How to Start an LLC in Ohio in 2026: Filing, Taxes and First-Year Cost

Ohio is one of the simplest states in which to keep an LLC running. You pay $99 once to file articles of organization, and after that the Secretary of State sends no annual report and charges no yearly fee. The work that remains sits elsewhere: a statutory agent who must accept the job in writing, a vendor's license if you sell goods, city income tax on your profits, and the commercial activity tax if your business grows large. This guide walks a first-time founder through each step in order, explains the 2024–2026 tax changes that most older guides miss, and ends with a worked first-year budget. Fees and rules were checked against the Ohio Revised Code and Department of Taxation material in October 2026.

Quick answer

To start an LLC in Ohio, file articles of organization (Form 610) with the Ohio Secretary of State and pay $99. Name an Ohio statutory agent who signs an acceptance. There is no annual report and no yearly state fee. Before selling taxable goods, get a $50 vendor's license.

• The name must end in LLC, L.L.C., limited liability company, limited, ltd. or ltd

• Optional: $39 name reservation for 180 days

• Commercial activity tax applies only above $6 million of taxable gross receipts a year

• Owners deduct up to $250,000 of business income, then pay 3% on the rest

• Changing your agent later costs $25

What an Ohio LLC is and who should form one

An Ohio LLC is created under Chapter 1706 of the Ohio Revised Code, the state's revised LLC Act, which replaced the older Chapter 1705 and has governed every Ohio LLC since 2022. Like other states' versions, it separates the company's debts from your personal assets: if the business is sued or cannot pay a supplier, your house and savings are not on the line simply because you own or manage it. That protection holds only if you treat the LLC as a separate business, with its own bank account, contracts in its name and records of the money you put in and take out.

For federal tax purposes, an Ohio LLC with one owner is a disregarded entity and an LLC with two or more owners is a partnership, unless you elect to be taxed as a corporation. Ohio follows the federal choice, so most LLC owners report the profit on their personal returns. Ohio then adds two layers that matter more than the formation fee: a state income tax with special treatment for business income, and municipal income taxes levied by most cities.

An Ohio LLC suits contractors, cleaning and landscaping firms, online sellers, consultants, rental property owners and small shops that operate in the state. You do not need to live in Ohio or be a US citizen to be a member, but if you do not live in Ohio you will need an Ohio resident or a commercial agent to act as statutory agent. If your business actually operates in another state, forming in Ohio does not avoid that state's fees: you would also need to register there. Form where you work.

Ohio LLC at a glance (2026)

$99

Articles of organization

Form 610, ORC 111.16

$0

Annual report fee

No annual report in Ohio

$50

Vendor's license

if you sell taxable goods

$6 million

CAT exclusion

receipts per calendar year

Step 1: choose a name Ohio will accept

Section 1706.07 of the Revised Code requires the name to include "limited liability company" or one of the accepted abbreviations: "LLC", "L.L.C.", "limited", "ltd." or "ltd". Ohio is unusual in allowing "limited" and "ltd." on their own, which helps if you want a traditional-sounding name such as "Lakeshore Joinery Ltd."

The name must also be distinguishable on the Secretary of State's records from other LLCs, corporations, partnerships and registered trade names. The test is applied to the records, not to whether customers might be confused, and changing only the ending or adding "the" rarely passes. Search the Secretary of State's business search before you file and try a few variations. If an existing business consents, section 1706.07 lets you use a similar name with a signed consent form, which is sometimes how related companies share a brand.

If you are not ready to file, you can reserve a name for $39. The reservation gives you the exclusive right to the name for 180 days. Most founders skip it and file the articles directly, which claims the name at the same moment. Remember that a name being free on the state register does not mean nobody holds a trademark on it; a quick search of the federal trademark database is worth doing before you print signs. If you plan to trade under a different name from the legal one, you can register a trade name with the Secretary of State; see our DBA guide.

Step 2: appoint a statutory agent

Ohio calls its registered agent a "statutory agent". Under section 1706.09, every Ohio LLC must keep one continuously. The agent receives lawsuits, tax notices and other official mail for the company, so the role matters more than its low profile suggests.

