How To Form an LLC In Ohio (OH)?

Want to learn how to form an LLC in Ohio? You’ve chosen a great business entity.

Forming an LLC in Ohio is a strategic decision for small business owners and entrepreneurs, as it offers operational flexibility and liability protection.

Use this detailed guide to navigate the steps of forming your Ohio LLC, from choosing a business name to filing the required documents.

Start by Choosing a Name for Your Ohio LLC

The first and most crucial step in forming your LLC in Ohio is choosing a name for your business. Under Ohio state laws, a new LLC’s name must be unique and distinguishable from the names of other LLCs registered with the Ohio Secretary of State. The purpose of this is to ensure that your potential customers and clients do not confuse your LLC with other business entities and government agencies.

There are more naming guidelines and requirements you must comply with. For example, your chosen LLC name must end with one of the following phrases:

• LLC
• L.L.C.
• Limited Liability Company

In addition, restricted words, such as “trust,” “bank,” “attorney,” “university,” etc., require special permission from the state or a licensed professional, such as a doctor or lawyer, to be part of your Ohio LLC.

You must also check to ensure your chosen LLC name is available in Ohio and not already taken by another LLC by doing a Business Name Search. You can also check the availability of your chosen LLC name by mailing or calling the Ohio Secretary of State.

If your chosen LLC name is available, you can reserve it for up to 180 days by submitting Form 534B (a Name Reservation Form) by mail or online, together with a processing fee of $39.

Hire a Registered Agent

Every LLC in Ohio requires a point of contact for the state. This can be a person or a company (service provider) and is known as a registered agent.

The registered agent is responsible for receiving, accepting, and forwarding legal documents on behalf of your LLC in the event of a lawsuit or any other legal action.

Any person can be a registered agent in Ohio, provided they have a permanent street address in Ohio (a P.O. box address may not be enough). They must also be available to accept legal documents during all traditional working hours in Ohio.

Alternatively, you can hire a registered agent company to act on your behalf.

Northwest

Northwest is one of Ohio’s most reputable and popular registered agent companies, with glowing online reviews and thousands of happy customers. Costing just $125, Northwest offers a comprehensive registered agent package that includes scanned documents, mail forwarding, pre-filled state forms, compliance alerts, annual report reminders, and document storage.

In addition, their customer support team, popularly known as Corporate Guides, comprises experts across various fields who are available to help you with any problem you are facing.

Another great thing about Northwest registered agent is that if you hire their services in more than four states, you will get a discounted annual fee of only $100.

ZenBusiness

Another top option for an Ohio registered agent service provider is ZenBusiness. It is rated #1 across influential websites, such as MarketWatch, Investopedia, and Forbes, so you can be sure your business is in safe hands.

Over the years, ZenBusiness has helped more than 300,000 business entities remain compliant, further proving their excellence.

ZenBusiness’ annual fee is $199, which gives you access to document scanning, fast turnaround times, and a personalized dashboard. You can also upgrade this package for more perks, including two free filing changes yearly. In addition, ZenBusiness is known for its $5K Grant Program that aims to help struggling business owners fund their businesses.

IncFile

Our third recommendation for a registered agent company in Ohio is IncFile. This reputable service provider has assisted more than 800,000 LLCs in staying compliant with state laws over the years.

When you purchase their registered agent package, you will get tailored text and email notifications, access to all your correspondence on all your documents/correspondence on a personal dashboard, automatic mail forwarding, and tailored SMS and mail notifications. You will also receive regular compliance reminders. All these come at an annual fee of only $119.

File Your Article of Organization

The next step in forming your Ohio LLC is registering your business. This entails filing an Article of Organization with the Ohio Secretary of State.

If you are forming a domestic LLC (LLCs located in Ohio and organized under state law), you must download and fill out Form 533A. On the other hand, if you are forming a foreign LLC (LLCs organized under the laws of other US states but want to operate in Ohio), you must download and accurately fill out Form 533B.

We recommend online filing for faster and easier filing of your Article of Organization. However, you can also mail the filled form. The Ohio state filing fee is $99.

The Article of Organization for your Ohio LLC must include the following details:

• The name of your LLC
• The effective date of your LLC
• The name, address, and signature of the manager, member, or representative filing the Article of Organization.
• The existence period of your LLC
• The purpose of your LLC

Once you have filed your Article of Organization, the state will process it in 3-7 business days. You can also pay for an expedited process to form your LLC faster.

Draft an Operating Agreement

Ohio does not require LLCs to create and file an operating agreement. However, this is a vital step in forming your LLC. For instance, an operating agreement offers an overview of your LLC’s functional, financial, and structural framework.

When all the LLC owners (members) sign it, an operating agreement can act as an official legal contract, and you can use it in case of future legal disputes or disagreements.

Most operating agreements include the members’ voting rights, ownership percentage, roles and responsibilities. It may also define how losses and profits will be shared, cover buy-sell and buyout rules, and provide details about holding meetings.

Creating an operating agreement in Ohio is straightforward. You only need to download a sample operating agreement template online and fill in the required information. You can also hire an LLC formation company or contact a legal consultant to create an operating agreement for your Ohio LLC.

