How to Start an LLC in Ohio (2026 Step-by-step Guide)

It costs $99 to start an LLC in Ohio. This is the fee to file the Articles of Organization – the document that creates an LLC.

To learn more about LLC Costs, see LLC Costs in Ohio.

If you file your LLC by mail, it will be approved in 1 business day (plus mail time).

But if you file online, your LLC will be approved in 1 business day.

Please see How long does it take to get an LLC in Ohio to check for any delays.

Getting an EIN Number from the Internal Revenue Service is completely free.

If you apply online, it takes 15 minutes to get an EIN from the Internal Revenue Service.

If you apply by mail or fax, it can take 1-3 months.

You’ll want to open a business bank account for your LLC.

This makes accounting and record-keeping much easier for your business finances.

Having a separate business bank account also maintains your personal liability protection. This is because it keeps your business entity finances separate from your personal finances.

Good news, Ohio doesn’t have a state general business license.

However, depending on where your LLC is located, you may need local Ohio business licenses or permits.

For example, if you want to start a daycare, you may need business licenses from the city and/or county.

You can learn more on our Ohio Business License page.

LLCs don’t pay income tax on the business income. Instead, the LLC Members pay the taxes for the LLC.

Said another way, each Ohio business owner pays taxes for the LLC business profits as a part of their personal tax return.

How will my Limited Liability Company be taxed?

By default, an LLC is taxed by the IRS based on the number of owners the LLC has:

• A Single-Member LLC is taxed like a Sole Proprietorship.
• A Multi-Member LLC is taxed like a Partnership.

Alternatively, you can ask the IRS to tax your LLC like a C-Corporation or S-Corporation.

Besides federal income tax, there are also state and local income taxes – and sales tax. And if you hire employees, you’ll also need to register for payroll taxes. Learn more in Ohio LLC Taxes.

Most businesses in Ohio must also file and pay the Ohio Commercial Activity Tax (CAT).

What is the Ohio CAT?

The Ohio CAT is an annual privilege tax. Meaning, it’s a tax on businesses for the privilege of doing business in the state of Ohio.

The amount you owe for Commercial Activity Tax is based on your Ohio LLC’s taxable gross receipts made in Ohio in the previous calendar year. And this payment is the Annual Minimum Tax.

You can find out more about what the Ohio Department of Taxation considers to be taxable services and goods, and how to know if your gross receipts are taxable in Ohio here: Ohio Commercial Activity Tax: General Information.

How much will I owe for Commercial Activity Tax?

The amount that you owe is called the Annual Minimum Tax, and will vary based on your income range.

• If your LLC makes more than $150,000 per year in taxable gross receipts, you must file the CAT and pay an Annual Minimum Tax.
• If your LLC makes less than $150,000 per year in taxable gross receipts, you don’t have to file the CAT or pay an Annual Minimum Tax.

What is the Annual Minimum Tax (AMT)?

The Annual Minimum Tax is the minimum amount your LLC will need to pay for that year’s Commercial Activity Tax.

It is also based on the previous calendar year’s taxable gross receipts.

Said another way, the AMT is the minimum amount you’ll pay for that year’s Commercial Activity Tax.

The Annual Minimum Tax:

• costs $150
• is due by May 10th of the current tax year
• is paid with your annual return every year

How much is the Annual Minimum Tax for an LLC in Ohio?

The amount of Annual Minimum Tax your Ohio LLC will owe varies based on how much money your LLC made the previous year:

• If your LLC makes less than $150,000 per year in taxable gross receipts, you don’t have to pay the Annual Minimum Tax or file the CAT.
• If your LLC makes more than $150,000 per year in taxable gross receipts, you’re required to file the CAT and pay an Annual Minimum Tax once per year on your annual return.

When are the CAT and AMT due?

How often you’ll file your CAT return varies depending on last year’s taxable gross receipts:

Most businesses will need to file a CAT return once every year on your annual return.

That said, if your LLC’s taxable gross receipts were over $1 million per year, you’re required to file a CAT Return every quarter (instead of once per year on your annual return).

And your Annual Minimum Tax will be $800 or more.

You can read more about the CAT and Annual Minimum Tax fees here: Ohio Commercial Activity Tax: General Information.

And you can register for Commercial Activity Tax online with the Ohio Department of Taxation using the Ohio Business Gateway.

Yes, you can file your LLC online in Ohio. The Articles of Organization filing fee is $99.

When you start your LLC online, it will be approved in 1 business day.

The first benefit of an LLC is personal asset protection. Meaning, if your business is sued, your personal assets – like your home, cars, and bank accounts – are protected.

This protection applies to all Ohio LLC owners (called LLC Members). It doesn’t matter if you have a Single-Member LLC or Multi-Member LLC. All of the LLC owners are protected from the business debts and liabilities.

This type of protection wouldn’t apply if you operated as a Sole Proprietorship or Partnership. With these types of informal business structures, the owners aren’t protected in the event of a lawsuit. For that reason, Limited Liability Companies (LLCs) are a much more popular business structure.

And Ohio state income taxes are very similar, since the Ohio Department of Taxation honors the federal tax treatment of your LLC. Meaning, Ohio LLCs are taxed the same way at the state level.

To learn more, please see How are LLCs taxed.

Whether Ohio is a good state to start an LLC depends on where you live – and where you’re doing business.

Meaning, if you live in or do business in Ohio, then you should form your business entity there. While many websites talk about tax rates and advantages of certain states, none of that applies if it’s not the state where you live and do business.

For example, if you form an LLC in Delaware, but live in and conduct business in Ohio, you’ll also need to register your Delaware LLC in Ohio (and pay extra fees). And you’ll end up paying Ohio taxes anyway. This ends up leading to more costs and more headaches with no advantages.

In summary, if you live in and conduct business in Ohio, then yes, Ohio is a good state to start a business. If you aren’t an Ohio resident or business owner, Ohio isn’t a good state to start a business.

Real estate exception: If you’re purchasing real estate outside of Ohio, you should form your LLC in the state where the property is located.

For more information, please see Best State to Form an LLC.

Although most states do have annual reports and fees, Ohio is one of the few states that doesn’t require LLCs to file an Annual Report or pay an annual fee.

For more information, see: Ohio LLC Annual Report.