How to Form an LLC in Ohio (2025 Guide) | Costs, Steps & Requirements

Ohio is currently ranked the best state to start a small business, thanks to its low operating costs and pro-business environment. The Buckeye State leads the nation on the Small Business Index, offering entrepreneurs a rare combination of low taxes, affordable wages, and reduced overhead expenses.¹

Forming a limited liability company (LLC) in Ohio is one of the most flexible and protective ways to structure your venture. In this comprehensive guide, we’ll walk you through how to form an LLC in Ohio, explain the costs and benefits, and compare Ohio to other states like Oregon for context. We'll also discuss Wise Business, the international business account that supports all the needs of going global.

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How to Start an LLC in Ohio (Step-by-Step)

Create an LLC in Ohio by registering your business with the Ohio Secretary of State, appointing a statutory agent, and following specific legal and tax requirements. Here are the steps:

1. Choose a Name for Your Ohio LLC

To form an Ohio LLC, you must select a unique business name distinguishable from existing entities registered with the Ohio Secretary of State.² The name must include “Limited Liability Company” or an abbreviation like “LLC” or “Ltd.”

Terms such as “bank,” “insurance,” or “attorney” are restricted and require approval from the relevant Ohio department. If you're not ready to file immediately, you can reserve your desired name for 180 days by submitting Form 534B and a $39 fee.³

2. Appoint a Statutory Agent

Your Ohio LLC must designate a statutory agent—also known as a registered agent—who has a physical business address in Ohio and is available during normal business hours to receive legal and state correspondence. You can act as your agent, appoint another individual, or hire a professional statutory agent service.

3. File Articles of Organization (Form 610)

To officially form your Ohio LLC, submit the Articles of Organization Form 610 to the Ohio Secretary of State.⁴ You can file online or by mail. The standard filing fee is $99, with expedited processing available for an additional $100 to $300, depending on the speed you choose.

4. Create an Operating Agreement

An operating agreement is an internal document that outlines how your Ohio LLC will be governed. While not legally required by the state, it’s strongly recommended to help prevent disputes, establish clear procedures, and demonstrate the legitimacy of your business to banks, investors, and courts.

A well-drafted operating agreement should include:

• Member roles and voting rights — Who has decision-making authority, and how votes are handled.
• Ownership percentages — The share of the business each member owns.
• Profit and loss distribution — How income and losses are allocated among members.
• Management structure — Whether the LLC is managed by members or designated managers.
• Dissolution procedures — The process for winding down or exiting the business.

This document is especially important for multi-member LLCs, but even single-member entities benefit from having one on file.

5. Apply for an EIN (Employer Identification Number)

An EIN is required for your Ohio LLC if you plan to hire employees, open a business bank account, or file specific federal tax forms. You can obtain an EIN quickly and free of charge through the IRS website.⁵ Even single-member LLCs often apply for one to simplify banking and protect personal information.

6. Register for State Taxes with the Ohio Department of Taxation

Depending on the nature of your business, your Ohio LLC may be required to register for various state taxes through the Ohio Business Gateway. Common tax obligations include:

• Sales tax collection, if you sell physical goods or taxable services.
• Commercial Activity Tax (CAT), applicable if your annual gross receipts exceed $150,000.
• Employer withholding tax is required if you have employees on the payroll.

Register for the appropriate tax programs and stay compliant with state regulations to avoid penalties.

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7. Obtain Necessary Ohio Business Licenses and Permits

Ohio doesn’t require a general state business license, but your LLC may still need **specific licenses or permits **depending on your industry and location. For example, businesses in food service, childcare, construction, or health care often need extra certification or regulatory approval from the relevant Ohio department or local agency.

If you plan to sell taxable goods or services, you’ll need a vendor’s license from the Ohio Department of Taxation. Be sure to research both state and municipal requirements to ensure full compliance before you begin operations.

8. Open a Business Bank Account

To maintain the liability protection provided by your Ohio LLC, it’s important to open a dedicated business bank account. Most financial institutions will require a copy of your Articles of Organization, your EIN from the IRS, and your operating agreement to get started.

There are numerous advantages to having a separate business bank account, from legal and tax compliance to easier cash flow management and looking more professional.

What Are the Business Requirements for an Ohio LLC?

To legally operate, your Ohio LLC must comply with the following:

• Maintain a registered agent with a physical business address in Ohio.
• Keep an up-to-date operating agreement (recommended for both single- and multi-member LLCs).
• File Form 521 if you change your statutory agent.⁶
• Register for applicable taxes and employer obligations.
• Comply with local zoning or industry-specific licensing.

Unlike many states, Ohio does not require annual reports, which simplifies long-term compliance.

What Are the Benefits of Starting an LLC in Ohio?

