How To Start an LLC In Ohio

A limited liability company (LLC) in Ohio is a preferred option for business people intending to set up a business entity because it offers liability security and tax benefits for its members. This business structure also provides more flexibility than a corporation, is beneficial for companies with only one owner, as well as many other advantages that support the growth of small businesses in the state.  

The number of LLCs registered in Ohio in 2023 is estimated to be about 960,000, which represents over 99% of all businesses in the state. Data and historical trends show LLCs thrive very well in Ohio. 

All limited liability companies formed in Ohio must register with the Secretary of State’s Office per Ohio Revised Code Section 1706.16. Companies are mandated to register and file all necessary documents including, but not restricted to, Articles of Organization, Statutory Agent Updates, Amendments, Conversions, Mergers and Dissolutions to legally perform business in Ohio. 

The steps required to form an LLC in Ohio are listed below:

• Step 1: Perform an LLC Name Search
• Step 2: Select an LLC Statutory or Registered Agent
• Step 3: Fulfill Ohio LLC Filing Requirements
  • LLC Articles of Organization
  • LLC Operating Agreement
  • LLC Statement of Information
• Step 4: Submit an application for the  LLC
  • Filing the LLC via mail or in-person
  • Creating an LLC Online in Ohio
• Step 5: Obtain an EIN Number
• Step 6: Enroll for State and Local Taxes
• Acquire Necessary Licenses and Certifications
• Maintain Compliance with Annual Filing Requirements

LLC founder can file the necessary forms and documents for LLC formation online via the  the Ohio Business Central System. The system also allows interested persons to request and obtain publications, look up existing businesses, and sign up for the Filing Notification System that allows a business owner to trace and safeguard a business from probable identity theft and fraud. All queries and inquiries regarding LLC formation can be submitted via a call to (877) 767-3453 or an email sent to business@OhioSoS.gov.

What Is an LLC?

A limited liability company (LLC) is a business entity that merges the business structure of a corporation with that of either a partnership or sole proprietorship. An LLC combines the limited liability advantage of a corporation with the flexibility and absence of formalities engraved in the structure of a partnership or sole proprietorship. 

This way, the owners of an LLC are dubbed members and are insulated from individual liabilities. An LLC could either be owned by an individual (a single-member limited liability company or SMLLC) or several persons (a limited liability partnership, limited liability limited partnership, or series limited liability company). 

Owners of LLCs use this structure to hold assets or do business. Business proprietors who aim to curb personal liability and distinguish company assets from personal assets in the event of a  lawsuit usually consider forming an LLC. However, although members of an LLC hold limited liability, they are not altogether exempted from personal liabilities under certain circumstances.

LLCs are usually considered as “pass-through” taxation entities and have specific tax benefits attached to them. However, an LLC can be taxed as a corporation if the owner(s) request for it to be taxed as such. In Ohio, an LLC can be formed as either a profit or non-profit organization without necessarily specifying the purpose during registration.

Step 1: Ohio LLC Name Search

The preliminary step in filing an LLC application in Ohio is conducting a name search. Business owners can do this using the Secretary of State name search portal, calling (877) 767-3453, or emailing business@OhioSoS.gov. 

A name search is important to check if the intended business name is available, distinguishable and compliant with the Ohio naming requirements Some of Ohio’s naming requirements are:

• The intended business name must contain “LLC,” “L.L.C.,” “Limited Liability Company,” “Limited Liability Co.,” or “Ltd. Liability Company”
• It should be different from the names of all other existing businesses in Ohio
• The name must not possess prohibited terms or words that demand certain approval such as “bank” or “trust”
• Fictitious names may not be distinguishable and do not offer security but must be registered with the Secretary of State

An individual who is not prepared to file the Articles of organization for an LLC with the Secretary of State’s office after selecting a business name that is functional and distinctive can apply for name reservation by submitting the Name Reservation (Form 534B) and paying the stipulated $39.00 filing fee. 

