Do you want to start a business in Ohio? Here in this article, our experts have listed down the steps associated with launching a small business including licenses and registration of the company.
Small business accounts for more than 99% out of entire business ventures in the state of Ohio. It is, in fact, the third-best state in the United States to avail of SBA loan funding. To start a legally compliant business in Ohio, you need to follow certain rules and paperwork. For a beginner who is starting a business for the first time, it might be troublesome.
For the benefit of young entrepreneurs, we lay down the right process to start a business in Ohio.
Here is a Stepwise Guide on Starting a Business In Ohio
Step 1. Select the Right Business
The first and the most critical step is to find the right business as per the local demand, passion and your level of expertise. Some of the businesses that are flourishing in Ohio are the following:
- Food Truck
- Yoga Center/ Fitness Gym
- Convenience Store
You can also check out our article on the best business ideas in Ohio that can be started with a small investment.
Step 2. Business Plan
The second most important step, though often ignored by beginners, is to document a plan for the business. A business plan works as a roadmap for the present and future activities of a business venture. Pick an idea, work on it, and prepare a business plan. With a proper strategy, you can start a business properly by setting up your benchmarks, targets, and the goals you wish to achieve.
Additionally, if you are looking for funding from investors, a business plan will be the most vital document. Almost every investor will ask for it.
If you are starting a small business and funding is not an issue, even then write a business plan document. It will equip you in properly analyzing challenges in the present and future days. Some of the aspects you must include are:
- Executive Summary of your Business
- Name of the Business
- Products & Services Offered & Pricing
- Manpower Planning
- Marketing Plan
Step 3. Naming Your Business
You will need an official name to register your business. It’s better to look for something unique. You can use a business name generator for suggestions. Make sure you register your business name with the US Trademark department and buy an online domain of the same name immediately.
You must check with the United States Patent and Trademark Office whether the chosen name is available or not.
Step 4. Decide on the Business Structure & Register with the State of Ohio
Once you select a name, it is now tome to decide on the structure of your business. There are various options available for legally structuring your business entity in the state of Ohio.
Some of the popular ones are the Proprietorship, LLC, Partnership, corporation, partnership, and LLC. You can check the official site SBA and learn more.
If you are looking for a registered agent to do the job for you, you can avail of services of certified vendors providing company formation services. Check our list of Top LLC Formation Service Companies in the United States.
After the availability of the name and business structure, it is time to register your business entity with the Ohio Secretary of State. Upon successful submission, your business will be accepted as a legal company in the State of Ohio.
Step 5. Business Licences Needed In Ohio
There are separate city-specific and business-oriented licenses applicable. You must check with your local authorities to make sure all your legal formalities are done beforehand.
For small businesses, you can apply for a business license as a sole proprietor with the Ohio Secretary of State’s office.
Step 6. EIN Number & Tax Filing
Now you need to apply for an EIN at the IRS. The Federal EIN will allow you to file taxes separately for your business. The Federal EIN acts as a social security number for your business which also allows you to hire an employee legally.
Step 7. Register With Ohio Department Of Taxation
To be legally registered as a business, you have to register your business with the Ohio Department of Taxation. To sell tangible items, you will need a sales tax permit and a consumer use tax permit for services.
In Ohio its compulsory for businesses to have workers compensation insurance in case there are more than an employee. There’s no mandatory insurance for selling services, but having professional liability insurance works as an added security
Step 8. Setting Up Business Bank Account & Accounting System
A dedicated business bank account will help you simplify all your business transactions. Choose a good accounting software. This will help you to set your business accounting system making annual taxation easy.
9. Financing Your Business In Ohio
While business from home may require very nominal investment, if you plan to start it on a larger scale, you will need a sizeable capital. There are even different venture capital firms and investors in Ohio ready to invest in unique projects. If you choose to fund your own business, go for a long-term loan.
10. Promoting Your Business
Promote your new business via social media channels initially. It’s free and easy to connect to your people around. If you have competition, it’s important to stand out in the market. Hiring an agency will help you promote your business in the right places.
Best Places To Start A Business In Ohio
Choosing the right location is going to determine how your business runs. Here are some of the best places in Ohio to start your business:
This is a complete hands-on guide on how to start a successful business in Ohio from home with a minimal investment. Follow the steps sequentially, and make sure you are following your own business plan hand in hand.