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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 associated with maintaining an LLC in Ohio is the initial filing fee required to establish the business entity. Although this fee can vary depending on the type of LLC being formed, it is generally a reasonable cost that can be easily budgeted for. In addition to the initial filing fee, LLCs in Ohio are also required to pay an annual renewal fee to maintain their status as a legal business entity in the state. Again, this fee is typically reasonable and is an important cost to consider when establishing an LLC in Ohio.
Another expense associated with maintaining an LLC in Ohio is the cost of hiring a registered agent. A registered agent is an individual or entity designated to receive legal documents on behalf of the LLC and serve as a point of contact with the state. While some business owners may choose to serve as their own registered agent, many opt to hire a professional service to handle this responsibility. This cost is an important consideration for LLC owners, as having a registered agent can help ensure that legal documents are properly handled and deadlines are met in a timely manner.
In addition to the fees and costs associated with establishing and maintaining an LLC in Ohio, business owners should also be prepared to budget for ongoing operational expenses. These expenses can vary depending on the nature of the business, but may include costs such as business licenses, insurance premiums, accounting fees, and employee salaries. While these expenses can add up, they are essential for the successful operation of an LLC in Ohio and should be factored into the overall budget of the business.
Despite the various costs associated with maintaining an LLC in Ohio, the benefits of operating as a limited liability company far outweigh the expenses. One of the key advantages of forming an LLC is the limited personal liability protection it offers to business owners. This means that the personal assets of the LLC members are generally protected from creditors and legal judgments related to the business, providing a valuable layer of financial security.
Furthermore, LLCs in Ohio are also afforded flexibility in terms of taxation and management structure, allowing business owners to tailor their business operations to suit their individual needs and goals. This flexibility can help entrepreneurs adapt to changing market conditions and take advantage of new opportunities as they arise.
In conclusion, while there are costs involved in establishing and maintaining an LLC in Ohio, the benefits of this business structure make it a worthwhile investment for entrepreneurs. By understanding the expenses associated with operating an LLC and planning accordingly, business owners can position themselves for success and protect their personal assets in the process.
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.