How to Start Your Own LLC in Ohio - Complete Guide

How to Start Your Own LLC in Ohio

Starting a business in Ohio can be an exciting and rewarding step, and forming a Limited Liability Company (LLC) is one of the most popular ways to do so. An Ohio LLC provides personal asset protection, flexible management options, and relatively simple compliance requirements, allowing you to focus more on growing your business and less on administrative burdens.

Ohio LLC Formation Illustration

This guide walks you through every major step of forming an LLC in Ohio, from choosing a legally compliant name to filing formation documents, obtaining licenses, understanding taxes, and keeping your LLC in good standing over time.

1. Choose a Name for Your Ohio LLC

Selecting a business name is more than a creative exercise—it's a legal requirement and the foundation of your brand. Your LLC name should clearly reflect what your business does, be easy to remember, and comply with Ohio's naming rules.

Before settling on a name, it's helpful to clarify your business concept and long-term goals. Once you have a few name ideas, get feedback from trusted friends or colleagues and check whether matching domain names and social media handles are available.

After narrowing down your options, you must confirm that your desired name is available. This is done by searching the Ohio Secretary of State's business name database. Ohio requires business names to be distinguishable from all other registered entities, meaning even small differences may not be sufficient if the names sound or appear too similar.

Ohio LLC Naming Rules

Ohio law requires that every LLC name include the phrase "Limited Liability Company" or an approved abbreviation such as LLC or L.L.C. The name cannot include profanity, offensive language, or terms that could be interpreted as discriminatory.

Your LLC name also may not suggest a connection to a government agency or imply that your business is engaged in regulated activities—such as banking or insurance—unless you receive special approval from the state. To protect your business nationally, it's also wise to search the U.S. Patent and Trademark Office (USPTO) database to ensure the name is not federally trademarked.

Reserving an Ohio LLC Name

If you are not ready to file your Articles of Organization immediately, Ohio allows you to reserve a business name. Name reservations are filed through the Secretary of State's online business portal.

The filing fee for name reservation is $39, and once approved, the name is reserved exclusively for your use for 180 days.

Doing Business As (DBA) / Trade Name in Ohio

After forming your LLC, you may decide to operate under a different name for branding or expansion purposes. In Ohio, a DBA is referred to as a Trade Name.

Trade names are commonly used when an LLC introduces new product lines or operates multiple brands under one legal entity. Registering a trade name also allows you to open bank accounts and accept payments using that alternate business name.

Trade name registration is completed through the Ohio Secretary of State's website, and the filing fee is $39. Once approved, the trade name is legally recognized for business use in Ohio.

2. Appoint a Statutory Agent

Ohio requires every LLC to designate a statutory agent (commonly called a registered agent in other states). This individual or company is responsible for receiving legal papers, tax notices, and official correspondence on behalf of the LLC.

The statutory agent must be at least 18 years old and have a physical street address in Ohio. If the agent is a business entity, it must be authorized to do business in the state and maintain regular business hours.

Many LLC owners choose a professional statutory agent service for convenience and privacy. While serving as your own agent is allowed, it requires you to be consistently available at the listed address during standard business hours.

3. Decide on Your LLC's Management Structure

Ohio LLCs may be either member-managed or manager-managed.

In a member-managed LLC, all owners participate directly in managing the business and making day-to-day decisions. This is the most common structure for small businesses with a limited number of members.

In a manager-managed LLC, management authority is given to one or more managers, who may or may not be members. This structure is often preferred when some owners want to remain passive investors.

If your Articles of Organization do not specify a management structure, Ohio law automatically treats the LLC as member-managed.

4. File Articles of Organization with the Ohio Secretary of State

To legally form your LLC, you must file Articles of Organization with the Ohio Secretary of State. This is done online through the state's business filing portal.

The Articles of Organization include essential information such as the LLC's name, effective date, business purpose, and statutory agent details. During the filing process, you can also choose standard or expedited processing.

The filing fee is $99. Online filings are typically approved the same day, while mailed filings generally take three to seven business days to process.

Ohio Secretary of State Contact Information

Website: Ohio Secretary of State

Phone: 614-466-3910

Office Address:
Client Service Center
22 North Fourth Street
Columbus, OH 43215

5. Prepare an Operating Agreement

An Operating Agreement outlines how your LLC is owned and managed. While Ohio does not legally require an Operating Agreement, having one is strongly recommended—even for single-member LLCs.

This document typically explains ownership percentages, management authority, voting rights, profit distribution, procedures for adding or removing members, and how disputes will be resolved. A well-written Operating Agreement helps prevent internal conflicts and strengthens your limited liability protection.

Although templates are available online, having an attorney review your agreement can ensure it reflects your business goals and complies with Ohio law.

6. Obtain an Employer Identification Number (EIN)

An EIN is issued by the IRS and is used to identify your LLC for federal tax purposes. It is required if your LLC has more than one member, plans to hire employees, or elects corporate taxation.

EINs are obtained for free through the IRS website. During the application, you must identify a responsible party, who must be an individual with control over the company's finances and operations.

7. Obtain Required Licenses and Permits

Ohio does not issue a general statewide business license. Instead, licensing requirements depend on your business activity and location.

Certain professions—such as construction, healthcare, childcare, real estate, and food service—require state or professional licenses. Businesses selling taxable goods or services must obtain an Ohio vendor license to collect and remit sales tax.

Local governments may also require zoning permits, health permits, or signage approvals. Operating without required licenses can lead to penalties, fines, or business closure, so thorough research is essential.

8. Understand Your Ohio LLC Tax Obligations

By default, Ohio LLCs are taxed as pass-through entities, meaning the business itself does not pay federal income tax. Instead, profits and losses are reported on the members' personal tax returns.

Single-member LLCs are treated like sole proprietorships, while multi-member LLCs are taxed as partnerships unless they elect corporate taxation.

LLCs may choose C-Corporation or S-Corporation tax status by filing the appropriate IRS forms. Ohio also imposes a Commercial Activity Tax (CAT) on businesses with gross receipts exceeding $150,000, regardless of entity type.

Additional Ongoing Requirements

Opening a dedicated business bank account is essential to keep personal and business finances separate. This separation helps preserve your liability protection.

Many LLCs also apply for a business credit card to establish business credit and manage startup expenses. Business insurance—such as general liability, professional liability, workers' compensation, and commercial auto coverage—helps protect your company from unexpected risks.

Unlike many states, Ohio does not require LLCs to file annual reports or pay renewal fees, making ongoing compliance relatively simple.

Ohio LLC FAQs

The minimum cost to form an Ohio LLC is $99 for filing the Articles of Organization. Additional costs may include a $39 name reservation fee, $39 trade name registration, licensing fees, and optional statutory agent services.

Online filings are often approved within one business day. Mail filings usually take about a week. Expedited processing options are available for an additional fee.

Ohio LLCs do not have annual reporting requirements, but they must remain compliant with federal, state, and local tax obligations, maintain a statutory agent, and keep accurate business records.

Yes, as long as you are at least 18 years old, have a physical Ohio address, and are available during normal business hours.

No, but it is highly recommended to clarify ownership, management roles, and dispute resolution procedures.

LLCs are generally pass-through entities, meaning members report income on personal tax returns. Businesses with gross receipts over $150,000 may also owe Ohio Commercial Activity Tax (CAT).

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