How to Start an LLC in Ohio: LLC Filing Fees In Ohio 2022
Different states have different business requirements when it comes to filing, licensing, taxation, among other services and this, leads to the differences in the total fees required to form an LLC in each state. Knowing the cost to start an LLC in every state is a very crucial step in gearing your business in the right direction. With that said, we will start by looking at Ohio LLC cost
An LLC is mostly formed for liability protection and it is preferred among small business owners to other business entities due to its simplicity and tax flexibility. For a small business owner seeking liability protection in Ohio, Our LLC Ohio cost review offers you more than just the fee associated with setting up an LLC in the state. We also guide you through step-by-step Ohio LLC formation.
Filing Requirements & Overall Ohio LLC Costs
Forming an Ohio limited liability company (LLC) and keeping it in good standing come with several requirements including business licensing, filing forms, filing articles of organization and all these come at a cost. Here are the most common fees and requirements.
Ohio LLC Filing Fees
To form your business in Ohio, you will have to file an LLC with the Ohio secretary of state. The filing fee is $99 and should be submitted with the forms. The filing forms are submitted online but are also available for download.
Ohio LLC Annual Report
Ohio is one of the few states that don’t require LLCs to file an annual or biennial report to update their information. This means there will be no deadlines to meet and an annual fee to be paid every year. However, you will have to update the Ohio secretary of state on changes in your business such as a change in statutory agent office.
Registered Agent Fee
An Ohio LLC must have a statutory agent that will collect important documents on behalf of your company. A statutory agent in Ohio can be a third-party individual, a business entity, a member of your company, or yourself. Hiring a professional will cost you somewhere between $50 to $300 per year.
Application For Withdrawal (Foreign LLC)
Normally, you will have to pay $50 to file a certificate of dissolution in Ohio and you will have it processed within 5 business days. However, you may pay an additional fee for expedited processing. You can fill the form online or download it and send it via email.
Some businesses require licenses and permits in order to operate in Ohio. Depending on the type of business or your geographical location, you may need multiple certificates for your Ohio LLC, and this comes at a cost.
The cost of a business license or permit in Ohio will depend on your business requirements but it is somewhere below $100.
Ohio LLCs are treated as a pass-through just like a sole proprietorship or a partnership. Meaning, each member must report their income or losses on their tax return.
Ohio charges commercial activity tax on LLCs with gross annual receipt of $150,000 at the rate of 0.26% at the state level. The Ohio tax bracket is as follows:
- LLCs with gross receipts of $150,000 to $1 million pay $150
- For gross receipts of more than 1 million but less than 2 million, you pay $800 minimum tax.
- For gross receipts of more than 2 million but less than 4 million, you pay a minimum tax of $2,100.
- LLCs’ taxable gross receipts exceed 4 million, you pay a minimum tax of $2,600.
- LLCs formed during the second half of the year pay CAT of $75 for their first year.
Other LLC Filing Costs
In addition to the mandatory charges that have been discussed above, there are other optional filing fees associated with starting an LLC in Ohio.
LLC Name Reservation Fee
If you have a nice business name in mind and you are not ready to set up an LLC just yet, you can have the name reserved by the Ohio secretary of state for 180 days. The service fee for a name reservation is $39.
All you need to do is to file a name reservation (Form 534b) and pay the above-stated fee or $50 to reserve three names.
“Doing Business As” (DBA) Name
If you are planning to run your Ohio LLC with a different name from your official business name, you’ll need to register a DBA. For an LLC, you must file a certificate of the assumed name with the Ohio Secretary of State during which you will fill (Form 534a) and pay the $25 filing fee.
Business Domain Name & Website
A business domain name is the web address for your business website. It puts you in the same marketplace as your competitors. You need to register a domain name for your Ohio LLC so that nobody else can use the same name.
A domain name registration can cost you anywhere between $2 to $20 depending on special offers or discounts offered. However, newer domain name extensions such as apps. may go beyond this range.
Articles of Organization Fee
You need to file the articles of organization with the Ohio secretary of state in order to set up and run a business in the state. You cannot form an LLC without filing an article of organization and it only costs $99 in Ohio.
Hiring an attorney to help you form a business and answer questions will offer you peace of mind. Attorney charges vary, but you should expect something between $500 – $2,000 flat fee or $150 – $350 hourly fees.
Tax ID Number (EIN)
The Federal Tax ID, also known as Employer Identification Number (EIN) is essentially a social security number for an organization. You will have to get an EIN to help you open an account, file and manage federal state taxes, and hire employees. You can get an EIN from the IRS by applying online.
