Ohio Business License in 2026: The Vendor's License, Trade Names, City Taxes and Local Permits

Ohio is another state without a general business license, which leaves many new owners unsure whether they are legal to open. The short version: if you sell taxable goods or services, the licence you need is a vendor's license, and everything else depends on your occupation, your city and your legal structure. This guide explains the vendor's license and its 2026 fees, the transient vendor's license for shows and markets, trade name and fictitious name filings, municipal income tax, the commercial activity tax, professional licensing, and what Columbus requires. Figures were checked with each agency in October 2026.

Quick answer

Ohio has no general state business license. If you sell taxable goods or services, Ohio law requires a vendor's license before your first sale: $50 per fixed location from your county auditor or OH|TAX eServices. Regulated occupations need a professional licence, and cities such as Columbus license only specific activities but collect municipal income tax from most businesses.

• Transient vendor's license for shows and flea markets: $50, valid statewide

• Both fees doubled from $25 on April 9, 2025

• Trade name or fictitious name filing with the Secretary of State: $39

• Columbus has no general business license; its income tax rate is 2.5%

Does Ohio have a state business license?

No. Ohio does not issue a single licence that every business must hold. Instead, the state relies on a handful of registrations that each serve a narrower purpose. The Secretary of State registers entities and trade names. The Department of Taxation issues vendor's licenses for sales tax and registers businesses for the commercial activity tax and withholding. Professional boards license regulated occupations. And municipalities, which in Ohio have unusually broad tax powers, collect income tax on business profits and license certain activities.

For a shop, restaurant, salon selling products, or online seller, the vendor's license is the licence people usually mean when they ask about an Ohio business license. For a consultant, designer or other provider of non-taxable services, there may be no licence at all beyond entity registration and city income tax filings.

The Ohio vendor's license

Ohio law requires any person or business making taxable sales or providing taxable services to obtain a vendor's license first. The Department of Taxation says this includes physical storefronts and selling items online within Ohio. Each fixed location needs its own licence, so a business with a shop in Dayton and another in Springfield holds two.

There are two ways to apply. Through OH|TAX eServices, the Department issues a vendor's license immediately once you have set up an eServices account. Or you can apply in person or by mail with the county auditor in the county where you will sell. The licence is issued for the location and lists the county, which matters because Ohio uses origin sourcing for most in-state sales: you generally charge the rate where you take the order.

The fee is $50. House Bill 366 doubled it from $25 on April 9, 2025, with the extra money going toward fighting organized retail theft. Many websites still show the old $25 figure.

Once licensed, you collect the state rate of 5.75% plus county and transit taxes. Franklin County, which includes Columbus, and Cuyahoga County, which includes Cleveland, are both at 8%. Returns are due by the 23rd of the month after the period. Our Ohio sales tax guide lists every county rate and explains filing and the vendor discount.

Transient vendors and remote sellers

If you sell at craft fairs, festivals, flea markets or pop-ups around the state without a fixed shop, the transient vendor's license is the one you need. It costs $50 and is valid statewide, so you do not need a separate licence for each county you visit. You report sales by the county where each event took place.

Out-of-state sellers do not get a vendor's license. They register for a seller's use tax license once they have substantial nexus, which Ohio defines as more than $100,000 in sales to Ohio customers or 200 or more separate transactions in the current or previous year. If you sell only through a marketplace such as Amazon or Etsy that collects and pays Ohio tax for you, you do not need this licence for those sales.

Trade names and fictitious names

Ohio has a two-tier system for business names that confuses many owners. LLCs and corporations register their legal names when they file with the Secretary of State; an LLC's articles of organization cost $99. Our Ohio LLC guide covers that process.

If you trade under any other name, you have a choice. You may register the name as a trade name for $39, which gives you a registered right to it in Ohio's records. Or, if you do not register it, Ohio Revised Code section 1329.01 requires you to file a fictitious name report with the Secretary of State within 30 days of first using the name. The report costs the same $39, but it is public notice only and gives you no right to the name. Either filing lasts five years and renews for $25.

