LLC Ohio Cost
If you have plans to start an Ohio LLC or just open an Ohio Business, then you may have started to look into what it will take to get your business established and going.
But before renting an office space, hiring employees, or selling any products or services, you need to actually form your LLC and now the LLC Ohio Cost.
Most likely you have come to this page because you are needing to form your Ohio LLC and get your business going and you aren’t quite sure how much it will cost to form your LLC.
Today we are going to review the costs of forming your Ohio Limited Liability Company so that you make sure you know how much it costs and what it will entail.
Note: If you need help starting your Ohio LLC and want to make sure it is done correctly, you will want to consider using an LLC formation service. Some of them are free + state fee while others cost a little more and take care of all of your legal paperwork and annual filings so you don’t have to miss a deadline.
Here are the top two LLC Formation Services that we recommend:
$39 + State fee
They charge one of the lowest rates and are an overall best value. Their formation packages are loaded with features for a great price!
$0 + State fee
For those on a strict budget, this is your cheapest limited liability company cost service. You can add on features as needed.
Bare Minimum Cost to Start an Ohio LLC
In this section we are going to talk about the bare minimum costs to get your Ohio LLC formed.
We will also include some optional (but recommended) costs as well.
- Articles of Organization Fee: $99 for online or hard copy submissions or expedited processing for an additional fee: two-day for $100, one-day for $200, and four-hour for $300
Business license in Ohio: $50 – $150 and most companies are required to obtain a business license in Ohio and the cost varies depending on the city in which the company is based.
- LLC Name Reservation Fee: $39 for online or paper handling
- LLC Formation Service: These range from $0 + State Fee and go up from there
Ohio LLC Formation Costs – Everything You Need to Know
LLC Name Reservation Fee
If you are already set on a name for your business, we highly recommend that you apply for a name reservation.
Ohio does not require you to reserve a name before starting your business, but if you are afraid someone else might use the name, then you may want to consider paying the $39 fee.
The $39 fee gives you name exclusivity for 180 days.
If your business isn’t ready yet and you want to protect that perfect name, a reservation is quite helpful.
This gives you peace of mind that your perfect business name won’t be taken by someone else.
You can register multiple business names as well if you plan on doing a DBA.
However, if you are ready to start your limited liability company now and create your Articles of Organization, then there is no need to reserve the name.
This is going to be perhaps one of the most important parts of forming your business – the Articles of Organization.
Once accepted, the Articles of Organization is what officially registers your LLC and locks in your business name.
In the State of Ohio, the Ohio Department charges a $99 fee for the Articles of Organization (hardcopy or online filing).
You only register your business once, so this is not a fee that you will have to pay annually.
Once you register and recieve your Ohio articles of oranization, you can just store them in a safe place.
Business License Fee
Not all types of businesses require a license, but many of them do, and each license has its own set of fees.
Your LLC may require one license or multiple licenses depending on the type of business you will be running.
Furthermore, depending on the type of business, your Ohio limited liability company may require licenses at both the local and federal levels.
You’ll need to check with your local government to see if you might need additional licenses.
You will also want to learn about your locl sales tax and filing requirements.
Some states require a sales tax permit, among other licenses and permits. LLC owners should do their due diligence or work with a tax professional in that regard.
Whether you like it or not, there are fees to form an LLC.
Each state has their own LLC formation Fee, even if you go the DIY route and file your own documents directly with the IRS, you still have to pay the state fee.
The most affordable option is to figure out the formation process on your own and just pay the state fee.
However, missing a step or doing something incorrectly could end up costing much more.
So if the DIY route doesn’t sound like the route you want to take, you may want to hire an LLC formation service.
These services take care of the registration process for you, so you don’t have to spend the time on research, paperwork, and filings.
Most of these services (like LegalZoom or ZenBusiness) offer basic LLC formation service like Articles of Organization filing, tax consultations, and phone/email support for a flat rate, with options to pay more for premium packages with premium services like Employer Identification Numbers, Operating Agreements, and expedited filing.
If learning all of the Ohio law requirements for forming a new Ohio LLC, these formation services really help!
Ohio Registered Agent
A registered agent (also called a statutory agent) is simply a person or entity appointed to accept service of process and official mail on your business’ behalf.
You can appoint yourself, or in many states, you can appoint your business to be its own registered agent or statutory agent.
While you can serve as an agent for service of process for your own LLC, this puts pressure on you to keep up with business filings and potential legal disputes.
Sometimes it’s better to hand off that responsibility to a professional.
A Registered Agent service ensures that your annual reports and other forms are filed efficiently and on-time, saving you from the penalties of delinquent filings and the stress of having to do it yourself.
There are a lot of Registered Agent services out there but we always like to recommend Northwest Registered Agent.