The name reservation confers on the applicant’s sole ownership of the name for 180 days. The Articles to form the limited liability company using the reserved name are expected to be filed within the 180-day time frame after which the reserved name expires and can be utilized by a different registrant.   

Step 2: Choosing an LLC Registered Agent in Ohio

The Ohio Revised Limited Liability Company Act (LLC Act) mandates all LLCs registered in the state to appoint and retain a statutory or registered agent. These agents acquire legal documents and information on behalf of the LLC and ensure it complies with specified laws and requirements.

An LLC registered agent in Ohio should:

• Be a resident in Ohio and provide a physical street address (and include P.O.Box or mail address if available) situated in Ohio 
• Be older than 18 years of age
• Be legally authorized to conduct business in Ohio if it is a business entity and not the LLC itself
• Meet the requirements of Title XVII of the Revised Code in Ohio if the agent is another business entity
• Be functional and accessible during regular business hours to accept correspondence and other court papers on behalf of the LLC
• Accept the appointment in writing and append his/her signature.

To locate an LLC’s registered agent in Ohio, information seekers can  explore the Secretary of State’s business filing database and retrieve vital information about the business, including the name and address of its registered agent by furnishing the search engine with search details such as business name or EIN number.

How Do I change My Registered Agent for My LLC in Ohio?

In a situation where the name or address of a registered agent is modified, or if the registered agent quits or is deceased, the LLC must designate a new statutory agent. To do this, the LLC must submit the Statutory Agent Update (Form 521) completed with the new agent’s information and address. The form must also include the LLC name and entity number and a filing fee of $25.00. The business may submit the agent update form in person, online or via mail to:

Ohio Secretary of State Client Service Center

22 North Fourth Street, 

Columbus, OH 43215

Phone: (877) 767-3453

Persons intending to submit a filing in person must first book an appointment with the Secretary of State’s Client Service Center online and then at the scheduled date and time. The service centre opens between 8:00 A.M. and 5:00 P.M., Monday to Friday, except on holidays.

Step 3: LLC Filing Requirements in Ohio

Business owners intending to file for or set up an LLC in Ohio must ensure that the company satisfies one or all of the outlined requirements:

• The company filing for an LLC must have a business registered or situated in Ohio
• The business must have been registered with the Ohio Secretary of State (SOS)
• Must have a physical office location either within or outside the state
• All Foreign businesses not registered in the state must either be functioning as a partnership, have an Ohio source of income  and not currently conducting business in Ohio
• Foreign businesses are willing to expand into Ohio are required to request Ohio Foreign Qualification and register the lLC by completing a Registration of a Foreign Limited Liability Company form and paying a filing fee of $99.00. 

The state may have additional requirements for registering foreign business so it is important to contact the Secretary of State’s office for additional information.

LLC Articles of Organization in Ohio

Articles of Organization for a Domestic Limited Liability Company (Form 533a) is the specified form required by law to set up an LLC in Ohio. It is usually filed with the Secretary of State’s office and contains vital information about the LLC, its goals and objectives, administration structure and statutory agent. An LLC Articles of Organization form is required to define the members or proprietors of the LLC and whether or not the LLC will be governed by the owners or assigned supervisors.

LLC Operating Agreement in Ohio

An Ohio LLC Operating Agreement summarizes the operating strategies and contracts for an LLC in the state. It outlines elements of an LLC’s administration, voting processes, membership and proprietary arrangement, specifies profit and loss allotments among members, and dissolution requirements. The document also defines the procedures required for incorporating or expelling members. 

Ohio state laws do not mandate the filing of an operating agreement as a prerequisite for forming an LLC. Nevertheless, an LLC needs to create and have an internal operating agreement as it can be useful in settling disputes among members and can be tendered as a legal document in a lawsuit. 

Besides, an operating agreement is also necessary for ensuring the smooth running of an LLC as it spells out explicitly the terms and working conditions of the LLC so each member has a full understanding of their roles, benefits and probably penalties if any.

