is required. It is important to conduct a search for the availability of your chosen business name before submitting the registration application.

3. Obtain Necessary Licenses and Permits

Depending on the type of business you are starting, you may need to obtain various licenses and permits at the federal or state level. Examples of licenses and permits include a business license, sales tax permit, health permit, and building permit, among others.

4. Obtain an Employer Identification Number (EIN)

If you plan to hire employees or form a partnership or corporation, you will need to obtain an EIN from the IRS. This is a unique identification number that is used to identify your business for tax purposes.

5. Register for State Taxes

You will need to register for state taxes with the Ohio Department of Taxation. This includes sales tax, commercial activity tax (CAT), and employer withholding tax. You may need to renew your tax registration periodically.

In conclusion, starting a business in Ohio requires several steps and legal requirements. It is important to carefully consider the type of business structure that best suits your needs, register your business name, obtain necessary licenses and permits, obtain an EIN from the IRS, and register for state taxes. In addition to these legal requirements, it is advisable to seek the assistance of a qualified business attorney to ensure compliance with all applicable laws and regulations.