How to Start an LLC in Ohio

A limited liability company (LLC) offers liability protection and flexible tax options, among other benefits for small businesses. Thanks to the Ohio Secretary of State’s (SOS) straightforward online filing process and helpful resources, LLC formation in Ohio is easy. Just follow these eight steps, and you'll be on your way to operating the newest LLC in The Buckeye State. 

How to get an Ohio LLC in 7 steps

If you want to start the filing process immediately, you can launch your Ohio LLC through LegalZoom and just pay the state’s $99 filing fee. Or, you can follow these steps to prepare your application (known as the articles of organization) and register with the SOS online. 

1. Name your Ohio LLC

You'll need to choose a name to include in your articles before you can register your LLC.

Names must comply with Ohio's naming requirements. The following are the most important requirements to keep in mind:

• Your business name must include the words or abbreviations “limited liability company,” “LLC,” “L.L.C.,” “limited,” or “ltd.” 
• Your name must be different from existing businesses registered with the Ohio SOS. You can conduct a name search on the SOS website to determine if a particular business name is available and distinguishable from other entities. 
• The business name cannot contain words used to name a government agency (i.e., State Department, CIA, FBI, Treasury, etc.)
• Certain restricted words (bank, lawyer, attorney, credit union, etc.) may require additional documentation and licensure paperwork.

See Ohio Revised Code Section 1706.07 for a complete listing of the state's naming rules.

If you aren't ready to register your LLC but are concerned your name might be taken by someone else, you can reserve it for a $39 fee. In Ohio, names may be reserved for up to 180 days by paying the fee and submitting Form 534B to the SOS.

2. Choose your statutory agent

Ohio law (Section 1706.09) requires you to appoint a statutory agent (also called a registered agent in other states) for your LLC.

A statutory agent or registered agent is the person or entity authorized to receive service of process and other official legal documents and notices on behalf of your LLC.

A statutory agent can be a person (including yourself or an employee of your LLC) or an entity that offers a statutory agent service. Your agent must meet the following criteria:

• Has a business address in the state (if an entity), or
• Be a resident of Ohio (if an individual), and 
• Be on-site and available to accept documents during regular business hours.

Although you can be your own statutory agent, you still might use a professional agent service to handle this responsibility, as you’ll always need to be reachable at the listed address. 

3. Prepare and file articles of organization

The articles of organization is a document that officially establishes your LLC by laying out basic information about it.

You’ll prepare the articles of organization and file them with the Ohio SOS to register your LLC properly. Though it sounds like a big job, it primarily entails filling out a relatively simple online form and submitting it. You can also send it by mail—just complete Form 610 and mail it to the address provided on the second page. 

To prepare your articles, you'll need the following information:

• Your LLC name
• Effective date of the LLC (if different than the date of filing, up to 90 days in advance)
• Purpose of the LLC (optional)
• Name, address, and signature of the statutory agent
• The name and signature of a member, manager, or representative of the LLC

Once you file your articles, the SOS will review the filing. If the articles are approved, the LLC becomes a legal business entity.

The state will issue you a certificate that confirms the LLC formally exists after the LLC's formation documents are filed and approved. This certificate will allow the LLC to obtain an employer identification number (EIN), business licenses, and a business bank account.

4. Create an operating agreement

An operating agreement is a document that outlines the way your LLC will conduct business.

Ohio does not require an operating agreement, but it is an essential component of any business. Having a readily accessible, written operating agreement is helpful for various reasons, including settling disputes that may arise over financial agreements and other potential litigation. 

The operating agreement can include, but is not limited to, the following:

• LLC's name and principal address
• Duration of the LLC
• Name and address of the statutory agent
• Copy of the articles of organization
• Purpose of the business
• Members and their contribution
• The way profits and losses will be divided
• Procedures for new members and outgoing members
• Management of the LLC
• Indemnification and liability clauses

Without an agreement in place, the courts make determinations based on state law, not necessarily what is in the best interest of the LLC and its members. As a result, you should strongly consider creating one—whether you draft it yourself, hire a lawyer, or order an Ohio LLC operating agreement through a service like LegalZoom. 

5. Get an employer identification number (EIN) and open a business bank account

The nine-digit employer identification number (EIN) is assigned by the Internal Revenue Service (IRS) to identify your LLC for taxes. You can obtain your EIN by mail or online through the IRS.

An EIN allows you to do the following:

• File and manage taxes at the state and federal levels
• Open a business bank account
• Hire employees

You can also have LegalZoom obtain an EIN for your Ohio LLC if you’d like assistance with the application. Once you have your EIN, you can apply for a business bank account to keep your personal and business finances separate.

6. Register for state taxes and comply with employer obligations

Next, you can register with the Ohio Department of Taxation (DOT) for applicable state taxes, which might include sales tax, employer withholding tax, or commercial vehicle taxes, among others. 

You’ll also need to consider the following obligations if you hire employees or independent contractors: 

• Report all new employee hires. Within 20 days of hiring or rehiring, LLCs must report new employees and contractors to the Ohio New Hire Reporting Center.
• Purchase workers' compensation insurance. LLCs must purchase workers' compensation insurance as soon as the first person is hired.
• Pay unemployment taxes. The LLC must establish an unemployment compensation tax account with the Ohio Department of Job and Family Services.

