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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.
On this page, you’ll learn about the following:
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 | Our Rating & Pricing | Top Features | Learn More |
#1 TOP PICK  | $0 + State Fees |
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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.
| States | Filing Fee | Annual/Biennial Fee | Sales Tax |
| Ohio | $50 | None | 5.75% |
| Michigan | $50 | $5 | 6% |
| West Virginia | $100 | $25 | 6% |
| Indiana | $90 | $30 | 7% |
| Pennsylvania | $125 | Seek Local Counsel | 6% |
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
- Ohio Name Reservation: $39 for online fillings or by mail
- Doing Business As (DBA): $125 for online filling or for filing by mail
- Certified Document Copies: $45
- Certified of Good Standing: $5 for short form or $25 for long form.
- Business Domain Name and Website: depend on your preference, but domain name could be as low as $2.99/yr at NameCheap, and web hosting is at least $30/mo at Kinsta.
- Online workspace: at least $4.20/mo for GSuite.
- Business Insurance: would vary depending on insurance type–whether general liability insurance or professional liability insurance–and coverage.
- Dissolution of Ohio LLC: $50
F.A.Qs
It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.
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.
The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.
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.
One of the primary expenses when maintaining an LLC in Ohio is the state filing fees. LLCs in Ohio are required to pay an annual renewal fee to the Secretary of State’s office in order to remain in good standing. This fee covers the administrative costs associated with maintaining business records, including updating the LLC’s information in the state’s database. While the exact amount of this fee can vary, it is typically a standard cost that all LLCs must budget for on an annual basis.
Another important cost to consider when maintaining an LLC in Ohio is the cost of hiring a registered agent. Every LLC in Ohio is required to have a registered agent who is responsible for receiving legal documents and official correspondence on behalf of the company. While some business owners may choose to act as their own registered agent, many prefer to hire a professional service to handle this responsibility. The cost of hiring a registered agent will vary depending on the provider, but it is an essential expense to ensure that the LLC remains compliant with state regulations.
In addition to these recurring expenses, maintaining an LLC in Ohio may also involve other costs such as business licenses, permits, and insurance. Depending on the nature of the business, there may be additional requirements that need to be met in order to operate legally in the state. These costs can vary widely depending on the industry and location of the business, so it is important for business owners to research and budget for these expenses accordingly.
While the costs of maintaining an LLC in Ohio may seem daunting, it is important to view them as necessary investments in the success and longevity of the business. By budgeting for these expenses upfront and staying on top of annual requirements, business owners can avoid costly penalties and maintain good standing with state authorities. Additionally, the benefits of forming an LLC, such as limited liability protection and tax advantages, often outweigh the costs associated with maintaining the entity.
In conclusion, while the cost of maintaining an LLC in Ohio can vary depending on various factors, it is essential for business owners to be aware of the general expenses associated with running the entity. By staying informed and budgeting for these costs, entrepreneurs can ensure that their LLC remains compliant with state regulations and set themselves up for long-term success.
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.