Legal Requirements for Starting a Small Business in Ohio

Starting a small business in Ohio requires compliance with several legal requirements that apply to all businesses operating within the state. Below are some of the essential legal requirements and steps to get started.

1. Business registration

To legally operate a business in Ohio, you must register your business with the Ohio Secretary of State. You will need to choose your business name, select your business structure (such as a sole proprietorship, LLC, corporation, or partnership), and file registration documents with the Secretary. It is recommended that you consult with an attorney to determine the appropriate business structure for your needs and to ensure compliance with relevant laws and regulations.

2. Licenses and Permits

Depending on the nature of your business, you may be required to obtain permits or licenses from state or local authorities. For example, businesses that sell alcohol, food or operate childcare facilities may require specific permits that must be obtained before opening your doors for business.

3. Taxation

You must register for and obtain a Federal Identification Number (FEIN) from the Internal Revenue Service (IRS). You may also be required to register with the Ohio Department of Taxation to collect sales tax, obtain an Ohio Commercial Activity Tax (CAT), or Withholding Tax account. Failure to comply with tax requirements can result in severe penalties and legal repercussions.

4. Employment laws

If you hire employees, you must comply with state and federal employment laws, including minimum wage requirements, mandatory overtime pay, and workplace safety requirements. Ensure that all employees complete Form I-9 and provide adequate Workers' Compensation Insurance coverage.

5. Protect your Intellectual Property (IP)

Registering your business's name, product or services name, and logo with the U.S. Patent and Trademark Office (USPTO) offers legal protection for your intellectual property rights.

Conclusion

Starting a small business can be a complicated and challenging process, but complying with the legal requirements is crucial for its success. Consulting an attorney can help ensure that you meet all legal requirements for your small business in Ohio.