Ohio LLC Statement of Information

An LLC statement of information is an annual or biennial report that is filed with the Secretary of State to keep the state up to date with the recent activities and occurrences in an LLC. This document is useful to the government as it helps in overseeing companies, creating records for business tax allotments and legal adherence. In contrast to most states, Ohio does not mandate LLCs to file and create annual or biennial reports except in cases where the LLC has defaulted or violated special business laws. 

Do You Need an Ohio Address for LLC?

Yes, an Ohio LLC requires a street address to be stated on the Articles of Organization filed with the Secretary of State, however, it must not necessarily be located in the state. The Ohio address may be a home address, an office address, or a P.O. Box. In a case where the business does not have a physical location within or outside the state, there is the option of contracting a registered agent service or a virtual office and mailbox provider that can supply a valid address that can be used for the LLC’s prerequisites and legal processes. 

How To Get a Virtual Address for LLC in Ohio

Business people in need of a virtual address for forming an LLC in Ohio can obtain one by querying a search engine such as Google with the search phrase “how to get a virtual address for LLC in Ohio”. Upon searching the researcher will be furnished with the names and contacts of the numerous virtual address service providers operational in Ohio. 

To obtain a virtual address for creating an LLC, the interested individual can compare the services offered and costs across different providers and then select the most suitable and cost-effective option for the business. 

Some virtual address providers offer their clients special mail handling services while others provide meeting room rentals, phone answering services, and coworking space. That said, note that all LLCs filed in Ohio are required to provide a registered agent with a physical street address in the state which cannot be replaced with a virtual address. A virtual address can only be used as a substitute for a physical office address.

Step 4: How To File for an LLC in Ohio

A business entity can file for an LLC by mail, online or in person at the Ohio Secretary of State (SOS) office. LLC filers must complete the Articles of Organization form and send them to the SOS office alongside a filing fee of $99.00. 

The Articles of organization typically contain all or some of the information listed below:

• Name of the LLC
• Proposed date the LLC will become operational (usually within 90 days from when the Articles of Organization form is filed)
• Duration of the LLC
• The purpose of the LLC is either profit or non-profit (optional)
• Full name, physical address and signature of the statutory or registered agent
• Name and signature of the member, administrator or representative filling out the articles on behalf of the LLC
• State and date of original filing for foreign LLCs registered in other states but willing to branch out into Ohio.

Mail and in-person filings on paper are to be done using only single-sided, 8.5 x 11 sheets of paper. Fees can be paid via checks and money orders made to the “Ohio Secretary of State” or cash at the service centre. All mail should be addressed as follows:  

Secretary of State

Business Services Division

22 North Fourth Street

Columbus, OH 43216.

P.O. Box 1390

Those willing to file an LLC in person must first schedule an appointment with the SOS client service centre online or by calling (877) 767-3453 (877-SOS-OHIO), then show up for their appointments during SOS business hours with the required documents for filing. The SOS office is located at:

Ohio Secretary of State Client Service Center

22 North Fourth Street

Columbus, OH 43215

Phone: (877) 767-3453

For online submissions, interested persons can use the Ohio business central website. It is important to note that all filings excluding certifications and UCC filings can be expedited at an extra cost ranging from $100.00 and above. 

In addition to the Articles of Organization form, an LLC may have issues that necessitate further filings such as a Certificate of amendments or restatement, mergers, conversions, certificate of correction, Statement of Authority; Amendment or Cancellation; and Statement of Denial. The forms and specified fees needed for these additional filings can be obtained from the Secretary of State’s website.

How To Create an LLC Online in Ohio

To create an LLC online in Ohio, an individual can follow the steps listed below:

• Go to the SOS online business filing portal.
• Click the Login or create profile button on  the page.
• Fill in the required information such as email address, full name, password, city, and state in their respective fields and click “Continue”. Ensure all details requested have been provided then click “create”. For subsequent  logins, put the email address as the username and password you used in creating the profile.
• Log in to the portal with the unique username and password. 
• Follow the instructions on the web page to provide all necessary documents such as “Articles of Organization-LLC”.
• Pay the designated filing fees.

