How to Start a Sole Proprietorship in Ohio
In Ohio, a business owner is not required to register with the state in order to start a sole proprietorship. An Ohio sole proprietorship forms automatically after the company's initial business transaction and acts as an unincorporated business with a single owner. For legal purposes, a sole proprietorship in Ohio has no separate existence from the owner of the business.
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Instructions
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Determine if the sole proprietorship will operate under the owner's legal name. In some cases, an Ohio sole proprietorship may operate using an assumed business name, also known as a fictitious business name. If an Ohio sole proprietor elects to operate under its legal name, the business owner is not required to file a fictitious business name with the state.
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Select a name for the business. The selected business name must not be in use or held on reserve by another business entity in the state of Ohio. Conduct a name availability check using the Ohio Secretary of State's website. Contact the city or county clerk's office where the sole proprietorship will operate to ensure another local business isn't using the proposed business name. In addition, check the local yellow pages to ensure the name isn't being used by another local business entity.
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File a fictitious business name with the Ohio Secretary of State's office. Download Form 534A from the Ohio Secretary of State's website. Form 534A may also be requested in person or sent by mail. Include the owner's name and address, as well as the length of time the business name has been in use. Include the business' industry category. Completing Form 534A prevents another business in Ohio from using the fictitious business name of the sole proprietorship, as described by the Citizen Media Law Project website. Include a $50 payment to file a fictitious business name in Ohio.
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Obtain all necessary licenses and permits. The licenses and permits a sole proprietorship needs to legally operate a business vary depending on the nature of the business. For example, an Ohio sole proprietor that operates a barbershop must obtain a barber's license from the state of Ohio to legally operate. Most Ohio cities and counties require a sole proprietorship to obtain a general business license from the city or county clerk's office where the sole proprietorship operates. Contact the city or county clerk's office where the Ohio sole proprietorship operates to determine what local permits and licenses are needed to run the business.
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