Best Formation Service For LLC 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. Once you’ve chosen a name, Tailor Brands can help you file for a name reservation that can last for up to 120 days.

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 in Ohio. 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, you should create an operating agreement as it defines how you’ll run your LLC in Ohio. 

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 and federal 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 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 not 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 property damage. 

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, which 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.

This plan is perfect if you are only focused on getting your documents filed with the state without any extra costs beyond the state fees. Here’s what’s included:

• Preparation and Filing: You won’t incur any charges for filing your LLC formation documents. You only pay the state fee, which is a standard requirement, but the processing time can take up to 15 business days. 

If you want an affordable and straightforward LLC formation solution, the Lite plan is a great option. With no added costs beyond state fees, it’s a budget-friendly choice for forming your LLC in Ohio. 

This plan keeps things simple by focusing solely on document preparation and filing. It’s designed to help you complete the required paperwork efficiently, leaving out extras you may not need at the start.

Price: $0 (plus state filing fees)

With the Essential Plan, you’d have all the services included in the Lite Plan, plus valuable add-on services to help grow your LLC in Ohio.

• Amazon Gift Card: With this plan, you’ll receive a $30 Amazon gift card as a bonus. This is a thoughtful addition that can be used for a variety of items, from office supplies to technology that can streamline your operations. 

• Faster Processing: This plan reduces the processing time for setting up your LLC to just two business days, allowing you to start operating sooner. Faster processing means less waiting and more time to focus on building your LLC.

• Annual Compliance Notifications: Tailor Brands will manage mandatory report filings and updates, ensuring your LLC remains compliant with Ohio regulations. With this support, you can leave the regulatory details to experts.

• Operating Agreement Creation: You’ll receive expert assistance in creating an operating agreement, a vital document that clarifies the roles and responsibilities within the business if you have many LLC members. 

Price: $199/year (plus state filing fees)

If you’re seeking comprehensive services, you can opt for the Elite Plan. It offers all the benefits of the Essential Plan along with advanced branding tools.

• Website Tools: You’ll get a free domain for one year, with website design tools for building your online presence. With Tailor Brands’ DIY website and store builders, you can customize your site and start selling your products. 

• Higher-Value Gift Card: This plan offers a $50 Amazon gift card to support your business with any additional resources you may need. You can make purchases with the gift card to help you run your business more efficiently. 

• Social Media Content Tools: The plan comes with tools to create branded social media posts, helping you maintain an active online presence. This helps you enhance your brand visibility across various social media platforms.

• Custom Logo Designs: With the Elite plan, you can have up to eight professionally designed logos. These logos are crafted by experienced designers who understand the nuances of effective branding. 

• Digital Business Card Creator: You can easily design and share your professional digital business cards. With customizable templates provided, you can ensure that your digital business card aligns with your branding.

Price: $249/year (plus state filing fees)