How To Get An LLC In Ohio In 6 Easy Steps

Overview

Getting an LLC in Ohio involves a straightforward process. Below, we’ll guide you through the essential steps and provide factual answers to common questions.

How To Get An LLC In Ohio: Step-By-Step

1. Choose a Name for Your LLC:
   • Choose a unique and available name for your LLC.
   • Perform an Ohio LLC name search through the Ohio Secretary of State website.
   • Reserve your chosen name if needed.
2. Registered Agent:
   • Appoint a registered agent with a physical address in Ohio.
3. File Articles of Organization:
   • Complete the Ohio LLC Articles of Organization form.
   • File online through the Ohio Secretary of State website.
4. Operating Agreement:
   • Draft an operating agreement outlining the structure and operation of your LLC. Although not required by the state, it is highly recommended.
5. Employer Identification Number (EIN):
   • Obtain an EIN from the IRS for tax purposes.
6. File the Beneficial Ownership Information Report:
   • Beginning in 2024, Ohio LLCs must submit a Beneficial Ownership Information (BOI) Report.

1. Choose A Name For Your LLC

Check if the name you desire for your Ohio LLC is available in the state. This is important because no two businesses in Ohio can share the same name.

To do this, use the Ohio Secretary of State website Entity Search tool to compare your business name with existing ones in Ohio. 

Make sure your LLC name is unique by following Ohio’s naming rules to increase the chances of your LLC name being approved.

If you need, you can reserve the name for your LLC for up to 180 days. The cost is $39.

2. Appoint Registered Agent 

In Ohio, you need to choose a registered agent (also referred to as a Statutory Agent) for your LLC. This is the person or company allowed to get legal papers and important notices on behalf of your LLC.

Your statutory agent can be a person, like yourself or one of your employees, or a company that offers this service.

The statutory agent has to meet some requirements:

• If it is a company, it must offer registered agent services.
• The agent must have an address in Ohio.
• The agent must be there in person and ready to get documents during regular business hours.

3. File Ohio LLC Articles of Organization

To officially establish your Ohio LLC, you need to file the Ohio LLC Articles of Organization. 

This document provides essential details about your LLC and serves as the official registration.

To prepare the certificate, gather the following information: your LLC name, the name and address of the registered agent, specify the type of your LLC business, and provide the effective date if different from the filing date. 

The form is a straightforward online submission or can be sent by mail.

The Ohio LLC Articles of Organization filing fee is $99. Expedited filing adds $100.

Once filed, the Ohio Secretary of State will review the document, and upon approval, your LLC attains legal business entity status. 

You can undertake this process independently using our step-by-step guide or opt for the convenience of hiring a company for assistance.

4. Create An Operating Agreement 

An operating agreement is a document that shows how your LLC will do business. 

While Ohio doesn’t make it a must, having one is crucial. It helps in different ways, like resolving money disputes or potential legal issues. Without it, the courts decide based on state laws, not necessarily what’s best for the LLC.

The agreement can include things like the LLC’s name, address, how long it will last, the registered agent’s details, info from the Articles of Organization, the business’s purpose, member contributions, how profits and losses are shared, rules for new and leaving members, how the LLC is managed, and clauses about protection and responsibility.

5. Obtain Employer Identification Number (EIN)

The Internal Revenue Service (IRS) gives your LLC a nine-digit number called an Employer Identification Number (EIN) to identify it for taxes. You can get your EIN by mail or online through the IRS.

This number helps you:

• File and handle taxes at both the state and federal levels.
• Open a bank account for your business.
• Apply for permits and licenses.
• Hire employees.

Obtaining an EIN is FREE.

6. File The Beneficial Ownership Information Report

Starting in 2024, many Ohio LLCs must now file an extra document at the federal level, known as the Beneficial Ownership Information (BOI) Report, to the Financial Crimes Enforcement Network (FinCEN). 

This report mandates disclosing information about your company applicant and all beneficial owners to FinCEN. You can submit it online using the Beneficial Ownership Information E-filing System or opt for a professional service to handle it for you.

Read BOI FAQs here.

Review: What Is Needed To Form An LLC In Ohio?

To form an LLC in Ohio, you need:

• A unique LLC name.
• Registered Agent information.
• Articles of Organization.
• Operating Agreement (recommended).
• Employer Identification Number (EIN).

What Forms Do You Need To Get An LLC In Ohio?

• Application to Reserve LLC Name
• Articles of Organization (online)
• Articles of Organization (PDF)
• EIN Application Form
• BOI Form

How Much Does It Cost To Start An LLC In Ohio?

The cost to start an LLC in Ohio involves several steps, each with its own associated fees:

• Articles of Organization Filing Fee: $99
• Expedited service: +$100
• Name Reservation Fee (if needed): $39
• Commercial Activity Tax (CAT): $150 (minimum per year)

What Is The Ohio Commercial Activity Tax (CAT)?

The Ohio Commercial Activity Tax (CAT) is an annual tax imposed on businesses for the privilege of doing business in the state.

The tax amount is based on the Ohio LLC’s taxable gross receipts from the previous calendar year, known as the Annual Minimum Tax (AMT).

If the LLC’s taxable gross receipts are over $150,000, it must file the CAT and pay the AMT, which is $150 and due by May 10th each year.

For LLCs with gross receipts under $150,000, there’s no obligation to file the CAT or pay the AMT.

The filing frequency depends on the previous year’s taxable gross receipts, with most businesses filing annually, but those with over $1 million in receipts filing quarterly with an AMT of $800.

How Long Does It Take For An LLC To Get Approved In Ohio?

When you send your LLC application by mail, it will be approved in 3-5 business days, plus the time it takes for the mail (1-2 weeks in total).

However, if you file online, your LLC can be approved in one day.

What Are The Benefits Of Getting An LLC In Ohio?

• Limited liability protection for members
• Pass-through taxation
• Flexible management structure
• Credibility for business transactions

Is Ohio A Good State To Get An LLC?

Whether Ohio is the right state for your LLC depends on where you live and do business. If you live or operate in Ohio, it makes sense to start your LLC there. 

Getting An LLC In Ohio: Next Steps

Once your LLC is registered, you can:

• Get the permits and licenses you need for your business, like health or zoning permits.
• Register your business with the state’s tax agency.
• Open a business bank account.
• Apply for a business credit card.
• Buy insurance for your business.
• Safeguard your name and logo with a trademark.

To maintain your LLC in Ohio, you must:

• Update any changes to the registered agent or business address promptly.
• File the Biennial Report (for professional LLCs only) every two years to keep the LLC in good standing.
• Pay Taxes like the Commercial Activity Tax (CAT) (owners also file their individual tax returns)

Conclusion

Forming an LLC in Ohio involves a few key steps, from name reservation to obtaining an EIN. 

Carefully following the process ensures a smooth establishment of your LLC. 

For more detailed information and to access the necessary forms, visit the Ohio Secretary of State website.