How Much Does an LLC Cost in Ohio?

One of the early hurdles for aspiring entrepreneurs is figuring out how to set up their business and how much it will cost. Luckily, the steps to start up an LLC in Ohio are pretty simple and affordable for most businesses. Some of the costs of starting a limited liability company (LLC) in Ohio are mandatory, while other fees are optional (although they could make your life much easier). 

How much is the Ohio LLC formation filing fee?

In Ohio, the LLC formation filing fee is $99. 

LLCs file Form 533a, which is available on the Ohio Secretary of State's website and can be submitted online or mailed. The filing usually takes three to seven business days to be processed. Expedited filing is available if you’re in a rush:

• Two business day processing requires an extra $100.
• One business day processing requires an extra $200.
• Four-hour processing requires an extra $300. This service is only available to those who hand-deliver their completed forms to the Secretary of State.

Pre-clearance filing is available for an additional $50. This allows you to have the filing reviewed to get advice on if it is acceptable or not.

If you're ready to launch your Ohio LLC, you will need to initiate a process for creating and maintaining the LLC. This includes reserving a name, filing articles of organization with the Secretary of State, and obtaining any necessary permits and licenses.

How much do LLC articles of organization cost in Ohio?

Forming an Ohio LLC requires filing articles of organization with the Secretary of State. This is the standard LLC formation document submitted with your filing fee when applying to start your LLC. There is no additional cost for filing your articles of organization, it’s simply part of the standard LLC filing fee.

Your articles of organization must include the name of your Ohio LLC. You may also add the LLC’s effective date, time, and purpose. You can fill out your articles of organization online prior to submitting it to the Ohio Secretary of State.

How much does a registered agent cost in Ohio?

Ohio requires that every LLC designate a registered agent to accept legal service and notices from the state on behalf of the LLC. In Ohio, a registered agent is referred to as a statutory agent.

You can choose anyone you want for your statutory agent (including a member or manager of your Ohio LLC) but it must be a person or a company physically located in Ohio. You will need to indicate the name and address of your statutory agent in your articles of organization.

Statutory agents are free in Ohio, since they are required for LLC formation. However, many businesses choose to hire a professional statutory agent—a company that specializes in these services and which has a dedicated staff—so that they don't need to worry about availability or missing any notices. This can cost a few hundred dollars per year, depending on the company you select.

How much does an Ohio seller’s permit cost?

In Ohio, a seller’s permit is known as a vendor’s license or seller’s use tax account. The cost of a vendor’s license in Ohio is $25. This is required for all businesses that make sales in Ohio. 

To apply for a vendor’s license, you’ll register your business with the Ohio Department of Taxation. You can also apply through your local county auditor. You will need a vendor’s permit for each county in which you plan to do business.

Online applications are accepted immediately while mail-in or in-person applications can take up to six weeks to be processed.

How much do local business licenses cost in Ohio?

There is no statewide Ohio business license required by Ohio law.

Some businesses will need to apply for local or county-specific licenses. These county licenses will cost a few hundred dollars and you’ll need one for each county in which you operate your business—for example, a mobile food truck may need more business licenses than a brick-and-mortar restaurant.

Depending on your business, you might also need to apply for professional licenses. These are generally regulated by a professional board and not the state. Engineers, accountants, hairdressers, nail salons, real estate agents, and physical trainers all need professional licenses.

Lastly, you might also need a federal or state license for certain regulated industries. This could include a license for selling alcohol, tobacco, or firearms, or for engaging in agriculture, drug manufacturing, or radio broadcasting. 

LegalZoom can help you figure out which specific licenses your business might need. 

How much is the annual LLC fee in Ohio?

There is no annual fee for operating or renewing an Ohio LLC. 

However, if you’re using a DBA or fictitious name, you will be required to renew your name every five years by filing Form 523A with the Ohio Secretary of State and paying a $25 fee.

