How Much Does It Cost to Form a Limited Liability Company in Ohio?

By Brette Sember, J.D.

How Much Does It Cost to Form a Limited Liability Company in Ohio?

By Brette Sember, J.D.

To form your LLC in Ohio, you need to follow the steps laid out in the state's statutes and pay the filing fee required by the Ohio Secretary of State. Although the cost to form an LLC is only a few hundred dollars, there are other startup expenses you may be required to pay, such as hiring a registered agent, possible permits and licenses, and, of course, taxes.

Woman looking concernedly at laptop screen

Filing Your LLC in Ohio

To start your LLC, you first need to register it with the state. If you want to reserve a name for your LLC before you are ready to file the rest of the initial paperwork, you can do so by filing a Name Reservation/Transfer/Cancellation form along with the required fee of $29. The Ohio Secretary of State also requires LLCs to file Articles of Organization for a Domestic Corporation and pay a filing fee. Plan to spend under $200 total for these two costs.

Statutory Agent

Ohio requires that every LLC designate an agent to accept legal service and notices from the state on behalf of the LLC. You can choose anyone you want for your statutory agent, including a member or manager of your LLC, but it must be a person or a company physically located in Ohio. Indicate the name and address of your statutory agent, sometimes also referred to as a registered agent, on your Articles of Organization. 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.

Ohio Commercial Activity Tax

Ohio businesses that take in taxable gross receipts of more than $150,000 must pay the annual minimum Commercial Activity Tax (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 Costs

If you will be hiring employees, your business must register so that you can pay unemployment and worker's compensation taxes in Ohio. Businesses conducting sales are required to have a vendor's license, which allows you to collect and remit state sales tax. Depending on your type of business, you might need to obtain a special license and/or permit to operate in the state of Ohio, which usually costs about a hundred dollars, depending on the type of license. Although it is not required, business insurance—which ranges from a couple hundred to many thousands of dollars annually, depending on your type of business, income, risks, etc.—is an important protection you should consider and is another additional cost to keep in mind.

Although it only costs a few hundred dollars to file your initial LLC paperwork, the other related costs can add up. Make sure you know what other responsibilities and documents you're required to file and pay so that you know all your expenses before you file. If you would like assistance filing your LLC, you can use an online service provider.

This portion of the site is for informational purposes only. The content is not legal advice. The statements and opinions are the expression of author, not LegalZoom, and have not been evaluated by LegalZoom for accuracy, completeness, or changes in the law.