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.

Whether you are considering starting an Ohio LLC or already have a business there, you need to know how much it will cost you to keep the business active. Depending on the business, you may need to pay additional fees to get or renew licenses and permits. The Ohio Department of Taxation can assist you with paying these taxes. You will also need to register for the sales and use tax if your business sells products or provides services.

Ohio LLCs are not required to pay state income tax on their earnings. However, you may be required to pay personal income tax on your business’ profits. The tax rate ranges from 1.98% to 5%. This will depend on the type of business you have, the number of employees, and your LLC’s income. If you have employees, you may need to pay payroll taxes as well.

To maintain an Ohio LLC, you will need to appoint a registered agent. A registered agent is a person or business who accepts official documents for your company and serves as the point of contact with the state. You can use a registered agent service, or you can hire an attorney. If you choose to use an attorney, you may pay up to $1,000 for the service. You may also need to pay for a vendor’s license. You should check with your city or state to determine whether you need a vendor’s license.

Ohio LLCs are not required to file an annual report, but many states require that you do. If you choose to file an annual report, you will need to pay an additional filing fee. In addition, you may need to pay a federal tax or a state tax depending on your state’s requirements. Some states also require a statement of information, which will cost you another filing fee.

The registered agent can be an individual, a business, or a corporation. You will need to choose the right type of registered agent for your business. There are a variety of options for registered agents, and you can also add services to the agent’s contract. A registered agent is a person or company who receives legal documents, including notices and tax forms, and who is the point of contact with the state. In some states, the registered agent service is free, but in other states, it costs up to $199 to $400 a year. Using a registered agent will save you time and hassles.

An Ohio LLC can also be formed with an operating agreement, which lays out the duties and roles of each member. You may want to use an LLC service to draft this document. You will need to pay a small fee for the service, but it will save you time and make the process much simpler. Some services can do this for as little as $39.

If you are considering starting a business in Ohio, you should keep in mind that there are several costs associated with forming and maintaining the business. The costs can vary greatly, depending on the type of business and your location.

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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