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What are the legal requirements for starting a small business in Ohio?

Picture of Chris Battis By   ·  1 minute read

To start a small business in Ohio, there are certain legal requirements that must be met. The following are the main steps and requirements:

  1. Choose a business structure: Before starting a business, it is essential to select a legal structure that fits the company's goals and objectives. The most common legal structures for small businesses include sole proprietorship, partnership, LLC, S-Corporation, and Corporation. It is crucial to consider the tax implications, legal liability, and ownership structure for each option.
  2. Register with the Ohio Secretary of State: All businesses operating in Ohio must register with the Secretary of State's office. The registration process varies depending on the business structure. Sole proprietors and partnerships must file a Trade Name Registration Form. LLCs, Corporations, and S-Corporations must file Articles of Organization or Incorporation.
  3. Obtain Necessary Licenses and Permits: Depending on the nature of the business, it may require a specific type of license or permit. For example, businesses in the healthcare industry must obtain licensing from the State Medical Board or Ohio Department of Health. The Ohio Secretary of State website provides a comprehensive list of licenses and permits required for businesses in Ohio.
  4. Register for State Taxes and Obtain EIN: All businesses must register for state taxes with the Ohio Department of Taxation. Additionally, businesses must obtain an Employer Identification Number (EIN) from the IRS. This is necessary for tax filings, opening bank accounts, and hiring employees.
  5. Obtain Insurance: Every business should have comprehensive insurance coverage to protect against liability and unforeseen events. Depending on the industry and business structure, specific types of insurance may be required. Examples include general liability, workers' compensation, and professional liability insurance.

In summary, starting a small business in Ohio involves complying with state and federal laws, registering with the appropriate bodies, obtaining the necessary licenses and permits, and obtaining appropriate insurance coverage. It is essential to seek legal advice from a licensed attorney specializing in business law to ensure compliance with all legal requirements.