You have an idea for a business and are ready to go – but where do you start? We will address the steps you follow to properly open a business in Ohio.

Step 1: Choose a Business Name

A business name is important – it is how people will identify you. However, the name must distinguish you from other businesses. Once you have nailed down your name, you should check to make sure no one else has registered the business in Ohio. You can check on the Ohio Secretary of State’s website. 

If the name is available – you can move to step #2. If the name is already in use, you will need to rethink the name and find one that is available.

Step 2: Decide on an Entity Structure

As a company, you can be a sole proprietor, partnership, limited liability company, or corporation. 

There are different reasons you would choose a specific structure. For more information on the structure guide – check out our Business Structures blog.  

Step 3: Register Your Name & Entity

Once you know your business’s name and entity structure, you will register it on the Ohio Secretary of State’s website. If you submit the entity online (versus in the mail) it usually takes 1-3 business days to become official! You will receive an email with the new business certificate.

Step 4: Obtain an EIN

An EIN is an employer identification number; it is essentially your business’s social security number. You will need your company’s formation date (step 3) in order to obtain an EIN for your company.  You will need the EIN to report your taxes, open business bank accounts, and more! You can apply online here. 

Typically, the IRS will issue an EIN immediately after submitting your application online. If a number is not generated instantly, you may need to fax in documentation to the IRS.

Step 5: File a Beneficial Ownership Report

Starting in 2024, (almost) all new businesses must file a Beneficial Ownership Report with the Department of Treasurer. Businesses started after January 1, 2024, have 30 days after the business is formed to file. The Beneficial Ownership Report (“BOI”) requires you to identify the 25% or more owners of the company and anyone who controls the company. A BOI Report is filed online here. 

If you think your company is excluded from BOI reporting, consult an attorney and/or Certified Public Accountant to verify.

Step 6: Draft Organizational Documents

This document may be a partnership agreement, operating agreement, or bylaws. The agreement will outline what the company structure is, who owns what percentage of the company, how internal company disputes are resolved, when annual meetings are, and how interest in the company is handled at death.

 The agreement may cover even more than that described above, but it is the baseline of what an organization document should cover.

Step 7: Obtain Any Necessary Licenses or Permits

Depending on the type of business you are operating, you may need a state or local license or permit to operate. Regulated businesses such as cannabis, automotive sales, or health care may have very specific and restrictive licensing applications that must be granted by the state before opening up the business. Other businesses, such as a bar or restaurant, may need sign-off from a county agency (such as the Department of health).

 You must understand what license or permit your business needs before opening.

Step 8: Register with State Agencies

Now that you have your business name and all the licenses, you will likely need to register with the Ohio Business Gateway. The Gateway is how to interact with the State’s various departments such as the Department of Tax. You may need to record sales tax, Corporate Activity Taxes, Employee wage withholdings, and more. This can all be done through the Ohio Business Gateway.

Step 9: Open a Business Checking Account

To keep your business assets separate, and maintain the protection your corporate structure provides, you will want to open up a separate business checking account. This account will be utilized only for business expenses, not personal. It will allow you clear insight into your business’s profitability.

Other Considerations

Since your business will be making (and spending money) you will want to set up an accounting software. The software will allow you to send invoices, pull profit and loss statements, and otherwise organize you company’s finances.

 You may also want to set up a Google My Business Profile so potential customers can find you online and leave you reviews and create a website and social media handles, even if you don’t plan to create any right away – you can preserve your name online! 

If you plan to hire employees quickly into your business ownership, you may want to sign up with a payroll service to streamline payment and tax withholdings.

Conclusion

 Ready to turn your business idea into reality? Take the first step today! Schedule a free 15-minute consultation with our experienced team to get personalized guidance on starting your business in Ohio. Click here to book online, or give us a call at (614) 440-1395 to make an appointment. Let’s make your entrepreneurial dreams happen together!