Opening an LLC in Ohio can be an exciting and rewarding endeavor, but it’s important to understand the process and requirements involved. In this article, we will guide you through the steps of opening an LLC in Ohio, including the costs, documents, and considerations you must consider.
It’s important to consider factors such as your business plan, industry-specific requirements, and local business regulations when starting an LLC in Ohio. By taking the time to properly structure and form your LLC, you can lay the foundation for a successful and protected business venture.
Table of Contents
Steps to Create an LLC in Ohio
LLCs have become a popular business structure as they offer limited liability protection and pass-through taxation. In Ohio, the process of creating an LLC is simple and straightforward. Here are the steps you need to follow.
- Choose a Name: Choose a unique name for your LLC that complies with Ohio’s naming requirements.
- Appoint a Registered Agent: Appoint a registered agent who will receive legal documents and official correspondence on behalf of your LLC.
- File Articles of Organization: File the Articles of Organization with the Ohio Secretary of State’s office and pay the required fee.
- Create an Operating Agreement: Create an operating agreement that outlines the ownership structure, management, and operations of your LLC.
- Obtain Necessary Permits and Licenses: Obtain any necessary permits and licenses required to operate your business in Ohio.
In conclusion, forming an LLC in Ohio is a relatively straightforward process. By following the above steps, you can create a legally compliant LLC that provides limited liability protection and pass-through taxation. It is always advisable to seek the guidance of an experienced attorney or accountant to ensure compliance with Ohio’s laws and regulations.
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Costs to Open an LLC in Ohio
When it comes to starting an LLC in Ohio, it’s important to consider the costs involved. The costs of opening an LLC in Ohio are relatively low compared to other states. However, it’s important to be aware of the expenses you can expect when forming an LLC in Ohio.
- Filing Fee: The filing fee for Articles of Organization with the Ohio Secretary of State is $99.
- Registered Agent Fee: You’ll need to appoint a registered agent to receive legal documents on behalf of your LLC. This service can cost anywhere from $50 to $300 per year.
- Operating Agreement: Although not required, it’s recommended that you create an operating agreement. The cost of hiring an attorney to draft an operating agreement can vary depending on the complexity of your LLC’s structure.
- Business Permits and Licenses: Depending on the type of business you plan to run, you may need to obtain permits and licenses. The cost of these can vary depending on the nature of your business.
In conclusion, the costs of opening an LLC in Ohio are relatively low compared to other states. The filing fee for Articles of Organization is $99, and the cost of appointing a registered agent and obtaining permits and licenses can vary depending on the nature of your business. It’s important to budget for these costs before starting your LLC to ensure that you’re financially prepared.
Three Things To Be Aware Of When Starting Your LLC
The video below covers the following three things you must know when setting up your LLC.
- Commingling Funds
- Registered Agent
- Piercing the Corporate Veil
If you are unfamiliar with these terms, please watch the video below.
Files needed to open an LLC in Ohio
To start an LLC in Ohio, you’ll need to file certain documents and provide specific information. Here are the files needed to open an LLC in Ohio.
- Articles of Organization: This is the primary document that you’ll need to file with the Ohio Secretary of State’s office. It includes information about your LLC, such as the name, purpose, address, and registered agent.
- Operating Agreement: Although not required by law, it’s recommended that you create an operating agreement that outlines the ownership structure, management, and operations of your LLC.
- Name Reservation: If you want to reserve a specific name for your LLC, you can file a Name Reservation form with the Ohio Secretary of State’s office.
- EIN: If you plan to hire employees or operate as a partnership, you’ll need to obtain an Employer Identification Number (EIN) from the IRS.
In conclusion, forming an LLC in Ohio requires you to file Articles of Organization with the Ohio Secretary of State’s office, and it’s recommended that you create an operating agreement. If you want to reserve a specific name for your LLC, you can file a Name Reservation form, and if you plan to hire employees or operate as a partnership, you’ll need to obtain an EIN from the IRS. It’s always a good idea to seek the guidance of an experienced attorney or accountant to ensure that you’ve provided all the necessary information and documents required to form your LLC in Ohio.
