How to Form an LLC in Ohio (2026)

1. 1Choose a name for your LLC and verify availability by searching the Ohio Secretary of State business entity database. Your name must include "Limited Liability Company," "LLC," or "L.L.C."
2. 2Appoint a registered agent (called a "statutory agent" in Ohio) with a physical street address in Ohio.
3. 3File Articles of Organization with the Ohio Secretary of State. The filing fee is $99. Online filing processes in 3-5 business days.
4. 4Obtain an EIN (Employer Identification Number) from the IRS at no cost.
5. 5Create an operating agreement. Not legally required in Ohio but strongly recommended.
6. 6Open a business bank account with your Articles of Organization, EIN, and operating agreement.
7. 7Obtain any required state and local business licenses or permits.
8. 8Ohio does not require annual reports for LLCs, so no initial report filing is needed.

• ✓Obtain an EIN from the IRS (free, apply online at irs.gov)
• ✓Open a dedicated business bank account
• ✓Register for Ohio state taxes with the Department of Taxation
• ✓Get business insurance (general liability at minimum)
• ✓Set up an accounting system to track income and expenses
• ✓Apply for any local business licenses or permits
• ✓Register for Commercial Activity Tax (CAT) if gross receipts exceed $150,000

Your Ohio LLC name must contain "Limited Liability Company," "LLC," or "L.L.C." Restricted words like "Bank," "Insurance," or "Trust" require additional licensing. The name must be distinguishable from existing business entities in Ohio.

Ohio LLCs are pass-through entities by default. Ohio does not have a traditional state income tax on pass-through business income for most small LLCs. Instead, Ohio uses a Commercial Activity Tax (CAT) of 0.26% on gross receipts over $150,000. LLCs with gross receipts under $150,000 owe $0 in CAT. Ohio does not require annual reports for LLCs.

LLC vs. other structures in Ohio

Ohio is one of the cheapest states for long-term LLC maintenance: $99 to file with zero ongoing state filing costs. No annual report and no franchise tax. The Commercial Activity Tax only applies to businesses with over $150,000 in gross receipts, so most small LLCs pay nothing. Ohio is excellent for cost-conscious small businesses.

• •Ohio does not require annual reports — no annual state filing is needed
• •Register for and pay Commercial Activity Tax (CAT) if gross receipts exceed $150,000
• •Maintain a statutory agent with a physical address in Ohio at all times
• •Keep your operating agreement current and update it when membership changes
• •File federal tax returns (no state annual report required)

Ohio offers a reasonable cost structure for LLCs. The $99 filing fee is competitive, and ongoing costs are manageable. If you operate in Ohio, forming your LLC here makes the most sense.

In general, you should form your LLC in the state where you physically live and conduct business. Forming in a "tax-friendly" state like Wyoming, Delaware, or Nevada sounds appealing, but if you operate in Ohio, you will still need to register as a foreign LLC there — paying fees in both states.

An LLC is almost always a better choice than operating as a sole proprietorship because of the personal liability protection it provides. However, if your LLC is highly profitable, you should talk to a CPA about electing S-Corp tax treatment to potentially reduce your self-employment tax burden.

What Ohio LLC Owners Need to Know

• •Ohio does not require annual reports for LLCs — ongoing filing costs are $0
• •Ohio uses a Commercial Activity Tax (CAT) instead of a franchise tax, applying only to businesses with gross receipts over $150,000
• •Filing fee is $99 with zero ongoing state fees
• •Ohio is one of the cheapest states for long-term LLC maintenance

Official Ohio Resources

• Ohio Secretary of State — Business Services
• Ohio Business Filing Portal