For example, Sam Patel, a sole proprietor, opens a coffee cart called "Scioto Brew." He must file at least the fictitious name report. If he wants the name on the state register so that a later entity cannot take it, he files a trade name registration instead. The cost is the same, so most owners choose the registration. See our DBA guide for how this compares with other states.

Trade name registration vs fictitious name report

	Trade name registration	Fictitious name report
Required?	Optional	Required if you use an unregistered name
Fee	$39	$39
Term	five years	five years
Gives you rights to the name?	Registered right in Ohio records	No, public notice only
Deadline	Before or after you start	Within 30 days of first use

Required?

Trade name registration

Optional

Fictitious name report

Required if you use an unregistered name

Fee

Trade name registration

$39

Fictitious name report

$39

Term

Trade name registration

five years

Fictitious name report

five years

Gives you rights to the name?

Trade name registration

Registered right in Ohio records

Fictitious name report

No, public notice only

Deadline

Trade name registration

Before or after you start

Fictitious name report

Within 30 days of first use

Municipal income tax: the local layer most people miss

Ohio is unusual in that hundreds of cities and villages levy their own income tax, including a tax on business net profits. Columbus's rate is 2.5%. A business located or working in a taxing municipality usually registers with that city's income tax department, withholds city tax from employees' wages, and files an annual net profit return.

Corporations and multi-member pass-through entities can simplify this by opting into centralized filing with the Department of Taxation under Revised Code section 718.80. The Department's guidance says the election is made on or before the first day of the third month of the tax year, which is March 1 for a calendar-year business. After that, the business files one municipal net profit return through the Ohio Business Gateway, and the Department distributes the tax to each city and handles audits and appeals. A new business only needs to notify the Department. Sole proprietors and single-member LLCs cannot opt in and keep filing with each municipality.

Each city sets its own rate, credits for tax paid to other cities and filing rules, so check the income tax page of every city where you have an office, a shop or employees. Columbus administers its tax through its own Income Tax Division, while many smaller Ohio municipalities use a regional administrator.

The commercial activity tax and state income tax

Ohio's commercial activity tax (CAT) is a tax on gross receipts, not profits. Since 2025, businesses with taxable gross receipts of $6 million or less a year are excluded and do not need to register or file. Above that, the rate is 0.26% on receipts over the exclusion. For most small businesses, the CAT no longer applies at all, which removed a filing that used to catch even tiny companies.

Owners of pass-through businesses pay Ohio personal income tax on their share of profits, with the first $250,000 of business income deductible and the rest taxed at a flat 3%. Employers also register for state withholding and unemployment insurance.

Ohio figures at a glance (2026)

$50

Vendor's license, per location

5.75%

State sales tax rate

2.5%

Columbus income tax

$6 million

CAT exclusion

Professional and occupational licences

Many Ohio occupations need a state licence, and most boards process applications through the state's eLicense Ohio system. Examples include cosmetologists, barbers and salons with the State Cosmetology and Barber Board, real estate agents with the Division of Real Estate, accountants with the Accountancy Board, and liquor permits with the Division of Liquor Control.

Construction works differently from many states. The Ohio Construction Industry Licensing Board licenses electrical, HVAC, refrigeration, plumbing and hydronics contractors who perform commercial work. Residential contractors and general contractors are not licensed by the state; instead, many cities and counties register or license them locally, and building departments issue permits job by job. If you are a residential remodeler, check with the building department in each city where you work.

Food businesses are licensed by the local health district rather than the state. In Columbus and Worthington, every retail food business needs a Food Service Operation or Retail Food Establishment licence from Columbus Public Health, and new or remodelled facilities go through plan review first.

Local permits: the Columbus example

Columbus does not issue a general business license. Its License Section, part of the Department of Building and Zoning Services, publishes a complete list of the licences it issues, and they are tied to specific activities: alarm dealers, arcades, billiard rooms, carnivals and shows, charitable solicitations, closing-out sales, commercial sales and promoters, community markets on public property, hotels and motels, itinerant vendors, massage establishments and providers, mobile food vending, scrap metal dealers, short-term rentals and vehicles for hire. Alarm user registration has been suspended since June 1, 2024.

