The cost to form an LLC varies depending on where you live. You can use our tool to find out how much it costs to form an LLC in your state.
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What is the cost of forming an LLC in Ohio?
An LLC is a limited liability company. This type of entity is used for many different reasons including holding real estate, operating a small business, owning a corporation, or even creating a nonprofit organization. In addition to being able to protect owners personally from lawsuits, an LLC allows you to form a separate legal entity from yourself. There are pros and cons to forming an LLC.
Initial Ohio LLC Fees
When you form through Incfile, we will send the Initial Ohio LLC Fee directly to the OH Secretary’s office. This saves you time and money, and reduces the risk of paying late fees if something goes awry.
Fees are based on the number of members in your company. If you have 2 or 3 members, you should expect $100-$200. However, if your company has 10+ members, you might owe thousands.
A few states charge extra fees like sales tax, filing fees, etc. Be aware of these charges before you start. Check out our guide to starting businesses in Ohio to determine the costs.
Ohio Commercial Activity Tax: Varies
The Ohio General Assembly passed House Bill 537, which amends the state’s commercial activity tax law. This bill repeals the current system of taxing businesses based on their location within the state, and replaces it with a flat tax structure.
Under the new law, Ohio companies doing business in Ohio will now be taxed at a flat rate of 3.5% on their net income. Companies operating outside of the state will continue to be taxed according to where they do business.
However, there are some exceptions to the new law, including those that operate solely online. These companies will still be subject to the same 3.5% tax rate.
Companies that qualify for the sales factor exemption will no longer receive a credit against their tax liability. Instead, they will be required to remit taxes owed to the state.
A late filing will incur a fee of $50 plus interest.
Statutory Agent Fee
Every Ohio LLC must designate a registered agent, which is often referred to as a “statutory agent.” This person serves as the contact for the company and handles many administrative tasks. In some cases, the company can choose to serve as its own registered agent, or it can hire an outside company that provides legal services, like law firm or accounting firm, to do this work for them. These companies take care of all the necessary paperwork and filing requirements for the company.
The fee for serving as a registered agent varies depending on the state. For example, in Ohio, the fee is $50 per year. However, there are no additional fees charged to the company itself.
If you decide to serve as your own registered agent, you’ll need to file Form 5500-A with the IRS, along with paying self-employment tax and social security taxes.
Cost to Form a Foreign LLC in Ohio
To form a foreign LLC in the state of Ohio, you must file the following documents:
1. Registration of a foreign LLC
2. Filing a Certificate of Incorporatlon
3. Filing a Notice of Change of Name
4. Registering a Foreign Corporation
5. Paying fees
6. Completing forms
Business Permits and Licenses
A business permit is required to operate a business legally. Depending on the type of business you want to start, there could be several types of licenses and permits you’ll need to obtain. Each one comes with its own set rules and regulations. You must comply Other with the requirements of the specific license or permit you’re applying for.
Some businesses don’t require any permits or licenses. Others may require multiple types. You might need a seller’s permit if you plan to sell products online. A food establishment license is needed to prepare and serve food. And a liquor license is required to sell alcohol.
If you’re planning to open a restaurant, it’s important to know what type of license you need. In some states, restaurants are classified as either “fast food,” “dining establishments,” or both. Fast food establishments typically include pizza parlors, burger joints, coffee shops, etc., while dining establishments are usually defined as sit-down restaurants like steak houses, seafood restaurants, and fine dining eateries.
You may also need a special use permit to build something like a warehouse, manufacturing facility, or retail store. For example, a building permit is required to construct a home improvement project such as a deck or pool.
In addition to the licenses and permits mentioned above, you may need a zoning permit to locate your business within a particular area. Zoning laws vary widely across the United States. They determine where certain types of businesses are allowed to operate.
Other LLC Filing Costs
An LLC must file an annual report with each state it operates in. These reports are called “annual statements.” They contain information about the company’s financial status and activities. Some states require that the annual statement include a statement showing the total amount of money paid into their state treasury during the previous fiscal year. For example, California requires that the annual statement show the total amount of money received from sales tax, franchise taxes, gross receipts taxes, etc., during the preceding calendar year.
The cost of preparing and filing an annual report varies depending on the type of entity you form. In addition, some states charge additional fees for certain types of filings, such as renewals and amendments. Fees vary greatly among states. To find out how much it costs to prepare and file an annual report, contact the Secretary of State in the state where you plan to operate your LLC.
Frequently Asked Questions
Who Can File an Ohio Annual Report?
Anyone with authority to prepare and file a Business Entity Form B1 – Ohio Biennial Reports/Statements of Continued Existence can do it. This includes individuals, partnerships, LLCs, corporations, trusts, estates, and foreign entities.
However, ensuring compliance across entities, jurisdictions, and states creates complexity. To make sure you are meeting the deadlines and filing the correct form, it requires some planning, organization, and knowledge.
Harbor Compliance makes it easy to comply with Ohio’s reporting requirements. With our managed service, we take care of everything from collecting information, creating due date reminders, navigating government forms and filing portals, and submitting your annual report.
Our service eliminates your need to research requirements and create due date reminders. We ensure accuracy in filing. Our system tracks due dates and provides alerts to help you avoid late fees and penalties.
We save you time and money. You don’t have to worry about researching requirements, preparing documents, or managing multiple filing processes.
What Is the Ohio Annual Report Filing Fee?
Annual reports are required for most types of businesses in Ohio, including corporations, LLCs, partnerships, sole proprietorships, nonprofit organizations, limited liability companies (LLCs), general partnerships, and unincorporated associations. If your business is incorporated, it must file Form B1, Schedule B1, and Form B10-K annually.
The annual report filing fee depends on the entity type and where your business is located. Find out what it costs to file your annual report in Ohio.
James Rourke is a business and legal writer. He has written extensively on subjects such as contract law, company law, and intellectual property. His work has been featured in publications such as The Times, The Guardian, and Forbes. When he’s not writing, James enjoys spending time with his family and playing golf.