Starting a business · Ohio
How to start a business in Ohio, step by step.
What to file, what it costs and what you can skip, checked against official sources on October 9, 2026. For adults and for students ages 13 and up who are starting something real.
The short version
Most people need less than they think
You can start selling the day you have a customer. Registration, an LLC and a tax account matter, but they follow the work, not the other way round. Here is the order that makes sense for most small starts, and the costs at each step.
| Step | Cost | Do you need it? |
|---|---|---|
| Test the idea with real customers | $0 | Always. First. |
| Register a trade name (if not your own name) | $39 | If you work under a business name. |
| Form an LLC | $99 | When you want a separate legal entity, or the risk grows. |
| Get an EIN | $0 | For an LLC, hiring, or when a bank asks. |
| Vendor's license (sales tax) | $50 | If you sell taxable goods or services. |
| Commercial Activity Tax | $0 below the exclusion | Only above $6 million in gross receipts. |
Fees are set by law and change. Check the source linked under each step before you pay anything.
The steps
In the order that usually makes sense
1. Find your first customer before you file anything
Talk to ten people who might pay. Sell one thing. The paperwork is easier when you know what you are actually selling. Business 101, our free course, walks through this.2. Register a trade name, if you use one ($39)
If you do business under a name other than your own, such as “Maya's Bike Tune-Ups”, you register it with the Ohio Secretary of State. See the Ohio Revised Code, section 1329.01.3. Form an LLC when it makes sense ($99)
A limited liability company is a separate legal entity. You file articles of organization with the Secretary of State, online through Ohio Business Central. The state's own guide is here: Start a limited liability company in Ohio.4. Get an EIN from the IRS, free
An employer identification number is free from the IRS. Use only the IRS site, irs.gov/ein; other sites charge for the same form. The applicant needs a valid Social Security number or taxpayer ID.5. Register for sales tax if you sell taxable things ($50)
Ohio's state sales tax rate is 5.75%, and counties add their own, up to a combined limit of 8.75%. A new county vendor's license costs $50 since April 2025, up from $25. See the Department of Taxation's notice and its sales and use tax page.6. Know the tax that probably does not apply yet: the CAT
Ohio's Commercial Activity Tax is paid on gross receipts above an exclusion of $6 million (for 2025 and later), and the annual minimum tax was eliminated starting in 2024. Most small starts owe nothing. See the Department of Taxation's release.7. Pay your own income and self-employment tax
If your net earnings from self-employment reach $400, you generally owe self-employment tax and file Schedule SE, and you may need to make estimated payments during the year. See the IRS explanation.
An example that catches people
Lawn care is a taxable service in Ohio
Many first businesses are mowing, landscaping or snow removal. In Ohio, lawn care and landscaping are taxable services once your sales of them reach $5,000 in a calendar year, and after that you register and collect tax on your later sales. Plants and mulch you hand over to the customer can be exempt; your own tools cannot. Check the Department's landscaping and lawn care guidance for your exact job.
If you are under 18
Bring a grown-up in early
Banks, payment apps, platforms and customers often need an adult to sign for you, and the rules differ by company. Many students start as a simple sole proprietorship run with a parent or guardian's help. Ask an adult to read this page with you, and speak to a lawyer or accountant before you form an LLC.
Free help
You do not have to figure it out alone
The Ohio Small Business Development Centers offer free, one-to-one business advising. Summit and Medina counties have been served by the Summit Medina Business Alliance, but check the Ohio SBDC site for the center nearest you and its current contact details.
Want someone in your corner every month? See business coaching, or start with the free Business 101 course.
Questions
Straight answers
- Do I have to register a business in Ohio to start?
- Not always. Many people begin as a sole proprietor, which needs no state filing if you work under your own name. If you work under another name you register that trade name with the Ohio Secretary of State, and if you want a limited liability company you file articles of organization.
- How much does it cost to form an LLC in Ohio?
- The Ohio Secretary of State charges $99 to file the articles of organization. Fees are set by law and can change, so check the Secretary of State's current fee schedule before you pay.
- Do I need a vendor's license?
- If you sell taxable goods in Ohio, or provide a taxable service, you generally register as a vendor and collect sales tax. The fee for a new county vendor's license rose to $50 in April 2025. Many services are not taxable, so check the Department of Taxation's list for yours.
- Is an EIN free?
- Yes. The IRS issues an employer identification number free of charge at IRS.gov. Be careful of websites that charge for the same form.
- Where can I get free help?
- The Ohio Small Business Development Centers offer free one-to-one business advising across the state. Summit and Medina counties have been served by the Summit Medina Business Alliance; check ohiosbdc.org for the center nearest you. Launch League's Business 101 course is also free.
Sources
Checked on October 9, 2026
- Ohio Secretary of State: Start a limited liability company in Ohio
- Ohio Secretary of State: Business filing forms and fee schedule
- Ohio Revised Code section 1329.01 (trade names)
- IRS: Employer identification number
- Ohio Department of Taxation: Vendor's license fee change
- Ohio Department of Taxation: Sales and use tax
- Ohio Department of Taxation: Landscaping, lawn care and snow removal
- Ohio Department of Taxation: Commercial Activity Tax information release 2023-01
- IRS: Topic no. 554, Self-employment tax
- Ohio Department of Commerce: Minor labor laws poster
- Ohio Department of Commerce: What Ohio teens should know about minor work permits
- Ohio Legislative Service Commission: Minor labor laws members brief
- Ohio Small Business Development Centers
This page is general information for people starting a small business in Ohio, not legal, tax or financial advice. Figures were read from official pages on the date above. Rules and fees change, so confirm with the agency or a professional before you act.

