The hardest part of starting a business in Ohio is figuring out where to begin and what steps to take to accomplish this feat. Luckily, the state has many resources that make it easy for entrepreneurs to get the ball rolling. From registering with the IRS to purchasing your business owner’s policy, there are several steps to take.
What You Must Know to Start a Business in Ohio
It is time to understand what you are in for. Therefore, here are the basics of how to start a business in Ohio.
Find a Business Owner’s Policy that Matches Your Structure
The first step is to decide how you will structure your business. It is an important choice because it impacts all other decisions in the future. Your business structure also determines the liability and tax responsibility you will shoulder. Here are your options:
- Sole proprietorship
- Partnership
- Limited liability company
- Corporation
- Cooperative
Once you decide on your business structure, you can determine the best type of insurance to purchase. If you feel a standard business owner’s policy does not offer enough coverage for your unique situation, then a commercial package policy might be right.
Choose a Name
Select a name that is short, descriptive, and appealing. Be sure not to use words with legal connotations or imply services you do not offer. Once you have chosen a name, type it into the Ohio Secretary of State’s website search box. The name is available for you to claim if it does not return any matching businesses.
Register Your Business
To do business in Ohio, you must pay a small fee and register with the Secretary of State’s office. Create an account on their website and fill out an online form. You must also register with the federal government if your business deals in any of the following:
- Natural resources such as agriculture, wildlife, or fisheries
- Transportation
- Alcoholic beverages
- Firearms
- Broadcasting
Obtain Tax Identification Numbers
Ohio requires that businesses register for a state tax identification number through their Ohio Business Gateway website. You must also obtain a nine-digit federal tax identification number if your company is a partnership or plans to hire employees.
Apply for Permits
You may need to apply for additional permits or licenses if your business involves a regulated activity. For example, if you are starting an accounting firm, you will need an Ohio permit, and your accountants must hold Ohio CPA licenses. Selling regulated items such as alcohol or explosives also requires specific permits.
Double-Check Your Business Owner’s Policy
Once you have fulfilled all your legal obligations and are ready to open a shop, revisit your business insurance plan. Situations can change once you are through the initial planning stages, and you need to be sure you still have the appropriate amount of coverage as your company takes shape.
Starting a business may initially seem complicated, but the payoff is worth the hassle. After fulfilling state regulations and protecting your investment with a good business owner’s policy, you can finally experience what a great place Ohio is to live and work.
About Haughn & Associates
Founded by Michael Haughn in 1986, Haughn & Associates is a full-service, family-owned, independent insurance agency based out of Dublin, Ohio. H&A strives to provide the best possible price and unique insurance solutions across a myriad of industries, including construction, IT, Habitation & Commercial Property, Agriculture, and Engineering. Devoted to providing the best of business insurance, life and disability insurance, personal insurance, employee benefits, and bonds, H&A is proof that success lies in long-standing client relations and satisfaction. To learn more about how H&A can be of service to you, contact us at (877) 802-2278.