Can You Have Multiple Businesses Under One LLC?

Yes. Per Ohio Revised Code Section 1706.16, an LLC is allowed to have multiple businesses under one LLC, with each business having distinct assets and liabilities categorized under a single LLC name. 

The various business entities registered under the LLC can have individual names, enter into contracts, hold and transfer title, issue liens and security interests, file lawsuits and be sued. The series has different operating agreements but is governed by the same articles of organization. The articles of organization filed must specify that the LLC intends to have one or more series of assets and be amended or restated to contain this information. 

Also, depending on the type of business, separate business licenses and permits may be needed for the various entities. In addition, it is important to create distinct financial records for each business entity filed under the LLC considering the liability imports of this structure as the entire LLC with all its assets is at risk in the event of a huge financial loss or court case.

How Long Does It Take To Set Up an LLC in Ohio?

In Ohio, the processing time for an LLC is usually within four weeks from when the LLC was filed and varies from time to time. However, the Ohio Secretary of State maintains three levels of expedited service for filings. 

• The expedited level 1 filing is available to in-person, online and mail filers, while levels 2 and 3 are accessible to in-person and online filers only. 
• Level one, which reduces the processing time to 2 working days, costs $100.00. Level 2 costs $200.00 and has a processing time of 1 business day, while Level 3 has a price of $300.00 and is processed within 4 hours. 

Step 5: How To Get an EIN for LLC in Ohio

An EIN number is important because it is a requirement for filing and paying taxes, submitting payroll information and opening a business bank account. To obtain an Employer Identification Number ( EIN) for LLC in Ohio, an inquirer may submit applications to the Internal Revenue Service(IRS) office online or via mail at no cost. 

All online applications can be submitted using the IRS EIN Assistant. After completing the application the EIN will be processed and disseminated instantly. For EIN applications via mail or fax, the applicant can download, complete the Form SS-4 and submit it to:

Internal Revenue Service

Attn:  EIN Operation

Cincinnati, OH 45999

Fax: (855) 641-6935

EIN applicants that do not have a physical residence, business location, or primary office in the U.S can submit their completed applications to:

Internal Revenue Service

Attn:  EIN International Operation

Cincinnati, OH  45999

Fax: (855) 215-1627 (within the U.S.)

Fax: (304) 707-9471 (outside the U.S.)

Step 6: Do LLCs Pay Taxes in Ohio?

Yes, LLCs pay taxes in Ohio. They are taxed by the federal government as pass-through entities and are not required to pay federal company taxes instead the LLC’s tax quotas are transmitted to the members who then remit individual income tax. 

• Unless the LLC has specifically applied and requested to be taxed otherwise, members should expect to pay the regular federal self-employment income tax of 15.3% (12.4% for social security and 4.9% for Medicare). 
• The state deducts company and individual income taxes as well as other Ohio business taxes such as sales tax from the LLCs. 
• LLCs depending on the jurisdiction they fall in may also be required to pay local taxes such as school district tax, municipal income tax and real property tax.

How Are LLCs Taxed in Ohio?

For federal taxes, a single-member LLC (SMLLC) is taxed as a sole proprietorship using LLC—Form 1040 , while a multi-member LLC is taxed as a partnership via LLC—Form 1065 by default. Alternatively, an LLC in Ohio can choose to be taxed as an S-corp or C-corp.

Meanwhile, the Ohio Department of Taxation is responsible for tax allocations in the state. Ohio’s business income tax also known as the Commercial Activity Tax (CAT) is the most common tax allocated to Ohio LLCs and this tax is estimated using the business’s gross receipts.

