In addition, you’ll probably need to register to pay state unemployment insurance taxes. These taxes are handled through the Ohio Department of Job and Family Services . You can register for these taxes online or on paper . Then, on a quarterly basis, you’ll need to file Form JFS-20125 with JFS. For more information, check JFS website.
For more information on the requirements for forming and operating an LLC in Ohio, see Nolo’s article, 50-State Guide to Forming an LLC , and other articles on LLCs in the of the Nolo website.
In some cases, the owners of an LLC choose to have their business treated like a corporation for tax purposes. This choice is made by filing IRS Form 2553 with the IRS. Unlike the default pass-through tax situation, when an LLC elects to be taxed as a corporation, the company itself must file a separate federal tax return. In Ohio, LLCs choosing to be taxed as corporations, like other LLCs, are required to pay the commercial activity tax.
If you want to start and run an Ohio limited liability company , you’ll need to prepare and file various documents with the state. This article covers the most important ongoing reporting and state tax filing requirements for Ohio LLCs.
If your LLC will sell goods to customers in Ohio, you will need to collect and pay the state’s sales tax. You must register for this purpose with the DOT. You can do this on paper or online through the Ohio Business Gateway . Once you’ve registered, you’ll be sent a vendor’s license. Then, on a periodic basis , you must file a sales tax return. Again, this can be done on paper or online through the OBG. For more information, check the DOT website .
If you will be doing business in states other than Ohio, you may need to register your LLC in some or all of those states. Whether you’re required to register will depend on the specific states involved: each state has its own rules for what constitutes doing business and whether registration is necessary. Often activities such as having a physical presence in a state, hiring employees in a state, or soliciting business in a state will be considered doing business for registration purposes. Registration usually involves obtaining a certificate of authority or similar document.
For more details, check Nolo’s article, ohio business articles of incorporation 50-State Guide to Business Income Tax , or the DOT website.
First, you’ll need to withhold and pay employee income taxes to the DOT. Begin by registering your business with the DOT online , by phone, or on paper . Once you’ve registered, you’ll need to file withholding taxes on a periodic basis typically using Form IT-501. You’ll also need to use IT 941 each year to reconcile your LLC’s tax withholding.
Does your LLC have employees? If so, you’ll probably need to pay employer taxes. Some of these taxes are paid to the federal government and are not covered here. .) However, Ohio employers also must pay employee taxes to the state.
When it comes to income taxes, most LLCs are so-called pass-through tax entities. In other words, the responsibility for paying federal income taxes passes through the LLC itself and falls on the individual LLC members. By default, LLCs themselves do not pay federal income taxes, only their members do.
Ohio, however, has a Commercial Activity Tax that applies to most Ohio business entities including LLCs. The tax is based on gross receipts for your business and is calculated at a small series of marginal rates. You are liable for the tax if you have gross receipts of $150,000 or more. The minimum tax amount is $150. If you owe this tax, you must register with the Ohio Department of Taxation by filing Form CAT 1 or registering online through the Ohio Business Gateway . Once registered, you should receive information about how often you need to file returns . Use the OBG to file your CAT returns.
Ohio LLC Annual Filing Requirements ohio business articles of incorporation Nolo
Unlike most states, interesting business articles this week