If your business is not on that list, you need no city licence from the License Section. You will still deal with the city on zoning and the certificate of occupancy for your space, sign permits, and income tax registration. Short-term rental hosts should note that the city changed its code so licences are no longer issued on the day of application.

How to get set up in Ohio

Getting legally set up in Ohio

1. 1

   Register your entity or name

   File LLC articles with the Secretary of State for $99, or, as a sole proprietor with a trade name, register the name or file a fictitious name report for $39.

   Ohio LLC guide
2. 2

   Get an EIN

   Free from the IRS; needed for entities and employers.

   EIN guide
3. 3

   Get a vendor's license

   Apply in OH|TAX eServices or with your county auditor before your first taxable sale; $50 per location.

4. 4

   Get any professional or health licence

   Check eLicense Ohio for your occupation, and your local health district for food.

5. 5

   Register for municipal income tax

   Register with each city where you operate, or opt into centralized filing through the Ohio Business Gateway if you are eligible.

6. 6

   Clear local zoning and activity licences

   Confirm zoning and the certificate of occupancy, and check your city's activity licence list.

Worked examples

A boutique in the Short North, Columbus. The owner forms an LLC for $99, registers the shop's trading name for $39, and buys a vendor's license for $50. State and county setup cost: $188. She charges 8% on sales, so a $50 sweater costs the customer $54. She also registers with the Columbus Income Tax Division. With receipts far below $6 million, she has no CAT filing.

A candle maker who sells at fairs across Ohio. He works from home and sells only at weekend craft shows in six counties. He buys one transient vendor's license for $50, which covers every show, and reports each sale under the county where the show took place. If he later opens a studio shop, he adds a regular vendor's license for that location.

A freelance graphic designer in Cleveland. Her design services are not on Ohio's list of taxable services, so she needs no vendor's license. As a sole proprietor using her own name, she files nothing with the Secretary of State. She does register with Cleveland for municipal income tax and files a return each year, and she cannot use the centralized Gateway option because she is a sole proprietor.

Add licence and registration fees to your first-year budget

Registration, Legal & LicencesEquipment & Fit-outOpening InventoryLaunch MarketingMonthly Operating CostRunway Needed

One-Time Costs₹7,00,000.00

Working Capital Reserve₹10,80,000.00

Recommended Buffer (10%)₹1,78,000.00

Total Capital Required₹19,58,000.00

Open the full Startup Cost Calculator (PDF, save, compare)

Home-based businesses, moves and closures

Running a business from home does not change the state rules. If you sell taxable goods online or from your house, your home address is the fixed location on your vendor's license, and you charge your own county's rate on orders taken there. What changes is zoning: most Ohio cities and townships limit home occupations, typically restricting customer visits, employees who live elsewhere, signs and outdoor storage. Check your city's zoning code or ask the zoning office before you invite clients over, and remember that a homeowners' association may impose stricter rules.

If you move a fixed location to another county, the old vendor's license does not travel with you. Close it and apply for a new one for the new address, because the licence ties your sales to a county's tax rate. When you close the business for good, cancel the vendor's license, file a final sales tax return, and send final returns to every city where you filed income tax. Leaving accounts open is the most common reason former owners receive estimated assessments years later.

Common mistakes and how to fix them

The first mistake is budgeting $25 for a vendor's license. The fee has been $50 since April 9, 2025, and you pay it for each location.

The second is opening a second shop on the first licence. Each fixed location needs its own vendor's license. Apply before the new location opens.

The third is ignoring the fictitious name rule. Sole proprietors who trade under a brand name often assume Ohio has no DBA requirement because trade name registration is optional. The fictitious name report is not optional if you use an unregistered name, and section 1329.01 sets a 30-day deadline.

The fourth is forgetting city income tax. Many new owners file federal and state returns but miss the municipal return, then receive estimated assessments from the city months later. Register as soon as you start, and file even when you have a loss.

The fifth is assuming a vendor's license covers everything. It is a tax registration, not a permit to operate. Food, liquor, cosmetology, construction and short-term rentals all need their own licences.

