Articles

Is starting an LLC in Ohio inexpensive?

by Denny F. My Opinion

Forming an LLC in Ohio requires money but it is definitely inexpensive.

It’s normal for anybody planning to start a business to worry about the formation costs. When starting an Ohio LLC, some fees must be paid to various government offices and agencies (federal, state and local). The process is straightforward, but the cost differs depending on whether the business owner does all the work or uses professional services for some or all of the steps.

The most common fees and requirements for starting an LLC in Ohio

Below is an outline of the expenses that might be incurred when forming an LLC in Ohio which must be included in the budget.

1. LLC filing fee

The business owner is required to file the Articles of Organization at the office of the Secretary of State before commencing LLC operations. This is a legal document that gives the go-ahead to officially form the LLC and operate under its name. It may also be referred to as the Certificate of Organization or the Certificate of Formation. Filing can be done online, in-person, or by post, at a fee of $99. It takes 24 hours to get the LLC registered if filing is done online, and 5 to 10 working days if filing by post. This can be reduced to 2 days for an extra $100, 1 day for an extra $200 and 4 hours for an extra $300.

2. Statutory agent fee

An LLC must have a Statutory Agent to act as the point of contact between it and the government. One member of the LLC may act as statutory agent for free. Otherwise the LLC must appoint a professional statutory agent, for anything between $50 and $300 annually.

3. Creating an operating agreement

Although it is not a must to have an operating agreement in Ohio, it is always advisable to have one for an LLC. It’s an agreement that outlines the company's ownership and procedures to be followed for selling membership, getting new members, and other operations. It may appear to be unnecessary at first but when disputes arise later, members can consult it.

There is no fee for filling the operating agreement. The owners can create it on their own, or use a free template. Alternatively, they may choose to use an attorney or accountant or a paid template. Depending on the choice made, the process of creating an Operating Agreement can range between zero and more than $100.

4. LLC formation services

Anyone thinking of starting an Ohio LLC can handle the whole process on their own. However, they may choose to get professional help for anything between $40 and $350. For example, one professional service shown on the TRUiC website has a minimum offering of $39 plus state fees. This price covers business filing service, registered agent work and creation of an operating agreement and it recurs annually. If business owners choose more services from the offerings, they may expect to pay more.

5. Business licenses and permits

To be operational, LLCs in Ohio require licenses and permits that are issued by either regional, local, or federal government departments. Some of the fees may need to be paid once, while others may need to be paid regularly. What permits and licenses are necessary and the associated costs vary based on the industry, location, and business that the LLC will be undertaking.

It’s therefore wise to spend some time researching what permits and licenses are required for the intended type of business. Information about local permits/licenses is available from the local chamber of commerce. Information about the state permits and licenses is available on the Ohio Secretary of State’s business services website. Federal business licensing and permits requirements are available on the U.S. Small Business Administration website. TRUic websites also contain a lot of information and business formation guides. Delegating the search role may cost around $99.

6. Get and EIN

Getting the Employer Identification Number from the IRS is free and easy to do online or by mail. Asking a professional to get the EIN may cost $60-$70.



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About Denny F. Advanced Pro  My Opinion

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Joined APSense since, April 16th, 2020, From Bogor, Indonesia.

Created on Jun 29th 2020 05:33. Viewed 207 times.

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