Obtain Licenses and Permits

Several types of businesses require a license and permit to operate in Ohio. The Ohio Secretary of State lists different industries’ licensing requirements and fees. Your city or county government can also give you detailed licensing details for your LLC.

Any business owner selling tangible personal goods or taxable services must acquire a vendor’s license from the Ohio Department of Taxation. This license allows you to collect the appropriate sales tax amount and forward it to the state with monthly sales tax returns.

If you are operating a business under a trade name different from your LLC’s legal name, you must file a fictitious business name or register your trade name using Form 534A. The filing fee is $39.

Acquire an EIN

Acquiring a Federal and State Tax ID is vital in ensuring your LLC in Ohio complies with the state tax laws and facilitates various business activities. A Federal and State Tax ID, also known as an Employer Identification Number, is like a Social Security Number for your LLC. It is used for various crucial business purposes.

For example, you will need it to fulfill federal tax requirements and meet your Ohio state obligations. You will also need an EIN to hire employees for your LLC. Moreover, most financial institutions require an EIN to open a business bank and credit account.

Acquiring a Federal and State Tax ID is straightforward, and you can easily do it on your own by visiting the IRS website. Then, fill out and submit your application for a Federal and State Tax ID.

Open Business Bank Accounts

To protect your LLC against liability, you must separate your personal assets and business finances. You can do this by creating a business bank and credit account.

To open a business bank and credit account, you must provide a bank with a copy of the operating agreement, a Federal and State Tax ID, and an Article of Organization. In addition, you should call your preferred bank in advance to understand if there are any extra requirements or forms you must provide/complete.

If you are looking for a business bank in Ohio, try one of the following:

• First Bank of Ohio
• The Ohio Valley Bank Company
• Premier Bank

Acquire Ohio Business Insurance

An LLC protects the entrepreneur’s personal assets in the event of a lawsuit. However, your LLC can still have large financial obligations and be held liable. The best method to protect against this is by purchasing proper business insurance for your LLC.

The most popular insurance policy for LLCs in Ohio is general liability insurance. It addresses things like personal injury and property damage. LLCs offering professional services, such as accounting, may also require a professional liability insurance policy for claims of negligence, malpractice, and incompetence.

Ohio LLCs with more than one employee, excluding the owner, are legally required to purchase workers’ compensation insurance policies. This business insurance offers protection for job-related injury, illness, and death.

Get a competitive quote for business insurance needs by visiting a comparison site like Insureon.

Accelerate Things with an LLC Formation Package

As simple as forming a Limited Liability Company (LLC) in Ohio may sound when reading this guide, it can be a daunting and time-consuming task. So, if you need guidance to feel confident or are concerned about doing everything correctly, you can hire an LLC formation package.

Fortunately, most companies offer comprehensive LLC formation packages that you can purchase to streamline and speed up your LLC formation process. Regardless of your budget, you will always get a perfect package for your LLC formation needs. Some packages are even free of charge. You will only pay the state filing fee.

For example, ZenBusiness is a top company with three LLC formation packages. Their Starter package is entirely free of charge, and you will get standard filing speed, as your LLC will be formed in 2-3 weeks.

Their most popular LLC formation package is the Pro plan. Costing only $199, you will get expedited processing of 4-6 business days, worry-free compliance, an operating agreement, and all the features offered by the Starter package.

If you don’t mind spending more money on LLC formation and want your LLC formed in as little as two business days, you can purchase ZenBusiness’ Premium package at $299.

FAQs About Forming an LLC in Ohio

How Long Will It Take to Form My Ohio LLC?

You can have your Ohio LLC formed in one working day if you file your Article of Organization online (or one week if you file it by mail). If you want your LLC in Ohio formed faster, you can pay for expedited processing times.

How Much Does It Cost to Set Up an LLC in Ohio?

It costs $99 to form a Limited Liability Company (LLC) in Ohio. This is a fee paid to file your Article of Organization with the Ohio Secretary of State. In addition, there are other costs to be aware of when forming your LLC in Ohio. These include hiring a registered agent, purchasing proper licenses and business insurance policies, etc.

Can I Act as my Own Registered Agent in Ohio?

In Ohio, any business owner can serve as their registered agent provided they are Ohio residents and available at their listed physical address during regular business hours. However, we recommend hiring a registered agent service provider.

Can I Form a Single-Member LLC in Ohio?

Yes. You can form a single-member Limited Liability Company in Ohio. Single-member LLCs help entrepreneurs separate personal and business expenses, increase tax flexibility, and improve liability protection. The formation process/steps are similar to what is discussed in this guide.

Conclusion

Forming an LLC in Ohio can be difficult and time-consuming, but it doesn’t need to be. By following the steps outlined in this guide, you will have your LLC formed in no time! If you need assistance with any LLC formation steps, you can hire an LLC formation package or contact our experts via the comments section.

Also see:

• Ohio (OH) Secretary of State (SOS) LLC & Business Search
• Ohio (OH) Registered Agent Services
• How To Find Ohio Bookkeepers