Ohio entrepreneurs who intend to start their own businesses may wonder how to begin the process. Creating a business can seem confusing because many things must be completed before the company can operate. A basic overview might help business owners avoid getting overwhelmed.
First, the owner chooses a type of business formation. For a limited liability company or corporation, it is necessary to register the entity with the Ohio Secretary of State. Sole Proprietorships or partnerships do not register. It is important to also determine whether permits or licenses will be needed to operate the business. Then, the owner will need to obtain an employer identification number from the Internal Revenue Service. A bank account in the company’s name helps ensure availability of funds to start the business. Next, the owner must contact the Ohio Department of Taxation to register.
Once the business is ready to go, the owner must contact the Bureau of Worker’s Compensation if there are any employees. The state recommends reporting newly hired or re-hired employees to the Ohio New Hire Reporting Center. It may also be necessary to establish an unemployment compensation tax account with the state.
Setting up a business can be complicated. A business and commercial law attorney may be able to help explain the relative benefits of creating a limited liability company or corporation, register the business or provide advice on taxation issues. Consulting such an attorney before the business organization begins may also help in determining if any licenses or permits will be required as well as any other regulatory requirements specifically required.
Source: Ohio Secretary of State, “Quick-start for Your Business Entity”, September 12, 2014