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How To Start an LLC in Ohio: the BEST Method in 2024

Suzanne Stewart Suzanne StewartFinance Specialist April 30, 2024
April 30, 2024
If you’re looking to make your entrepreneurial dreams come true in the state of Ohio, starting a Limited Liability Company (LLC) might just be the best way to get your business off the ground. LLC formation is a great way to gain credibility, enjoy tax flexibility, and keep your personal and business assets separate.

Additionally, Ohio has a favorable LLC tax policy, allowing owners to pay no state taxes if their annual income is under $250,000.

But let’s be clear: it’s not easy. Setting up an LLC involves multiple steps that require an understanding of Ohio’s business laws, from filing the necessary paperwork to ongoing reporting requirements. And you don’t want to get these wrong. Non-compliance can lead to daunting legal and financial repercussions that could see your business dreams evaporating before your eyes.

The process, while feasible, is complex and requires meticulous attention to detail, and that’s why we’ve created this easy-to-follow guide. Let’s get started!

Short on Time? Here’s a Quick Guide To Starting an LLC in Any US State:

These are the bare minimum required steps to start an LLC in any state, district, or territory in the USA. Remember, these are generalized steps, and we’ve outlined more detailed requirements and the specific rules and regulations for Ohio in our full guide below. Always consult with a legal advisor, Ohio’s Secretary of State office, or one of our recommended LLC formation services for accurate, up-to-date information.

  1. Choose a business name that’s both unique and compliant with your state’s regulations for your LLC.
  2. Designate a Registered Agent who will handle legal documents and official correspondence for your LLC. This could be yourself, a partner, or a service like ZenBusiness.
  3. Submit the Articles of Organization to the Secretary of State or equivalent office in your state. These documents typically include your LLC’s name, address, and the Registered Agent’s name and contact details.
  4. You’ll likely need to apply for an Employer Identification Number (EIN) from the IRS and register for various state and local taxes, though technically, these steps are optional.

How To Start an LLC in Ohio: a Comprehensive Guide

Before you begin, be sure to take note of the following important points:
  • The State of Ohio allows you to delay your LLC’s date of formation by up to 90 days. This can be advantageous for tax purposes. You should consult with an accountant or an LLC formation service for advice on whether or not a delay would be in your best interest.
  • If your LLC owns any assets, you’ll need to file a statement declaring what they are and how much they are worth.
  • Depending on the type of business you are conducting, you may need to acquire other local or state business licenses.

1. Choose a name for your LLC

Select a name that reflects your business and complies with Ohio’s naming rules. The name must be unique, not be too similar to existing businesses, and include an LLC designator like “Limited Liability Company,” “LLC,” or “L.L.C.” Perform a business name search on Ohio’s Secretary of State website to ensure your chosen name is available.

You should also consider searching for and registering a domain name for your business website, which is included with an LLC formation plan from Tailor Brands.

2. Appoint a Registered Agent

A Registered Agent is a person or entity responsible for receiving legal documents (e.g., lawsuits, summons) and official government correspondence on behalf of your LLC. The Registered Agent must have a physical address (not a P.O. box) in the State of Ohio and must be available during regular business hours.

You can choose a member of the LLC if it is a partnership, a friend, a professional Registered Agent service like ZenBusiness, or even yourself.

3. File Articles of Organization

This foundational document needs to be filed with Ohio’s Secretary of State office. This costs $99 and must include the following information, at minimum:
  • LLC name
  • Principal office address
  • Registered Agent’s name and address
  • Name and signature of the organizer(s)

4. Create an LLC Operating Agreement

An Operating Agreement is optional for LLCs in Ohio. This is a legal document that outlines the ownership, management structure, and operating procedures of your LLC. It typically includes information on:
  • Members’ ownership percentages
  • Voting rights and responsibilities
  • Profit and loss allocation
  • Management structure (member-managed or manager-managed)
  • Procedures for adding or removing members
Creating an Operating Agreement helps avoid disputes among members and provides clarity on how the business should be run.

5. Obtain an Employer Identification Number (EIN)

An EIN is a unique nine-digit number assigned by the IRS to your LLC for tax purposes. It’s required for filing business taxes, hiring employees, and opening a business bank account, which you should also do to keep your personal and business finances separate.

However, if your LLC is a single-member LLC with no employees and is classified as a disregarded entity for tax purposes, you may be able to use your Social Security number (SSN) instead of an EIN for federal tax filing. But even in this case, it is generally recommended to obtain an EIN to separate business activities from personal ones and maintain the limited liability protection.

