How to Form an LLC in Ohio

Ohio holds the nickname, The Buckeye State, and remains one of the best-kept secrets for those looking for business opportunities within the United States.

With affordable business expenses, a developing tech industry, an advantageous position in the Midwest, and a business-friendly climate, the state is suitable for both US citizens and foreign owners.

This post covers launching a business at the local level in Ohio or setting up an LLC from abroad in order to gain access to US payment systems and customers.

Along the lines, we will provide a comprehensive overview on how to legally form an LLC in Ohio, including cost estimates and compliance advice.

Why Set up an LLC in Ohio?

As with other states, Ohio provides an appealing blend of incentives for different kinds of business owners looking to form a Limited Liability Company:

✅ No Annual Report Requirement

Not having to submit annual and biannual reports is one of the attractive features for business owners. Most states require periodic filings to maintain good status, Ohio eliminating this burden is a relief.

✅ Low Formation and Maintenance Costs

Having no franchise taxes and low permitting costs helps Ohio rate low on the Overhead Operations Cost Center Franchise Index. Also, at $99 for filing your Articles of Organization, Ohio is among the lowest-franchise-pay states for LLC formation.

✅ Limited Liability Ohio Assets

Personal assets, such as your home, auto, and personal bank accounts, will be protected under Ohio LLC legal structure in the case your business is subject to litigation or incurs debt.

✅ Business-Friendly Ohio

Increasingly attractive to tech, startup and eCommerce hubs, Ohio is home to large metropolitan areas such as Columbus, Cleveland, and Cincinnati which seamlessly integrate skilled labor offerings and modern infrastructure.

✅ Non-Resident Open Policy

There are no citizenship or residency barriers for doing business in Ohio. This applies to the US residents and foreign entrepreneurs wanting to start an LLC.

Step-By-Step to Setting Up an LLC in Ohio

This is the legally approved procedure to set up an LLC in Ohio broken down into easy steps.

1. Select An LLC Name

As per Ohio’s legal framework, your name is the business. As such, ensure that the name is appropriate, unique and adheres to the naming regulations.

Guidelines for Naming Your LLC:

• Must include “Limited Liability Company” or marked as “LLC” or “L.L.C.”
• Must not be the same as other business entities in Ohio as even one character difference might not be enough.
• Cannot suggest a government agency (e.g. FBI, Treasury).
• Words (like “Bank”, “Insurance”, or “Attorney”) have restrictions that need permits or licenses.

🔎 Pro Tip: Check name availability with the Ohio Secretary of State’s Business Search for filing using the official tool.

✅ Name Reservation (Optional): If you submitted a name reservation form with a fee of $39, you can temporarily reserve the name for up to 180 days.

2. Appoint a Registered Agent in Ohio

An Ohio Registered Agent is a business or a person that can accept service of process, such as a lawsuit, subpoena, or state notice, for a limited liability company (LLC).

Requirements:

• Must have an office in Ohio (no P.O. Boxes).
• Must be there during business hours.
• An individual or a partner can fill this role, or professional registered agent service.

A Registered Agent service is crucial if you do not live in the U.S and do not have a physical office in the country. Bizstartz offers this service for overseas founders.

3. Articles of Organization to the Secretary of State.

What you will need:

• LLC name and address
• Registered Agent’s name and address
• Business purpose (optional)
• Organizer’s name and signature

Filing Options:

• Online: Via Ohio Business Central
• By Mail: Send the completed form to the Ohio Secretary of State
• In-Person: Drop off at the business filing office in Columbus

Fees:

• Standard Filing: $99
• Expedited Options:
  • 2-business day service: +$100
  • 1-business day service: +$200
  • 4-hour service: +$300 (in person only)

🕒 Processing Time: 3–7 business days (or same-day with expedited filing)

4. Create an LLC Operating Agreement

To promote the LLC in question to a separate legal concern, an Operating Agreement is vital as it stipulates how the LLC will be run, thus it is a legally binding document. It is an essential document for liability protection as well as to ensure smooth internal operations.

Contents of an Operating Agreement:

• Ownership structure and percentages
• Profit/loss distribution
• Management roles (member-managed vs manager-managed)
• Voting rights and decision making
• Rules on the addition and removal of members
• Procedures for dissolution

Even though the state of Ohio does not mandate having an Operating Agreement, it’s advisable, especially for Multi-Member LLCs and non-resident founders who want to minimize the chances of future disagreements.