Who can serve:

• An individual who lives in Ohio, including you or another member.
• A business entity with an Ohio business address, such as a commercial agent company, provided it is authorized to do business in Ohio.

The agent's address must be a real street address in Ohio; a post office box alone does not count. Ohio also has a rule many founders trip over: the Secretary of State will not accept original articles of organization unless they include a written acceptance signed by the agent. Form 610 has the acceptance on the form itself, and the online filing asks for it as part of the submission. If you hire a commercial agent, they will tell you exactly how they sign.

Statutory agent options in Ohio

	You or another member	Commercial agent
State fee to appoint	Included in the $99 articles	Included in the $99 articles
Yearly cost	$0	About $50–$300 (market estimate)
Who can serve	Ohio resident only	Entity with an Ohio business address
Address on public record	Your home or office	The agent's office
Change later	$25 filing	$25 filing

State fee to appoint

You or another member

Included in the $99 articles

Commercial agent

Included in the $99 articles

Yearly cost

You or another member

$0

Commercial agent

About $50–$300 (market estimate)

Who can serve

You or another member

Ohio resident only

Commercial agent

Entity with an Ohio business address

Address on public record

You or another member

Your home or office

Commercial agent

The agent's office

Change later

You or another member

$25 filing

Commercial agent

$25 filing

The commercial agent range is our estimate from published provider pricing, not a state figure. The practical trade-off is privacy and reliability. If you work from home, your home address becomes the company's public legal address. If you are often away, a process server may not find you, and a missed lawsuit can end in a default judgment.

When an agent changes or quits. A change of agent, a resignation or a change of the agent's address costs $25 to file. If the agent moves, the change must be filed promptly. A resigning agent's authority ends 30 days after the resignation is filed, so appoint a replacement straight away.

What happens if you have no agent. Section 1706.09 lets the Secretary of State send a notice when an LLC has no agent on file. You then have 30 days from the mailing to fix it, and if you don't, the articles are cancelled without further notice. A cancelled LLC can be reinstated within two years by appointing an agent and paying the $25 reinstatement fee. Because Ohio has no annual report, this is the main way an Ohio LLC can lose its registration through neglect.

Step 3: file articles of organization (Form 610)

You file online through the Secretary of State's Ohio Business Central portal or on paper Form 610 by mail. Ohio's articles are short. They need the company's name, the statutory agent's name and Ohio address with the signed acceptance, and the signature of an authorized representative. You can add an effective date, a purpose clause or other provisions, but none are required, and most small businesses keep the filing minimal and put their rules in an operating agreement instead.

Filing an Ohio LLC

1. 1

   Search the name

   Use the Secretary of State's business search to confirm the name is distinguishable from existing entities and trade names.

2. 2

   Open Ohio Business Central

   Create an account on the Secretary of State's online filing system and choose articles of organization for a domestic LLC. Paper Form 610 is also accepted by mail.

3. 3

   Enter the agent and get the acceptance

   Give the statutory agent's name and Ohio street address. The agent must sign the acceptance before the filing will be accepted.

4. 4

   Add optional provisions

   Choose a later effective date or attach extra provisions only if you need them. Leave management rules for the operating agreement.

5. 5

   Pay $99

   Pay by card online. Add a $5 certificate of good standing if a bank or landlord wants one.

   Tip: Expedited processing costs extra; check the Secretary of State's current options before paying.

Processing and rejections. The Secretary of State publishes processing times rather than a guaranteed turnaround. The most common reasons a filing comes back are a name that is not distinguishable, a missing agent acceptance and an agent address that is a PO box. Each is fixed by correcting the item and resubmitting.

Look-alike notices. Once your LLC appears on the public record, private companies may mail official-looking letters offering an "annual report", "compliance certificate" or "labour law poster" service. Ohio has no annual report for LLCs, and a certificate of good standing from the state costs $5. Read the small print before you pay anyone.

Step 4: EIN, operating agreement and bank account

Once the filing is accepted, apply to the IRS for an employer identification number. It costs Free ($0) and takes minutes online; our EIN guide walks through the form. You need the EIN to open a business bank account and to register with the Ohio Department of Taxation.

