Form a C-Corp in Ohio with Inc Authority
Starting your C-Corp in Ohio can be daunting. Luckily for you, we have partnered with Inc Authority—one of the best business formation service providers out there. Make the most of its expertise like 250K+ businesses have.
Complimentary 1Y Registered Agent Service
Inc Authority will help you with the preparation, review, and filing of documents to the state.
It will ensure you don’t miss a legal notice with free registered agent services for the first year.
You get a consultation for tax planning to start maximizing your business’ tax savings.
Things to Know Before Starting a C-Corp in Ohio
Prior to establishing a C-Corp in Ohio, you must familiarize yourself with the relevant eligibility criteria and compliance obligations. This knowledge will equip you with the necessary understanding to manage and expand your business.
Let’s take a quick look at some of the important ones:
- To secure a name for your business, you need to complete the Name Reservation (Form 534B) and submit a $39 fee. The name will remain reserved for 180 days.
- It’s essential to include the authorized shares and par value in your Articles of Incorporation. Any changes to the number of shares or par value can impact the filing fees.
- If you register your business in another state and want to operate in Ohio, you need to obtain a license by filing either Form 530A or Form 530B with the Ohio Secretary of State.
- The minimum filing fee for Articles is $99, allowing a C-Corp in Ohio to authorize up to 990 shares of stock. To authorize more than 990 shares, an additional fee is required.
A C-Corp in Ohio is especially advantageous if you have plans to go public, seek IPOs, or eventually sell your business. Its USP is that it offers greater flexibility for ownership transfers and potential mergers and acquisitions.
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How to Form a C-Corp in Ohio
Due to its central location in the United States, Ohio offers excellent business prospects. Moreover, the process of business formation in Ohio is pretty straightforward.
Here’s a breakdown of the eight easy steps to form a C-Corp in Ohio.
Pick and Reserve a Name for Your Business
First off, choose a unique and representative name for your C-Corp in Ohio. Conduct a search on the Ohio Secretary of State’s website to check if anyone else is using it. Alternatively, you can use Inc Authority’s ‘business name check’ service for free.
In addition, pick a name that is easy to pronounce and remember by customers. You can also check if a matching domain name is available for your business website. To secure the name, file a name reservation application to reserve it for 180 days.
Choose a Registered Agent
The law mandates that every C-Corp in Ohio must have a registered agent. The RA serves as a Corporation’s official point of contact for receiving legal documents, such as tax notices, legal summons and lawsuits, and other major communications.
Many companies offer registered agent services for a fee, typically ranging from $99 to $249 per year. But Inc Authority provides free registered agent services for the first year with all plans. This is a cost-saving option that is great for new businesses.
Select Your Ohio Corporation’s Initial Directors
The next step for starting a C-Corp in Ohio is to appoint directors or managers, depending on your entity type. Identify individuals with the relevant qualifications and expertise, hold a meeting to accept their positions, and establish corporate bylaws.
The board’s ongoing responsibilities include decision-making, strategic planning, and ensuring compliance. Seek guidance to ensure compliance with Ohio business regulations and to structure the board effectively for the Corporation’s needs.
File Articles of Corporation
With a registered agent and at least one director in place, it’s time to register your C-Corp in Ohio. To do so, you must file the Articles of Incorporation by paying a filing fee of $99. The application can be submitted online, via mail, or in-person.
Upon processing, you’ll receive a Certificate of Incorporation, confirming your C-Corp’s legal existence. Depending on your business, additional agreements and bylaws may be necessary. Fortunately, Inc Authority handles all the tiring paperwork for you.
Get an Employer Identification Number (EIN)
The next step to get your C-Corp in Ohio up and running is to obtain an Employer Identification Number (EIN) or tax ID number. The easiest way to do this is through the online application process provided by the Internal Revenue Service (IRS).
The application typically requires information about your C-Corp, such as its legal name, address, and the responsible party’s details. Once you have your EIN, you can proceed with important tasks like hiring employees, opening bank accounts, etc.
Fulfill Additional Requirements
Now’s the time to set up a corporate bank account. For this, you need to submit your formation documents and EIN to the bank. In addition, specific licenses and permits may be required by the state based on your type of business and industry.
All of this might seem a bit cumbersome. To make things simple, you can always seek help from Inc Authority. Their experienced team will provide expert consultation to assist you in understanding and fulfilling your business’s licensing requirements.
Issue Stock to Shareholders
Issue stock to shareholders in exchange for their capital contributions, whether it’s cash, property, or services. You may also need to obtain shareholder approval if required. For a C-Corp in Ohio, both par value or no par value shares are available as options.
Certain sales in Ohio are exempt from registration requirements. These exemptions include intrastate sales to a few Ohio residents and sales that meet the criteria for the federal private offering exemption. To know more, consult Ohio’s Division of Securities.
Maintain Ongoing Compliance
Maintaining compliance with the state’s regulations is crucial to keep your C-Corp in Ohio in good books. This includes filing an annual report with the Ohio Secretary of State, maintaining corporate records, and conducting shareholder meetings.
