What Is Ohio Corporate Charter Number?
A Ohio corporate charter number is assigned to every new business entity by the secretary of state when the corporation or organization is approved.4 min read
What is Ohio corporate charter number? It is a number assigned to every new business entity by the secretary of state when the corporation or organization is approved. Once you file paperwork with the state of Ohio for the formation of a new business entity, you'll be able to find your Ohio corporate charter number and acceptance on the Ohio secretary of state website one to two weeks after filing. However, obtaining a corporate charter number is just a small piece of the corporate charter process as a whole.
What Is a Corporate Charter?
A corporate charter is a legal document that provides a company's basic information. This can include its physical address, its board of directors, and its nonprofit or for-profit status.
Charter vs. Bylaws
A corporate charter is not the same as a company's standard set of bylaws. The difference is that bylaws establish a company's day-to-day operations. Corporate charters make a corporation official and act as proof of its existence. A corporate charter must be filed and approved by the secretary of state of the state that you are filing in.
How a Corporate Charter Works
Corporate charters usually include the following items:
- The corporation's address and name
- The corporation's purpose of business
- Nonprofit or for-profit status
- Identification of the corporation's registered agent
- How many shares can be authorized
- The par values and classes of these authorized shares
- The board of directors
Some requirements may vary by state. Check your state's requirements for more information.
Many people consult business attorneys for guidance rather than use state government websites. Business attorneys can provide a broad variety of knowledge when it comes to filling out your corporate charter.
How Do I Create a Corporate Charter in Ohio?
You should fully understand how corporate charters work before you decide to file one. Once you have sufficient knowledge, you will then need to determine what kind of structure your business needs. There are various corporate structures for you to choose from when creating your business. Some of them include corporation, partnership, and LLC.
Any business that decides to conduct business in Ohio using a name other than an individual's personal name has to register with the state. All businesses must then file the appropriate documents to have their businesses officially recognized by the secretary of state. However, general partnerships and sole proprietorships are not required to register their business. They may be required to register a trade name if they do business in Ohio but are not required to register otherwise.
LLC vs. S-Corp
A limited liability company is an excellent choice for individuals who are self-employed or businesses that need flexibility when it comes to ownership. LLCs are considered a disregarded entity by the IRS and are taxed accordingly. This is beneficial because the corporation will be taxed less since there is only one owner.
Corporations and LLCs can choose to be taxed as an S-Corporation, also known as a small business corporation. However, there are certain limitations on who is able to elect S-Corp status. The income collected by an S-Corporation is reported via form K-1 and is taxed on an individual level.
Registering Your Business Name
After you have decided what kind of business structure benefits your business, it is time to search for name availability and file incorporation documents with the Ohio secretary of state. The name that you choose for your business must be original and distinguishable from others; otherwise, it will be sent back for revision. Since December 2010, the filing fee has remained $125.
Once you've registered your business with the state, you will then need to obtain a federal tax identification number. You will need to provide the name and contact number for your LLC, how it is classified for federal taxation purposes, how many employees you plan to hire, and what type of business your LLC will perform. There are no fees required to obtain your EIN.
Before you can complete your final step, you will need to open a corporate checking account. Almost every commercial bank provides business checking accounts. Many banks offer promotions for first-time bankers such as $500 cash back if you open an account. Do your research and find the bank that fits your needs best.
Finally, obtain all forms necessary for payroll, workers comp, unemployment, vendors license/sales tax, and any others if necessary. It is recommended that you find a payroll service to help you manage this aspect of your business.
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