Ohio does not ask you to file an operating agreement, but Chapter 1706 lets the agreement override many of the Act's default rules, from how profits are split to what happens when a member leaves or dies. Without one, the defaults apply, and they may not match what you and your co-owners expect. A single-member LLC benefits from a short agreement too, because banks ask for it and courts look at it when deciding whether the company is genuinely separate from you.

Open the bank account in the LLC's exact legal name with the EIN, and run every business payment through it. Mixing personal and business money is the most common reason a court is willing to look past an LLC's liability shield.

Beneficial ownership reporting. Since FinCEN's March 2025 interim final rule, companies formed in the United States do not have to file beneficial ownership information reports, so a new Ohio LLC has no BOI filing (current position: Not required for US-formed companies).

Step 5: register for Ohio taxes before you sell or hire

Most state tax registrations happen through the Ohio Business Gateway, the Department of Taxation's online portal.

Vendor's license and sales tax. If you sell tangible goods or taxable services at retail from a fixed location, you need a vendor's license for each location, issued through your county auditor or online. Since April 9, 2025 the fee has been $50, up from the long-standing $25. Sellers who move around, such as craft show and festival vendors, take a transient vendor's license at the same fee. The state sales tax rate is 5.75%, and counties and transit authorities add up to 3% on top. Returns are due the 23rd of the month after the period. Our Ohio sales tax guide lists every county rate and explains Ohio's origin-based sourcing for in-state sellers.

Employees. If you hire, register for Ohio employer withholding on the Gateway and for unemployment insurance with the Ohio Department of Job and Family Services. Ohio is also one of the few states where employers buy workers' compensation from a state fund, the Bureau of Workers' Compensation, rather than from a private insurer; arrange that coverage before your first employee starts. Our guide to hiring your first employee covers the federal side.

The commercial activity tax after the 2024–2025 changes

Ohio has no corporate franchise tax for most businesses. Instead it levies the commercial activity tax (CAT), a tax on gross receipts rather than profit, and it applies to LLCs just as it does to corporations. Older guides describe a CAT that most small businesses had to register for and pay a minimum on. That has changed, and the change matters for anyone budgeting a new Ohio LLC.

What changed. The state budget passed in 2023 abolished the CAT's annual minimum tax for tax periods beginning on or after January 1, 2024, and raised the exclusion in two steps: $3 million of taxable gross receipts for 2024, then $6 million for 2025 and later years. A business whose taxable gross receipts stay at or below the exclusion owes no CAT and files no CAT return.

Who still pays. Above the exclusion, the tax under section 5751.03 is 0.26% (2.6 mills) of taxable gross receipts over $6 million. A business with $7 million of Ohio taxable gross receipts in a year would pay CAT on $1 million, which works out to $2,600. Returns and payments go through the Ohio Business Gateway.

Housekeeping for existing accounts. The Department's 2026 reminders tell taxpayers who expect to stay at or below $6 million to cancel their CAT account in the Gateway with the "CAT Cancel Account" transaction. If you later exceed the exclusion, you reactivate the account and start filing. For a new LLC, the practical rule is simple: do not register for the CAT unless and until you expect to pass the threshold.

An Ohio LLC's calendar

Formation

Form 610 filed; $99 paid; agent acceptance signed; EIN obtained

Before first sale

Vendor's license ($50) for each fixed location

Monthly or less often

Sales tax return due the 23rd of the month after the period

April 15

Owners' federal and Ohio returns; most city net profit returns for calendar-year filers

Any time the agent changes

File the change ($25); 30 days to cure an agent notice

If receipts pass $6 million

Register for and file the CAT through the Ohio Business Gateway

How an Ohio LLC's owners are taxed

State income tax. Profit from a single-member or partnership-taxed LLC flows to the owners' Ohio returns. Ohio treats business income more gently than wages. Under section 5747.01, an individual deducts up to $250,000 of business income ($125,000 each for spouses filing separately), and under section 5747.02 business income above that is taxed at a flat 3%. Nonbusiness income above $26,050 is taxed at 2.75% from 2026, after the 2025 budget moved Ohio to a flat rate. For many small LLCs, the business income deduction means little or no state income tax on the business profit itself. Ask your preparer how guaranteed payments and other items are classified, because only business income qualifies.

