STARTING A BUSINESS IN OHIO

Doing Business In Ohio

Business facts:

Manufacturing and financial services account for the largest sectors of Ohio’s $701 billion gross state product. The state is home to around 50 of the 1,000 largest public and private companies in the U.S.—sixth most of any state.

Ohio is the birthplace of some of the world’s greatest inventions – the airplane, the lightbulb, the traffic light and even Superman. Today, Ohio combines that innovative spirit with a friendly business environment that attracts global investment and fosters growth. Ohio’s simplified tax structure, central location and affordable cost of doing business are catalysts for ongoing economic diversification and prosperity.

Small business and Startup environment

Ohio has 850,961 small businesses, according to the most current federal data available. Of those 850,961 small businesses in Ohio, 227,339 have employees. The remaining 623,622 are Ohio small businesses that have no employees.

While companies locate and expand in Ohio because it makes good business sense, they are also attracted to the state’s diverse culture and lifestyle, including welcoming communities like Cincinnati’s StartupCincy to help new and seasoned entrepreneurs get connected wherever they land.

With many startups looking to tap into a tech-savvy, millennial talent pool to drive innovation, Ohio offers an advantage here, too. A full one-third of Ohio’s 6 million workers are millennials, with the number growing larger all the time in smart cities like Cincinnati, Cleveland and Columbus.

For Ohio, access to capital is quickly making the state a magnet for new startups and entrepreneurs. Investors throughout the nation have come to recognize Ohio as a place of golden opportunity.

Major companies

Ohio is home to large companies such as: Kroger, Macy’s, Convergys, Goodyear, L Brands, First Student, Parker Hannifin, HCR ManorCare, Marathon Petroleum, Sherwin-Williams

STEPS TO STARTING A BUSINESS IN OHIO

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Step 1: Choose A Business Structure

The most common business structures are sole proprietorship, partnership, limited liability company (LLC), and a few different types of corporations—the standard corporation (often called a C corporation or “C corp”), the small business corporation (often called an S corporation or “S corp”), and the benefit corporation (often called a B corporation or “B corp”).

The most common business structures are:

► Sole Proprietorship in Ohio:

► Ohio Partnership:

► Ohio Corporation:

► Ohio LLC:

Step 2: Choose The Right Business Name

Choosing a business name is important, you want to make it easier for your customers to remember it, here are some tips:

Avoid hard-to-spell names.
Don’t pick a name that could be limiting as your business grows.
Conduct a thorough Internet search.
Search and purchase a domain name.
Use a name that conveys some meaning.
Conduct a trademark search.

Step 3: Register Your Business

Depending on the business structure you chose you will need to register your business.

Ohio Resale license

Ohio Business Entity Search

Step 4: Obtain an EIN Tax Number

With limited exceptions, most businesses require an Employer Identification Number (EIN), also known as a Tax ID Number. An EIN is used to identify a business in its federal tax filings. Without an EIN, you can’t hire employees or open a business bank account.

Click Here to Apply for EIN number online

Get Inspired by these Ohio Startups

Step 5: Open A Bank Account

– Open a business bank account:

Separates your personal assets from your company’s assets, which is necessary for personal asset protection.
Makes accounting and tax filing easier.

– Get a business credit card:

Helps you separate personal and business expenses.
Builds your company’s credit history, which can be useful to raise capital later on.

Step 6: Licenses & Permits

Now that you’ve registered your business name you need to obtain a business license for your company – this authorizes your company to do business in your city or county. Typically this also involves registering for state taxes and permits (the city may require them as part of the business licensing process).

Here are some links for Ohio Businesses:

Selling products? Check Ohio Resale Permit

Business Licensing for the State of Ohio

Step 7: Branding & Marketing

Your brand is the image customers have of your business, so it’s important to determine who is your audience and what is the message that you want to project. That way, your company’s image will be what you intend it to be. It should be strategic and intentional.

Step 8: Establish a Web Presence

Creating an optimized website helps you to gain important visibility for the right terms. A website is a powerful sales tool and one that allows you to address your customers’ concerns, give them the information they need to make a decision and create compelling calls to action.

In addition to a website, you should also consider other avenues for promoting your business online: