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Business owners in Ohio must understand the costs of starting their own LLCs. Failure to do so can lead to unnecessary expenditures and wasted time ventures.
There are a few different factors that will play into the overall cost, such as the type of company one chooses to form and the amount of paperwork involved.
This blog post will provide an overview of the cost of an Ohio LLC and enable business owners to make an informed decision when setting up their companies.
How Much Does an LLC Cost in Ohio?
Let's look at the various filing requirements and cost of an Ohio LLC:
Ohio LLC Filing Fees
The primary Ohio LLC cost is the filing fee, currently $99. The fee covers the creation of the company and all of its organizational documents, including the articles of organization, operating agreement, and bylaws. Unlike some other states, Ohio LLC annual fees are not required.
Certificate of Good Standing
A Certificate of Good Standing is required by the Ohio Secretary of State when a business entity becomes inactive. This document provides information on a company's status and ensures that the state has received all necessary notices of termination (if applicable). The cost for this certificate is $5.
"Doing Business As" (DBA) Name
Businesses operating under a name other than the company's official name can obtain an official DBA (Form 534a) certificate.
The Ohio LLC cost for DBA registration is $25 and can be obtained online. This document allows Ohio businesses to use alternate names for conducting business.
Ohio LLC Fees for Registered Agents
A registered agent service provides a contact point for receiving all official documents and communications sent by the state or federal government. This is especially important if a company receives any tax documents or liens.
The registered agent must reside in Ohio and can be an individual or a company. The cost to appoint a registered agent varies depending on the LLC service provider. Typically, the fee is between $39 and $300 per year.
Finding the right registered agent can ensure the formation process goes smoothly. The agent can also act as the 1st point of contact when there are questions or concerns about the status of the company.
Please check out the Zenbusiness vs Incfile article for a detailed review of some of the best LLC services in Ohio.
Incfile offers some of the lowest rates on registered agents in Ohio. Read more here: Incfile Review.
Lastly, businesses looking for top-level privacy and great customer support can head over to the Northwest Registered Agent Review for more details.
Ohio LLC Operating Agreement Fees
An Ohio LLC operating agreement is not required by law, but it is highly recommended. This document outlines the financial and managerial responsibilities of the company's members.
The cost to create an operating agreement varies depending on the LLC formation service provider. Typically, the fee is between $50 and $200.
Taxes
All businesses in Ohio are subject to the state's income tax. There may also be other taxes that apply to a business, such as sales tax, property tax, and payroll tax. For information on these taxes, contact the Ohio Department of Taxation or the appropriate agency in the state or local government where the business will be located.
Name Reservation
LLCs in Ohio need not reserve a name but should do so to avoid any conflicts. To reserve a name for an Ohio LLC, file a Name Reservation (Form 534-B) application with the Ohio Secretary of State. The form can be downloaded from the Ohio Secretary of State's website. There is a $39 fee to reserve a name.
Tax ID Number (EIN)
An EIN is a tax identification number required by the IRS to be assigned to a company one operates. Businesses can apply for an EIN through the IRS website. It is free of charge. Ohio requires a tax ID number to be assigned to every LLC; therefore, it is strongly recommended that all LLCs obtain their own EINs.
Ohio Foreign LLC Cost
If an individual currently has an LLC in some other state and wants to extend their company into Ohio, they'll need to register it as a foreign LLC in Ohio.
The cost of forming a foreign LLC in Ohio is $99. In Ohio, one may form a foreign LLC by filling out the Registration of a Foreign Limited Liability Company (Form 533b) by mail or online.
Ohio Legal Fees & Professional Costs
When being a member of an LLC, some expenses the business should expect to incur are legal fees, accounting fees, and registered agent services. In some cases, they may incur both (or more) expenses when forming an LLC.
Legal Fees: Hiring a lawyer is not always necessary when forming an Ohio LLC. If a firm decides to hire a lawyer, the cost can be anywhere from $500 to $1,500, depending on the complexity of the company's situation.
Accounting Fees: Businesses may have to hire an accountant if their mode of operation is more complex and requires more attention. The cost of hiring an accountant will depend on how complicated the business is.
F.A.Q.
Do businesses have to pay for LLC Every year in Ohio?
No, in Ohio, a business doesn't have to pay for LLC every year. However, LLCs having gross revenues of more than $150,000 in Ohio must pay a commercial activity tax.
How much does it cost to incorporate an LLC in Ohio?
The cost to incorporate an LLC in Ohio is $99 for filing Articles of Organization. There are no other fees required for operating a Limited Liability Company (LLC) for the first year.
Conclusion
The basic cost of an Ohio LLC is usually somewhere around $99. Interestingly, there are no Ohio LLC annual fees. However, the actual cost of registering an Ohio LLC will depend on how complex the business is and which items are included in the price. This will depend on proper preparation and the appropriate time required for setting it up.
Intending LLC owners should not hesitate to reach out today for more questions and inquiries about forming LLC in Ohio.
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