6. Register for state and local taxes

Depending on your business activities and location in the state of Ohio, you may need to register for various state and local taxes, such as:
  • Sales and use tax
  • Payroll tax
  • Income tax withholding
  • Unemployment insurance tax
  • Workers’ compensation insurance
Consult the Ohio Secretary of State’s website or a professional LLC formation service for more information on registration requirements in your local region.

7. Obtain necessary licenses and permits

Your LLC may require specific licenses or permits to operate legally in Ohio, depending on the industry and location. Examples include:
  • Professional or occupational licenses
  • Health and safety permits
  • Zoning and land use permits
  • Sales tax licenses
  • Environmental permits
Visit the Ohio Secretary of State and your local government websites for more information on required licenses and permits, or seek advice from ZenBusiness, which can come up with a plan to cover your exact requirements.

8. Maintain ongoing compliance

LLCs in Ohio aren’t subject to any annual filings or fees other than required taxes and licensing renewal fees. However, certain changes to your LLC might require filing a notice with the Secretary of State’s office. You may need to:
  • File a Certificate of Amendment or Restatement. If there have been changes to the basic information given in your Articles of Organization, you will need to notify the state of these changes.
  • File a Statement of Authority.  You’ll need to file this whenever changes have been made to officers or members of the LLC who have authority to act on behalf of the company, such as your Registered Agent.
  • File a Statement of Cancellation or Merger. Should you choose to close your LLC, you’ll need to inform the Secretary of State’s office that you are no longer doing business. Likewise, if you merge your LLC with another business, the state will need to know about the change in your LLC’s status.
In addition, you’ll be required to:
  • Comply with state and federal tax obligations. File your LLC’s tax returns and pay any taxes owed on time. This may include federal income tax, state income tax, sales and use tax, payroll tax, and any other taxes that may be relevant to your particular business.
  • Renew licenses and permits. Keep all required licenses and permits up to date by renewing them as needed. Failure to maintain proper licenses and permits can lead to fines or legal trouble.
By staying informed and diligently meeting these ongoing requirements, you can keep your LLC in good standing and protect your limited liability status. The easiest way to do this is to employ one of the selected business service providers we’ve researched and reviewed below.

These Are the Top LLC Formation Services for Ohio

There are a lot of LLC formation services out there. To come up with the best ones for Ohio LLCs, we looked for the following features:
  • A free (minus state fees) plan that saves you the most money.
  • Feature-packed plans, regardless of cost, so you get the best value.
  • Unique features not offered by most of the competition, such as creative services, financial tools, or specialty consultations, to move you along.
  • Ease of use and user friendliness, because who needs a service they have trouble using?
  • Good customer support, if you need help or guidance getting started.
  • Customization of plans and services, because not all businesses are built alike.
Here are our top LLC formation services specifically to start an LLC in Ohio.

ZenBusiness homepage with preferred business name text field to get started
ZenBusiness can offer you LLC formation services starting at $0 (plus state fees, of course)
ZenBusiness, a reputable LLC formation service, caters to both side hustles and large enterprises with its highly customizable plans and product bundles tailored to businesses of all budget sizes.

ZenBusiness provides a free plan, followed by two tiers of paid plans: Pro and Premium. While the free plan typically takes 2–3 weeks for filing, you have the option to purchase an add-on for expedited processing. The Pro and Premium plans boast filing times of 1–2 days. Moreover, all plans guarantee 100% accuracy, ensuring meticulous attention to detail.

In addition to its formation services, ZenBusiness offers ZenBusiness Money Essential, a complimentary financial management tool for automated expense tracking included with all plans. For more comprehensive features, there’s ZenBusiness Money Pro, available for upgrade, which assists with expense tracking, income management, invoicing, mileage tracking, taxes, and more. Unsure of your needs? You can explore a free 30-day trial of ZenBusiness Money Pro to compare features.

Features

  • Tax consultations. Just for signing up, you’ll get a free 30-minute tax consultation through partner 1-800Accountant.
  • Mobile app. Access your account dashboard through an Android or iOS app in addition to desktop.
  • Website builder. ZenBusiness offers access to a proprietary website builder with the Premium plan. You also get a domain name and email address.
  • Full customization. You can modify your ZenBusiness plan so you get only the services you need – and you won’t be paying for anything you don’t.
Free plan (plus state fees)?
Expedited option?
Fastest available LLC filing time 1–2 days
Customer support Chatbot, email, phone

2. Tailor Brands: Build Your Brand From the Beginning

Tailor Brands homepage, with business name text field to get started
Tailor Brands gets you started quickly and easily
Tailor Brands stands out for its array of visual design and marketing tools, along with additional services, offering more than just basic LLC formation. These include graphic design services, brand development materials, social media utilities, and website creation.

