registering a business in ohio

WELCOME !

How to Register a Business

and

Types of Business OrganizationsPresented by:

Resource Partner of the U.S. Small Business Administration

Registering a Business

• Choose Type of Business Organization

• Register with The State of Ohio

• Obtain Employee Identification Number (EIN) from IRS

• Obtain Vendor’s License

• Obtain County and City Permits if Required

• Obtain Zoning Approval if Required

Contd.


Contd.

• County Taxes

• Ohio Unemployment Tax

• Ohio Worker’s Compensation Insurance

• Ohio Sales Tax

• Ohio Income Tax

• Federal Income Tax

Types of Business Organizations

• Sole Proprietor

• Partnership

• Corporation

• Subchapter-S Corporation

Types of Business Organizations:

Sole Proprietor

• Owned by one person• Simplest form of business organization• Minimum of legal restrictions• Owner receives all the profits• The business is easy to discontinue• The proprietor assumes the risks of the business to

the extent of all her/his assets, whether used in the business or personally owned

Types of Business Organizations:Sole Proprietor

Some disadvantages:

• Unlimited liability for the owner.Individual owner is legally liable for all debts of the business. Any personal and real property may be attached by the creditors.

• Limited ability to raise capitalThe business capital is limited to whatever the owner can personally secure. Business expansion may be restricted when new capital is

required.

Types of Business Organizations:Partnership

• Two or more persons who join together to carry on a trade or business

• Each person contributes money, property, labor, or skills

• Each partner expects to share in the profits or losses of the business

• Easy to organize. Has definite legal status• Has greater financial strength than sole

proprietorship

Types of Business Organizations:Partnership

Some disadvantages:

• Unlimited liability of the partners.• Each partner may be held liable for all the

debts of the business.• One partner not exercising good judgment

can cause the loss of the assets of the partnership as well as the personal assets of the remaining partner(s).

• The authority for decisions is divided.

Types of Business Organizations:Corporation

• Treated by law as a single entity with rights and duties of its own.

• Owners are the stockholders• Managers of the corporation may or may

not be stockholders.• The stockholders have limited liability.• Transfer of ownership is easy (sale of stock)

contd.


Contd.

• It is easy to raise capital and expand.

• Efficiency of management is maintained.

• Life of the business is perpetual.

• Adaptable to both small and large businesses.


Some disadvantages:

• Corporation is subject to special taxation.

• It is more difficult and expensive to organize than other forms of ownership.

• The corporate charter restricts the types of business activities.

• The corporation is subject to many State and Federal controls.

Types of Business Organizations:LLC

• Shareholders include their share of the corporation’s profits or losses on their personal 1040 forms.


Consider using the services of an Attorney and/or a Certified Public Accountant.

Lawyer Referral ServiceOne First National Plaza 937 222 6102

Ohio Society of CPAs 614 764 2727Web: www.ohioscpa.com 800 686 2727

Possibly get referral from your banker

Business Registration

Ohio Secretary of State, Business Services180 E. Broad Street, 16th Floor, Columbus, OH 43215

Web site: w w w . s t a t e . o h . u s / s o s

One-Stop Business Permit Center 800 248 4040

(Business Start-Up Kit) or 614 466 4232

Business Incorporation Information 614 466 3910

Business Name Availability 614 466 0590

Business Registration

• One-Stop Business Permit CenterPart of the Small Business Development Center.

Provides direct assistance to new and expanding businesses.

Business Start-Up kit includes information on Permits and licensing

Developing a Business Plan

Incorporating

Paying Taxes

Patenting Inventions

Obtaining copyrights, trademarks and product codes

Business Registration with the IRS

• Information on:

Declaration of Estimated Tax

Withholding Employee’s Income Tax

Withholding Employee’s Social Security Tax

Employer’s Social Security Tax

Federal Unemployment Tax.

Apply for Employer Identification Number.

contd.

