Forming a Ohio LLC
(2025 Guide)
2025 LLC Guide
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How to Start an LLC in Ohio (Step-by-Step Guide)
Discover how to start an LLC in Ohio, our step-by-step guide. Learn the essential requirements and process to form your business today.
To establish an LLC in Ohio, you must submit the Articles of Organization to the Ohio Secretary of State. The filing fee is $99, and approval is granted within one day.
There are five essential steps to complete:
1. Select an LLC Name
2. Choose a Statutory Agent
3. File Articles of Organization
4. Draft an Operating Agreement
5. Obtain an EIN (Federal Tax Identification Number)
If you prefer to set up your Ohio LLC on your own, follow our free guide below. For those who would rather have professional assistance, we suggest hiring Northwest Registered Agent.
Need to save time?
Form your LLC with Northwest ($39 + state fee) or LegalZoom ($149 + state fee).
(See why Northwest is #1: Northwest vs LegalZoom.)
What is the cost to establish an LLC in Ohio?
Establishing an LLC in Ohio costs $99. This fee covers the filing of the Articles of Organization, the document necessary to form an LLC. For additional details on LLC expenses, refer to LLC Costs in Ohio.
How long does it take to form an LLC in Ohio?
If you submit your LLC paperwork by mail, approval will occur in 1 business day (plus mailing time). However, filing online results in approval within 1 business day. For potential delays, consult How long does it take to get an LLC in Ohio.
Here’s how to establish an LLC in Ohio
1. Verify Your LLC Name
Check the availability of your LLC name within the state. This step is crucial as no two businesses in the state can share the same name.
Start by ensuring your desired business name is distinct from others using the Ohio Business Search tool provided by the Ohio Secretary of State.
Additionally, acquaint yourself with the state’s naming regulations to ensure your LLC’s approval. We’ll provide a more detailed explanation here: Ohio LLC Name.
Note:
Most people choose “LLC”.
2. Select a Registered Agent
The following step involves selecting a Registered Agent. A Registered Agent in Ohio is an individual or business that receives legal documents and state notifications on behalf of your Ohio Limited Liability Company.
Who can serve as an LLC Registered Agent? You have three choices for a Registered Agent:
You
A friend or family member
A Registered Agent Service
If you choose an individual as your Registered Agent, they must reside in Ohio. State law mandates that all LLC Registered Agents maintain a physical street address in Ohio, as PO Boxes are not permitted. The Registered Agent’s name and address will be publicly recorded.
If you don’t have an address in Ohio or prefer more privacy, you may opt for a Registered Agent Service for your LLC.
We recommend Northwest Registered Agent. Our top reason for recommending Northwest is that they allow you to use their office address throughout your LLC filing, ensuring your address remains private. They also scan any mail addressed to your LLC and upload it to your online account.
Northwest offers outstanding customer service, and they are our trusted choice for a Registered Agent.
Special offer:
Form your LLC with Northwest for $39 + state fee and get a free year of Registered Agent service.
(Read our Northwest Registered Agent review.)
3. Submit Articles of Organization
To establish an LLC, you must submit the Articles of Organization to the Ohio Secretary of State.
Filing these online costs $99, which is a one-time fee for forming your LLC.
If you prefer to handle this on your own, check out our detailed guide: Ohio Articles of Organization. Alternatively, you can hire a service to complete it for you.
Need to save time?
Form your LLC with Northwest ($39 + state fee) or LegalZoom ($149 + state fee).
(See why Northwest is #1: Northwest vs LegalZoom.)
4. Draft an Operating Agreement
An Operating Agreement acts as a “companion” document to the Articles of Organization. While the Articles of Organization establish your LLC, the Operating Agreement identifies the owners of the LLC.
Some banks may also require an Operating Agreement when setting up an LLC bank account. Moreover, this document can be crucial if legal issues arise, as it provides evidence that your Limited Liability Company is properly managed. Therefore, we suggest all LLCs, including Single-Member LLCs, have an Operating Agreement.
An Operating Agreement is considered an “internal document.” This means you don’t have to submit it to the state or the IRS (Internal Revenue Service). Simply keep a copy with your business records. You can download a free template below. Then, watch our step-by-step Ohio Operating Agreement video to learn how to complete it.
Download a free LLC Operating Agreement:
Member-managed: Google Doc | Word | PDF
Manager-managed: Google Doc | Word
(What’s better? See Member-managed vs Manager-managed LLC)
5. Obtain an EIN for Your Limited Liability Company
The following step involves securing a Ohio LLC EIN Number from the IRS.
An EIN Number, also known as a Federal Tax ID Number or Federal Employer Identification Number, serves various purposes:
– Identifying your LLC for tax-related matters
– Opening a business bank account
– Applying for business licenses and permits
How much does an EIN cost? Acquiring an EIN Number from the IRS is entirely free of charge.
How long does it take to obtain an EIN? Applying online will take approximately 15 minutes. If you choose to apply by mail or fax, expect a processing time of 1-3 months.
How can I get an EIN? US Citizens/Residents with an SSN or ITIN can apply for an EIN online by following these steps: Apply for an EIN online.