A standout feature of Tailor Brands is its free “plan generator.” Simply provide some information about yourself and your business, and Tailor Brands will generate a checklist to guide you from your current stage to a fully launched online presence. While you’ll encounter prompts to purchase its plans and services throughout the process, this tool serves as a helpful foundational roadmap for transitioning from conceptualization to action in your business venture.

Features

  • Free logo maker. Tailor Brands provides a free logo maker available with all plans, as well as advanced features available with the Elite plan.
  • Zazzle partnership. Get started with printed merchandise for your LLC with an exclusive deal with Zazzle.
  • In-house website design. For an added fee, Tailor Brands offers a custom website design to help your business get seen.
  • Trademark support. Tailor Brands can help you file your trademark application as an add-on service.
Free plan (plus state fees)?
Expedited option?
Fastest available LLC filing time Less than 2 days
Customer support Chatbot, email, phone

3. Swyft Filings: Ideal for Beginner Small Business Owners

Swyft Filings homepage, allowing users to choose entity type and state of formation to get started
Swyft Filings helps the beginner and veteran alike, by doing the paperwork for you
If you’re a novice business owner seeking a straightforward start, Swyft Filings presents another excellent option. Its LLC filing process involves minimal paperwork, perfect for those new to the process.

The signup process is quick, taking just a few minutes, and the client account dashboard provided by Swyft Filings is exceptionally user-friendly.

Moreover, Swyft Filings offers assistance in keeping your business operations seamless. With every plan, you receive a complimentary 14-day trial of ComplianceGuard, which aids in maintaining state business compliance by supplying annual reports, meeting minutes, and reminders for filing deadlines. From inexperienced beginners to seasoned veterans, Swyft Filings remains a reliable partner every step of the way.

Features

  • EIN application. With the Standard and Full Service plans, your EIN application is included for free.
  • Business license applications. Swyft Filings offers licensing and permit research and application services available as a paid add-on.
  • Specialty documents. With the Standard and Elite plans, you’ll gain access to specialty documents like Operating Agreements and banking resolutions.
  • Free Basic plan. If you don’t need all the bells and whistles, Swyft Filings offers a basic service that provides everything you need.
Free plan?
Expedited option?
Fastest available LLC filing time 1–5 business days
Customer support Phone support, ticket support, knowledge base

Get Your Ohio LLC Off the Ground With Ease

Starting an LLC can be a dream come true – but only after you’ve completed all the paperwork. Our top three featured company formation services take all the hassle and headache out of getting your LLC up and running.

No matter how big or small your LLC venture might be, ZenBusiness has a plan that will work for you. Its plans pack a lot of value, including its free one. And its competitors don’t offer many of the features it includes for free, such as 100% Accuracy Guarantee and ZenBusiness Money Essential, with every plan.

If brand building is your main priority, consider Tailor Brands. This provider is known for its creative and marketing services and tools. From your logo to your website, it has you covered.

Or, if you’re a newbie just starting out and want a lot of guidance along the way, go with Swyft Filings. It offers a fast, intuitive signup process and an easy-to-use client dashboard.

Here are our top picks at a glance for Ohio:

Standout feature Bonus feature #1 Bonus feature #2 Starting price
ZenBusiness Customizable range of plans 100% Accuracy Guarantee Free tax consultations $0
Tailor Brands Branding and marketing tools Business “launch plan” generator State and local permit research and filing service $0
Swyft Filings Ease of use for beginners Excellent client dashboard Free trial of ComplianceGuard $0

FAQ

How do I start an LLC in Ohio?

To start an LLC in Ohio, you’ll need to follow all the requirements laid out by the Secretary of State. This includes choosing a unique name for your LLC, filing your Articles of Organization, and paying the required filing fee. You can do this on your own or use an LLC formation service to ensure you get everything filed properly.

What are the benefits of starting an LLC in Ohio?

Starting an LLC in Ohio allows you to separate your personal and business assets. It offers flexibility in management, allowing members to choose how the LLC is run and structured. Plus, Ohio offers an LLC-friendly tax policy that allows you to keep more of your LLC’s profits.

How can I start an LLC in Ohio for free?

No matter how you start your LLC, you’ll be required to pay the state fees charged by the Secretary of State. However, if you want to use an LLC formation service, we recommend ZenBusiness, as it offers a free basic plan to help you get started, as well as paid add-ons if you need them.

Which LLC formation service provides Registered Agent services?

Most LLC formation services offer Registered Agent services if you’d prefer not to do this yourself – basically, this involves being available for business communications during regular work hours. All three of our top vendors can act as your Registered Agent in any US state, but this will incur an additional fee. If you’re going to be available during regular business hours, you might find it more cost-effective to be your own Registered Agent, which is perfectly legal.

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