How to Start a Business in the State of Ohio
The Ohio Department of Development provides a business information kit for entrepreneurs who want to start a business in the state. As part of the start-up process, entrepreneurs must decide on a business structure, choose and register a business name, register with federal and state governments for the collection of taxes and workers' compensation benefits, decide on a location and hire employees (if applicable). The Ohio Department of Development has Small Business Development Centers located throughout the state to provide free business advice and counseling to entrepreneurs.
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Instructions
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Visit the Ohio Department of Development, 1st Stop Business Connection website; or phone the toll-free number to request a business information kit. The kit provides entrepreneurs with comprehensive information relating to state and federal regulations and forms needed to open a business in the state of Ohio. Review the information contained in the kit.
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Contact your Small Business Development Center (SBDC) for free one-on-one business counseling from a SBDC business adviser. There are 39 centers located throughout Ohio. Call the SBDC toll-free number to locate your local center. Small Business Development Centers provide support start-up and resource services to entrepreneurs.
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Register your business by completing an application for the Federal Employer Identification Number (EIN). Visit the Internal Revenue Service (IRS) website and follow the instructions for applying for an EIN. The federal government uses the EIN to identify businesses for tax purposes. There is no cost to apply for an EIN.
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Choose your business name. Visit the Ohio Secretary of State's website to search for business names similar to yours. Register your business with the Ohio Secretary of State's Office, if you are starting a legal structure such as a corporation, limited liability corporation (LLC) or limited-liability partnership (LLP). Complete the forms found on the Secretary of State website. A general partnership or sole proprietorship with the same name as the individual(s) starting the business does not have to be registered.
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Choose a location for your business. The Ohio Department of Development offers an on-line database of available business locations. Get all necessary licenses and permits.
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Register for a tax account with the Ohio Department of Taxation if you are planning to sell goods and services that require collection of state sales tax. The Ohio Department of Taxation provides the forms on its website, or you can request a copy of the forms by calling the Department's toll-free number. Contact the Ohio Department of Job and Family Services to determine if you need to create an Unemployment Compensation Tax Account for your business.
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If you plan to hire employees, visit the Ohio Bureau of Workers' Compensation website to complete the form U-3 Application for Ohio Workers Compensation Coverage. Consult the Ohio Attorney General website for information on guidelines for conducting employee background checks. In accordance with the Ohio Unemployment Compensation Law, most employers must report employee wages earned to the Ohio Secretary of State's Office; employers are liable to the state for the payment of unemployment taxes.
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Tips & Warnings
You must report all new employees hired to the Ohio Secretary of State's office. The office provides information on its website regarding how to contact your local Ohio New Hire Reporting Center.
