LLC Cost in Ohio – How Much to Pay for an LLC


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Perhaps you are hoping to form an Ohio LLC. People assume that starting an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in Ohio.

Ohio LLC Cost of Filing

Here are the costs involved in forming an LLC in Ohio.

Cost of Filing Formation Certificates

The Ohio Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the Ohio Secretary of State

Ohio Domestic LLC

  • Online Filing costs $99. 
  • Annual Report costs $91
  • Name Reservation fee costs $39
  • By Mail: Fill out the application form, and send it to P.O. Box 670 Columbus, OH 43216 for a regular filing or P.O. Box 1390 Columbus, OH 43216 with the additional fee for an expedited filing.  Costs $99.

Ohio Foreign LLC

  • Online Filing costs $99.
  • Annual Report costs $91
  • Name Reservation fee $39
  • By Mail: Fill out the application form, and send it to P.O. Box 670 Columbus, OH 43216 for a regular filing or P.O. Box 1390 Columbus, OH 43216 with the additional fee for an expedited filing. Costs $99.

Note that filing online is ideal, not only because you need to go to the Secretary of State office, but also it would be faster. You won’t have to wait in a queue in doing so.

Ohio LLC Formation Service or Registered Agent Fee

You need a registered agent to form an LLC in Ohio, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.

LLC Service

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$99 per year

  • Standalone registered agent service

  • Take you through all steps

  • LLC formation package available

$125 per year

  • 1 year free service along with LLC formation package

  • Fast service

  • Flat rate, no hidden cost

Business Permits and Licenses 

The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the Ohio Department of Revenue for regulatory boards or agencies requiring licensing. 

Taxes payable to the Ohio Department of Taxation

If you wish to register an LLC in Ohio, you will need to pay several taxes to the federal and Ohio governments. This article enlists the kind of taxes an LLC has to pay in the state of Ohio. Let’s look at the main taxes that are to be paid by LLCs in Ohio. In the state of Ohio, the State taxes are paid to the Ohio Department of Taxation. The two  main state Taxes are:

State Income Tax

In an LLC, the owner has to pay the state income tax on any amount he pays to himself. The earnings shall be taxed through the personal tax return. The standard rate of income tax which ranges between 1.98% & 5%, will be applicable & you can apply for all the standard allowances and deductions. 

State Sales & Use Tax 

All the sellers of Tangible goods & the service providers who have formed LLCs will have to pay the State Sales & Use Tax. This State Sales & Use Tax can be collected at the time of purchase.  The Sales & Use Tax varies in different regions, counties, & cities. The current state sales & use tax rate on LLC in Ohio is 5.75%

Federal Self-Employment Tax

All the LLC Business members or managers have to pay Federal Self Employment Tax, also known as Social Security or Medicare tax. This kind of tax applies to all the earnings you withdraw from your business. 

The Federal self-employment tax rate in Ohio is 15.3 percent, which includes 12.4% for social security & 2.9 for medicare.

Federal Income Tax

Similar to the state income tax, an LLC has to pay the Federal Income tax on all the earnings it makes in the state of Ohio. The amount of the Federal Income Tax depends upon your earnings, the income tax bracket in which you qualify, the deductions, & the manner/ mode of filing.

Employee & Employer Taxes

If you have a number of employees who draw monthly salaries, there will be some added Employee-Employer taxes. These tax implications vary, depending on various factors, e.g., the amount, number of employees, etc.

Cost Comparison between states

Ohio is surrounded by many states, namely Michigan, West Virginia, Indiana, Pennsylvania, etc. Each of these states has a different rate of taxes levied on LLCs. Let us take a look at this comparative chart.

StatesFiling FeeAnnual/Biennial FeeSales Tax
Ohio$50None5.75%
Michigan$50$56%
West Virginia$100$256%
Indiana$90$307%
Pennsylvania$125Seek Local Counsel6%

On the basis of the kind of industry you LLC operated in, your LLC will be liable to some other taxes & duties. For Example, if your LLC is in the sector of import & export, you have to pay the import-export duty. You should consult with a professional to verify the tax rates or business costs of registering an LLC in Ohio.

Other Costs

How Much Does It Cost to Maintain an LLC in Ohio

To maintain an LLC in Ohio you do not need to pay an annual fee. However, state income tax at 1.98% to 5%, sales & use tax at 5.75% and federal taxes are levied.

As you can see, how much does it cost to maintain an LLC in Ohio is minimal. There are no yearly reports or filing fees to file, but you must keep your records updated with the Secretary of State’s office. If you fail to do so, you could face fines and penalties. So, what are some of the costs involved? Keep reading to learn more. You might be surprised by what you learn!

The fees associated with maintaining an LLC in Ohio will vary depending on the type of business you operate. While there are no mandatory annual reports in Ohio, you’ll probably be required to pay ongoing business taxes. These taxes vary by industry, so check the details of your business type to avoid any surprises. You’ll probably also need to pay payroll and self-employment taxes. And of course, you’ll need to pay sales and use taxes.

One of the most important steps to start your new LLC is forming an Operating Agreement. An Operating Agreement outlines the rules and processes of running the business, including the rights and duties of members. This document will protect your interests and ensure compliance with the Ohio business law. However, some LLCs require an EIN, which is like a social security number for an LLC. It costs $99 to obtain, and is necessary for tax reporting.

Besides filing annual reports, LLCs must have a statutory agent. The statutory agent acts as the company’s representative in Ohio and accepts official documents. To file an LLC in Ohio, you must pay the statutory agent. The statutory agent will accept official documents pertaining to the LLC, including the Articles of Organization. The statutory agent will also maintain your business and file any documents related to your business.

In addition to paying a statutory agent, LLCs must hire a registered agent. This agent will be the main point of contact for the state and receive service of process in lawsuits. You must sign the Articles of Organization (Form 533a) to appoint the statutory agent. Obtaining a statutory agent will cost around $50 to $300 a year in Ohio.

Another cost is hiring an attorney to draft the operating agreement for your LLC in Ohio. This is a good idea if you have any legal questions about your name. It can save you time and money if you hire a professional LLC service. However, it’s worth hiring an attorney, especially if you’re unsure about naming issues. Lastly, your LLC must have a registered agent (also known as a registered agent). The agent will accept all legal documents on behalf of the business and forward them to you.

The most significant expense associated with forming an LLC in Ohio is filing the articles of organization. These papers register your business and lock in the name. Not all businesses need a business license, but certain activities do require separate licenses. To obtain an accurate price, it is best to talk to a professional attorney. They may offer a flat fee or charge by the hour. If you hire an attorney, you may have to pay for the additional fees.

F.A.Qs

Can I start an LLC for free?

It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.

Is an LLC expensive?

It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.

Does an LLC need a bank account?

The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.

In Conclusion

The cost of Ohio is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the price of professional LLC services and choose the most affordable one.

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