How to Start a Business in Ohio: Everything You Need to Know
In order to know how to start a business in Ohio, naming the company is the most important step in starting your LLC. 4 min read
How to Start a Business in Ohio
In order to know how to start a business in Ohio, naming the company is the most important step in starting your LLC. To name your LLC, check with state authorities to ensure your intended name is not taken. Follow the state guidelines when naming your LLC. Further, research if the URL for your new company is taken.
Choose a Statutory Agent
You must nominate a Statutory Agent for your LLC in Ohio.
A Statutory Agent is needed as your representative. A representative is someone who receives important documents on behalf of an LLC, such as court papers.
Anyone within the organization can be an LLC, or you can hire third party representatives to act as an agent. Additionally, the LLC itself can be the agent as long as there is a physical address in Ohio.
File the Articles of Organization
To register your LLC, you will need to file the Articles of Organization with the State of Ohio.To get your LLC registered, you need to file Articles of Organization, a document that makes your LLC official. Further, an operating agreement is a necessary component of your LLC, but it is not required under Ohio law. An operating agreement simply outlines the structure of your business, such as managerial appointments and organization structure.
Obtain an EIN
An EIN, or employer identification number, is needed to identify your business. To get one, go to the IRS official website to get one for free. The IRS website is the easiest place to get your EIN.
Separate Personal Assets from LLC
You need to open a business bank account for the following reasons:
- Separates you personal and business assets
- Easier to file taxes
- Allows you to get a business card
A business card is another crucial step in dividing your personal and business expenses. Further, you can establish your LLC’s credit history through your business card. To find the best business account search for local or national banks with the best offers. You can also search your local credit union.
Do I Need to Register for State Taxes?
All Ohio-based LLCs need to pay what is known as a Commercial Activity Tax. You can find out more about it through the state website: (insert external link)
Further, register under the state’s Income Tax Withholding.
You will also need to get a Sales Tax permit by getting a vendor’s license if selling goods and services.
A solid accounting system will help you with the following:
- Track your business finances, including bills, expenses, and income.
- Help you track bills, revenue, and other expenses
- Help you when filing taxes annually
Moreover, accounting software makes the process easier, and you should look for software that:
- Syncs with your business bank
- Matches transactions to invoices, bills and purchase orders.
- Connects with your smartphone.
Licenses and Permits do I Need?
For information on how many licenses and permits, visit Ohio.gov for more information, and go to the Business License Research Service for additional help.
The fees for your business licenses and permits depend on what type of business you are starting. Your industry also determines if you need to get local, state or federal licensure.
Workers' compensation insurance protects you in the event of an employee injury. Further, you need to get general liability insurance to protect your business as a whole. Insurance is especially important in order to product any products in your inventory.
If you have employees, you need to set income tax withholding. You also need to ensure that you pay employees in a timely manner as prescribed under state law. You can find employee information on www.OH-NewHire.com. Further, go to www.bwc.ohio.gov and go to "Employers."
Additionally, Ohio offers incentive programs for new employers.
Also, you’ll need an unemployment compensation and job/family services accounts.
According to the U.S. Small Business Admin, a primary benefit of business planning is it allows you to see your entire startup in a very concise and illuminating way.
The U.S. Small Business Administration allows you to establish a business plan. From there, you can create your business and establish your name brand. Many new owners start an LLC because it has all of the benefits of a corporation but without the double taxes and board of directors.
Remember two things when thinking about a physical location for your business:
- The number of resources within a 1 to 5 mile radios from your store or office.
- Length of the commute from your home
Moreover, research the area to see if it is a suitable location for you business in terms of customer base. Further, ensure that your posters or any marketing material complies with local laws.
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