Ohio is one of a small handful of states that doesn't make you file anything with the state every year just to keep your LLC alive. Pay the filing fee once, keep a registered agent on file, and that's most of what the state asks of you. Here's what it takes to start a business in Ohio in 2026.
1. Which business structure fits you?
Before you file anything, it helps to know what you're actually choosing between.
- Sole proprietorship. No filing required to start, and you and the business are legally the same entity. Simple, but you're personally liable for whatever the business owes.
- Partnership. Two or more people running a business together, with the same liability exposure as a sole proprietorship, just split across partners.
- LLC. The most common structure for small businesses in Ohio. It separates your personal assets from the business's debts and lawsuits.
- Corporation, either S-corp or C-corp. More paperwork and more formality, usually worth it once you're bringing on investors or multiple shareholders.
For a deeper comparison, see our guide on choosing a business structure.
LLCs and corporations register with the Ohio Secretary of State, the agency that handles business filings statewide. Sole proprietorships and general partnerships don't register there.
2. Register your business
Forming an LLC
You form an LLC in Ohio by filing Articles of Organization (Form 610) with the Secretary of State. The filing fee is $99, and standard processing takes about 3 to 7 business days through the Ohio Business Central portal.
Every LLC needs a statutory agent, Ohio's term for a registered agent, with a physical in-state address, available during business hours. You can act as your own agent, or hire a commercial service.
Ohio doesn't require an operating agreement by law, but it's still worth writing one, particularly for multi-member LLCs, to spell out how decisions and profits get split.
Sole proprietorships and DBAs
Sole proprietorships don't file with the Secretary of State to start operating. If you're using a name other than your own legal name, you'll register a trade name or fictitious name directly with the Secretary of State's office.
3. Get an EIN
An Employer Identification Number is free straight from the IRS and takes about 15 minutes online. You'll need one to open a business bank account, hire anyone, or file most business tax forms, even if you're a single-member LLC with no employees.
4. Check licenses and permits
Ohio doesn't issue a single general business license either. What you need depends on your industry and city: professional licensing for regulated fields, a Vendor's License from the Department of Taxation if you sell taxable goods, and any local permits your city or county requires. Our guides on professional licensing by industry and zoning laws for home businesses cover more of this.
5. Understand Ohio taxes
Ohio moved to a flat personal income tax structure starting in 2026: income above $26,050 is taxed at a flat 2.75%, and income at or below that threshold isn't taxed at all. If you're a sole proprietor or LLC member, the first $250,000 of business income is fully deductible under the Ohio Business Income Deduction, with anything above that taxed at a flat 3%.
Ohio also has no traditional corporate income tax. Instead, larger businesses may owe the Commercial Activity Tax, but only once gross receipts exceed $6 million a year, so most small LLCs never see it.
Sales tax starts at a 5.75% state base, with counties and transit authorities adding local rates that push the combined total up to around 8% in places like Cuyahoga and Franklin counties.
6. Stay compliant
This is the short section, because Ohio doesn't require an annual or biennial report for standard LLCs. Once you're formed and you keep a statutory agent on file, there's no recurring state filing to remember just to stay in good standing. Your ongoing obligations are really about taxes: file and pay whatever you owe on income, sales, and (if applicable) the Commercial Activity Tax, on schedule.
Ohio business costs at a glance
| Item | Cost |
|---|---|
| Articles of Organization (LLC) | $99 |
| Annual report | Not required |
| Statutory agent service (optional) | $100 to $200/year |
| EIN | Free (IRS) |
| State income tax | 2.75% flat above $26,050 (0% below); business income deduction up to $250,000, then 3% flat |
| State sales tax | 5.75% + local, up to ~8% |
Frequently asked questions
Does Ohio require an annual report for LLCs?
No, Ohio is one of a small handful of states with no annual or biennial report requirement at all.
How much does it cost to form an LLC in Ohio?
$99 for Articles of Organization, with standard processing in 3 to 7 business days.
What changed about Ohio's income tax in 2026?
Ohio moved to a flat structure: income above $26,050 is taxed at a flat 2.75%, and income at or below that threshold isn't taxed at all.
What is the Ohio Business Income Deduction?
It fully deducts the first $250,000 of business income for sole proprietors and LLC members, with anything above that taxed at a flat 3%.
When does Ohio's Commercial Activity Tax apply?
Only once gross receipts exceed $6 million a year, so most small LLCs never owe it.
Fees and rates above come from the Ohio Secretary of State and Department of Taxation as of 2026, and they do change over time, so double check before you file. None of this is legal or tax advice. Talk to an Ohio-licensed attorney or CPA about your specific situation.