How to Form an LLC in Ohio
The Ohio River Valley has been fertile growing ground throughout its history. But today, residents are growing more than crops. They’re starting new businesses in record numbers.
Was your business included in that record-breaking statistic? Or do you dream of starting your own business?
If you’re an Ohio resident wondering how to form an LLC for your new business, then you’re in the right place. Keep reading to learn what an LLC is, why you need one, and how to do it.
What Is an LLC?
Before we jump into the steps, let’s make sure we’re all on the same page. First, what does LLC mean? A Limited Liability Company, or LLC, is a type of business structure that gives the owner the best of both worlds between a corporation and a sole proprietorship.
When you create an LLC, you receive the same protection for your personal assets from lawsuits as you would if you were a large corporation. However, you also get the pass-through taxation that you would as a sole proprietor rather than double taxation as a corporation would.
Now that we’ve outlined the LLC meaning let’s jump into the many benefits.
Benefits of Forming an LLC
There are several benefits of forming an LLC for your business. We’ve already briefly touched on the protection from lawsuits. This means that as long as you don’t pierce the corporate veil, your personal assets can’t be used to pay for bad debts or lawsuits brought on your company.
Additionally, as an LLC, your company doesn’t first pay taxes on your profit and then you have to pay taxes on your salary. This is called double taxation and is required for corporations. Instead, the profit passes directly through to the LLC owner with an LLC, and is taxed on their personal tax return after accounting for deductions.
Lastly, further benefits of forming an LLC include the simplicity and flexibility of this type of business structure. Forming an LLC isn’t difficult, ensuring that you fill out all the proper paperwork and file it with your state. And, once you’re in business, there aren’t the same rigid rules as applied to larger business structures in terms of who is the owner and the management of your business.
How to Form an LLC
Many business owners get stuck on the first steps of how to get an LLC. So, let walk through them one at a time.
- Create your profile on the Ohio Secretary of State website, or business gateway
- Run a name search to ensure your business name isn’t already trademarked and name your business
- Enter your company information, or Articles of Organization
- Assign your Registered Agent; this could be you or a third-party agent, depending on if you want to register with your personal information or not
- Register for your EIN, or Federal Tax ID
- Sign and file your paperwork
- Pay your fees, in Ohio; this is currently $99
As you follow the steps to start an LLC, keep in mind that you don’t have to go this alone. There are experts who’ve gone before you and can help ensure that you file your paperwork correctly. You want to start your business on a good foot, so take the time and invest in working with a professional to get this step right.
Form Your Ohio LLC the Right Way
As you can see, the steps are straightforward when learning how to form an LLC. However, as mentioned, you want to be sure that you start your business correctly. Think this sounds like a bit too much to handle? That’s where we come in. Join our Go Membership Plan. It cuts out the paperwork and legalese, helping you form your LLC fast and stress-free. For just $199 plus state and federal filing fees, our experienced team will manage all the paperwork to set up your business’s legal entity. We’ve formed more than 1 million businesses across all 50 U.S. states over the last 20 years, so your business is in good hands.
And not only will we help you with the initial LLC formation, but your membership also includes annual report filing, stock certificates, a library of common business & legal forms, and operating agreement templates, plus a 15-minute consultation with a tax professional to discuss tax implications for your business.