Non-US Residents do not have the option to apply online, but they can obtain an EIN by fax or mail. Follow these guidelines: How to get an EIN without an SSN or ITIN.
What should I do after my LLC is approved?
After your LLC is approved, there are a few more steps to take.
Open an LLC bank account
It’s important to set up a business bank account for your LLC to streamline accounting and record-keeping. This also helps maintain personal liability protection by keeping your business finances separate from personal funds.
Get business licenses and permits
Ohio doesn’t require a state general business license. However, depending on your LLC’s location, local Ohio business licenses or permits might be necessary. For example, starting a daycare could require city or county licenses. Check our Ohio Business License page for more info.
File and pay taxes
LLCs themselves don’t pay income tax on business income. Instead, LLC members include the LLC’s earnings in their personal tax returns. In other words, Ohio business owners pay taxes on LLC profits through their personal tax filings. How is a Limited Liability Company taxed? By default, the IRS taxes an LLC based on the number of owners: a Single-Member LLC is taxed like a Sole Proprietorship, while a Multi-Member LLC is taxed like a Partnership. Alternatively, you can opt for C-Corporation or S-Corporation taxation. Besides federal income tax, you’ll also face state and local income taxes, as well as sales tax. Hiring employees requires registering for payroll taxes. For more details, see Ohio LLC Taxes.
Pay the Ohio Commercial Activity Tax
Most Ohio businesses must file and pay the Ohio Commercial Activity Tax (CAT), an annual privilege tax for doing business in the state. The CAT amount depends on your LLC’s taxable gross receipts from the previous year, known as the Annual Minimum Tax. More details on taxable services and goods are available here: Ohio Commercial Activity Tax: General Information.
How much is owed for Commercial Activity Tax?
The Annual Minimum Tax varies by income range. If your LLC earns over $150,000 annually in taxable gross receipts, you must file the CAT and pay the Annual Minimum Tax. If earnings are below this threshold, filing and payment aren’t required. What is the Annual Minimum Tax (AMT)? It’s the minimum amount your LLC pays for the current year’s Commercial Activity Tax, based on the previous year’s gross receipts. The AMT is due by May 10th each year and costs $150.
How much is the Annual Minimum Tax for an Ohio LLC?
Your LLC’s AMT varies based on the previous year’s income. LLCs earning under $150,000 in gross receipts annually don’t need to file the CAT or pay the AMT. Those exceeding this amount must file and pay once per year.
When are the CAT and AMT due?
Filing frequency depends on last year’s taxable gross receipts. Most businesses file a CAT return annually. However, if your LLC’s receipts exceed $1 million, quarterly CAT returns are required, and the AMT will be $800 or more. More details on CAT and AMT fees are available: Ohio Commercial Activity Tax: General Information. Register for CAT online via the Ohio Business Gateway through the Ohio Department of Taxation.
Helpful Resources
How to Start an LLC in Ohio FAQs
Can I start an LLC online in Ohio?
Yes, forming an LLC online in Ohio is possible. The fee for filing the Articles of Organization is $99. When you file online, your LLC will be approved within one business day.
What are the benefits of an LLC?
Yes, forming an LLC online in Ohio is possible. The fee for filing the Articles of Organization is $99. When you file online, your LLC will be approved within one business day.
What are the benefits of an LLC?
One major benefit of an LLC is personal asset protection. This means that if your business faces a lawsuit, your personal assets, such as your home, vehicles, and bank accounts, are safeguarded. This protection is available to all Ohio LLC owners, whether you have a Single-Member or Multi-Member LLC. All members are shielded from the business’s debts and liabilities. This protection isn’t available if you operate as a Sole Proprietorship or Partnership, making LLCs a more popular choice.
Another advantage is LLC pass-through taxation. The LLC itself doesn’t pay federal income taxes; instead, the profits pass through to the members, who then pay taxes on their personal returns. Ohio’s state income taxes are similar, as the Ohio Department of Taxation follows the federal tax treatment for LLCs, meaning taxation is consistent at the state level. For more details, see How are LLCs taxed.
Is Ohio a good state to start an LLC?
Whether Ohio is a suitable state to start an LLC depends on your location and business activities. If you reside or conduct business in Ohio, forming your business entity there is advisable. Websites may discuss tax rates and state advantages, but these don’t apply if it’s not the state where you operate.
For instance, if you form an LLC in Delaware but live and work in Ohio, you’ll also need to register your Delaware LLC in Ohio, incurring additional fees and taxes. This could lead to increased costs without any benefits. In summary, if you live and work in Ohio, it is a good state for starting a business. Otherwise, it may not be the best choice.
Real estate exception: If buying real estate outside Ohio, set up your LLC in the state where the property is located. For more information, refer to Best State to Form an LLC.
Do I need to file an Ohio LLC Annual Report?
Ohio LLCs are not required to file an Annual Report or pay an annual fee. Although most states mandate annual reports and fees, Ohio is among the few states that do not impose these requirements on LLCs. For further details, see: Ohio LLC Annual Report.
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