Are you thinking of starting a business in Ohio? This guide will provide you with all the resources and information you need to get started.
Checkout this video:
Decide on the structure of your business
The first step in starting a business in Ohio is deciding what type of legal entity to form. This decision will determine how much personal liability you will have and how much paperwork you will need to file. The most common types of businesses are sole proprietorships, partnerships, limited liability companies (LLCs), and corporations. You can also form a non-profit organization or a cooperative.
Sole proprietorships are the most common type of business in the US, and for good reason. They are simple to set up and usually require very little paperwork. The biggest downside is that you, the owner, are personally liable for all debts and obligations of the business.
Partnerships are very similar to sole proprietorships, except that there are two or more owners. Each partner is equally liable for the debts of the business. Partnerships can be either general partnerships or limited partnerships. In a general partnership, all partners share in the profits and losses of the business equally. In a limited partnership, there is at least one partner who is only liable for the debts of the business up to the amount she invested.
Limited liability companies (LLCs) are a newer type of business structure that combines the best aspects of sole proprietorships and partnerships. Like sole proprietorships, LLCs have very few formalities and paperwork requirements. And like partnerships, LLCs offer their owners limited personal liability protection from debts and obligations of the business. LLCs can be either single-member (one owner) or multi-member (two or more owners).
Corporations are more complex than other types of businesses because they have their own legal identity separate from their owners—this is called “limited liability”. This means that shareholders are not personally liable for debts incurred by the corporation; however, there is more paperwork involved in setting up and maintaining a corporation than other types of businesses. There are two types of corporations: “C” corporations and “S” corporations. With a “C” corporation, shareholders pay taxes on dividends received from the corporation; with an “S” corporation, no tax is paid at the corporate level—dividends pass through to shareholders who then pay taxes on them individually.
Non-profit organizations do not have owners; instead, they are organized around a mission or purpose that serves society in some way such as education, religion, charity, or scientific research. Non-profits must apply for tax-exempt status from both the IRS and Ohio Department of Taxation before they can begin operation
Choose a business name
Your business name is important because it is how your customers will identify you. You want to choose a name that is easily recognizable and that will stay with your customers long after they have made a purchase.
If you are planning on doing business in Ohio, there are a few things to consider when choosing your business name. First, you will need to make sure the name is available by checking with the Ohio Secretary of State’s office. This can be done online or by visiting their office in person.
Once you have chosen a name, you will need to register it with the state. This can be done online or by mail. If you register online, you will need to pay a filing fee.
After your business name has been registered, you will need to get a federal tax ID number. This can be done by applying for an Employer Identification Number (EIN) from the IRS.
Once you have chosen and registered your business name, you will need to choose a legal structure for your business. This will determine how your business is taxed and what kind of liability protection you have. The most common legal structures for businesses are sole proprietorships, partnerships, limited liability companies (LLCs), and corporations.
Once you have chosen a legal structure for your business, you will need to obtain any licenses or permits that are required for your type of business. Depending on your type of business, you may need to get a state license, a local license, or both.
Finally, once you have obtained all the necessary licenses and permits, you will need to open a bank account for your business
Register your business
You will need to register your business with the Ohio Secretary of State. The first step is to file Articles of Incorporation, also known as a corporate charter, with the Secretary of State’s office. The charter will include the name and address of the corporation, the names of the directors, and the purpose of the corporation.
The next step is to obtain a federal employer identification number (EIN) from the Internal Revenue Service (IRS). You will need this number to open a bank account and file taxes.
You will also need to register for state and local taxes. You can do this online through the Ohio Business Gateway. You will need your EIN and contact information for your business.
Finally, you should apply for any licenses or permits that are required for your business. Depending on the type of business you are starting, you may need a license from the Ohio Department of Health, the Ohio Environmental Protection Agency, or other state agencies.
Get an employer identification number
If you will have employees in your Ohio business, you will need to obtain an employer identification number (EIN) from the IRS. You can apply for your EIN online, by fax, or by mail.