If you can’t find the information you need through an Ohio government website, it’s best to consult an accountant or business attorney to understand your tax or employer obligations. 

7. Check if your Ohio LLC needs a business or vendor's license

Businesses that operate in certain industries may need an Ohio business license, though the state doesn’t have a general operating license after your articles of organization have been approved. 

LLCs providing a professional service should register with eLicense Ohio to determine if the business needs a license, as this allows you to review the requirements across several state agencies. You can also use LegalZoom’s license and permit search service, and we’ll look into the requirements for your Ohio LLC. 

If the Ohio LLC sells tangible personal items or taxable services, the LLC must obtain a vendor's license from the Ohio Department of Taxation. This also means you’ll need to collect and remit sales tax, which ranges from 6.5% to 8% across Ohio.

Next steps after forming your Ohio LLC

Registering your LLC gives you a legal foundation to conduct business, but what should you do next from here? Here are some helpful tips to get up and running: 

Register a domain name

Before finalizing your LLC name, it's a good idea to check if the URL is available. Even if you don't think you'll need a webpage, you probably will. At the very least, you should reserve the option of having one in the future by buying your domain name now. 

When you look for a domain name, try to keep it as close to your Ohio LLC name as possible, short and memorable, and easy to type. You can use popular domain registrars like Bluehost or GoDaddy to search for available URLs and purchase one that matches your business. 

Once you’ve selected a name, you can set up a website, professional email address, or social media accounts to keep a consistent name across all channels. 

Maintain compliance

Plan to keep your LLC compliant and in active status on the state's website. You should regularly monitor your business’ status through the SOS website and address any notifications or requirements. Be sure to review and note any license renewal dates, as you’ll need to reapply when they expire. 

Ohio LLCs are not required to file an annual report, which is a significant advantage compared to many other states. However, this doesn’t mean you’re free from other ongoing obligations. 

You may need to pay quarterly tax payments, including estimated income tax payments, sales tax, and employer taxes, as discussed. These payments must be made on time to avoid penalties and maintain good standing in Ohio, not to mention with federal authorities. 

Lastly, you need to maintain a statutory agent for your business. If you ever change your current agent, you can review the SOS’ instructions for filing Form 521 and submit it to the agency. 

Obtain a certificate of good standing

You can request a certificate of good standing (also known as a full force and effect certificate) through the Ohio SOS. Here’s how: 

1. Complete the online request form
2. Pay the $5 processing fee
3. Receive your certificate electronically

While not mandatory for daily operations, you may need this certificate to prove that your LLC has met all state obligations and is legally authorized to conduct business in Ohio. 

Consider a foreign LLC

If you decide to move your LLC beyond Ohio, you’ll need to register in each state where you want to operate. You’ll typically register as a foreign entity, which follows a similar process to what you’ve already completed in Ohio:

• File a foreign LLC registration form (you may need certificates from the Ohio SOS) 
• Appoint a registered or statutory agent with a physical address in the new state
• Pay the required filing fee

Be sure to research the requirements for each state, or you might contact a local business attorney in the new area.

The cost of forming an LLC in Ohio

The basic cost to form an LLC in Ohio starts at $99, which covers the filing fee. However, depending on your needs and timeline, the total costs can increase closer to $500. 

Here’s an overview of some of the common expenses. 

• Filing fee: $99 
• Name reservation: $39 (optional) 
• Pre-clearance filing: $50 (optional, allows you to have your filing reviewed before submission) 
• Expedited processing: $100 to $300 (four hours to two business days) 
• Certified copies: $5 
• Statutory agent services: $0 to $300
• Vendor’s license: $25

In addition, you might pay for business licenses, permits, and insurance, all of which have varying prices based on your industry and location. 

How to start your Ohio LLC with LegalZoom

You certainly don’t need to be a lawyer or business expert to launch an LLC in Ohio. But then again, it doesn’t hurt to get some help with the process—and that’s where LegalZoom comes in. Just tell us about your LLC, and we’ll prepare and submit your articles of organization to the Ohio Secretary of State. 

Our plans start at $0 + the state filing fee, and you can also work with us to prepare everything from employment to operating agreements. 

FAQs

How long does it take to form an LLC in Ohio?

The initial registration process for an Ohio limited liability company typically takes just a few hours to complete online. The Ohio Secretary of State usually processes applications within 3–7 business days, depending on how you apply. If needed, you can choose expedited options (4-hour, 1-day, or 2-day processing) for additional fees. 

How do I correct filing errors in OH?

For most filing errors, submit a certificate of correction (Form 612) to the Ohio Secretary of State's office. If you need to modify your articles of organization, use Form 611 instead. Both forms have a $50 filing fee, and you can submit them online through the SOS’ website or by mailing them. 

How do I dissolve an Ohio LLC?

You can dissolve an LLC in Ohio by filing Form 616. However, you should confirm that your business is in good standing before submitting this form. If so, you can submit it online or by mail and pay a $50 filing fee. 

What are the benefits of registering an Ohio LLC?

A registered LLC makes it possible for you to obtain permits or licenses necessary to operate your business, including health department permits, zoning permits, home occupation permits, professional licenses, and more. With a registered LLC, you can also open a business bank account, apply for a business credit card, and purchase insurance for your business. If desired, you can even protect your name and logo with a trademark.

Rudri Bhatt Patel contributed to this article.