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What should I know before starting a small business in Ohio?

Picture of Chris Battis By   ·  1 minute read

Legal Considerations for Starting a Small Business in Ohio

Before starting a small business in Ohio, there are several legal considerations that an individual should be aware of. Here are some crucial factors to keep in mind:

  1. Registering the Business: In Ohio, all businesses must register with the Ohio Secretary of State's office. Business owners must decide which legal structure they want their business to have, such as a sole proprietorship, partnership, limited liability company (LLC), or corporation. Each structure has different legal requirements and tax implications, so it's important to seek legal advice before choosing one.
  2. Obtaining Licenses and Permits: Depending on the type of business, it is often necessary to obtain state and local licenses and permits. Business owners should research the specific licenses and permits that they may need in order to operate within the law.
  3. Taxes: Businesses in Ohio are required to pay state and federal taxes. Business owners should consult with a tax attorney or accountant to ensure they are meeting their tax obligations and taking advantage of all potential tax benefits.
  4. Employment Laws: Ohio has certain employment laws that small business owners must adhere to, including minimum wage and overtime requirements, anti-discrimination laws, and unemployment insurance laws. Small business owners should make sure they fully understand these laws and are compliant with them.
  5. Contracts and Agreements: Small business owners often enter into contracts and agreements with customers, vendors, and other entities. It is important to consult with a lawyer to draft and review these contracts to ensure that they are legally binding and offer the best protection for the business.
  6. Insurance: Small business owners must have the proper insurance coverage, including general liability, workers' compensation, and property insurance. It is important to consult with an insurance agent to determine what type and amount of coverage is necessary for the business.

In conclusion, starting a small business in Ohio requires a thorough understanding of the legal requirements and potential risks. Consulting with an attorney can help ensure that business owners are compliant with the law and are taking all necessary steps to protect their business.