Nowadays, small businesses in Ohio account for 99.6% of all businesses in the state, and their number only continues to increase. So, are you considering being a part of the fresh wave of local small businesses that contribute to Ohio’s economy?

Maybe you’ve been planning to start your own small business for some time. You’ve decided on a business idea and now you’re ready to get things moving, but you’re not completely certain what actions you should take to really start.

Mainly,  you must ensure all of your documentation, legal registrations, accounts, trade name, and a few other fundamental steps are all taken care of. Anyway, if this is your first entrepreneurial journey, the list of things you should do might seem overwhelming.

So, we are here to help you out. Below we give you the five steps that will help and guide you on your path to starting your own small business in Ohio.

Decide on a Legal Structure and Register Your Ohio Business

It’s crucial to decide what kind of company structure your small business will be founded under. Sole Proprietorship, Partnership,

Limited Liability Company (LLC), and Corporation are the most prevalent legal structures for a small business.

According to the Small Business Administration (SBA), the business structure you pick affects everything from daily operations to taxes, and how much of your personal assets will be at risk. So, ensure you understand the differences between the legal structures, before deciding what structure would benefit your company the most.

After you’ve chosen a business structure, the following step is to form your entity. The next steps include:

• Naming your business;
• Picking a statutory agent that accepts tax and legal paperwork on behalf of your business entity;
• Getting an EIN (Employer Identification Number), which is a number assigned by the IRS for identifying businesses for fiscal purposes;
• File formation paperwork.

Have in mind that in addition to these steps, every business structure may have its own requirements that are unique to its legal structure.

Obtain Insurance

Business insurance will help you address risks and concentrate on growing your Ohio business. The standard types of business insurance you need to consider are:

• General Liability;
• Workers’ Compensation;
• Professional Liability.

Nevertheless, it’s recommended that all small businesses purchase the required business insurance in Ohio. Most businesses must have general liability, including home-based ones. On the other hand, businesses that sell professional services, like accounting or consulting, must also consider obtaining a professional liability policy.

Note that, In Ohio, all the businesses with one or more employees have a legal obligation to obtain workers’ compensation insurance.

Arrange Business Banking, Credit Cards, and Accounting

Utilizing dedicated business banking and credit accounts is crucial for personal asset protection. If you mix your personal and business account, your personal assets might be at risk in case your business gets sued. You should protect yourself with the following steps:

1. Open a business bank account

It will separate your personal assets from your company’s, which is essential for personal asset protection. It makes tax filing and accounting simpler.

2. Get a business credit card

It basically helps you to separate personal and business costs. Establishes your company’s credit history, which can be useful to raise capital further on.

3. Set up business accounting

Setting up an accounting system will help you track the performance of your business and facilitate yearly tax filings. You can get good accounting software. It enables you to download your bank and credit card transactions, making accounting fast and simple. Or, you can also hire a business accountant to navigate all your business’s accounting and tax needs.

Obtain Permits and Licenses

In order to operate your new small business legally, you will have to comply with federal, state, and local governmental regulations. In most cases, that includes getting one or several business permits and licenses. For instance, a restaurant needs health permits, building permits, liquor licenses, food service licenses, etc.

To start your business in Ohio, you’ll need several licenses and permits contingent on the type of business you want to run. You can ascertain the licensing of your business necessities by carrying out a business license search. You can use the following resources:

• Federal: Check the Small Business Administration (SBA) guide;
• State: Check Ohio’s State Licenses & Permits website;
• Local: Get in touch with your local county clerk and find out about local licenses and permits.

Hire Employees

And last but not least, for every business, building a strong team is an essential step in starting a successful business. It’s not only about finding the right people; you must ensure to stay compliant with requirements when hiring employees legally.

That includes ensuring that your business is registered with the IRS for employee taxes and reporting new staff members to the State of Ohio.

Final Words

Even though all of these steps may seem like a lot to handle. Knowing them and following them precisely will guide you in the right direction when starting your own small business in Ohio.