Companies with less than $150,000.00 in gross receipts yearly are not allocated a CAT amount, those with a gross of $150,000.00 and more are allotted tax amounts in varying levels based on their gross annual income. The tax rates for the Commercial Activity Tax distributed based on total income are as follows:

• $0 if the total income is less than $150,000.00
• $150.00 if the total income is between $150,000 and $100,00,000.00
• $800.00 if the total income is between $100,000 and $2,000,000.00
• $2100.00 if the total income is between $2,000,000 and $4,000,000.00
• $2600.00 base tax plus 0.26% of gross receipts if the total income is over $4,000,000.00.

LLCs are also expected to remit Ohio State Individual Income Tax rates which range from 0% to 3.99% (plus base tax) as listed below:

• 0%  for an income of $26,050.00
• $360.69 + 2.765% of surplus over $26,050.00 for an income between $26,051.00 and $46,100.00
• $915.07 + 3.226% of surplus over $46,100.00 for income ranging between $46,100.00 and $92,150.00
• $2,400.64 + 3.688% of surplus over $92,150.00 for total income between $92,150.00 and $115,300.00
• $3,254.41 + 3.990% of surplus over $115,300.00 for an income above $115,300.00

The LLCs that market goods and services to their clients in Ohio are also directed to compile and reimburse the state’s 5.75% sales tax, plus the variable county and transit sales tax. Furthermore, Ohio LLCs can also be affected by other mandated Ohio taxes, depending on the nature of the business they conduct. These additional taxes include

• Alcoholic Beverage
• Financial Institutions Tax (FIT)
• Gross Casino Revenue Tax
• Horse Racing
• Municipal Income Tax for Electric Light Companies and Telephone Companies
• Kilowatt-Hour Tax
• Motor Fuel Tax
• International Fuel Tax Agreement (IFTA)
• Municipal Net Profit Tax
• Natural Gas Distribution (“Mcf Tax”)
• Petroleum Activity Tax (PAT)
• Public Utility Excise
• Property — Public Utility Property
• Replacement Tire Fee
• Resort and Tourism Development District Taxes
• Severance
• Sports Gaming Receipts Tax
• Tobacco tax

Additional information on Ohio Tax can be sourced for free via the Ohio Virtual Tax Academy created by the Ohio Department of Taxation.

Tax Benefits of an LLC in Ohio

There are special tax advantages attached to LLC organizations in Ohio, they include:

• Pass-through taxation: LLCs in Ohio are regarded as pass-through entities and are not taxed as a company but members pay personal income tax instead thereby avoiding double taxation of its members
• Flexibility in profit and loss allocation: Limited liability companies have the privilege of flexible profit and loss allocation among members effortlessly as stated in the operating agreement. This flexibility allows members to maximize their tax positions.
• Bypassing Self-employment tax: Members of an LLC who become limited partners are exempted from paying self-employment taxes on their profits based on the layout of the LLC 
• Non-profit LLCs tax exemptions: LLCs set up for non-profit purposes can apply for tax exemptions with the IRS and obtain a determination letter from the IRS. 

Maintaining Compliance With Annual Filing Requirements in Ohio

Unlike most states, Ohio LLCs are not required to file and submit annual or biennial reports but they may be mandated to file and remit annual income taxes. 

Do You Have To Renew LLC Every Year in Ohio?

No. Company owners in Ohio do not need to renew their LLC registrations annually as an LLC does not have a cessation date or prescribed lifespan as long as it is active and satisfactorily maintains good standing with the state by paying taxes as at when due and obeying state and federal laws. 

Neglecting the laid down rules and regulations result in liabilities and eventually leads to the hiatus or nullification of the LLC.

How Much Does It Cost To Start an LLC in Ohio

The cost of starting an LLC (limited liability company) online in Ohio varies based on the nature of the business and the county it is located in. On average, an individual wishing to start up an LLC in Ohio will incur expenses ranging from $99.00 to about $600.00.