Additionally, make necessary changes and amendments to keep records up to date. Otherwise, your business could face penalties in the form of fines. Consider seeking guidance from Inc Authority to remain compliant, and foster long-term success.
Why Choose Inc Authority to Form a C-Corp in Ohio
Clearly, forming a C-Corp in Ohio is a lot of work. It requires you to prepare government documents, understand tax obligations, and develop a solid business plan.
With Inc Authority, you can sail through this process owing to the following benefits.
Free
Why let money hold your aspirations back? Inc Authority helps you form your business for free.
Get complimentary registered agent services, tax consultation, and filing services at no cost. All you have to cover is the mandatory state fees.
Quick
For an entrepreneur, time is of utmost importance. And paperwork can be extremely time-consuming.
Inc Authority promptly handles C-Corp registration by requesting necessary documents, ensuring the shortest timeframe.
Trustworthy
Rest assured when you choose Inc Authority as your partner to establish your C-Corp in Ohio.
With a proven track record, it assists entrepreneurs in launching businesses confidently. Receive guidance through each step of the process.
Benefits of Starting a C-Corp in Ohio
C-Corps are often preferred over S-Corps and LLCs because they offer more extensive tax planning and deduction options. However, C-Corps have many more benefits.
Here are some of the most important ones.
Liability Limited Protection
In Ohio or any other state, forming a C-Corp provides shareholders with limited liability protection, meaning their personal assets are typically shielded from the corporation’s debts and legal liabilities.
Not all types of business entities enjoy this kind of protection. For instance, in the case of a Sole Proprietorship, the business and its owner are considered one and the same in the eyes of the law.
Easy Transfer of Ownership
C-Corps issue shares of stock to their shareholders to represent ownership. These can be bought, sold, or transferred to other parties without affecting the Corporation’s operations or legal status.
On the other hand, LLCs have more rules and regulations. They typically have an operating agreement that governs the internal affairs of the company, including ownership transfers.
Credibility
Compared to Sole Proprietorships or General Partnerships, C Corps are often perceived as more professional. This is due to their formal structure, and adherence to corporate governance practices.
The resulting credibility enhances a Corporation’s reputation among customers, investors, and other stakeholders. This makes it easier to raise funds, hire top talent, and attract investors.
Tax Flexibility
C-Corps enjoy more tax deductions compared to other business types, helping them reduce taxable income. As a C-Corp, you can also provide unique tax-favored benefits to your employees.
In specific cases, you may explore alternative tax structures, such as opting for the S-Corporation status, which offers pass-through taxation advantages. These options allow for a lot of flexibility.
Unlimited Life
If a shareholder leaves the company or transfers shares to someone, it doesn’t impact the functioning of a C-Corp in Ohio. Any changes in ownership do not affect the operations of the C-Corp.
This perpetual existence empowers C-Corps in many ways. It allows them to operate independently, provide confidence to stakeholders and enable long-term planning for sustainable growth.
Corporate Structure
The formal structure of a C-Corp features a well-defined hierarchy that includes shareholders, a board of directors, and officers. This system ensures transparent decision-making.
Additionally, in a C-Corp, you can issue various classes of stock with varying voting rights, and dividend preferences. Again, this feature facilitates capital raising and incentivizes stakeholders.
Explore Inc Authority’s Plans and Packages to Form a C-Corp in Ohio
Inc Authority presents three plan options for entrepreneurs interested in forming Ohio Corporations. While two of the plans are paid, the forever free plan stands out as the most popular choice.
Here are the specific details of the plans offered by Inc Authority.
Free
The Free plan lets you set up your Ohio business by giving you access to the following features:
- 1-Year Registered Agent Service: Inc Authority will be your registered agent and receive your legal notices during the working hours stipulated by law.
- Business Name Check: You get access to a name check tool that you can to search for your preferred business name to determine its availability.
- Corporation Formation: Inc Authority will get your Corporation’s formation documents ready and submit them to the Ohio Secretary of State.
- Tax Planning Consultation: Assistance of a tax specialist to help you select an appropriate tax structure and achieve maximum savings for your business.
- Digital Document Storage: With an Inc Authority account, you have the choice to safely store your C-Corp documents, such as agreements and reports, online.
- Business Credit & Funding Analysis: Experts will assess your business funding needs and offer trusted sources of funding for your Corporation.
- Multi-Channel Customer Support: To address any questions you may have, Inc Authority offers customer support via phone, email, and live chat.
This plan provides all the essential features required to start a C-Corp in Ohio. For a tailored experience and access to premium features, explore the paid plans offered by Inc Authority.
Price: Free
Starter
This is the first premium package for to-be business entities in Ohio. It offers all the features included in the free bundle along with valuable additional inclusions.
- Corporate Bylaws: Get help crafting detailed corporate bylaws to establish operational rules and a clear decision-making structure for your new C-Corporation in Ohio.
- Employer Identification Number (EIN): To run your C-Corp in Ohio, you’ll require an Employer Identification Number (EIN). Inc Authority offers this service with the Starter plan.
