1. Ohio LLC Overview

Ohio combines the infrastructure of a major Midwest hub with surprisingly low compliance burdens. If you operate locally, Ohio is an excellent state to form your LLC:

  • No annual report — Unlike most states, Ohio does not charge a yearly maintenance fee
  • Low formation cost — Just $99 to file Articles of Organization
  • Business income deduction — Ohio offers generous tax deductions for business income passing through to personal returns
  • CAT exemption — Most small businesses are fully exempt from the Commercial Activity Tax (up to $3M in receipts)
Zero Ongoing State Fees

Because Ohio does not require an annual report or charge a minimum franchise tax, your ongoing state compliance costs can effectively be $0 if you serve as your own statutory agent.

2. Ohio LLC Requirements

  • Name must contain "Limited Liability Company," "LLC," "L.L.C.," or "ltd."
  • Appoint a Statutory Agent (registered agent) with an Ohio physical address
  • File Articles of Organization (Form 533A) with the Secretary of State ($99)
  • Register for the CAT tax only if your gross receipts exceed $3 million

3. Ohio LLC Costs and Fees (2026)

Cost Item Amount Notes
Articles of Organization$99One-time state filing fee
Annual Report$0None required
Statutory Agent$50–$150/yearRequired OH physical address
EINFreeApply at IRS.gov
Operating Agreement$0–$1,000Recommended, not legally required

4. How to Start an Ohio LLC (Step by Step)

  1. 1 Choose your LLC name (must include "Limited Liability Company," "LLC," etc.)
  2. 2 Appoint a Statutory Agent (registered agent) with an Ohio physical address
  3. 3 File Articles of Organization (Form 533A) with the Ohio Secretary of State ($99)
  4. 4 Obtain an EIN from the IRS (free at IRS.gov)
  5. 5 Draft an Operating Agreement (not filed, but legally binding)
  6. 6 Register with the Ohio Department of Taxation if selling goods or hiring employees
  7. 7 Register for the Commercial Activity Tax (CAT) if gross receipts exceed $3 million
  8. 8 Open a business bank account

5. Ohio Commercial Activity Tax (CAT)

The Commercial Activity Tax (CAT) is an annual tax imposed on the privilege of doing business in Ohio. It is measured by gross receipts. However, due to recent legislative changes aimed at helping small businesses, the exclusion amount has increased significantly.

  • Exemption: For 2026, businesses with taxable gross receipts of $3 million or less are fully exempt from the CAT and do not need to file a return.
  • Over $3 Million: If your receipts exceed $3 million, you must register for the CAT and pay the tax on receipts above the exclusion amount.

6. Ohio LLC Taxes (2026)

  • State income tax — Up to ~3.5% graduated rate on pass-through profits. Ohio also offers a Business Income Deduction (BID) that exempts the first $250,000 of business income from state tax (and taxes the rest at a flat 3%).
  • Commercial Activity Tax (CAT) — Only applies to gross receipts over $3 million.
  • Federal income tax — Pass-through to personal return.
  • Self-employment tax — 15.3% on net earnings.
  • Sales tax — 5.75% state base rate + local county/transit additions (typically 6.5%–8% combined).

7. Best For / Not Best For

Best For

  • Entrepreneurs living and operating in Ohio
  • Founders wanting low compliance costs (no annual report)
  • E-commerce businesses (Ohio is a major logistics hub)
  • Small businesses with under $3M in revenue (exempt from CAT)

Not Best For

  • Out-of-state owners without Ohio nexus
  • High-revenue, low-margin businesses that might get hit by the CAT tax