Incfile is our preferred choice for LLC formation because they provide all of the services your new business needs while being transparent with pricing. They also offer a free registered agent service for the first year, even in their free package.
Check out a behind-the-scenes of what managing your LLC looks like in your dashboard in this Incfile review.
Things to consider when opening an LLC in Ohio
There are several things to consider when opening an LLC in Ohio. By taking these factors into account, you can ensure that your LLC is legally compliant and set up for success. Here are some of the things to consider when opening an LLC in Ohio.
- Name Availability: Before you settle on a name for your LLC, make sure it’s available for use in Ohio by conducting a name search on the Ohio Secretary of State’s website.
- Registered Agent: You’ll need to appoint a registered agent who will receive legal documents and official correspondence on behalf of your LLC. This can be an individual or a registered agent service.
- Ownership and Management: Decide on the ownership structure of your LLC, and determine how it will be managed. Will it be member-managed or manager-managed?
- Operating Agreement: Although not required by law, it’s recommended that you create an operating agreement that outlines the ownership structure, management, and operations of your LLC.
- Taxation: LLCs in Ohio are subject to state taxes and may be subject to federal taxes depending on their classification.
- Permits and Licenses: Depending on the type of business you plan to run, you may need to obtain permits and licenses. It’s important to research and obtain all necessary permits and licenses before starting your LLC.
Forming an LLC in Ohio requires careful consideration of several factors, including name availability, registered agent, ownership and management, operating agreement, taxation, and permits and licenses.
Conclusion
In conclusion, opening an LLC in Ohio requires filing Articles of Organization with the Ohio Secretary of State’s office, appointing a registered agent, creating an operating agreement, obtaining necessary permits and licenses, and considering factors such as ownership and management structure, and taxation.
By taking these steps and seeking the guidance of an experienced attorney or accountant, you can ensure that your LLC is legally compliant and set up for success. With the right planning and execution, you can turn your business idea into a thriving LLC in Ohio.
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For more information on starting an LLC in Ohio, be sure to visit other resources on our website. Our articles on the various steps involved in forming an LLC, as well as information on the benefits of an LLC, can provide you with the information you need to make informed decisions about your business.
Our guides on registering for taxes, obtaining an EIN, and creating an operating agreement can help you navigate the legal requirements of starting an LLC in Ohio. Whether you’re just starting out or looking to expand an existing business, forming an LLC in Ohio can be a great choice. For more information and support as you begin this process, be sure to visit our website and take advantage of our comprehensive resources.
Legal Disclaimer: This article contains general legal information, does not constitute professional legal advice for your situation, and should not be interpreted as creating an attorney-client relationship. If you have legal questions, you should seek the advice of an attorney licensed in your jurisdiction.
Where Do I Even Begin with Starting a Business?
This depends on where you’re at in your journey.
Step 1 is deciding what type of business you want to start.
Step 2 is filling out the BizBuddy Pathway for your business.
Step 3 is legally forming your business.
Check out the FAQs below that match up with where you’re at in your process.
What Type of Business Should I Start?
If you’re unsure of what kind of business you want to start, you need to assess your situation. Things like your skills, available time, passion(s), money, and risk tolerance all factor into your decision. This post on What Business to Start is a great place to assess your situation and find the right fit for your unique situation.
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Think of it like writing a book. The Pathway is like coming up with the title, storyline, and chapters, so you have the outline of where to begin. This is how you become the 8%.
How Do I Legally Form a Business?
It’s not as difficult as you think. That’s because in the U.S. small businesses accounted for 62% of all new jobs created between 1995 and 2020. That’s why you hear people say small business is the backbone of the economy. Check out this Guide on How to Legally Form a Business (in the U.S.). It will give you a full understanding of what goes into forming your legal entity and the options available to you. If you’re unfamiliar with terms like “Piercing the Corporate Veil” you’ll want to check out that guide.
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