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.

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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.

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.

There are several steps that must be taken in order to create an LLC in Ohio. You will also need to select a Registered Agent, appoint directors and issue stock. These steps should all be performed with the intent of ensuring compliance with regulatory and tax requirements. First, you should register your business with the state, as well as obtain business licenses. Additional licenses may be required depending on the type of business you plan to operate. Some of these licenses may be issued locally.

After establishing an LLC, you must designate a statutory agent, or registered agent. This person receives important documents on your behalf. You can name yourself as the statutory agent in the articles of organization, but remember to keep this role separate from your business name. You must have an address that you can visit during business hours or publicly list online. While naming yourself as a statutory agent may seem tempting, it is not a good idea.

The minimum cost to form an LLC in Ohio is $99. This fee includes the filing fee of articles of organization with the Ohio secretary of state. It also includes the annual fee for registered agent service, and a $39 trade name registration fee. The costs may vary depending on the type of LLC you’re looking to form and maintain. However, in most cases, filing an LLC in Ohio will not require additional fees.

If you’re not ready to start a business immediately, it’s a good idea to reserve a name beforehand. While it is not mandatory, it’s recommended. It will cost you $39, but it will ensure sole ownership of your name for 180 days. After 180 days, you can cancel or transfer your reserved name. You must also be aware of other legal requirements involving the name of your business.

The most significant expense when forming an LLC in Ohio is the filing of articles of organization. These documents lock in the business name and register the company. Not all businesses require a business license, but some may. Additionally, some businesses perform certain activities and require a separate license. Therefore, it’s important to find out what the state’s requirements are for the type of business you intend to run.

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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