Municipal income tax. This is the Ohio tax most new owners overlook. Most Ohio cities and villages levy an income tax on wages earned there and on business net profits, and rates and credits differ from city to city. An LLC that operates in a city generally files a net profit return with that city, or can elect to file municipal net profit returns centrally through the Ohio Business Gateway. Check with the tax office of the city where you operate as soon as you form.

Federal self-employment tax applies to the profits of members who work in the business, as it would for a sole proprietor. An S corporation election can reduce it once profits justify a salary and payroll costs; see LLC vs S corp and how to pay yourself from an LLC.

What it costs: a worked first-year budget

The table shows three realistic Ohio LLCs. State fees are statutory; the agent line is an estimate and labelled as such.

What the table leaves out. City income tax on profits, county or city permits for food service and signs, insurance and professional fees all sit on top. They depend on where you operate and what you do, so get those figures locally before you budget.

Year two and after. Ohio charges nothing to keep the LLC registered. Your recurring costs are any agent service, your tax preparer, city tax filings and sales tax returns. That makes Ohio's long-run cost lower than states with annual fees: a Washington LLC pays an annual report fee every year, as our Washington LLC guide explains, and a Florida LLC pays one too.

Worked examples

A Columbus IT consultant. Priya files Form 610 online on February 10, 2026, names herself as statutory agent at her home office, signs the acceptance and pays $99. She gets her EIN that afternoon. She sells only services, so she needs no vendor's license, but she registers with the City of Columbus income tax division and files a net profit return each spring. Her LLC profit of $90,000 falls under the $250,000 business income deduction on her Ohio return.

An Akron gift shop that reserved its name. Marcus reserves "Summit Makers Ltd." for $39 while he negotiates a lease, then files his articles six weeks later, well inside the 180 days reservation. Before opening he buys a vendor's license for $50 and starts collecting 5.75% plus Summit County's add-on. When he opens a second shop in Cuyahoga Falls, he buys a second vendor's license for that address.

A growing distributor that crosses the CAT line. A Dayton LLC's Ohio taxable gross receipts reach $6.8 million in its third year. It registers for the CAT on the Ohio Business Gateway and pays 0.26% on the $800,000 above the $6 million exclusion, which is $2,080. In earlier years, below the exclusion, it owed and filed nothing.

Ohio LLC launch checklist

0/10

• Name searched and distinguishable on the Secretary of State's records
• Statutory agent chosen, with an Ohio street address and signed acceptance
• Form 610 filed and $99 paid
• EIN obtained from the IRS
• Operating agreement signed by all members
• Business bank account opened in the LLC's name
• Vendor's license for each location (if selling taxable goods)
• City income tax account opened where you operate
• Withholding, unemployment and BWC coverage before the first hire
• CAT registration only if receipts will exceed $6 million

Share Print

Common mistakes and how to fix them

Forgetting the agent's signature. Ohio rejects articles without the statutory agent's written acceptance. Get it before you start the filing, especially if your agent is a friend or relative rather than a commercial service.

Using a PO box or an out-of-state address for the agent. The agent needs an Ohio street address. If you have already filed with a bad address, fix it with a $25 change filing before any notice arrives.

Assuming "no annual report" means "no deadlines". The Secretary of State won't send a yearly bill, but sales tax returns, city net profit returns and payroll filings are all real deadlines, and an agent lapse can still get the LLC cancelled after 30 days' notice.

Registering for the CAT out of habit. Many older checklists say every Ohio business must register for the CAT. Since 2024, a business at or below the exclusion has no CAT filing; registering only creates returns you then have to cancel.

Budgeting the old $25 vendor's license. The fee has been $50 since April 2025.

Ignoring city income tax. Ohio's municipal taxes are not collected by the state on your behalf unless you choose central filing. Missing a city return can produce penalties years later.

