How Much Does an LLC Cost in Ohio? (Fees Revealed)
The cost of forming an LLC in Ohio can vary depending on several factors, including filing fees, publication requirements, and any additional services you may need.
With years of experience in the field, I aim to guide entrepreneurs and business owners through the process by providing transparent insights into the expenses of forming an LLC in Ohio.
I spent countless hours studying official government resources, consulting legal experts, and examining real case studies to compile accurate and up-to-date information.
This guide aims to provide a transparent overview of the fees associated with forming an LLC in Ohio.
- The cost to start an LLC in Ohio includes a minimum filing fee of $99 for filing the Articles of Organization and a $50 annual fee for maintaining the LLC
- Additional expenses may include name reservation fees, operating agreement creation costs, among other fees
- Annual report fees for maintaining the LLC are $0, but there are tax implications and associated costs to consider
Bare Minimum Cost to Start an LLC in Ohio
The bare minimum cost to start an LLC in Ohio is $99. This fee covers the costs of filing your Articles of Organization with the Ohio secretary of state.
You'll also need to pay a $500 Ohio franchise tax. This tax is paid annually, covering the costs of registering your LLC with the state of Ohio.
There are other Ohio LLC costs and paperwork you may need to file depending on the type of LLC you establish. For example, if you're forming a professional LLC, you must file additional paperwork with the Ohio Secretary of State.
Breakdown of LLC Formation Costs in Ohio
The primary expenses include filing fees and ongoing maintenance fees.
When establishing an LLC in Ohio, entrepreneurs must file LLC Articles of Organization with the Secretary of State and pay the associated filing fee.
Additionally, they may hire an attorney or utilize online services to assist with the filing process, which may incur additional costs.
Here are some of the expenses you might incur while starting an LLC in Ohio:
1. Name Availability and Reservation Fees
Before forming an Ohio LLC, it is important to ensure that the desired business name is available and not already used by another entity.
The Ohio Secretary of State's office charges a fee for checking the availability of a name and reserving it for a specific period. The fee for this service typically ranges from $39 to $49.
2. Articles of Organization Filing Fees
To officially form an LLC in Ohio, you must file LLC Articles of Organization with the Secretary of State.
This document includes essential information about the LLC, including its name, address, registered agent, and members. The filing fee for the Articles of Organization in Ohio is $99 .
3. Ohio Statutory Agent or Registered Agent Service Fee
The Ohio Statutory Agent or registered agent fee is a fee charged by Ohio to cover the costs of registering your LLC with the state. This fee is paid annually, currently between $199 to $400. The additional filling fee costs $25 .
4. Ohio LLC Operating Agreement Creation Costs
While Ohio does not legally require LLCs to have an LLC operating agreement, it is highly recommended to create one.
The Ohio LLC cost of creating an operating agreement can vary depending on whether you hire an attorney or use an online legal service.
Attorney fees for drafting an operating agreement may range from $1000 to $1,500. Online services, on the other hand, could charge around $50 to $200.
5. Business Licenses and Permits Fees
Depending on the nature of your LLC's business activities, you may need to obtain certain business licenses and permits to operate legally in Ohio.
The fees for Ohio business licenses and permits can vary widely depending on the type of business, location, and regulatory requirements involved. Typically it starts from $25 to $350.
It is advisable to research the specific licenses and permits relevant to your industry and consult with the appropriate state and local agencies to determine the associated costs.
Considering the additional associated costs when forming an Ohio LLC is crucial.
Here are some key additional considerations to keep in mind:
1. Annual Report Fees
After forming an LLC in Ohio, you must file an annual report with the Secretary of State's office. Luckily, the annual report fee in Ohio is $0.
This report updates the state on the LLC's current information, such as its address, members, and Ohio registered agent. Failure to file the report on time may result in additional penalties.
2. Tax Implications and Associated Costs
Businesses must pay federal and state taxes, and having an LLC business bank account is an excellent way to keep track of these payments. The Ohio Commercial Activity Tax is a gross receipts tax levied on the privilege of doing business in Ohio.
