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Ohio With One IBC
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Basic
$199
Fees for filing legal documents to register or maintain a business.
02 weeks processing
Agent fee
Registered Address
Document filing with the Secretary of State
Standard
$499
Fees for filing legal documents to register or maintain a business.
05 days processing
Includes everything in basic package
Comprehensive name check
Preparation of Articles of Incorporation
Lifetime customer support (phone & email)
Federal Tax ID (EIN) Obtainment Service
Premium
$599
Fees for filing legal documents to register or maintain a business.
01 day processing
Includes everything in standard package
2 hours of free tax consultation
Key Points of Ohio LLCs
Strong Privacy Protections
Ohio LLCs don’t require member names in public records. Privacy can be enhanced using registered agent services.
No State Corporate Income Tax
Ohio has no corporate income tax. LLCs may be subject to a gross receipts tax (CAT) if revenue exceeds a threshold.
Business-Friendly Legal Environment
No annual report required. Ohio offers streamlined compliance through the Ohio Business Gateway.
Understanding Ohio LLCs
An Ohio LLC combines liability protection with flexible management, making it a popular choice for entrepreneurs and small business owners. It’s known for its straightforward formation process, low compliance burden, and a modern legal framework under the Ohio Revised LLC Act.
What is an Ohio LLC?
An Ohio LLC is a legal business entity that shields its owners (members) from personal liability for business debts. It allows for either member-managed or manager-managed structures, and offers broad flexibility through customized operating agreements.
An Ohio LLC offers several benefits, including:
Limited liability protection, no annual report requirement, flexible tax classification, and the option to form a Series LLC for asset separation under a single structure.
Why choose an LLC in Ohio?
Forming an LLC in Ohio provides strong legal protection, simplified compliance, and scalable governance options. With no annual reporting and the ability to define your own management rules, Ohio offers a business-friendly environment for growth and innovation.
Key Benefits Include:
Privacy Protection
Predictable Taxes
No Double Taxation
Legal Environment
Business Credibility
Clear Guidelines
Pros and Cons of an LLC in Ohio
Starting an Ohio LLC: Benefits
An Ohio LLC provides strong liability protection, customizable management, and simplified filing with no annual report requirement. The state also allows Series LLCs, enabling asset segmentation under a single entity.
Taxation of an Ohio LLC
Ohio LLCs are taxed as pass-through entities by default. There is no state-level corporate income tax, but businesses with gross receipts over $3 million are subject to the Commercial Activity Tax (CAT). LLCs may also elect to be taxed as an S-corp or C-corp if it better suits their financial structure.
Starting an Ohio LLC: Drawbacks
Series LLCs, while allowed, require strict recordkeeping and separate accounting to maintain liability protection. Additionally, members may owe self-employment tax unless electing corporate taxation, and poorly drafted operating agreements can lead to disputes or compliance issues.
Who Can Form an LLC in Ohio?
Any individual or entity, including non-residents, can form an LLC in Ohio with no membership or residency restrictions.
Types of LLCs in Ohio
Domestic LLC (Ohio-based LLC)
A domestic LLC is formed under Ohio law and operates within the state. It offers liability protection, pass-through taxation, and flexible governance defined in an operating agreement.
Foreign LLC (Out-of-state LLC registering in Ohio)
A foreign LLC is created in another state but conducts business in Ohio. It must register with the Ohio Secretary of State and appoint a statutory agent with a physical Ohio address.
Series LLC
Ohio permits Series LLCs, allowing one parent LLC to form separate series with distinct assets, liabilities, and operations. Each series must maintain separate records and be outlined in the operating agreement.
Restricted LLC
Ohio does not formally recognize restricted LLCs, but members may use an operating agreement to limit distributions or define custom restrictions.
Professional LLC (PLLC)
Licensed professionals in Ohio—such as doctors, lawyers, or accountants—may form a PLLC. All members must hold valid state licenses in the same profession and meet relevant regulatory standards.