- Ownership and Stock Certificates: Inc Authority assists in creating ownership certificates for members of your Ohio C-Corp by offering templates specifically designed for this purpose.
- Corporate Forms and Documents Package: Draft essential business documents for your C-Corp and operations using Inc Authority’s comprehensive forms and legal documents package.
- Comprehensive Tax Consultation: Benefit from an in-depth tax evaluation tailored to your business’s requirements, enabling you to maximize tax savings beyond the free consultation.
- Notifications for Annual Compliance: Receive timely notifications on compliance requirements and upcoming deadlines for your C-Corp in Ohio, ensuring that you stay on track.
- Business Web Domain and Email Addresses: Establish a professional online presence with a web domain that aligns with your business name, accompanied by five business email addresses.
Price: Custom
Fasttrack
Want more support to start your C-Corp in Ohio? Check out what the Fasttrack Business Bundle has in store:
- Private Banking Specialist: Premium customers receive dedicated guidance from Inc Authority’s private banking specialist. They will assess your needs and help you open a business bank account.
- INC Success Advisor Package: A dedicated customer success manager will address any questions you may have, and guide you every step of the way until your business is successfully established.
- Expedited Preparation & Filing: Inc Authority expedites your Corporation formation process by prioritizing your order, and preparing and delivering the necessary documents within 24 hours.
- Personalized Business Advice: Tap into the expertise of Inc Authority’s business startup specialists, who will provide you with tailored insights and support to start your C-Corp in Ohio.
Price: Custom
FAQ
The primary distinction between an Ohio C-Corp and an S-Corp lies in their taxation and ownership structures.
A C-Corp in Ohio faces double taxation, with the Corporation being taxed at the corporate level, and shareholders being subject to individual income tax on their earnings from the corporation.
Conversely, S-Corporations employ pass-through taxation, enabling the corporation’s income and losses to pass through to shareholders, who report them on their personal tax returns.
Furthermore, C-Corps have no limitations on the number of shareholders, while S-Corps are limited to a maximum of 100 shareholders, all of whom must be U.S. citizens or residents.
Here is the step-by-step process to start a C-Corp in Ohio:
- Select a unique name for your C-Corp that hasn’t already been used by any other business in Ohio.
- Appoint a registered agent with a physical street address in Ohio. This is crucial for maintaining compliance and ensuring that your C-Corp can promptly receive and address important legal and official documents.
- Identify directors or board members for your C-Corp in Ohio. The state requires at least one director, who must be at least 18 years old.
- Prepare and file the Articles of Incorporation with the Ohio Secretary of State. This document includes essential information about your C-Corp, such as its name, purpose, registered agent, and initial directors.
- Create corporate bylaws that outline the internal rules and regulations governing your C-Corp’s operations and decision-making process.
- Apply for an EIN from the Internal Revenue Service (IRS). This unique identifier will let you hire employees, pay corporate taxes, open a bank account, etc.
- Comply with all ongoing filing and reporting requirements imposed by the Ohio Secretary of State and other relevant state agencies.
A C-Corp in Ohio faces taxation at both the federal and state levels. Businesses are obliged to file a separate corporate income tax return (Form 1120) with the IRS to report their earnings and calculate federal income tax.
The profits generated by a C-Corp are subject to taxation at the corporate level, and this taxation occurs before any dividends or distributions are distributed to the shareholders.
Alongside federal taxation, a C-Corp in Ohio must also comply with state tax requirements. They are required to file a state income tax return (Form IT-4708) with the Ohio Department of Taxation.
Some C-Corps may also be subject to the Commercial Activity Tax (CAT). The CAT is a tax on the C-Corp’s taxable gross receipts in Ohio.
Here are some of the key benefits of a C-Corp in Ohio:
- Limited Liability Protection: C-Corps provide limited liability protection to their shareholders, meaning that the personal assets of shareholders are generally protected from the debts and liabilities of the Corporation.
- Growth and Investment Potential: Its flexible ownership structure makes it easier to attract investors and raise capital for business expansion or investment opportunities.
- Enhanced Credibility: Operating as a C-Corp can enhance the credibility and perception of your business. The formal structure demonstrates that the business is committed to professionalism and long-term growth.
- Tax Planning Opportunities: C-Corps offer potential tax planning advantages, including deductible business expenses, employee benefit plans, and more flexibility in structuring compensation for shareholders.
Forming a C-Corp in Ohio doesn’t require a lot of money. If you want to do it yourself, you simply need to take care of the paperwork and pay a filing fee of $99. If you want to outsource the job instead, business formation service providers will typically set you back anywhere between $99 to $249 per year.
Inc Authority can help you start your C-Corp in Ohio completely free of cost. The free plan even includes a complimentary tax consultation. For a deeper analysis of your tax situation and tailored recommendations, you can always upgrade to one of its paid plans.
Start Your C-Corp in Ohio at No Cost with Inc Authority
While starting a Corporation can be daunting for new entrepreneurs, Inc Authority simplifies the process, making it effortless. By outsourcing the tedious work to Inc Authority, you can devote your energy to growing your new business.
$0 + State Filing Fees