How to form an LLC in Ohio

Ohio makes LLC formation affordable and straightforward with a one-time $99 filing fee and no annual report requirements. Whether you file online or by mail, you'll pay the same low fee—significantly less than neighboring states that charge $200+ plus annual report costs.

With no franchise taxes for most LLCs and minimal paperwork requirements, your business maintains good standing through basic statutory agent maintenance and periodic license renewals, without the administrative headaches that plague multi-state operations.

Ohio LLC formation requirements

Ohio law requires specific elements for valid LLC formation under Ohio Revised Code Chapter 1706. Understanding what's mandatory versus recommended helps avoid costly rejections and ensures proper liability protection from day one.

Requirement Details
LLC Name Must include "Limited Liability Company," "LLC," or "L.L.C." and be distinguishable from existing entities
Statutory Agent Ohio resident (18+) or authorized business entity with Ohio physical address
Articles of Organization Filed with Ohio Secretary of State using Form 610
Operating Agreement Not required by Ohio law but strongly recommended for liability protection

Filing fees and processing times

Ohio maintains consistent fees regardless of filing method, with online submissions offering faster processing:

Filing Method Fee Processing Time
Online $99 1-3 business days
Paper (mail) $99 7-10 business days
2-Day Expedited $99 + $100 2 business days
1-Day Expedited $99 + $200 1 business day
4-Hour Expedited $99 + $300 4 hours

The base $99 fee undercuts most neighboring states, while expedited options provide flexibility for urgent business needs without the premium pricing found in other jurisdictions.

Step-by-step LLC formation process

Creating an Ohio LLC involves five essential steps that must be completed accurately to avoid rejections and delays. Each step builds toward legal entity status and operational readiness.

Step 1: Choose your LLC name

Ohio requires names ending in "Limited Liability Company," "LLC," or "L.L.C." that are "distinguishable upon the records" from existing entities. The Secretary of State rejects names suggesting government affiliation or regulated professions without proper licensing.

Search the Secretary of State's Business Name Search tool before filing to verify availability. Common restrictions include:

  • Words like "bank," "trust," "insurance," or "attorney" require agency approval
  • Government terms ("FBI," "Treasury") are prohibited
  • Names must not mislead the public about business activities

Reserve your chosen name for 180 days using Form 534B and a $39 fee if you need time to complete formation paperwork. This prevents other applicants from claiming your preferred name while you organize funding or partnerships.

Step 2: Appoint a statutory agent

Every Ohio LLC must maintain a statutory agent (same as a registered agent) with a physical Ohio street address who is available during business hours to receive legal documents and state correspondence. This requirement ensures reliable service of process and compliance notifications.

Your statutory agent options include:

  • Self-service: Any Ohio resident over 18 can serve, but this puts your address on public record and requires availability during business hours
  • Professional service: Commercial agents provide privacy protection, guaranteed availability, and professional document handling for $100-300 annually

Written consent from your statutory agent is required, though it doesn't appear on the Articles of Organization.

Step 3: File Articles of Organization

Form 610 creates your LLC legally once accepted by the Secretary of State. Required information includes:

  • Exact LLC name with proper designator
  • Principal business address (physical location required)
  • Statutory agent's name, Ohio street address, and consent
  • Effective date (upon filing or up to 90 days future)
  • Business purpose statement ("any lawful business" suffices)
  • Organizer's signature and contact information

File online through Ohio Business Central for the fastest processing, or submit by mail with identical fees. Most rejections result from name conflicts, missing designators, or incomplete agent information.

Step 4: Create an Operating Agreement

While not required by Ohio law, an Operating Agreement provides crucial legal protections and operational clarity. This internal document establishes ownership percentages, management structure, profit distribution, and dispute resolution procedures.

Essential provisions include:

  • Capital contributions and ownership percentages
  • Management authority (member-managed vs. manager-managed)
  • Voting procedures and decision-making thresholds
  • Profit and loss allocation methods
  • Member admission and exit procedures
  • Dissolution and asset distribution processes

For single-member LLCs, the agreement demonstrates separation between personal and business affairs, strengthening liability protection. Multi-member LLCs especially benefit from clear procedures that prevent costly disputes.

Step 5: Obtain required licenses and permits

Ohio doesn't require a general business license, but industry-specific permits may apply at state, county, or city levels. Common requirements include sales tax registration for goods/services, professional licensing for regulated industries, and local business permits based on location and activities.

Federal requirements include:

  • Employer Identification Number (EIN): Free from IRS, required for business banking and tax purposes
  • Payroll tax registration: Mandatory before hiring employees
  • Industry-specific permits: Healthcare, food service, construction may require additional licensing

Complete licensing requirements before beginning operations to avoid penalties and potential business interruption.

Ohio LLC ongoing compliance requirements

Ohio streamlines ongoing compliance by eliminating annual reports and state franchise taxes for most LLCs. However, maintaining good standing requires attention to specific areas:

  • Tax obligations: LLCs with gross receipts exceeding $150,000 pay Ohio's Commercial Activity Tax, starting at $150.
  • Statutory agent maintenance: Keep current agent information on file and update promptly when changes occur to prevent missed legal documents.
  • Record keeping: Maintain operating agreements, resolutions, and financial statements to preserve liability protection and demonstrate proper business operations.
  • License renewals: Monitor city, county, and industry-specific license expiration dates to avoid operational disruptions.

Consequences of non-compliance

Failing to meet Ohio's compliance requirements can result in:

  • Administrative dissolution for lack of a statutory agent
  • Loss of good standing status affecting business operations
  • Personal liability exposure when the corporate veil is pierced
  • Default judgments from missed legal notices
  • Inability to conduct business or access legal protections

Ohio's minimal requirements make compliance manageable, but consistent maintenance preserves your LLC's legal protections and operational authority.

FAQs about Ohio LLC formation

How long does LLC formation take in Ohio? 

Online filings typically process within 1-3 business days, while paper submissions take 7-10 business days. Expedited options range from 4 hours ($300 fee) to 2 days ($100 fee) for urgent needs.

Can I be my own statutory agent in Ohio? 

Yes, any Ohio resident over 18 with a physical address can serve as statutory agent. However, this puts your address on public record and requires availability during business hours for document receipt.

What's the difference between Articles of Organization and an Operating Agreement?

Articles of Organization are filed with the state to create your LLC legally—they become public record. An Operating Agreement is your internal contract governing ownership, management, and operations—it's not filed with the state.

What are the advantages of an Ohio LLC? 

Ohio offers personal asset protection, pass-through taxation, management flexibility, and low costs. The $99 formation fee and no annual report requirement create ongoing savings compared to states with higher fees and recurring compliance burdens.

Streamline your Ohio LLC formation with Discern

Discern handles Articles of Organization filing, provides professional statutory agent services, and tracks compliance requirements without the administrative burden that creates uncertainty for growing businesses.

Book a demo today to see how Discern streamlines your LLC formation and ongoing compliance.

Graphic image of Ohio state silhouette in grey on a dark teal background with white text that says 'How to Form an LLC in Ohio' positioned on the left side
Author
The Discern Team
Published Date
August 19, 2025
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