How to Start an LLC in Ohio
Choose a Business Name
Select a unique name that includes "LLC" or "L.L.C." and ensure it’s distinguishable from existing entities in Ohio. Use the Secretary of State’s name search tool to verify availability.
Appoint a Registered Agent
Designate a registered agent to accept legal documents. This can be an individual or a registered service company with a physical address in Ohio.
File the Articles of Organization
Submit Form LLC to the Ohio Secretary of State, providing LLC name, principal office address, and registered agent details.
Create an Operating Agreement
Though not required, it’s recommended to draft an Operating Agreement outlining ownership, governance, and profit distribution to reinforce liability protection and support tax compliance.
Ohio LLC Requirements
Age and Residency
Number of Members
Management Structure
Registered Agent and Office
Name Compliance
Ohio LLC Application
To start an LLC in Ohio, the key step is filing the Articles of Organization with the Ohio Secretary of State. This officially registers your LLC under Ohio law.
Required Information
The Articles of Organization must include:
- LLC name (must include “limited liability company,” “LLC,” “L.L.C.,” “limited,” “ltd.”, and be distinguishable in Ohio records)
- Statutory Agent (registered agent) name and an Ohio street address, plus the agent’s acceptance of appointment
- Statement whether the LLC may have one or more series of assets (if applicable)
- Optional effective date, if different from filing date (cannot be more than 90 days after filing)
Filing Options
- Online: File via OhioBusinessCentral.gov for faster processing.
- By Mail or In Person: Submit signed Articles and filing fee to the Secretary of State’s office, using the address listed on the applicable form.
Post-Filing Requirements
- Operating Agreement: Not required to be filed with the state; it’s an internal document that is strongly recommended.
- Statutory Agent Maintenance: Must maintain a registered agent in Ohio; if agent changes, file the Statutory Agent Update form.
- Annual Report: Ohio does not require LLCs to file an annual report to maintain good standing.
- Filing Fee: The fee for filing Articles of Organization is $99.
Ohio LLC Taxation
State-Level Taxation
Ohio LLCs are treated as pass-through entities by default, meaning profits and losses are reported on the members’ personal tax returns. There is no traditional corporate income tax at the state level.
Commercial Activity Tax (CAT)
LLCs with gross receipts above a certain threshold may be subject to Ohio’s Commercial Activity Tax. This is a gross receipts tax, not based on income or profit.
Sales and Use Tax
LLCs that sell taxable goods or services in Ohio must collect state sales tax and comply with use tax rules on purchases made out of state. Sales tax rates include a base rate and any applicable local surtaxes.
Ohio LLC Annual Filing
What to File
Unlike many states, Ohio does not require LLCs to file an annual report or annual statement to maintain active status with the Secretary of State.
Filing Deadlines
There are no mandatory annual filings or renewal requirements for standard LLCs in Ohio unless there are changes such as updating a statutory agent.
Penalties & Consequences
Although annual filings are not required, failure to maintain a valid statutory agent or respond to legal notices may lead to cancellation of the LLC’s registration or loss of good standing.
Expanding Your Ohio LLC
As your business grows, you may expand your Ohio LLC into other states. This involves registering as a foreign LLC in each state where you plan to operate and complying with that state’s legal and tax requirements.
Registering a Foreign LLC in Ohio
If your LLC was formed in another state but will operate in Ohio, you must file a Foreign Registration Statement with the Ohio Secretary of State and appoint a statutory agent with a physical address in Ohio.
Doing Business in Other States
To expand your Ohio LLC into other states, you must register as a foreign LLC in each jurisdiction. This includes filing the required forms, appointing a local registered agent, and meeting state-specific compliance and licensing obligations.
Find The Right State To
Form An LLC
Every state has different rules, costs, and considerations for LLC formation.
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Doing Business in Ohio
Frequently Asked Questions
Yes, most states require you to have a registered agent to handle legal documents and notices during business hours.
While not always required by law, having an operating agreement is a smart move to outline your LLC’s rules and avoid disputes down the road.
An EIN is a federal tax ID; most LLCs need one to open a business bank account, file taxes, or hire employees.