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.
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 costs associated with maintaining an LLC in Ohio is the annual report filing fee. Ohio law requires all LLCs to file an annual report with the Secretary of State’s office and pay the associated fee. This fee helps cover the administrative costs of managing and regulating LLCs in Ohio. Failure to file the annual report on time can result in late fees and potentially even the dissolution of the LLC. It is important for business owners to keep track of the deadline for filing their annual report to avoid any potential penalties.
In addition to the annual report filing fee, LLCs in Ohio are also required to pay a biennial renewal fee every two years. This fee is separate from the annual report filing fee and helps cover the costs of keeping the LLC registration up to date with the Secretary of State’s office. Business owners should mark their calendars to ensure they do not miss the deadline for paying the biennial renewal fee.
Furthermore, LLCs in Ohio are required to maintain a registered agent within the state. The registered agent serves as the LLC’s official point of contact with the state and is responsible for receiving legal documents on behalf of the LLC. Business owners can choose to act as their own registered agent, but many opt to hire a professional registered agent service to ensure compliance with state regulations. This additional cost should be factored into the overall maintenance expenses of the LLC.
Another cost to consider when maintaining an LLC in Ohio is the cost of keeping accurate and up-to-date records. Ohio law requires LLCs to maintain detailed records of financial transactions, meeting minutes, and other important documents. Failure to keep accurate records can result in fines or legal liabilities for the LLC. Business owners should invest in proper record-keeping systems or hire professional accountants to help them stay organized and compliant with state regulations.
Overall, the costs of maintaining an LLC in Ohio can vary depending on the size and complexity of the business. It is important for business owners to budget for these expenses and stay on top of their compliance requirements to avoid any potential penalties or legal issues. By understanding the costs associated with maintaining an LLC in Ohio and proactively managing these expenses, business owners can ensure the long-term success and sustainability of their businesses.
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.