For someone planning to start a business in Ohio, there are major steps they have to follow. Others might begin Ohio application right away without researching more which can take up a lot of time and effort. To begin, one must determine the legal structure of their business. For small businesses, it can be sole proprietorship, corporation, partnership and LLC or Limited Liability Company.
These structures have special versions as well including S corporations and limited partnerships. When choosing the business entity structure, the liability protection should match your need. Consider the structure that will benefit your business financially and will offer the best setup for tax and financing.
When deciding on a name for corporations or LLCs, check with the Ohio Secretary of State if the name is distinguishable from those that are already on record under business entities. You can also visit the SOS website to check if the name you chose is still available. If you want to reserve a name, you can do so by accomplishing a Name Reservation form at the Ohio SOS and you own the name for 180 days. For corporations and LLCs, it is required that the name has the word Company or LLCs. In naming partnerships and sole proprietorships in Ohio, filing a Fictitious Name Registration is required if the business name is not the same as the business owner.
The next step is to determine the business entity such as sole proprietorship, partnership, LLCs and corporations. Once you have determined this part, you can get the necessary permits and licenses. If you plan to sell goods in the state of Ohio, you need to file a vendor’s license at the Ohio DOT or Department of Taxation. This is necessary for the state to be able to collect the business’ sales tax. For those with workers based in Ohio, employer withholding tax should be filed with the DOT. You can also use the Ohio Business Gateway online to apply for sales tax collection together with withholding tax.
It is then time to begin Ohio application for EIN or employment identification number. This is required if the tax of the business is separate from your personal taxes or if you have employees under your payroll.