LLCs operating in Ohio and engaging in the sale of goods or certain services are obligated to collect and remit the state's sales tax, which is 5.75%.
In addition to this base rate, there are varying county and transit sales taxes to consider. Ohio's local jurisdictions and transit authorities can levy an extra sales tax ranging from 0.25% to 3%.
The Ohio Commercial Activity Tax is a complex tax that can be difficult to understand. It's important to consult an accountant to determine commercial activity tax liability.
3. Attorney or Professional Service Fees
While not mandatory, seeking legal advice or professional assistance during the LLC formation process is often beneficial.
Attorneys or business formation services can guide legal and compliance matters, ensuring that all necessary documents and requirements are fulfilled correctly.
The fees for an attorney or professional services can vary depending on the complexity of your Ohio business needs and the specific services required. Hiring an attorney may cost between $1,000 to $1,500.
If you have any questions or concerns about whether you need an attorney to form your LLC, it is best to consult one to ensure that you are doing everything correctly and completely.
4. Filing a DBA Cost
Filing a DBA (Doing Business As) for an Ohio LLC may cost approximately $125.
This filing fee covers the paperwork and processing required to establish a fictitious business name within the state.
It is important to note that the specific cost may vary depending on the county or city where the LLC is registered.
However, consulting with the appropriate government agencies or legal professionals is advisable to obtain the most accurate and up-to-date information regarding the filing fees.
Steps to Form an Ohio LLC
The steps to form an Ohio LLC are straightforward; here is a quick guide:
1. Choose a business name. The name of your LLC must be unique and cannot include certain restricted words.
2. File articles of organization with the Ohio Secretary of State. This document contains basic information about your LLC, including its name and purpose.
3. Create an operating agreement. This document outlines the rules and regulations that govern your LLC. It is not filed with the Secretary of State, but it does have to be created before you file your first tax return or receive an initial business license from a city/county/state agency.
4. Determine whether a limited liability company (LLC) or a corporation is better for your type of business.
5. Apply for an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). This number is mandatory if your LLC employs people, even part-time employees.
6. Register to do business in Ohio and obtain a state Business License or Certificate of Authority if required by law where you will be doing business.
7. Comply with relevant Ohio Department of Taxation rules and regulations. This may include paying state income taxes, filing an annual report, and/or registering for a sales tax permit.
8. Adhere to city or county licensing requirements where your LLC is doing business. For example, you may need to apply for a zoning variance in some cities.
9. Obtain federal, state, and local licenses necessary to operate your business. For example, many real estate businesses need licenses from the Ohio Department of Development or the Ohio Bureau of Workers' Compensation.
How Much Does it Cost to Set Up a Ohio Foreign LLC?
Setting up an Ohio foreign LLC costs between $99 to $125. These fees cover essential aspects of the formation process. It's important to note that additional expenses may apply, such as optional services or legal consultations. However, the initial setup cost of a foreign LLC is generally within the aforementioned range.
How Much Does an Ohio LLC Cost Per Year?
An Ohio LLC costs $0 per year since there is no annual report cost. However, it's important to note that while the initial cost of establishing an LLC may vary depending on the state filing fees, the ongoing expenses are generally minimal.
What is the Fee to Dissolve an LLC in Ohio?
The fee to dissolve an LLC in Ohio is typically $50. It is important to note that the dissolution process may involve additional costs, such as publication fees or professional assistance fees, depending on the circumstances. To obtain accurate and up-to-date information, consult the Ohio Secretary of State's website.
Ohio LLC Formation Cost
The required filing fee for submitting the Articles of Organization with the Ohio Secretary of State is approximately $99.
Additionally, additional charges might be if expedited processing or other services are requested.
It's important to note that legal and professional fees, such as those for attorney consultations, foreign LLC costs, or registered agent services, are not included in the total Ohio LLC cost. It's best to consider these before you even invest in a business bank account.
To get an accurate estimate, consulting with Ohio’s best LLC formation services is recommended. Proper guidance can ensure compliance with Ohio state regulations and help facilitate a smooth LLC formation process.