Ohio LLC Costs
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An LLC, or limited liability company, gives business owners liability protection, particular tax advantages, and a flexible management structure. A common misconception among some business owners is that forming an LLC in Ohio is expensive. In actuality, the process is straightforward and worth the investment over time.
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Costs to start an LLC in Ohio
1
LLC Articles of Organization fee ($99)
- You will file your Articles of Organization with the Ohio Secretary of State.
- The filing fee in Ohio for the Articles of Organization is $99.
- Ohio does offer expedited LLC services for an additional $100.
2
Ohio Commercial Activity Tax (varies)
- The Commerical Activity Tax is based on gross receipts. In Ohio, companies that exceed $150,00 a year must pay the commercial activity tax.
- You are exempt from the tax if your LLC has less than $150,00 in gross receipts.
- You can find complete tax bracket details using the Ohio Department of Taxation website.
- The late penalty for missed filings is $50, or 10% of the Commerical Activity Tax due, whichever is more. You may incur interest.
3
Ohio statutory agent fee (varies between $50 to $300)
- A statutory agent is the same thing as a registered agent in other states.
- Ohio allows you to act as your own agent if you choose. But, business professionals recommend you appoint an experienced statuary agent to avoid late fees and missed deadlines.
- The price for a registered agent varies depending on your business needs, the agent you appoint, and the Ohio state fees.
4
Fees to form a foreign LLC in Ohio ($99)
- In Ohio, if you have an existing LLC in another state, you will have to register your Ohio LLC as foreign,
- Registering an LLC as an Ohio foreign LLC is $99.
- You must complete and submit the Registration of a Foreign Limited Liability Company (Form 533b) to the Ohio Secretary of State.
5
LLC name reservation fee ($39)
- In Ohio, you are not required to reserve an LLC name prior to formation.
- By reserving an LLC name, you are ensuring that someone else does not obtain it before registering you to complete the process.
- You can reserve the Ohio LLC name up to 180 days before LLC formation.
- You will complete and submit the Name Reservation/Transfer/Cancellation form (Form 534b) along with the $39 filing fee to the Secretary of State.
6
DBA filing fees in Ohio ($25)
- The term DBA stands for ‘doing business as.’ A DBA is any registered name a person or LLC uses to conduct business that is not their legal name.
- You will complete and submit the Assumed Name Certificate to the Ohio Secretary of State.
- The DBA filing is $25 in Ohio.
7
Cost of certified document copies ($5)
- You will visit the Ohio Secretary of State’s website to order certified copies of your LLC documents.
- The cost of certified copies of LLC documents is $5 for normal processing and an additional $5 for document orders that exceed 100 pages.
8
Certificate of Good Standing ($5)
- Most banking and lending institutions require LLCs to obtain an Ohio Certificate of Good Standing.
- You can order the Certificate of Good Standing online using the Secretary of State website.
- Or, you can complete the Certificate of Good Standing Certificate Request form and submit it by mail to the Ohio Secretary of State.
Steps to start an LLC in Ohio
1
Choose a business name
When deciding on an LLC name in Ohio, you will need to consider a few things.
- Your LLC name must be unique and available in the state.
- It must meet the state LLC name requirements and restrictions. You can find a complete list of Ohio naming restrictions.
- You will want to check for the availability of the web domain name.
You will use the Ohio Secretary of State Business Name Search to check for the availability of an LLC name.
LLC name reservation fee
You can reserve an Ohio LLC name for 180 days before forming your LLC. You will want to renew the name reservation to ensure no one else obtains the company name.
You will complete and submit the Name Reservation/Transfer/Cancellation form to the Ohio Secretary of State.
The cost to reserve an LLC name for up to 120 days is $39, and name reservation in Ohio is not a requirement.
2
Appoint an Ohio Registered Agent
In Ohio, you must appoint a registered agent when forming an LLC in the state.
The cost for a registered agent varies between $50 to $300 per year depending on the needs of your LLC in Ohio.
A registered agent in Ohio is an individual or business entity that receives tax forms, legal documents, subpoenas, civil notices, service of process, and other official government correspondence on behalf of a sole proprietorship, corporation, or LLC.
The registered agent you choose must be an Ohio resident or a registered agent service authorized to conduct business in the state.
ZenBusiness
- Starter Plan – $39 a year plus State Fees
- Pro Plan – $149 a year plus State Fees
- Premium Plan – $249 a year plus State Fees
ZenBusiness offers a stand-along registered agent service. The price is $99 per year.
Northwest
- Total Out The Door Ohio LLC Formation Service Package – $45 a month and includes:
- Ohio State Fee
- Filing Service Fee
- Registered Agent
- Tax ID
- Annual Plan – $225 plus State Fees a year
LegalZoom
- Economy – $79 plus $153 Ohio filing fees
- Standard – $329 plus $153 state filing fees
- Express Gold – $349 plus $255 state filing fees
3
File Articles of Organization
You will file the Articles of organization with the Ohio Secretary of State.
You can file online using the Ohio Business Filings website.
Or, you can complete the Ohio Articles of Organization form (Form 533a) and submit it by mail.
Mailing address:
Ohio Secretary of State
P.O. Box 670
Columbus, OH 43216
Form 533a will ask for specific information about your Ohio LLC.