They handle everything you need to form your LLC and they include a free statutory agent for a year!
If you have questions or concerns about the LLC formation process or if it’s the best business structure for you, sometimes it’s best not to take chances and consult an attorney.
They’re not cheap, but they can provide essential business advice, professional filing assistance, and peace of mind.
Attorneys fees can range anywhere from $150 – $350 per hour or more while others might offer flat rate from $500 – $2000 to form you LLC and answer questions.
Of course, this all depends on the experience and location of the attorney as well as their specialties.
Foreign Qualification Fee
If you already formed your LLC in another state and are now expanding to Ohio, then you will be completing a “Registration of a Foreign LLC” rather than the Articles of Organization.
In Ohio, the fee for a Registration of a Foreign LLC is $99.
Thankfully, this is only a fee that you have to pay once and your foreign LLC will be registered.
Annual LLC Fees
The Ohio Department keeps it simple and doesn’t have any annual or biennial filing deadlines.
You won’t have to worry about meeting a deadline and paying an annual report fee each year.
LLC’s are “pass-through” entities, meaning that the business itself doesn’t need to file federal or state tax returns (read more about that here).
At the state level, Ohio imposes a Commercial Activity Tax on any business entities with gross receipts of $150,000 or more.
The rate is 0.26% of an LLC’s gross receipts and you can register through the Ohio Business Gateway at the Ohio Secretary of State.
Learn more on the Department of Taxation website .
If your LLC is set up as a Corporation, you won’t have to pay the Franchise Tax, but you will have to file a separate corporate tax return and pay the corresponding corporate tax rate.
A business formation service will make sure your business entity has a Tax ID so that you can file all of the appropriate tax filings.
Should I use an LLC Formation Service?
As you can see, there are several steps required to make sure that your LLC is formed correctly.
Hopefully this article helped you better understand what it takes to form an LLC in Ohio as well as understand the associated costs.
If this all still seems overwhelming, then this is where using a formation service comes in handy.
If you have a little bit of flexibility in your budget or you know that the DIY route is not for you, then we strongly recommend hiring an LLC Formation Service.
An LLC formation service will make sure everything gets filed properly and expediently and they will make sure that all of your annual maintenance deadlines are not missed.
LLC formation services specialize in just that, forming businesses: LLC (limited liability company), Corporation, S Corporation, Non-profit, Sole Proprietorship, General Liability, Limited Liability Partnership, etc.
They streamline the process for you and are there to answer questions, fix mistakes, and help with legal advice and needs.
Some have tax specialists that can help with tax related inquiries for tax purposes while others can provide general liability insurance or business insurance.
Many of them even take care of your yearly maintenance and filings for you and offer registered agent service as well.
Here are three popular LLC formation service options to give you an idea of what they offer:
ZenBusiness is one of the most affordable options and a great value.
They are a little smaller and newer than the other two mentioned below, but have excellent customer reviews and overall features.
Northwest Registered Agent also included a year of registered agent service with any LLC formation package. They also offer premium customer support that is unmatched to their competitors.
If you anticipate questions or more complex LLC formation, they are the top choice. You definitely get what you pay for and more with Northwest.
Northwest is our best overall value option.
$0 + State Fee
IncFile will form your LLC for free and include a full year of registered agent service with any LLC formation package.
IncFile is at the top of our list of the best LLC formation services, year after year.
If you decide to go the DIY route and form your own LLC but need help with the Annual Reporting, checkout the following services:
For $49, MyCompanyWorks will make sure you don’t miss a deadline. They are the most affordable annual report service out there and they offer a 100% satisfaction guarantee.
Their price varies depending on the service package that you choose, but their fully-managed services take care of everything so you don’t have to.
And if you want it all done for you, LLC formation and Annual Reporintg, then you may want to look into MyCorporation:
For $99 MyCorporation will form your LLC and also include a full year of their managed annual report service.
Forming your business correctly is going to be your first step to success and knowing the LLC Ohio Cost brings you one step closer.
If you don’t file the Articles of Organization or Application for Registration, you’ll be prohibited from doing business in the state until you do.
It is also important to stay on top of your Statement of Information reports and Franchise Tax payments or other annual payments.
If you fail to file and pay them on time, your LLC will be deemed “delinquent” and required to make outstanding payments within 60 days.
The same goes for the Sales and Use Tax.
The state has the right to suspend a delinquent LLC’s powers, rights, and privileges until it has filed its missing documents and made its overdue payments.
Late franchise and other tax payments will also incur a penalty amounting to 5% of the unpaid tax per month, up to 25% of the total tax.
This might all seem like a-lot, but many of these charges are one time fees and the annual maintenance fees are much smaller.
So it is in your best interest to set up your LLC correctly and stay on top of any due taxes and fees.
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