📄 Through Bizstartz, you can get tailored templates and legal drafting help for Operating Agreements.

5. Apply for an Employer Identification Number (EIN)

The EIN, otherwise referred to as the Federal Tax ID Number, is obtained through the IRS and is used for identifying your business for federal tax purposes.

It is mandatory for:

• Opening a business bank account
• Hiring employees
• Filing taxes both federally and on a state level
• Applying for various licenses and permits

Procedures include:

• For U.S. residents: IRS EIN Application Online
• For non-U.S. residents: File Form SS-4 and mail or fax to IRS.

No SSN or ITIN? Untangled EIN can help non-residents get an EIN without a Social Security Number.

6. Open a U.S. Business Bank Account

In order to conduct business professionally, a U.S. business bank account is essential as it allows for the separation of business and personal finances.

Required Documents:

• Articles of Organization
• EIN Letter from IRS
• Operating Agreement
• Valid passport or ID

In addition to these, some banks in the U.S. might need a U.S. mailing address or proof of business ownership. At Bizstartz, we partner with both fintech banks and traditional financial institutions that accept applicants from abroad, which simplifies things.

7. Register for State Taxes and Licenses

Based on your business activities, you might need to register for certain taxes or business licenses specific to Ohio.

Common Requirements:

• Sales Tax (Vendor’s License): Needed for selling tangible goods in Ohio.
• Commercial Activity Tax (CAT): Applicable for businesses with gross receipts over $150,000/year.
• Employer Withholding Tax: Applicable for businesses with employees in Ohio.
• Industry-Specific Licenses: Food, Construction, Daycare, and other industries may require professional licenses at the city or county level.

🛠️ For online registration, visit Ohio Business Gateway to apply for relevant permits.

8. Ensure Ongoing Compliance and Maintain Good Standing

While more lenient than many other states, Ohio still has a few key requirements to watch:

✅ No Annual Reports: Ohio does not require annual or biennial report filings, which is unique among other states.

✅ Renew Licenses: Depending on the industry, business licenses and tax permits may need to be renewed annually.

✅ File Taxes: Submit federal tax returns alongside the Ohio CAT tax, if it applies to your business.

✅ Keep Registered Agent Active: Your company’s Registered Agent must be current and keep your business contact information updated to remain available and responsive.

How Much Does It Cost to Start an LLC in Ohio?

Here’s a quick cost breakdown:

Starting an LLC in Ohio for non-residents

Owning an LLC in Ohio is much easier for non-US residents than for many other states in America. LLCs can be seamlessly operated by non-US citizens or residents. If you own an eCommerce store, operate a SaaS business, run an Amazon FBA brand, or consult, you can manage everything remotely from overseas.

Bizstartz can assist you with the following:

• LLC Formation & EIN (without SSN)
• U.S. Registered Agent service
• U.S. Virtual Address
• U.S. Bank Account setup
• Ongoing tax and compliance support
• BOI Filing

Final Thoughts

Starting an LLC in Ohio is a smart and low-cost option, particularly for business owners who want minimal compliance hurdles and an easy entry into the U.S. market.

Whether you are an American citizen with a business idea or a foreign business owner wanting to enter the U.S. market, Ohio provides a simple way to grow a business.

Looking to form an LLC in Ohio?

Let Bizstartz manage the whole process, from LLC formation and obtaining an EIN to setting up banking, tax registration, and more. We ensure a seamless experience.

👉 Take Action and Form Your Ohio LLC Today with Bizstartz.

Ohio LLC Formation FAQs

1. Am I eligible to form an LLC in Ohio if I’m living outside the United States?

Yes, you can absolutely form an LLC in Ohio while living outside the United States. Since Ohio does not have any citizenship or residency restrictions, you can form and own LLCs freely.

2. What is the timeframe for forming an LLC in Ohio?

Typically, Ohio LLC formation takes between 3 to 7 business days. Companies that need faster formation can opt for 1-day or same-day service.

3. Is an EIN essential for a single-member LLC?

An EIN is needed if the single-member LLC decides to employ someone, will need to file taxes, or if a bank account is to be opened.

4. Is a physical office in Ohio a must?

You are not required to have a physical office in Ohio, but you must have a Registered Agent with a physical address in Ohio to accept legal correspondence.

5. Does Ohio Have Annual Report Filing Requirements for LLCs?

No. In Ohio, there is no annual or biennial reporting for LLCs, which decreases the amount of paperwork and the administrative burden for business owners.