Ohio is a great place for anyone with an entrepreneurial spirit. Companies like Kroger, Nationwide and Goodyear all have headquarters there. But you’ll need to complete a few important steps before launching a company in this state.
Choosing a business structure
Before starting a new business, you must choose a business structure for your company. This decision has nothing to do with a physical structure. Instead, it is a business law requiring entrepreneurs to choose between a sole proprietorship, partnership, corporation, LLC or similar option.
Getting a business license
In most cases, you’ll also need a business license before legally launching a new company. You do this by registering your business with the Ohio Secretary of State. In Ohio, new business owners must also register the name of their new companies. This crucial step ensures you’re not knowingly or unknowingly copying the name of another business.
Obtaining your Employment Identification Number (EIN)
Business owners must also register their companies with the Internal Revenue Service. This step also lets you obtain a unique EIN required to file business taxes. For sole proprietorships, using your Social Security Number will suffice. However, your business must have an EIN when hiring your company’s first employee.
Paying taxes
As you begin your new business venture, keeping track of taxes is crucial. Under Ohio law, companies with gross sales over $150,000 per year must pay a commercial activity tax. Like many other states, Ohio also collects use and sales taxes.
It takes time, effort and money to start a business in Ohio. However, following all steps required to launch a company helps get your new venture off to an excellent start.