Cost of LLC in Ohio: Everything You Need to Know
The total cost of forming an LCC in Ohio depends on various factors. If you want to form an LLC in Ohio, it's important to understand the process so you take the right steps.3 min read
The total cost of forming an LCC in Ohio depends on various factors. If you want to form an LLC in Ohio, it's important to understand the process so you take the right steps. Since you will likely be mindful of your current budget, it's also important to understand the costs involved. Here is what you need to know before you begin this process.
Cost to Form an LLC in Ohio
Regulating the formation of business entities, including limited liability companies (LLC), the Ohio Secretary of State will assist you during this process. In order to form an LLC, however, you will need to complete and file paperwork via fax, mail, or in-person delivery. In addition, you will need to submit the associated fees. If you plan on delivering your paperwork in-person, this option is available in Cleveland and Columbus.
If you would like to reserve your proposed name, you can do so before you fill out the paperwork to form your LLC. The service fee to reserve up to three names will be $50, and the names will be reserved for 180 days. Please head to the state's website to download the reservation form.
Once you are ready to form your LLC, you need to draft the company's Articles of Organization. Once again, you can find this form on the state's website, and upon filing, you will need to pay $125. When filing, there are three options based on your needs:
- Level one — You can submit your form either by mail or in-person. Although level one service will cost $100, your paperwork will be processed within two business days.
- Level two — You must submit in-person and if you are willing to pay $200, your paperwork will be processed within one business day.
- Level three — Submission is also required in-person for level three, costing $300 for service within 4 hours.
Please note, if you would like to utilize level three service you must file by 1:00 pm that day. If you submit past this time, your paperwork will be processed the following day.
Do I Really Need an Attorney to Form an Ohio LLC?
Forming an LLC, or any business entity for that matter, is fairly easy and straightforward. Under Ohio Law, once you submit the Articles of Organization and pay the associated fees, you will be considered an LLC.
Although forming an LLC is a critical step in terms of your business objectives, it is just the beginning. For example, you will need to draft up important documentation, including your Operating Agreement. Depending on numerous factors, including your industry and the number of owners, this document will vary from one LLC to the next. This is when it is recommended that you retain counsel so that you can:
- Better control the internal organization of your business.
- Uncover common misconceptions regarding the personal liability of owners.
- Learn about possible tax-related consequences.
- Understand the potential ramifications of certain business investments.
Basically, taking this proactive step can significantly benefit your LLC long-term. Although you can certainly form an LLC with ease, it may not be structured in terms of your personal and professional goals. Due diligence is critical here.
Steps to Form an LLC in Ohio
Ready to begin the process of forming an LLC? Now that you're aware of the costs of forming an LLC in Ohio, here are a few steps to keep in mind:
- When selecting a name, be mindful that your name will need to end in LLC or L.L.C.
- You cannot use certain words, such as Bank or Attorney, as well as any name that could be confused with a state or federal agency.
- You must nominate a Statutory Agent for your LLC.
- If you are expanding a preexisting LLC into the state of Ohio, you will be considered a foreign LLC. Please file Form 533B to do so. This must be filed via mail and will cost a fee of $99.
- Although an operating agreement is not required in Ohio, it is highly recommended that you have one in order to protect your LLC long-term.
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