CobaltProsper

How to start an LLC in Ohio

By Brent Chudoba, editor Updated

Forming an LLC in Ohio costs $99 to file the Articles of Organization with the Ohio Secretary of State. There is no annual report fee. Ohio charges no franchise tax on a standard LLC. The $99 Articles of Organization filing fee (Form 610) is the primary one-time cost; Ohio has no ongoing annual report fee or franchise tax. Unlike some states, Ohio law requires every LLC to continuously maintain a statutory agent (Ohio's term for registered agent) with a physical Ohio street address able to accept service of process (R.C. 1706.09), there is no exemption for single-member or owner-operated LLCs, so budget for a commercial statutory-agent service (roughly $50-$300/yr) unless a member or manager with an Ohio address personally serves in that role.

How much does it cost to start an LLC in Ohio?

Ohio LLC costs (reviewed August 29, 2026)
ItemCost
Filing fee (Articles of Organization)$99
Annual reportNone
Franchise or business taxNone
Registered agentRequired

Source: Ohio Secretary of State, fee schedule reviewed August 29, 2026.

What are the steps to form an LLC in Ohio?

  1. Name your LLC. Pick a name that is available and meets Ohio naming rules, then check it against the Secretary of State's business database.
  2. Appoint a registered agent. Ohio requires a registered agent with a physical in-state address to receive legal mail. You can be your own agent, or hire a service.
  3. File the Articles of Organization. Submit it to the Ohio Secretary of State and pay the $99 fee. This is the step that legally creates the LLC.
  4. Get an EIN from the IRS. It is free and takes minutes. Do not pay a service for it. See how to get an EIN free from the IRS.
  5. Open a business bank account. Keep business money separate from personal money so your liability protection holds up.

Does Ohio have a franchise tax on an LLC?

No. No state franchise tax or annual report fee applies to a default (pass-through) Ohio LLC. Ohio's Commercial Activity Tax (CAT), a 0.26% gross-receipts tax, only reaches businesses of any entity type with more than $6,000,000 in annual Ohio taxable gross receipts (the exclusion threshold rose from $1M to $3M in 2024 and to $6M for 2025 and thereafter under H.B. 33, which also abolished the flat annual minimum tax), so the large majority of small LLCs owe no CAT at all.

How is an LLC taxed in Ohio?

By default, an LLC is a pass-through entity: it pays no income tax itself, and the profits flow to the owners' personal returns. Ohio has a state individual income tax with a top rate of 2.75% (flat brackets), so those profits are taxed on your Ohio return on top of federal tax. Ohio's individual (nonbusiness) income tax has been phased down to a single flat rate over three budget cycles, per Ohio Revised Code 5747.02(A)(3). The first $26,050 of taxable nonbusiness income is untaxed (0%) in all years below. Tax year 2024: 2.75% from $26,050-$100,000, then 3.5% above $100,000 (top rate 3.5%). Tax year 2025: 2.75% from $26,050-$100,000, then 3.125% above $100,000 (top rate 3.125%). Tax year 2026 and thereafter (H.B. 96, the FY2026-27 budget): collapsed to one bracket, a flat 2.75% on all nonbusiness income above $26,050 (tax = $332.00 plus 2.75% of the excess). Business income (the pass-through income of an LLC/sole proprietor eligible for Ohio's Business Income Deduction) is taxed separately: the first $250,000 is deductible, then a flat 3% applies above that, distinct from the 2.75% nonbusiness rate. Separately, more than 600 Ohio cities and villages levy their own municipal income tax (commonly 0.5%-3.0%, often collected via RITA or CCA on the state's behalf), which stacks on top of state liability; a municipality cannot exceed a 1% rate without voter approval.

An LLC can also elect to be taxed as an S-corp, which changes how owners pay self-employment tax. See LLC vs S-corp vs sole proprietorship and how self-employment tax works.

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