The Top 2 Ohio LLC Services
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For a cheaper Ohio LLC online service with reliable LLC formation services, ZenBuisness is a great deal. The company is new in the online LLC formation industry but is already the most sought-after service. It offers one of the most affordable packages you will come across in the market today.
The company’s best deal is their basic package that offers along with a list of LLC formation features at great pricing. The best part, the provider offers a year of registered agent service for free in all its packages.
In addition, the company offers a worry-free guarantee feature that includes preparation and filing of your annual report, and two amendments per year.
ZenBusiness’s other biggest win is its reliable customer support service. As a result, the company boasts the best customer feedback.
IncFile basic LLC formation package is the cheapest you will find in the market right now. With their basic package, you will be forming an LLC for free and still get the registered agent services for 1 year free.
Other services offered include filing an article of the organization, name search, preparation of operating agreements, obtaining an EIN, company alerts on annual report deadline, licenses, statement of formation among others. The company also boasts a 1-day processing speed and great customer support.
For that reason, they have one of the best online feedback among users.
How To Start An LLC In Ohio
Step 1: Name Your Ohio LLC
Step 2: Choose Your Registered Agent
Step 3: File Articles of Organization
Step 4: Prepare an Operating Agreement
Step 5: Obtain an EIN
Step 6: File Annual Reports
Step 1: Name Your Ohio LLC
The name of the LLC must be available for use and meets other Ohio state requirements. To achieve that, you will have to conduct a thorough online business name availability search on business databases to ensure you pick on a suitable name for your business.
Step 2: Choose Your Registered Agent
This is what is referred to as a statutory agent in Ohio. Ohio LLCs are required to appoint a statutory agent that will receive important documents on behalf of the company. A statutory agent can be an entity, a third-party individual, a member of your company, or yourself. In addition, a statutory agent must be 18 years and above and live in Ohio.
Step 3: File Articles Of Organization
To form an LLC in Ohio, you must file the articles of organization with the Ohio Secretary of State. The Ohio Form 533a – Articles of Organization is filed online but also available for download. Once you complete the downloaded form, you can mail it to the secretary of State to P.O Box 670, Columbus OH 43216, or submit it in person at 180 East Broad Street, Suite 103 in Columbus along with the required filing fee.
Step 4: Prepare An Operating Agreement
You will need to create an operating agreement that outlines the ownership and operating procedures of an LLC. An operating agreement ensures that business owners are on the same page and reduces the chances of feature conflict.
Step 5: Obtain An EIN
You will need an EIN to open a business bank account, file and manage federal tax as well as hire employees in Ohio. You can download an EIN form from the Internal Revenue Service (IRS) website for free.
Step 6: File Annual Reports
This step may not be necessary because Ohio doesn’t require LLCs to file annual reports. However, you will have to update the Ohio secretary of state on changes in your business.
The cost to form an LLC in the state of Ohio is not so high. The state filing fee is average and the fact that they don’t require LLCs to file annual reports sounds more appealing. However, they tend to impose higher taxes on LLCs and if you are planning to form a lasting business, it could be expensive in the long run.
With that said, we would recommend forming an Ohio-based business in the state. For a foreign LLC, you may consider other states.
Frequently Asked Questions (FAQs)
Normally, Ohio state processing speed takes 4-6 weeks based on the number of filings received. However, you can opt for expedited processing to reduce the waiting time to 2-3 days.
The main cost to file an LLC in Ohio is the filing of articles of organization with the secretary of state since Ohio LLC s don’t have to file annual reports. You can apply online or by mail during which you will need to pay a $99 filing fee.
According to the current federal data, Ohio has 850,961 small businesses today.
For Ohio businesses, it is a good idea to form your business within the state. Just because some states like Delaware or Wyoming have lower fees doesn’t mean you should form your LLC there. You may end up having to legally do business in your home state and having to file two LLCs.
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- Filing Form Cover Letter (2019),[online] Available at: https://www.sos.state.oh.us/globalassets/business/forms/534b.pdf
- Trustpilot. (2021). ZenBusiness. [online] Available at: https://www.trustpilot.com/review/www.zenbusiness.com [Accessed 26 Jul. 2021].
- Shopperapproved.com. (2016). Reviews & Ratings For IncFile.com | Shopper Approved. [online] Available at: https://www.shopperapproved.com/reviews/IncFile.com [Accessed 26 Jul. 2021].