Official links

• Ohio Secretary of State — business filingsOhio Business Central, Form 610, business search
• ORC 111.16 — Secretary of State fees$99 articles, $25 agent change
• ORC Chapter 1706 — Ohio LLC ActNames (1706.07), statutory agent (1706.09)
• Ohio Business GatewayVendor's license, sales tax, withholding, CAT, municipal net profit tax
• Ohio Department of Taxation — Sales and Use TaxRates and vendor's licenses
• IRS — Apply for an EINFree

Out-of-state LLCs doing business in Ohio

An LLC formed in another state that does business in Ohio registers as a foreign LLC for $99, the same fee as forming a domestic one, and must keep an Ohio statutory agent who accepts the appointment in writing. If you live in Ohio and your business operates here, forming in Ohio in the first place avoids paying a second state's fees and annual charges.

What to do next

Check your name with the LLC name checker, line up your statutory agent's signature, then file Form 610 and get your EIN the same day. Use the startup cost calculator to fold the $99 filing, vendor's license and agent costs into your opening budget, and the sales tax calculator to price goods with Ohio tax included. If you are still weighing the structure, read LLC vs sole proprietorship before you file.

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

Frequently asked questions

How much does it cost to start an LLC in Ohio?

The Secretary of State charges $99 to file articles of organization (Form 610) under Ohio Revised Code 111.16. Optional extras are a $39 name reservation and a $5 certificate of good standing. If you sell taxable goods, add the $50 vendor's license from your county auditor or the Department of Taxation. There is no yearly state fee to keep the LLC registered.

Does an Ohio LLC have to file an annual report?

No. Ohio's LLC Act, Chapter 1706 of the Revised Code, has no annual report or annual registration fee for LLCs. Your ongoing state duties are keeping a statutory agent on file, filing tax returns and, once taxable gross receipts pass $6 million in a calendar year, the commercial activity tax. Ignore private mailers that offer to file an Ohio annual report for a fee.

Can I be my own statutory agent in Ohio?

Yes, if you are an Ohio resident. ORC 1706.09 allows any natural person who lives in Ohio, or a business entity with an Ohio business address, to serve. A post office box does not qualify. The agent must sign a written acceptance of the appointment, which is part of Form 610 and the online filing.

Do I have to pay the Ohio commercial activity tax?

Only if your taxable gross receipts exceed $6 million in a calendar year. Since 2025 businesses at or below that figure owe no CAT and file no CAT return, and the old annual minimum tax was abolished from 2024. Above the exclusion, the tax is 0.26% of receipts over $6 million, filed through the Ohio Business Gateway.

How long does it take to form an LLC in Ohio?

Online filings through Ohio Business Central are usually processed faster than paper Form 610, but the Secretary of State does not guarantee a turnaround, so check its posted processing times. Paid expedited handling is available. The LLC exists once the filing is accepted, and you can then get an EIN online the same day.

What taxes does an Ohio LLC pay?

A single-member LLC is taxed with its owner and a multi-member LLC as a partnership. Ohio individuals deduct up to $250,000 of business income and pay a flat 3% on business income above that. Most Ohio cities also levy a municipal income tax on business net profits. Sales tax starts at 5.75% statewide plus county tax.

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 9 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.Ohio Revised Code § 111.16 — Secretary of State filing fees — Ohio Revised Code (text via FindLaw) · accessed 9 October 2026
2. 2.Ohio Revised Code § 1706.07 — LLC names — Ohio Revised Code (text via FindLaw) · accessed 9 October 2026
3. 3.Ohio Revised Code § 1706.09 — Statutory agent — Ohio Revised Code (text via FindLaw) · accessed 9 October 2026
4. 4.Commercial Activity Tax (CAT) filing deadline reminder (10 July 2026) — Ohio Department of Taxation · accessed 9 October 2026
5. 5.Ohio Revised Code § 5751.03 — CAT rate — Ohio Revised Code (text via FindLaw) · accessed 9 October 2026
6. 6.Ohio Revised Code §§ 5747.01 and 5747.02 — Income tax — Ohio Revised Code (text via FindLaw) · accessed 9 October 2026
7. 7.Sales and Use Tax — Ohio Department of Taxation · accessed 9 October 2026
8. 8.Get an employer identification number — IRS · accessed 9 October 2026
9. 9.Beneficial Ownership Information — FinCEN · accessed 9 October 2026