LLC owners who are active in the business are required to pay self-employment tax on profits. A limiting factor with this business type is that shares cannot be sold. Anyone can be a member of an LLC, including other LLCs. Owners are known as members, and are not personally responsible for the business's debts. Limited Liability Company (LLC).Īn LLC is a more formal business structure than a partnership but more flexible than a corporation. Limited Liability Partnership.Ī limited liability partnership consists of partners with limited liability who have no personal responsibility for debts. The other partner is a limited partner who contributes to capital and shares in profits, but is not responsible for any debts. In this partnership, one partner is a general partner who runs the business and takes on all liabilities and debt. Partnerships pay income tax instead of corporate tax, making tax rates more manageable in Ohio. General Partnership.Ī general partnership consists of two partners who share profits and are equally responsible for debts. Unless a DBA is filed, Ohio does not require sole proprietorships to file any other documents. The business and owner are considered a single entity so the owner will have to file a Doing Business As (DBA) form if they would like to do business under a name other than their own. Call the Ohio Business Gateway Electronic Filing Help Desk at (866) OHIO-GOV (86) if you need assistance using the online application system. Sole Proprietorship.Ī sole proprietorship is usually formed by one person who is responsible for all liabilities and debts. To get your Vendors License (which authorizes you to collect sales tax), you can either apply online via the Ohio Business Gateway website or in-person at your local county auditors office. Ohio corporations need a statutory agent.
Corporations can sell shares in their business and owners are not liable for any debt. These shareholders hire a board to make executive business decisions, and the board hires officers to manage everyday business operations. A corporation is formed by owners who are known as shareholders.
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