Best LLC Formation Services in Ohio

The first step when starting an LLC in Ohio is to come up with a viable idea for your business. Think through several business ideas and find one that makes most business sense. Your business should have enough demand for you to make a good profit. 

Research the competition in your industry and find ways to make your business stand out. Examine your financial situation to see if you have enough funds to bring your idea to life. Lastly, ensure that you can easily access the resources you need for your business. 

Once you’ve finalized your idea, the next step is to create a business plan. This is a document that defines what you will do to turn your idea into a successful business. While this step is not necessary, most businesses that succeed start with a business plan. 

Your business plan should outline your major goals, your plan for achieving them, and the timeline to do so. It should include your company’s mission, unique value proposition, and target customers. Also, include your marketing plan and management structure.

The Ohio Secretary of State requires all LLCs in Ohio to have a unique name that distinguishes them from other businesses in the state. It also requires them to include the term, “limited liability company” or its abbreviations in the business name. 

This means that before you choose a name for your business, you need to perform a search to see if it’s available for use in the state. Inc Authority has a business legal name search tool that will help you check the availability of your desired business name.

Appointing a statutory agent is mandatory for Ohio LLCs. Your appointed statutory agent will receive legal documents and notices on behalf of an LLC in Ohio. This can be an individual who’s an Ohio resident or another entity with a physical address in the state. 

Technically, you can serve as the statutory agent for your LLC. Should you pick this option, you should ensure that you are available at the given address during working hours. Since this is practically not possible, it’s safer to use a professional registered agent service.

This is the most important step in this process. To form an LLC in Ohio, you need to file articles of organization with the Ohio Secretary of State. You can file your articles of organization online or via mail. The Secretary of State charges $99 for this service. 

The information you need for filing articles of organization includes the name and address of your Ohio LLC, the purpose of your business, and the official start date of your LLC. Also, provide the names and contact details of the owners and the statutory agent.

After you submit your articles of organization to the Secretary of State, they will review your application to see if you meet all the requirements to form an LLC in Ohio. This process takes three to seven days but you can expedite it by paying an additional fee. 

Once your articles of organization are approved, you will receive a stamped certificate that shows that your organization meets all the requirements to be registered as a limited liability company. The certificate authorizes you to conduct business in the state of Ohio.

After receiving the Certificate of Formation for your LLC in Ohio, you can proceed to draft your LLC operating agreement. Although this step is not mandatory when forming an LLC in Ohio, you should create an operating agreement as it defines how you’ll run your LLC. 

When drafting your Ohio LLC operating agreement, ensure that you outline the rights and responsibilities of the members. Also, indicate if the LLC is member-managed or manager-managed or if it is a single-member LLC or a multi-member LLC.

The next thing you want to tackle as you form your LLC in Ohio is to get an EIN. EIN stands for Employer Identification Number, which is a unique tax ID issued by the Internal Revenue Service. It differentiates an LLC, thus helping prevent fraud. 

An LLC with employees must get an EIN to report employment taxes. You also need an EIN if your LLC in Ohio has multiple owners or you choose to be taxed as a Corporation. You can also use your EIN to open a bank account and get credit.

In addition to filing articles of organization for your LLC in Ohio, you may also need to get state andfederal licenses and permits. Ohio doesn’t have a general business license. Instead, they have a vendor’s license that every LLC needs to obtain.  

A vendor’s license is mandatory if your LLC sells goods or services. This license allows you to collect sales tax on the products you sell. Besides the vendor’s license, you may need other licenses and permits depending on the location and type of your business.

Ohio LLCs that hire employees have additional obligations to meet when they start a business in the state. To start with, such businesses are mandated by the state and federal law to report new hires or rehires within 20 days of their joining date. 

LLCs in Ohio are also required to purchase workers’ compensation insurance from the state. The state will determine the rate you pay as your insurance premium. Lastly, you’ll have to pay unemployment taxes with the Ohio Department of Job & Family Services.

Ohio LLCs are treated as pass-through entities. This means that the organizations do no’t pay income tax directly. Instead, the business income is passed through to the owners’ tax return. Each member then pays income tax on their share of LLC profits. 

Another benefit of forming an LLC in Ohio is that you get a choice in how you want to be taxed. For example, you can choose to have your Ohio LLC taxed as a corporation. You should also register for Employee Withholding Tax if you plan on hiring employees. 

Every LLC in Ohio needs business insurance but the coverage depends on the nature of your business. For example, LLCs with a physical location need general liability insurance for protection against injuries to customers and damage to property. 

Businesses with an online presence should get cyber liability insurance to protect their business from online fraud and data breaches. The other important insurance is professional liability insurance that protects against errors, breaches, and negligence. 

Your Ohio LLC will only succeed when you adopt good accounting practices. One of the key practices in this regard is to open a separate bank account for your business. With a separate business bank account, it becomes easy to track and report your income. 

You should also get a business credit card that will help you improve your credit score. Financial institutions review credit scores to determine if a business qualifies for a loan. A business credit card helps you improve your credit score and qualify for more loans. 

The last step as you work to set up your LLC in Ohio is to build a website. Technology has changed the way people do business and you now need a website to connect with your audience. You will also use your website to showcase your products and services. 

Besides a website, you also want to be active on social media. People spend a lot of time on social media and you want them to find your business as they browse. Identify the platforms that are popular with your customers and create a profile on those.

The Free Plan provides the essential services you need to start an LLC in Ohio.

• Business Name Check: Check the availability of your desired business name online. No other entity in Ohio should be using the name you want for your LLC.

• Free Statutory Agent for 1 Year: Inc Authority will act as your free Ohio statutory agent for one year to ensure you don’t miss important legal notices.

• Digital Storage & Delivery: Inc Authority guarantees the safety of your LLC formation documents by storing them online and delivering them electronically.

• Tax Planning Consultation: Get tax planning support from the consultants at Inc Authority to help you reduce your tax bill and make more business savings.

• Preparation & Filing: Our trusted partner will prepare and file your documents to ensure there are no obvious errors that can slow down the formation process.

• Inc Care Support: The experts at Inc Authority will provide you with all the support you need to start and grow your LLC in Ohio into a successful enterprise.

Price: Free

This premium package comes with all the features in the free plan and a few other useful additions. 

• Complete Corporate Bylaws: The team at Inc Authority will help you create your corporate bylaws so you can outline the rules and regulations of your LLC. 

• Initial Meeting Minutes & Resolutions: Consultants at Inc Authority will attend your initial meeting and help you come up with the resolutions to form your LLC. 

• Employer Identification Number: Inc Authority will help you obtain your (EIN) Employer Identification Number so you can comply with Ohio’s tax regulations.

• Annual Compliance Notifications: Inc Authority will send you reminders to fulfill your compliance obligations like filing your annual report and renewing licenses. 

• Web Domain and Email: Starter bundle subscribers receive a custom domain to build their Ohio LLC website and 5 emails for business communication needs. 

Price: Custom

This premium package comes with all the features in the Starter pack and a few other useful additions. 

• INC Success Advisor Package: Get expert advice from Inc Authority’s consultants to deal with pressing issues such as tax, accounting, and the IRS. 

• Private Banking Specialist: Grow your LLC in Ohio with the help of a private banking specialist who will guide you on how best to manage your finances. 

• Personalized Business Advice: Inc Authority will provide you with personalized business advice to help you deal with the challenges affecting your business.

• Expedited Filing: Get your LLC documents filed in the shortest time possible with Inc Authority’s expedited filing service to help you start operations quickly. 

Price: Custom