You will need to have your EIN before you can open a business bank account, apply for a business license, or file for business taxes. In most cases, you can use your EIN instead of your Social Security number to identify your business.
Get a business license
You will need to get a business license from the county where your business will be located. The cost of the license will depend on the type of business you are starting. You can find more information about getting a business license from the Ohio Secretary of State’s website.
Once you have your business license, you will need to register your business with the Ohio Department of Taxation. You can do this online or by mail. More information about registering your business can be found on the Department of Taxation’s website.
Get a seller’s permit
The first step in starting a business in Ohio is to get a seller’s permit from the Ohio Department of Taxation. This permit allows you to collect and remit sales tax on behalf of your customers. You can apply for a seller’s permit online, by mail, or in person at your local county tax office.
To apply for a seller’s permit online, you will need to provide your Social Security number, date of birth, contact information, and business information. You will also need to create an account with the Ohio Business Gateway. The account creation process will require you to provide your name, address, email address, and phone number.
Once you have created an account and logged in, you will be able to complete the application for a seller’s permit. The application process will require you to provide your business name and address, contact information, Social Security number or Employer Identification Number, and the type of business you will be conducting.
After you have submitted the application for a seller’s permit, you will be issued a temporary permit that is valid for 60 days. You will need to print this temporary permit and keep it with you when you are making sales. After 60 days, you will be issued a permanent seller’s permit that does not expire.
Get a zoning permit
In order to open a business in Ohio, you’ll need to make sure that your business is properly zoned for the area in which it will be located. You can do this by contacting your local zoning office and asking about the process for getting a zoning permit. Once you have your permit, you’ll be able to proceed with the next steps for starting your business.
Get a fictitious name certificate
The first step in starting a business in Ohio is to choose a name for your business and make sure it’s available. You can check to see if your desired business name is available by doing a search of the Ohio Secretary of State’s website. If the name is available, you can reserve it for 120 days by filing a Name Reservation Certificate.
After you’ve chosen your business name and reserved it (or if you’re not planning on reserving a name), you need to get a fictitious name certificate, also known as a DBA (Doing Business As). This can be done online, by mail, or in person at the Business Services Division of the Ohio Secretary of State’s office.
The fee for filing a DBA in Ohio is $99. You will need to file a new DBA any time you change the structure of your business, such as changing from a sole proprietorship to an LLC.
Get workers’ compensation insurance
You’re required to get workers’ compensation insurance for your business if you have any W2 employees, regardless of how many hours they work per week. You’re not required to carry insurance for yourself as the sole proprietor or for your LLC members who are also your employees.
If you’re caught operating without workers’ compensation insurance when you’re supposed to have it, you could be fined up to $5,000 for each employee you don’t have insurance for.
Get general liability insurance
Before you start your business, you need to get general liability insurance. This will protect you from any lawsuits that may arise from your business operations. You can get this insurance through a variety of providers, but make sure that you compare rates and coverage before you choose a policy.
Once you have your general liability insurance in place, you need to register your business with the state of Ohio. You can do this online or through the mail, but it is important to do it as soon as possible to avoid any penalties.
To register your business, you will need to fill out a few forms and pay a fee. Once your registration is complete, you will be given an Ohio business tax ID number. This number will be used on all of your future tax documents.
Now that your business is registered and insured, you are ready to start operating! Be sure to keep careful records of all your income and expenses, so that you can stay compliant with state and federal tax laws.
Get property insurance
You need to get property insurance for your business. This will protect your building and contents in case of fire, theft, or other damage. You can get a policy from an insurance agent or broker.
Get a business bank account
A business bank account helps you stay legally compliant and protected. When your personal and business accounts are mixed, your personal assets are at risk in the event your business is sued.
Open a business bank account with a bank or credit union that offers special benefits for small businesses, such as free checking. When you open your account, deposit enough money to cover several months of expenses so you don’t have to worry about running out of cash.
“Writer. Social media specialist. General twitter buff. Certified web junkie. Internet guru.”