You must file the renewal application during the last six months of the five-year period. Processing typically takes three to seven business days. Expedited filing is available if you’re in a rush:

• Two business day processing requires an extra $100
• One business day processing requires an extra $200
• Four-hour processing requires an extra $300. This service is only available to those who hand-deliver their completed forms to the Secretary of State.

How much does business insurance cost in Ohio?

If you have one or more employees, you are required to obtain workers’ compensation insurance under Ohio law. If you don’t, your business could be shut down or fined.

You can obtain workers’ compensation insurance through the Ohio Bureau of Workers’ Compensation. The cost of the required insurance will depend upon how many employees you have, your industry, the risk faced by employees, and your claim history. The cost of workers’ compensation insurance is typically about 75 cents per $100 in payroll. This is the only required business insurance in Ohio.

Though workers’ compensation insurance is the only required insurance, you may also want to consider general liability insurance for your business. This can help protect you from lawsuits, workplace accidents, and property damage. The cost of liability insurance depends on your industry, the amount of risk, and the level of protection you want.

What is the Ohio franchise tax?

In 2010, Ohio phased out the majority of franchise tax requirements. Unless your business is a financial institution or a securities company, you do not need to pay franchise tax in Ohio. However, even if you are not required to pay franchise taxes, you may need to pay the Commercial Activity Tax (CAT) as part of your Ohio LLC taxes.

Ohio businesses that take in taxable gross receipts of more than $150,000 must pay the annual minimum CAT to the Ohio Department of Taxation, which ranges from about $200 to $2,000 depending on the amount of the gross receipts. Businesses with more than $1 million in taxable gross receipts must pay quarterly in addition to the minimum. 

Taxable gross receipts include revenue from sales of inventory, manufacturing of items, and providing services. To pay this tax, your LLC must first register with the Ohio Department of Taxation.

Other Ohio fees and business costs you might encounter

In addition to the above fees, you may also face a few additional fees when getting your Ohio LLC started:

• Name reservation. For $39, you can reserve a business name for 180 days. This means that for six months, no other business can register to use the business name you’ve reserved.
• Doing business as (DBA). If you want to operate your business under a name that’s different from your chosen LLC name, you can file for a DBA. A DBA costs $39 and must be renewed every five years. For instance, if your LLC name is “Fred’s Donuts, LLC” you may wish to do business as “Fred’s Donut Emporium.”
• Certificate of Good Standing. If you need to prove your business is in good standing with the state of Ohio, you can apply for a Certificate of Good Standing. This form costs $5. You might need this when applying for a bank account or opening your business in another state.
• Certified copies. If you’d like certified copies of any of your business documents, you will need to pay $5 per copy requested. You may need certified copies of your LLC paperwork in order to open a business bank account, get a loan, or show investors that your LLC is registered.
• Operating agreement. An Ohio LLC operating agreement governs the relations between members of the LLC. While you're not required to file an operating agreement, it can make management of the LLC between LLC owners easier. You can hire a company to create an operating agreement for you or write your own.
• LLC formation service. If you want help with your LLC filing in Ohio, an LLC formation service can help you fill out and file your paperwork. For a small fee, they make creating your business entity simple.

What is the total cost to start an LLC in Ohio?

At the very least, the Ohio LLC cost is $99 for the initial filing fee. 

Any additional costs will depend upon your industry, whether or not you need business licenses and insurance, and if you choose to hire an agency to be your statutory agent.

After five years of being in business, you will then need to pay a $25 renewal fee to keep your Ohio LLC active.

FAQs

Does it cost more to register a foreign LLC in Ohio?

No, the cost of registering a foreign limited liability company is the same. It costs $99. A foreign LLC is an LLC that was initially registered in another state. 

Can you get grants to help cover the cost of starting a business in Ohio?

Yes—the Ohio Chamber of Commerce offers a list of grants available to small businesses in Ohio. 

What’s the cheapest way to start an LLC in Ohio?

The cheapest way to start an Ohio LLC is to file your LLC application yourself. The required cost is $99. Depending on your industry, you may also need business permits or licenses and business insurance.