Official Ohio links

• Ohio Department of Taxation — Sales and use tax and vendor's licenses
• OH|TAX eServicesVendor's, transient vendor's and seller's use tax licences
• Ohio Business GatewayCentralized municipal net profit filing and state filings
• Ohio Revised Code § 1329.01 — Trade and fictitious names
• Ohio Secretary of State — Business filings
• City of Columbus — License Section
• eLicense Ohio

What to do next

Choose your structure with our Ohio LLC guide and Ohio LLC cost breakdown, check the name with the LLC name checker, and get an EIN. If you sell taxable goods, buy your vendor's license before your first sale and use our Ohio sales tax guide and sales tax calculator to charge the right county rate. Then register with your city for income tax and check its activity licences. For how other states handle licensing, see our business licenses overview.

This is general information, not legal or tax advice — confirm on the official source or with a professional.

Frequently asked questions

Does Ohio require a general business license?

No. Ohio has no general state business license. Most businesses that sell taxable goods or services need a vendor's license from their county auditor or the Ohio Department of Taxation, and regulated occupations need a professional licence. Cities such as Columbus license specific activities rather than every business, and most cities require municipal income tax filings.

How much is a vendor's license in Ohio?

A county vendor's license costs $50 for each fixed selling location, and a transient vendor's license for shows, flea markets and similar temporary locations costs $50. Both fees rose from $25 on April 9, 2025. Out-of-state sellers that meet Ohio's nexus thresholds register for a seller's use tax license instead.

Do I need a business license in Columbus, Ohio?

Columbus does not issue a general business license. Its License Section licenses specific activities, including itinerant vendors, mobile food vending, short-term rentals, massage establishments, scrap metal dealers, hotels and vehicles for hire. Food businesses need a licence from Columbus Public Health. Most businesses also file Columbus income tax returns at the city's 2.5% rate.

How do I get a vendor's license in Ohio?

Apply online through OH|TAX eServices, which issues a vendor's license immediately once you have set up an eServices account, or apply with the county auditor in the county where you will sell. You need one licence per fixed location. Have your entity details, EIN or SSN, business address and start date ready, and pay the $50 fee.

Do I need a vendor's license to sell online from home in Ohio?

Yes, if you sell taxable goods to Ohio customers. The Department of Taxation says the vendor's license covers selling items online within Ohio as well as storefronts. You license your home address as the fixed location with your county auditor or through eServices. Sales made only through a marketplace that collects Ohio tax are handled by the marketplace.

Do I have to register a trade name in Ohio?

Registering a trade name is optional, but if you do business under a name you have not registered, Ohio law requires a fictitious name report to the Secretary of State within 30 days of first use. Both filings cost $39 and last five years, renewable for $25. Only a trade name registration gives you a registered right to the name.

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 12 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify

1. 1.Sales and Use Tax — vendor's license and registration — Ohio Department of Taxation · accessed 12 October 2026
2. 2.Ohio Revised Code § 1329.01 — Trade names and fictitious names — Ohio Legislative Service Commission · accessed 12 October 2026
3. 3.Ohio Revised Code § 111.16 — Secretary of State fees — FindLaw (reproduction of the Ohio Revised Code) · accessed 12 October 2026
4. 4.License Section — City of Columbus Department of Building and Zoning Services · accessed 12 October 2026
5. 5.Food Protection Program — micromarket plan review guide — Columbus Public Health · accessed 12 October 2026
6. 6.Municipal Net Profit Tax — general instructions — Ohio Department of Taxation · accessed 12 October 2026
7. 7.2026 Official Revenue Estimate of the City Auditor — City of Columbus Auditor · accessed 12 October 2026
8. 8.CAT filing deadline reminder — Ohio Department of Taxation · accessed 12 October 2026
9. 9.Construction Industry Licensing Board — Ohio Legislative Service Commission · accessed 12 October 2026
10. 10.Ohio sales tax rates by county, Q4 2026 — Ohio Department of Taxation · accessed 12 October 2026