Should you form your corporation in Ohio? We’ve collected the relevant information that will help you make this decision.

Pros

  • Offers lower-than-average state and local taxes
  • Qualified workforce
  • Home to several major universities

Cons

  • Taxable rate of 0.26% gross receipts

Cost of doing business

  • $99 filing fee / $0 annual statement

Privacy

  • Owners disclosed in original filing

Forming your corporation in Ohio

The name
In order to communicate to the public that your new business is incorporated, its official name will need to end with one of the following signifiers (or a relevant abbreviation): “incorporated”, “Company”, or “corporation”. In addition, it is required that the name of your business is not intentionally misleading to consumers, for any reason. Your company’s new name must also be completely unique, and not deceptively similar to any other organizations name or trademarks. Using certain terms that are common in the financial industry are also subject to approval by the state’s Department of Insurance. Do a FREE name search now.

Ownership

Board of directors requirements
You will need to form an official board of directors when incorporating in Ohio. Here are the states explicit regulations regarding these directors:

  • Required number of directors
    Ohio corporations must have at least three directors listed in their incorporation documents unless they only have one or two shareholders. If this is the case, they may have a number of directors equal to their number of shareholders.
  • Age restrictions
    Directors of corporations located in Ohio can be of any age.
  • Residence restrictions
    There are no residence restrictions imposed on the directors of C corporations in Ohio. However, S corporations are only allowed to have directors located in the United States.
  • What information needs to be included in the Articles of Incorporation?
    Ohio does require the names and addresses of directors to be disclosed in incorporation documents.

Requirements for the Articles of Incorporation

The Articles of Incorporation is a document that must be filed during the incorporation process in every state. Here is the information that must be included in this document when filing in Ohio:

Stock information
Ohio requires the number of initial shares outstanding, and their par value, to be disclosed during the incorporation process. The number of outstanding shares does not affect initial state filing fees.

Officer information
The state of Ohio does not require officer information to be disclosed during the filing process.

Registered agent information
All Ohio corporations must have a registered agent on file, and submit their name and address (which cannot be a PO box). This agent will be required to be accessible during standard business hours, and act as the state’s point of contact with the company. Learn more about registered agents.

If your business is a professional practice

Professional service corporations are permitted to form under the professional corporation (PC) structure.

Corporate record keeping requirements

Corporations are required to keep formal documentation regarding several of their operations. These are the explicit record keeping formalities required by Ohio:

  • A complete and comprehensive set of accounts of record
  • Records that detail the owners and class of all outstanding stock shares
  • Meeting minutes for all shareholder, director, officer, and committee meetings.

Ohio corporate taxation and fee requirements

There are several tax and fee requirements that must be addressed by corporations in Ohio. They are as follows:

Taxation
All states have complex taxation requirements. For more information regarding taxes in Ohio, it is advised that you visit the state’s official business related website. 

Annual report requirements
Corporations in Ohio are not required to file an annual report. Learn more about annual reports.

Tax identification numbers
Ohio requires an EIN (employee identification number) for all corporations that will have employees, and most banks will require one to open accounts. Ohio does not require corporations to obtain state tax ID numbers. Learn more about EINs.

Business license requirements

The business licenses and permits required in Ohio vary wildly depending on the county or municipality in which your new corporation is located. If you would like to see more in-depth information on licenses and permits, please feel free to visit the content in our learning library that covers business licenses and permits.

S corporation election
Ohio does require a state-level S corp election, as they do not recognize any elections held at the federal level.

Need an Ohio LLC instead? Click here.