Registering a Business in Ohio
The process of registering a business with the state itself is convenient, thanks to some very useful websites developed by different states. We will focus on Ohio, as we are situated in Ohio, and we are partial to this State (no offence to our out of State clients). Ohio Secretary of State, Jon Husted (whom I met recently on one social occasion, very decent and down to earth gentleman), his department has an excellent website, www.sos.state.oh.us with loads of info on how to register and conduct business in Ohio. We have seen other states like New Jersey, Texas, and Florida, etc. having this kind of informative website. Such website is very helpful to collect information, but it does not replace the advice of professionals.
LLC-Limited Liability Company (LLC)
LLC is the simplest form for registering a business. LLC can have one person or many. If it is registered within the State, it’s called Domestic Limited Liability Company. If the company is registered in another State and they are doing business in different state, it is called Foreign Limited
Another form will be Corporation-Domestic or Foreign Corporation. In Ohio, registering a business as LLC or Corporation involves fees of $99 for regular filing.
LLC from IRS perspective.
From a tax standpoint, you need to decide whether you’re going to embark on this endeavor alone as a sole proprietor , in partnership with others, or as a shareholder of the corporation. Internal Revenue Service does not recognize LLC-Limited Liability Company as tax return filer. So, while registering with the State, you call yourself LLC, while dealing with IRS you need to specify how you want your company to be taxed.
If you want your company to be taxed as
- Sole Proprietorship (file Sch C along with your personal tax return)
- Partnership (File Form 1065, no federal tax on Partnership Level, pass through entity)
- Corporation (File Form 1120, Federal taxes on net profits as well as dividends)
- Sub Chapter S Corporation (File Form 1120S no federal tax on s Corp Level, pass through entity)
So, apart from choosing a nice, unique name for your entity, much more is involved in choosing proper form of business.
We will continue the talk of Business Location and Employee considerations in next blog. In the meantime, Contact us today to take advantage of our “Claim Financial Sanity This Summer” offer of One Hour Complimentary Session for Insurance, Taxes, Financial Planning for your family.
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