• The basic cost of filing the LLC’s Articles of Organization with the Ohio Secretary of State is $99.00. 
• Hiring a statutory agent can cost as much as $125.00
• An LLC will also be required to pay CAT annual tax ranging from $150.00 to $2600.00, depending on the total gross income accrued from the business. 
• Business owners will also be expected to pay income, sale and other local taxes stipulated by the state or county. 
• Other additional filings such as name reservation and registration cost $39.00 each, while a certificate of good standing goes for $5.00 per copy. 
• The LLC may also be required to obtain different business licences and permits determined by the business activity carried out. 
• LLCs that have their businesses registered in other states but wish to expand into Ohio will also need to pay a minimum filing fee of $99.00.

Can You Form an LLC for Free in Ohio?

No. Nonetheless intending LLC filers can reduce the cost of forming an LLC by managing part or all of the creation.

How To Start an LLC in Ohio at Minimal Cost

LLCs in Ohio seeking to set up at minimal cost can do so by carrying out the processes required for LLC creation without external support that has charges accrued to it. They can minimize costs by filing Articles of organization themselves, appointing themselves as the registered agent, as well as applying for the EIN number and filing taxes. Non-profit LLCs can also request applicable tax exemptions and waivers from the IRS.

What Businesses Should Consider Forming an LLC in Ohio?

LLCs are particularly convenient and suitable for small and medium-sized businesses since they have a less complex and flexible layout that requires softer managerial prerequisites described in relation to corporations. 

LLCs are also suitable for businesses that seek to limit their liabilities and asset risks. Given the aforementioned perks, an LLC can therefore be created by virtually all kinds of businesses provided they are legally authorized and licensed to do business in compliance with the rules of the state.

What Are the Benefits of An LLC in Ohio

The advantages associated with forming an LLC in Ohio include:

• Membership flexibility: An LLC can comprise one or more members.
• Distinct legal identity: LLCs can exist as distinct legal entities capable of suing and being sued.
• Continuous existence: There is no predetermined existence period for LLCs and the demise or expulsion of members does not affect its existence.
• Handover of financial interests: Members of an LLC are free to transfer their financial rights and interests such as profit and loss allocations at will and without constraint.
• Plainness: LLCs are very manageable and straightforward to form as they require little paperwork and structure.
• Improved credibility: The formation of an LLC gives a business owner increased credibility before clients and potential investors as LLCs are considered a more formal structure than sole proprietorships and partnerships.
• Limited liability: Members of an LLC have their acquisitions insulated from being confiscated or forfeited during a lawsuit meaning the private assets of members cannot be used to settle debts incurred by the LLC.
• Fee exemptions: Most LLCs qualify for IRS tax exemptions and enjoy other financial benefits.
• An LLC prevents members from double taxation usually common in C-corporations as members do not pay federal income taxes.
• LLCs in Ohio have the right to choose whether they want to be taxed as a pass-through entity or corporation.
• Limited liability companies are not mandated to file annual reports in Ohio.

How Does an LLC Work in Ohio?

An Ohio LLC functions as both a partnership and a sole proprietorship or corporation thereby protecting its members from personal liabilities. They enjoy the benefits of limited liability the same as shareholders in a corporation while making tax payments as individual members in a partnership. 

Furthermore, LLCs can operate as a single-member business or a multi-member company making it distinctly different from other business arrangements, which conduct business rigidly as either a sole proprietorship, corporation or partnership. Members are usually expected to pay income tax from their profits 

Business owners who want to shut down their LLCs must file for dissolution alongside the recent year’s tax returns with the Secretary of State and Ohio Department of Taxation (ODT). They must also cease conducting business in the state after the final taxable year.  

LLC VS S Corp in Ohio 

An LLC is a business structure that combines the benefits of a corporation with that of a partnership in a bid to protect the personal assets of its members or owners. Contrarily, an S Corporation (S Corp) is an arrangement that permits revenue and losses to glide through to the shareholders. These revenue and losses are usually documented on the shareholder tax returns.

