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What legal steps do I need to take before starting a business in Ohio?

Picture of Chris Battis By   ·  1 minute read

As a lawyer, the legal steps you need to take before starting a business in Ohio are outlined below:

  1. Choose a Business Structure: Before starting a business in Ohio, you must choose the appropriate business structure. The options available in Ohio include sole proprietorship, partnership, limited liability company (LLC), corporation, etc. Each has its pros and cons and should be chosen based on the nature and goals of your business.

  2. Register Your Business: Registering your business with the Ohio Secretary of State is mandatory before you can operate in the state. You will need to file the Articles of Incorporation or Articles of Organization - depending on the business structure you've chosen - with the Secretary of State's office. This registration is necessary to obtain tax ID numbers and other licenses.

  3. Get the Necessary Licenses and Permits: Depending on your business type and the nature of the business, you may need to get specific licenses or permits to operate legally in Ohio. These may include zoning permits, business licenses, and state and federal permits. You should check with the relevant Ohio state agencies that govern your business.

  4. Obtain Tax IDs: You will need an Employer Identification Number (EIN) if your business has employees or if it is structured as a partnership, LLC or corporation. You will also need to register for state and local taxes.

  5. Comply with Labor Laws: Ohio labor laws govern employee rights and employer responsibilities. These laws cover issues including minimum wage, workers' compensation, overtime, and discrimination.

  6. Obtain Insurance: Different business structures require different types of insurance policies. You may need general liability insurance, umbrella insurance, and professional liability insurance, among others. In Ohio, workers' compensation insurance is mandatory for businesses that have employees.

  7. Draft Business Agreements: While not always needed, having business agreements such as bylaws, operating agreements, shareholder agreements, and partnership agreements is recommended to establish the expectations between business partners and protect your business.

If you encounter any difficulty with any of these steps or any legal aspect of starting a business in Ohio, it is strongly recommended that you seek the advice of a licensed attorney. This will help to ensure that you comply with Ohio laws and regulations to start your business legally.