Ohio LLC Form, Filing and Permit Requirements
If you want to form an LLC in Ohio, there are certain forms, requirements and legalities you need to get in place. Below is a rundown of what you’ll need to do, together with details on each form required for your Ohio LLC. Some of these forms you only need to submit once, while others must be filed on a regular basis. You will need to set reminders in your calendar to file forms regularly if you're filing them yourself. At Incfile, we provide an optional, paid renewal service and can take care of renewals for you when you instruct us to do so.
Articles of Incorporation
The Articles of Incorporation are the formal document(s) filed with the Ohio Secretary of State to create your LLC. Once the document is filed with the secretary of state, it legally creates your business as an LLC in Ohio. Here’s what’s typically included:
- Your business name and address
- Details of your Registered Agent
Here at Incfile, we automatically create and file your Articles of Incorporation on your behalf when you start your business with us. You only need to file your certificate once. There is a fee levied by the secretary of state of Ohio to cover your filing, which is currently $99 (or $199 for expedited filing).
Business Licenses for Your Ohio LLC
Depending on the type of Ohio business you’re running, you will need to obtain various business licenses and permits. These are not required to form your LLC, but it’s important to know which permits and licenses are required for your business to operate in compliance in your jurisdiction.
In Ohio certain professions can form “Professional LLCs.” These are companies providing defined, professional services, and they typically need to be specially licensed. In Ohio, businesses engaged in the following activities are considered professional service organizations and must be properly licensed and regulated.
- Public accountants
- Physician assistants
- Doctors of medicine and surgery
- Doctors of osteopathic medicine and surgery
- Doctors of podiatric medicine and surgery
- Other medical professionals
- Professional engineers
- Physical therapists
- Occupational therapists
- Professional and clinical counselors
- Social workers
- Marriage and family therapists
Incfile provides a complete Business License Research Package that will tell you all of the licenses and permits necessary for your new professional LLC.
A Business Permit or License From Your City
Various cities in Ohio have slightly different rules and fees for permits and licenses. Check with your local Ohio city administration to see what their rules are. You will need a separate permit or license for each city your Ohio LLC operates in.
Additional Business Permits and Licenses
Depending on the type of business you are running, you may need to get additional permits and licenses from the city, county or state of Ohio. You can get an idea of the types of permits and licenses you might need from the State of Ohio website. The federal government may also require you to get certain licenses or permits; the SBA has a comprehensive list of federal license permits. The frequency of how often you need to file permits varies depending on the permit type.
Incfile Business License Research Package
You will need to pay licensing and permit fees on a regular basis depending on the type of business you are operating and where you are located. These do vary from city to city and industry to industry. If you don’t want to do the legwork yourself, we provide a complete Business License Research Package that will tell you all of the licenses and permits necessary for your new LLC. It includes:
- A comprehensive package of all the licenses, permits and tax registrations required for your business
- The application forms to file with the appropriate licensing authorities
- Your customized Business License Research Package will be emailed to you within two days of your company being filed by the state
Remember that operating your business without the required licenses can expose you to risks and fines from state and local governments
Ohio Tax Registration
You may need to file for various types of tax registration including sales and use tax, re-employment tax and other types of tax. You can find full details on the Ohio Department of Taxation website.
Operating Agreement for Your Ohio LLC
Setting up an LLC is easy, but actively managing one can be more complex. An Operating Agreement defines how your business works and ensures all the founders, owners, members or managers have a common understanding. An Operating Agreement normally covers areas including:
- Legal standing: Declares the legal standing of your LLC being formed in Ohio, including dates, formation details and other important legal information.
- LLC ownership: States how ownership of the business is split between members. This influences how the business is run, voting rights and several other areas.
- Ownership percentages: Defines the amount each member has invested and the percentage of ownership of each Ohio LLC member.
- LLC management type: States whether your LLC will be managed by managers (people the owners appoint) or its members (owners).
- Management relationships: Declares the relationship between the members and managers of your Ohio LLC, including the roles, rights and responsibilities of each.
- Voting powers and decision authority: States how high-level decisions will be presented, discussed and acted on, including the voting rights of each LLC member.
- LLC rules: Defines the rules, procedures and policies to follow for adding, removing, amending and making other changes to members and managers. This includes moving ownership between members.
- Profit and loss allocation: How profits or losses will be split and allocated between Ohio LLC members.
You are not required by Ohio state or federal law to have an Operating Agreement for your LLC, but we recommend one for several reasons. An Operating Agreement:
- Strengthens your legal standing as an LLC and adds credibility to your organization
- Clearly states how your business will operate, so there’s no confusion or ambiguity
- Reduces misunderstandings and disagreements between LLC members, which is important for a harmonious business
- Allows you to create your own rules for your LLC, rather than being subject to the default Ohio state rules for an LLC
- Reduces the need for every member of an LLC to approve and sign off on every decision
Your Operating Agreement only needs to be created once, but it will need to be updated if significant changes are needed.
Certificate of Good Standing for Your Ohio LLC
You may need a “Certificate of Good Standing” for certain business-related services like opening a bank account. You can order one from us, and we will also send you courtesy emails when your compliance due date nears.
Ohio Commercial Activity Tax
Any business that generates more than $150,000 in revenue a year will need to pay Ohio Commercial Activity Tax.
Ready to Start Your Ohio LLC?
Incfile provides a cost-effective service to help you create your Ohio LLC. We guide you through the process and handle most of the administrative steps, such as filing the Articles of Incorporation on your behalf. Our basic package also provides a free Registered Agent service for the first year. If you're looking for help to start an LLC, our comprehensive services provide outstanding value.