Starting a Business in Ohio Checklist

Check business name availability with the Ohio Secretary of State Do a search to see if your business name is available: http://www2.sos.state.oh.us/pls/bsqry/f?p=100:1:0::::: The name of a limited liability company must include the words “limited liability company” without abbreviation, or can include the abbreviations LLC, L.L.C., limited, “Ltd”, or “Ltd.” Corporation names are required to end with “Inc.” or “Incorporated” or some other accepted variation. Ohio Secretary of State Ohio Secretary of State Business Services Division 180 E Broad Street, 16th Floor Columbus, OH 43215
File paperwork to form your business Get started by filing with the Secretary of State. You have to mail or drop off your paperwork. The filing fee for Articles of Incorporation or Articles of Organization is $125. Normal processing takes 3-7 days. You can pay an extra $100 for 2 business day processing or $200 for 1 business day processing. If you hand deliver your filing, you can pay $300 for four hour processing. You can incorporate in Ohio with Northwest Registered Agent if you don’t want to file your business’ formation documents yourself. Business Services Division Ohio Secretary of State Business Services Division 180 E Broad Street, 16th Floor Columbus, OH 43215 P: (614) 466-3910 Expedited Filings: PO Box 1390 Columbus, OH 43216 Non-Expedited Filings: PO Box 670 Columbus, OH 43216
Register with the Department of Taxation Businesses have to register with the Ohio Department of Taxation. You can register online using the Ohio Business Gateway, or by telephone. When you sign up online, you can register for the Ohio commercial activity tax (CAT), sales tax, employer withholding, unemployment compensation, workers’ compensation, and municipal income taxes. Sales Tax: Ohio has a 5.75% state sales tax. You will also be responsible for any local sales taxes. Income Tax: If your individual income is $0-$5200, then tax is .587% $5200 – $10,400, then tax is $30.52 plus 1.174% on excess of $5200 $10,400 – $15,650, then tax is $30.52 plus 1.174% on excess of $10,400 $15,650 – $29,000, then tax is $214.84 plus 2.935% on excess of $15,650 $29,000 – $41,700, then tax is $368.93 plus 3.521% on excess of $29,000 $41,700 – $83,350, then tax is $1101.30 plus 4.109% on excess of $41,700 $83,350 – $104,250, then tax is $2812.70 plus 4.695% on excess of $83,350 $104,250 – $208,500, then tax is $3793.96 plus 5.451% on excess of $104,250 Over $208,500 , then tax is $9476.63 plus 5.925% on excess of $208,500 Commercial Activity Tax: The Ohio CAT is based on your annual gross receipts. Beginning with tax year 2014, Businesses with Ohio taxable gross receipts of $150,000 or more per calendar year may be subject the CAT. Businesses with annual taxable gross receipts of between $150,000 and $1 million must pay an annual minimum tax of $150. Businesses with annual taxable gross receipts over $1 million must pay $150 plus 0.26% of the taxable gross receipts over $1 million (with a $250,000 quarterly exclusion). Corporation Franchise Tax: 2013 is the final year for the Ohio corporation franchise tax. Ohio Department of Taxation Department of Taxation P.O. Box 530 Columbus, Ohio 43216-0530 Business taxpayer phone registration: (888) 405-4089 http://business.ohio.gov/
Get a business license There is no state business license requirement and most local governments don’t require a license either. You should always check with your city and county government to see what business permits and licenses they require. Any other registration requirements? The Licenses and Permits page on the Ohio Business Gateway, website provides a list of professional licenses and business permits necessary to do business in Ohio. Contact your county and local government to determine if any special requirements exist for your type of business. City of Columbus A few types of businesses require a license from the Department of Public Safety. For a list of licenses see the department’s webpage http://publicsafety.columbus.gov/content.aspx?id=36051 Business License Info Ohio Development Services Agency 1st Stop Business Connection P.O. Box 1001 Columbus, Ohio 43216-1001 P: (614) 466-4232 City of Columbus Department of Public Safety License Section 750 Piedmont Road Columbus, OH 43224 P: (614) 645-8366 F: (614) 645-8912
Collect and Charge Sales Tax Do I need to collect Ohio sales tax? Ohio requires businesses making retail sales of tangible personal property or taxable services to register for sales tax and get a vendor’s license. What is the Ohio sales tax rate? Ohio has a 5.75% state sales tax. You will also be responsible for any local sales taxes. How do I register for Ohio sales tax? You can sign up for Ohio sales tax online at http://business.ohio.gov/efiling/newbusiness.stm You may also apply for a vendor’s license with the county auditor where your business is located. You can see a list of county auditors and their contact information online at http://www.caao.org/DIRECTORY How much does an Ohio vendor’s license cost? Most businesses will pay a $25 license fee. Department of Taxation Department of Taxation P.O. Box 530 Columbus, Ohio 43216-0530 (888) 405-4089 http://business.ohio.gov