Legal Steps to Start a Small Business in Ohio

There are several legal steps that must be taken to start a small business in Ohio.

1. Choose a Business Structure

You must determine what type of business entity you want to create. Ohio recognizes several business structures, such as sole proprietorships, partnerships, LLCs, and corporations.

2. Register Your Business

You must register your business with the Ohio Secretary of State's office. This involves filing Articles of Organization (for an LLC) or Articles of Incorporation (for a corporation). You'll also need to obtain any necessary business licenses or permits at the city or county level.

3. Obtain Tax ID Numbers

You'll need to obtain a Federal Employer Identification Number (EIN) from the IRS, and Ohio also requires certain businesses to obtain a state tax ID number for sales tax purposes.

4. Comply with Employment Laws

If you plan to hire employees, you'll need to comply with state and federal employment laws, such as verifying the eligibility of employees to work in the U.S., maintaining personnel records, and paying employment taxes.

5. Obtain Insurance

Ohio law requires certain types of insurance for businesses, such as workers' compensation insurance if you have employees. You may also want to consider liability insurance to protect yourself and your business from lawsuits.

6. Open a Business Bank Account

It's important to keep your business finances separate from your personal finances. Opening a separate business bank account will help you track your business expenses and make tax time easier.

7. Draft Contracts

Depending on your business, you may need to draft contracts for clients, employees, or suppliers. It's important to have these contracts reviewed by a lawyer to ensure they're legally binding and provide adequate protection for your business.

These are the main legal steps required to start a small business in Ohio. Work with an experienced attorney to ensure you're complying with all state and federal laws and regulations. Additionally, consult with an accountant to ensure you're meeting all tax requirements and maximizing your business deductions.