How to Register a Business in Ohio

This guide will walk you through the steps to legally establish your business in Ohio state, from choosing a business structure to obtaining necessary permits and licenses.

1. Key Steps for Business Registration in Ohio

Ohio tax agencies

• Ohio Department of Taxation – income tax withholding
• Ohio Department of Job and Family Services – unemployment tax
• Local Ohio tax agencies – various

2. Registration Steps

1.Choose a Business Structure

The first step is choosing your business structure. Here are the main options:

• Sole Proprietorship
  Simplest structure for single-owner businesses
• Partnership
  For businesses with multiple owners
• LLC (Limited Liability Company)
  Combines benefits of corporations and partnerships
• Corporation
  More complex structure with shares and shareholders

The structure you choose will determine your registration requirements with the Department of Revenue (DOR) and other agencies.

2.Withholding account registration—income tax

• Register with the Ohio Business Gateway
• After completing registration, you'll receive the Registration Letter—this will include your eight-digit "Withholding Account Number," which can also be found on the "Employer's Payment of Ohio Tax Withheld" (Form IT-501).

3.State Unemployment Insurance Tax (SUI) Registration

(Information about owner's unemployment exemptions)

• Most companies become liable for Ohio unemployment insurance tax when they meet either of these conditions: • Paid $1,500 or more in wages during a calendar quarter, or • Had at least one Ohio employee working for any part of a week, for 20 or more different weeks in a calendar year.
  • Liability requirements vary by business type. Contact the agency to determine your specific liability status.
• You will receive your "Unemployment Compensation Tax Account Number” and unemployment rate. The number can be found on the "Determination of Employer's Liability" (Form JFS 66314) or the "Contribution Rate Determination".

4.Local Tax Registrations

Ohio Municipal (City) Income Taxes

• It is a local income tax imposed by cities and villages in Ohio on individuals who live and/or work within their jurisdictions, as well as on businesses operating in those municipalities.
• Employers must withhold municipal income tax from employees' wages based on where they work (unless exempt).

RITA (Regional Income Tax Agency)

• RITA is a state agency that manages municipal income taxes for participating Ohio cities and municipalities. They process local income taxes, handle compliance, and collect payments. Residents and workers in RITA-partnered cities must file local taxes through their system, which handles individual filings, employer withholdings, and refunds.