Ohio offers a pro-business climate for entrepreneurs. Some of the main benefits of forming an Ohio LLC include:

• No annual report filing for LLCs.
• Low formation fee ($99).
• Pass-through taxation by default (no corporate-level taxes unless you opt-in).
• Access to grants, tax credits, and resources from the Ohio Department of Development.
• Flexible management and ownership structures.
• Strong legal protections for members and managers.

Ohio’s business taxes are manageable, especially with the CAT exemption for businesses earning under $150,000 annually.

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

Cost Item	Amount
Articles of Organization (Form 610)	$99
Name Reservation (optional)	$39
Expedited Processing (optional)	$100–$300
Registered Agent Service (optional)	$50–$200/year
Vendor’s License (sales tax)	$25
Professional Licenses (varies)	Varies by industry

Your total cost will vary depending on your business needs, but you can expect to pay between $99 and $500 to fully set up your Ohio LLC.

Can I Open an LLC in Ohio Without Living There?

Yes, you can form and manage an Ohio LLC without being a resident of the state. Ohio does not impose any residency requirements for LLC owners or members. You must appoint a statutory agent with a physical address in Ohio who can receive legal and state correspondence on behalf of your business. You’re also responsible for ensuring full compliance with Ohio’s business laws, including tax obligations, licensing requirements, and proper recordkeeping.

Can a Nonresident Open a Company in Ohio?

Yes. Non-U.S. residents can form an Ohio LLC without U.S. citizenship or Ohio residency. Requirements include:

• A registered agent located in Ohio.
• An EIN from the IRS (which may require an Individual Taxpayer Identification Number or ITIN).
• Compliance with U.S. federal and state tax laws.

Comparison: Ohio LLC vs Other States

Feature	Ohio	Oregon LLC	Delaware	Florida
Formation Fee	$99	$100	$90	$125
Annual Report Required	No	Yes ($100)	Yes ($300)	Yes ($138.75)
State Tax on Revenue	Yes (CAT >$150K)	Yes (Corporate Tax)	Yes	Yes (Sales & Corp)
Registered Agent Required	Yes	Yes	Yes	Yes
Foreign Ownership	Allowed	Allowed	Allowed	Allowed

Ohio offers one of the most affordable and low-maintenance LLC structures, with no annual report and no franchise tax.

Oregon is slightly more expensive to maintain annually and imposes a corporate income tax.

Delaware is popular for corporations but is costly for LLCs due to high annual fees and layered taxes.

Florida is business-friendly, but it includes an annual report fee and state-level corporate taxes that can increase costs.

Frequently Asked Questions about LLC in Ohio

Does Ohio Offer Privacy Protections for LLCs?

Ohio offers some privacy for LLC members, though not to the level of states like Wyoming. Member names may appear in public records unless managed through an attorney or registered agent.

Why Do People Use Ohio for LLC Formation?

Ohio is a top choice for LLC formation thanks to several practical advantages:

• No annual report or franchise tax, which reduces ongoing administrative costs.
• Streamlined filing process, with easy online submissions and quick turnaround times.
• Affordable formation fees, with a $99 filing cost lower than many other states.
• Open to both residents and nonresidents, with no citizenship or residency requirements for ownership.
• Strong economic support for small businesses, including state-backed grants, tax incentives, and workforce development programs.

These features make Ohio an appealing option for entrepreneurs seeking an efficient and cost-effective environment to start and grow their businesses.

Is Ohio LLC Tax-Free?

No. While Ohio LLCs avoid double taxation by default, they may still be subject to:

• Commercial Activity Tax (CAT) if gross receipts exceed $150,000.
• Sales tax, if applicable.
• Employer withholding and federal self-employment taxes.

What Are the Disadvantages of an Ohio LLC?

Although Ohio is business-friendly, there are a few drawbacks to keep in mind:

• The Commercial Activity Tax (CAT) applies to businesses with gross receipts over $150,000, a lower threshold than in many states.
• Limited privacy protections mean member and manager names are public unless managed through a third party.
• Ohio is not a zero-tax state, so businesses may still be subject to CAT, sales tax, and employer-related taxes.
• Licensing requirements can be complex in certain regulated industries, such as healthcare or food service, and may involve additional steps with local or state agencies.

Despite these limitations, Ohio remains a strong option for many small business owners due to its low costs and streamlined formation process.

Conclusion

Learning how to form an LLC in Ohio is one of the best ways to launch a business with flexibility, tax efficiency, and limited liability. The process is accessible to residents and nonresidents and doesn’t burden entrepreneurs with recurring state filings.

Each step in the LLC formation process is an investment in your company’s legal and financial future. With proper planning and compliance, your Ohio LLC can thrive in one of the most business-friendly states in the Midwest.

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Sources:

1. Ohio - Top State for Small Business | Jobs Ohio
2. Guide to Name Availability | Ohio SOS
3. Form 534B |Ohio SOS
4. (Form 610 | Ohio SOS
5. IRS website
6. Form 521