- LLC name
- The effective date
- LLC’s purpose
- Statutory agent information
The filing fee for your Ohio Articles of Organization is $99.
4
Get an Ohio LLC EIN
An Employer Identification Number, or EIN, can also be referred to as a Federal Employer Identification Number (FEIN) or Federal Tax ID Number (FTIN).
The 9-digit number identifies businesses for income tax purposes and acts as a Social Security number for companies. The IRS assigns EINs to LLCs for free.
The Internal Revenue Service requires Ohio LLC owners to obtain an EIN if it is a sole proprietorship that is converting into an LLC.
Applying for an EIN is a simple process done online through the IRS website.
Business banking for an Ohio LLC
You will want to keep your personal and business bank accounts separate. It will protect your personal assets and credit scores.
Financial institutions and banks will need a copy of your Ohio Articles of Organization, operating agreement, and EIN prior to opening a new business banking account.
A business banking account is typically free of additional charges and fees.
Business attorney fees in Ohio
When you seek a business attorney, you ensure a smooth LLC formation process. It is up to them to handle business-related issues that may come up.
Business attorneys typically offer free consultations for first-time clients.
Professional services such as LegalZoom and Rocket Lawyer offer LLC formation packages that include comprehensive legal services.
On average, a professional business attorney in Ohio will cost $300 per hour.
LLC taxes in Ohio
LLCs are considered pass-through entities in Ohio. Members must file their personal taxes rather than the LLC’s state tax return with the Ohio Department of Taxation.
- If you sell physical products, you will need to obtain a seller’s permit through the Ohio Business Gateway website.
- Ohio has a Commerical Activity Tax. It is based on gross receipts for your LLC. Companies in Ohio that exceed $150,00 a year must pay the commercial activity tax.
- Ohio’s state sales tax rate is 5.75%, and the maximum for local and county taxes is 2.25%.
- You must register for Unemployment Insurance Tax with the Ohio Department of Job and Family Services if you hire employees.
- You will register for Employee Withholding Tax using the Ohio Business Gateway.
- State and federal taxes are complicated, making consultation fees worthwhile for most.
Business licenses and permits in Ohio
Ohio permits and business licenses will depend on the location of your business and the type of business it is.
You will use the Ohio Secretary of State License and Permit website to find the professional licensing and permitting that you require.
In Ohio, the cost of a business license ranges from $15 to $1000 per year depending on the type of license and the agency that issues it.
Every county, city, and town in Ohio has different requirements and rules for permits and licenses. You will want to call and inquire about the process, price, and business hours.
Notary public
You will find that some Ohio LLC documents require notarization by a notary public.
Most government agencies have a notary public on staff if you are unable to find one.
A Notary public can charge $5 for in-person notorizations, $10 for electronic notarizations, and $25 for remote.
Employer obligations in Ohio
If you hire employees in Ohio, you will have certain obligations.
- The federal government requires that you verify that new employees are eligible to work in the US using the Form I-9 from the USCIS Website.
- You must purchase worker’s compensation insurance when you hire your first employee.
- Ohio requires that you report all new hires to the state.
Benefits of an Ohio LLC
- Forming an LLC in Ohio simplifies business banking. Banks and lenders will require that you open a separate business banking account from your own personal one. It is how to reduce your personal liability for company debts and lawsuits.
- Compliance requirements are different for LLCs and corporations. Corporations answer to outside stockholders and shareholders when making decisions for the company.
- In Ohio, an LLC is considered a pass-through entity. When you form an LLC, it ensures that its earnings are only taxed once through the personal tax returns of its members.
- Ohio does not require that you pay annual fees and annual reports.
FAQs
Is an Ohio LLC worth it for a small business?
Small businesses, startups, and entrepreneurs all benefit from forming an LLC in Ohio because it gives your company credibility, liability protection, and access to tax breaks you would not otherwise have.
LLC formation in Ohio benefits small businesses, startups, and entrepreneurs. It gives your company credibility, liability protection, and access to special tax breaks.
How long does it take to register an LLC in Ohio?
The LLC business formation process in Ohio takes 2 to 3 business days if you file online or 2-3 business days if you file by mail.
Ohio does offer expedited LLC services for an additional fee of $100.
How do I dissolve my Ohio LLC?
You will file your Ohio Articles of Dissolution online with the Secretary of state. Or, you can complete and submit a Certificate of Dissolution of Limited Liability Company / Cancellation of Foreign Limited Liability Company by mail.
The fee to dissolve your LLC in Ohio is $50.
Do I need a business operating agreement for my LLC in Ohio?
According to Ohio law, LLCs are not required to file an LLC operating agreement.
But, many LLCs choose to draw one up because it helps prevent future misunderstandings between management and finances.
Can I take money out of my LLC in Ohio?
If you are a single-member LLC owner, you do not get paid a salary or wages. Rather, you will pay yourself from your Ohio LLC’s profits. It is called an owner’s draw.
It is legal to write yourself a check from your LLC banking account in order to transfer funds to your personal banking account.
Why should I form an LLC in Ohio?
All business structures benefit from forming an LLC. It limits the personal liability of the members.
When you form an Ohio limited liability company, it provides you with flexible management, taxation, and LLC ownership.
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