How to Start a Business in Ohio in 11 Easy Steps

1. Choose Your Business Structure

Selecting the right business structure is one of the most important decisions you’ll make when starting your business in Ohio. Your structure impacts your taxes, liability, and operations.

1. Sole Proprietorship: This is the simplest structure and doesn’t require formal registration. However, you’ll be personally liable for all business debts and obligations.
2. Limited Liability Company (LLC): Popular for small businesses, LLCs offer liability protection and tax flexibility. Ohio charges a $99 fee to register an LLC.
3. Corporation: Suitable for larger businesses or those seeking outside investment. Corporations provide strong liability protection but require more paperwork and compliance.
4. Partnership: Ideal if you’re starting the business with someone else. Partnerships can be formal (registered) or informal, but partners share liabilities and profits.

Take time to assess your goals, future plans, and legal needs before deciding. If unsure, consult a business attorney or accountant.

2. Register Your Business Name

Your business name is your brand’s first impression. Ohio requires you to register your name with the Secretary of State to ensure it’s unique.

1. Search for availability: Use Ohio’s online business name database to ensure no one else is using your desired name.
2. File your registration: Once you confirm availability, register your name. LLCs and corporations file their names during registration, while sole proprietors file a DBA (Doing Business As) if they want to operate under a different name.
3. Protect your brand: Consider trademarking your business name or logo to prevent others from using it.

Remember, your name should reflect your brand’s values, be easy to spell, and resonate with your target customers.

3. Obtain an Employer Identification Number (EIN)

An Employer Identification Number (EIN) is like a Social Security Number for your business. The IRS uses it to track your tax obligations.

1. Why you need an EIN: It’s required for businesses with employees, multiple owners, or those filing taxes separately from personal returns.
2. How to get an EIN: Visit the IRS website and apply online for free. The process only takes about 15 minutes.
3. When to use it: You’ll need your EIN to open a business bank account, file taxes, and establish credibility with vendors or clients.

Even if you’re a sole proprietor, an EIN can help keep your personal and business finances separate.

4. Register with the Ohio Secretary of State

Formal registration is mandatory for LLCs, corporations, and partnerships in Ohio. Sole proprietors may need to file a DBA.

1. File Articles of Organization: For LLCs, submit these documents online or by mail. The fee is $99, and approval typically takes a few days.
2. Corporations: File Articles of Incorporation, along with bylaws that outline your business’s operational rules.
3. DBA filing: Sole proprietors using a business name different from their own must file a DBA form with the Secretary of State.

Ensure all information matches exactly across your documents to avoid registration delays.

5. Apply for Required Licenses and Permits

Ohio requires certain licenses and permits based on your business type and location.

1. General business licenses: Some cities, like Columbus, may require a general license to operate.
2. Industry-specific permits: If you’re starting a food business, you’ll need health department certifications.
3. Zoning approval: Check with your local government to ensure your business location complies with zoning laws.

Operating without the correct permits can lead to fines or shutdowns, so research thoroughly.

6. Open a Business Bank Account

Keeping your personal and business finances separate is essential for professional bookkeeping and tax compliance.

1. Find a small business-friendly bank: Look for low fees, online banking options, and business credit card availability.
2. Bring proper documentation: You’ll need your EIN, business registration papers, and personal ID to open an account.
3. Consider additional services: Ask about merchant accounts for accepting credit card payments or small business loans.

Having a business bank account shows professionalism and builds credibility with customers and vendors.

7. Build a Professional Website

A strong online presence is critical for attracting customers and showcasing your brand. Even small businesses need a website to stay competitive.

1. Choose a domain name: Your domain should match your business name and be easy to remember. Platforms like GoDaddy or Namecheap can help you secure one.
2. Select a website builder: Use tools like Wix, Squarespace, or WordPress for a user-friendly design experience.
3. Include key sections:
4. Home page: Introduce your business and its value proposition.
5. About Us: Share your story and build trust.
6. Services or Products: Detail what you offer with pricing (if applicable).
7. Contact information: Make it easy for customers to reach you.

A professional website is one of the most cost-effective marketing tools you can invest in.

8. Set Up Tax Accounts with Ohio Department of Taxation

Taxes can feel overwhelming, but setting up your accounts properly from the beginning makes life much easier.

1. Sales tax: If you’re selling goods or services, register for a Vendor’s License with your local county auditor or the Ohio Department of Taxation.
2. Employer taxes: If you plan to hire employees, register for unemployment insurance and workers' compensation taxes.
3. File regularly: Keep track of deadlines for filing sales, payroll, and income taxes to avoid penalties.

Stay organized with bookkeeping software to simplify tax season.

9. Get Business Insurance

Insurance protects your business from unexpected risks and liabilities. Ohio businesses should have appropriate coverage for their industry.

1. General liability insurance: Covers property damage, accidents, and lawsuits. Essential for almost every business.
2. Professional liability insurance: For service-based businesses, this covers claims of negligence or errors.
3. Commercial auto insurance: Required if you use vehicles for business operations.

Reach out to multiple insurance providers to compare rates and coverage options.

10. Market Your Business

Marketing is key to finding your first customers and building brand awareness.

1. Social media marketing: Create profiles on platforms where your target audience spends their time. Share updates, offers, and behind-the-scenes content.
2. Local advertising: Use community bulletin boards, flyers, or local newspapers to spread the word.
3. Online ads: Leverage Google Ads or Facebook Ads for targeted campaigns.

Your goal is to get in front of potential customers as effectively as possible.

11. Focus on Customer Retention

Once you’ve acquired customers, retaining them is more cost-effective than constantly seeking new ones.

1. Deliver exceptional service: Go above and beyond in every interaction.
2. Collect feedback: Ask for reviews and testimonials to improve and build credibility.
3. Incentives: Use loyalty programs, discounts, or referral bonuses to encourage repeat business.

Happy customers lead to long-term growth and word-of-mouth referrals.