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What legal steps should I take before starting a small business in Ohio?

Picture of Chris Battis By   ·  1 minute read

Legal Steps to Starting a Small Business in Ohio

Before starting a small business in Ohio, there are several legal steps that you should take:

  1. Business Structure: Decide on the legal structure of your business. The most common options in Ohio are sole proprietorship, partnership, limited liability company (LLC), and corporation. Each structure has different legal and tax implications, so it’s important to choose the one that best suits your needs.
  2. Business Name: Choose a name for your business that is unique and not already registered with the Ohio Secretary of State. You can do a name search on their website to make sure your chosen name is available.
  3. Business License: Obtain any necessary licenses and permits for your business. The type of license or permit required will depend on the nature of your business and the location.
  4. Tax ID Number: Apply for a Federal Employer Identification Number (EIN) from the Internal Revenue Service (IRS). This number is used to identify your business for tax purposes.
  5. Taxes: Register with the Ohio Department of Taxation and obtain any necessary state and local tax permits. Ohio has a state sales tax of 5.75% that businesses must collect on sales made within the state.
  6. Employment Laws: Familiarize yourself with Ohio employment laws regarding wages, hours, discrimination, and harassment. If you plan on hiring employees, make sure you are in compliance with all state and federal laws.
  7. Contracts and Agreements: Consult with an attorney to draft any necessary contracts or agreements, such as lease agreements, employment contracts, or supplier contracts.
  8. Insurance: Obtain any necessary insurance coverage for your business, such as liability insurance or workers’ compensation insurance.

It’s important to note that this is not an exhaustive list of legal steps. Depending on the nature of your business, there may be additional legal requirements or considerations. It’s always a good idea to consult with an attorney to ensure that you have fulfilled all legal requirements and are in compliance with all applicable laws and regulations.