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What legal steps do I need to take to start a small business in Ohio?

Picture of Chris Battis By   ·  1 minute read

To start a small business in Ohio, you need to take the following legal steps:

  1. Choose a structure for your business: You can choose to set up your business as a sole proprietorship, a partnership, a limited liability company (LLC), or a corporation. Each structure has different legal and tax implications, so it is important to consult an attorney or accountant to determine which structure is best for your business.

  2. Register your business with the Ohio Secretary of State: All businesses operating in Ohio must be registered with the Secretary of State. You can file your registration online through the Ohio Business Central website. The registration fee varies depending on the type of business structure you choose.

  3. Obtain any necessary business licenses and permits: Depending on the type of business you plan to run, you may need to obtain specific licenses or permits from state or local authorities. For example, if you plan to sell alcohol, you will need to obtain a liquor license from the Ohio Division of Liquor Control.

  4. Obtain an Employer Identification Number (EIN): If you plan to hire employees or have a partnership or corporation, you will need to obtain an EIN from the Internal Revenue Service. You can apply for an EIN online through the IRS website.

  5. Register for state and local taxes: Depending on your business structure and location, you may also need to register for state and local taxes, such as sales tax or income tax. You can register for these taxes through the Ohio Business Gateway website.

  6. Draft necessary legal documents: Depending on your business structure and needs, you may need to draft legal documents such as operating agreements, partnership agreements, or employment contracts. It is important to consult an attorney to ensure that these documents meet the legal requirements and protect your business interests.

  7. Obtain insurance coverage: Depending on the nature of your business, you may need to obtain various types of insurance coverage, such as liability insurance or workers' compensation insurance.

It is important to note that this advice is intended to provide general information only and should not be relied upon as legal advice. Each business is unique and may have different legal requirements, so it is important to consult with an attorney or accountant to ensure that you have met all legal obligations.