• The significant difference between LLC and S corp is their annual tax return and membership flexibility. There are no restrictions on the number and type of members (ranging from corporations to foreign organizations) an LLC can have, whereas an S Corp is strict as regards types of owners (shareholders) and cannot have more than 100 shareholders.
• A functional LLC member may be mandated to remit an annual 15.3% self-employment tax from the profit of his share of LLC income, while Corp shareholders are only taxed on the salaries obtained from the corporation as a shareholder. 
• LLCs seeking to change their tax status to that of an S-Corp can do so by filing Form 2553 with the IRS.

LLC VS Sole Proprietorship in Ohio 

A sole proprietorship or one-man business is a business structure retained and regulated by a person. Both the individual and the proprietor are seen as one entity. An LLC on the other hand, is a business entity with one or more proprietors (members). The business exists on its own separate from its members. 

• A sole proprietor cannot exempt himself from legal proceedings arising from the business as both are considered a single entity. In contrast, the LLC is seen as a separate entity from its owners and thus members are safeguarded from lawsuits involving the business.
• In a sole proprietorship, the owner receives all profits and losses incurred by the company without reservation of personal assets while LLC members have the privilege of limited liability which protects them from being held individually accountable for the company’s financial commitments. 
• A sole proprietorship does not require paperwork or filing with the Secretary of State. All LLCs are conversely required to register with the Ohio Secretary of State (SOS) and prepare and submit the Articles of Organization with the filing fee attached.  
• A sole proprietor can dissolve the business easily and without submitting paperwork to the secretary of state whereas an LLC must file for dissolution in accordance with the operating agreement decided upon.

LLC VS Corporation in Ohio

A C-corporation or C-corp is a business structure that is managed by shareholders that have different legal identities from the business as opposed to an LLC that combines partnership and corporate arrangements. 

• An LLC can be created and owned by a single member (Single-member limited liability company (SMLLC)) or many members (limited liability partnership). C-corporations on the other hand,  have their ownership spread among shareholders, managers, and administrators who execute various functions. 
• The creation procedure of LLCs and C-corporation both involve filling and submitting diverse forms. While LLCs are mandated to file an Articles of Organization form, C-corporations file Articles of Incorporation forms with the SOS. Upon filing the suitable documents, a C-corporation is usually expected to carry out additional formation steps not required by LLCs.

Business License Vs. LLC in Ohio

A business license and an LCC  are two separate things in Ohio. A business license is a legal document that permits an individual or company to conduct business activities within the state. Conversely, an LLC is a type of business entity formed by filing the required documents with the Ohio Secretary of State and paying the specified filing fees. 

Depending on the nature of business activities, most LLCs registered in the state will need to obtain business licenses from the custodial government offices. 

Do I Need a Business License If I Have an LLC in Ohio?

Yes, most LLCs in Ohio are directed to obtain specific business licenses based on the business type. The basic business license obtainable in Ohio is the vendor license which has a charge of $25.00 attached as a registration fee. 

LLCs can obtain information about the various business licenses issued in the state and how to acquire the necessary ones from the Ohio Licenses and Permit site or the Ohio Business Gateway portal. 

How To Dissolve an LLC in Ohio

To dissolve an LLC in Ohio, members of the LLC must review and abide by the dissolution processes outlined in their operating agreement and applicable state laws. A meeting to vote for or against the dissolution process is usually held and the larger vote becomes the deciding factor. 

After the voting process is over, the LLC is expected to obtain tax clearance by filing Form D5 “Notification of Dissolution or Surrender” with the Ohio Department of Taxation after which they can then file a certificate of dissolution Form 561 at a filing fee of $50 with the Ohio Secretary of State. 

The LLC may also wish to notify other state agencies, such as the Bureau of Workers Compensation, Unemployment Compensation, and issuers of professional licensing or permits of the dissolution. The Ohio government provides additional information on how to dissolve an LLC in Ohio.