Business Registration with the IRS

contd.Employee Identification Number (EIN) to be shown on all business returns, documents and statements in connection with the business.

IRS Form SS-4 from:Internal Revenue Service Center4th Floor, The Federal Building, 200 West Second Street,

Dayton, OH 45402 800 424 1040website: w w w . i r s . g o v

County and City Permits

• Vendor’s License

Required by each person, firm or corporation in the business of retail sales.

Obtain from County Auditor’s Office.

In Montgomery County: 937 225 4314


• Food Licenses

A State license or a local permit is required by any operation selling food of any kind.

Contact your local Health DistrictIn Montgomery County call: 937 225 4460

For food handler’s certificates for servers, cooks, and others, contact:Montgomery County Health Office: 937 225 4500


• ZoningCheck with city or township for zoning clearance.Provide address, lot number, and type of business.In Dayton call City of Dayton 937 333 3887

• City LicensesRequired for many occupations and business operators in the area cities. For example: pipe-laying, home improvement contractors, salvage yard, etc. For City of Dayton call:City of Dayton Finance Department 333 3557

County and City Taxes

• County Real Estate TaxIf a business owns real estate, County Auditor assesses taxes.

For information and forms contact County Auditors office.

For Montgomery County call: 937 225 4315

• County Personal Property TaxAll personal property, including inventory, used in business in the State of Ohio is subject to taxation. A return must be filed within 90 days of the business start.

For Montgomery County call: 937 225 4315

County and City Taxes

• City Income Tax

Every individual, partnership or corporation having a taxable income, must pay City Income Tax.

Each employer is required to withhold tax from their employees.

City of Dayton acts as the collection agency for adjacent cities.

Contact:

Department of Taxation, 101 West Third Street,

Dayton, OH 45385 Telephone: 937 333 3500

Ohio Taxes

• Ohio State Sales TaxEach person, firm or corporation in the business of retail sales must obtain a Vendor’s License from the County Auditors office. The Dept. of Taxation in Columbus will automatically receive a notice of this issuance and will forward to the Vendor all the necessary forms and information for the collection of sales tax.

• Ohio Corporation Franchise TaxAll domestic corporations organized for profit under Ohio law are subject to an Ohio Franchise Tax and will automatically receive information from the Ohio Taxation Department.

Ohio Taxes

• Ohio Income TaxAll compensation paid to employees in Ohio is subject to withholding for this income tax.

Contact:Dept. of Taxation, Box 267, Columbus, OH 43270

or

Dayton District Office, 15 East Fourth Street

Dayton, OH 45402 937 285 6210

Ohio Taxes

• Ohio Unemployment TaxBusinesses with one or more employees must pay an Ohio Unemployment Compensation Tax.

Contact:Dept. of Taxation, Dayton District Office,15 East Fourth Street, Dayton, OH 45402

Telephone: 937 285 6210

Ohio Taxes

• Ohio Workers Compensation Insurance

All employers of one or more persons in their business must participate in the State Insurance Program

Contact:Bureau of Worker’s Compensation Building

Ohio Department, 246 North High Street,

Columbus, OH 43246 Phone: 614 466 1015

for Darke, Miami, Montgomery, Preble, and Shelby counties contact:

Dayton Service Office

3401 Park Center Drive, Dayton, OH 45414

Phone: 937 264 5217

SCORE Services

• Counseling on all business matters• Assistance with development of the Business Plan• Assistance with development of the Financial Plan• Counseling on securing business financing• Training through business workshops• Onsite business consulting and mentoring

Helpful Web Sites, www.

sba.gov U.S. Small Business Administration

score.org Service Corps of Retired Executives

uspto.gov Patents and Trademarks

state.oh.us/sos Ohio Secretary of Sate; forms, information

toolkit.cch.com CCH Business Owners toolkit

vfinance.com Loans and investment for business

bplans.com Examples of Business Plans

startupjournal.com Wall Street Journal Center for Entrepreneurs

registering a business in ohio

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