How to Obtain a Business License in Ohio

You must apply for a business license from the Ohio Department of Taxation.

If you're planning to start a business in Ohio, you'll need a license to operate your venture. The state will require you to pay taxes on your income monthly, quarterly or semiannually after your business license is filed. The type of license you obtain will determine your payment frequency. You can obtain a business license directly from Ohio's Department of Taxation or by visiting the Ohio Business Gateway's online business registration service.

Things You'll Need

• Internet Access
• Writing instrument (pen, pencil)

Instructions

1. You must obtain an employer identification number (EIN) before applying for a business license. This is an important step because the business license application requires you to provide your EIN. Visit the Internal Revenue Service's web site to obtain an EIN.

2. Consider using the Ohio Business Gateway, which is a one-stop portal for people who want to start new businesses. This web site will ask you a series of questions about the business you want to open. When your questionnaire is complete, you will be provided with a folder of information that contains a registration form for the secretary of state's office and any business license applications that apply to your venture. The Ohio Business Gateway allows you to complete your business license application and pay your registration fee online. Continue to step 3 if you prefer filing your application directly with the Ohio Department of Taxation.

3. Visit the Ohio Secretary of State's web site to download a business registration form. You must register your business as a sole proprietorship, an LLC (limited liability company), an LLP (limited liability partnership), a corporation or other organized entity before submitting a business application. This step is important because the business license application asks you to indicate how your business is legally organized. Business registration fees begin at $50.00 as of 2010.

4. Decide how your goods and services will be provided because this will determine which of the seven Ohio business licenses you'll need. If you plan to open a retail establishment, you'll need either a vendor or transient license. If you plan to conduct business solely online, you'll need a delivery license. If you plan to provide services without keeping stock or inventory, you'll need a service vendor's license. If you live outside Ohio and plan to sell goods or provide services to people in the state, you'll need a seller's license.

5. Visit the Ohio Department of Taxation's web site to download the application for a business license. Note that each business license has its own application. For instance, the vendor's license is form ST-1, the service vendor's license is form ST1-S and the transient vendor's license is form ST1-T.

6. Complete the application. Include your EIN, social security number and the type of ownership you've chosen for your business. (Remember, you already declared your ownership type to the secretary of state.) You must also include your address and the address where your business will operate, if applicable. Mail your signed, completed business license application and any applicable registration fees to:

   Ohio Department of Taxation
   P.O. Box 530
   Columbus, OH 43216-0530

Tips & Warnings

• Ask a lawyer to review your business license application, EIN application and any business filings you plan to send to the Ohio Secretary of State.

• You will still be required to file your monthly, quarterly and semiannual state taxes even if your business doesn't generate any revenue in a given tax period. Failure to do so could result in heavy fines.

References

• Ohio Department of Taxation: License and Filing Requirements
• Ohio Secretary of State: Business Filings
• Ohio Business Gateway: Licenses and Permits