Ohio Business Compliance Checklist
Ohio is one of 4 monopolistic state fund workers' comp states, but has no LLC annual report requirement. This page covers everything from filing fees to sales tax to hiring laws.
$99
None
Not required
5.75%
state base rate
No
1. Entity Formation
| LLC filing fee (Articles of Organization) | $99 |
| Corp filing fee (Articles of Incorporation) | $99 |
| Registered agent required | Yes — must have a physical address in the state |
| Publication requirement | No |
| Processing time | ~7 business days (expedited available for extra fee) |
2. Annual Maintenance
| Annual/periodic report | Not required |
| Franchise tax | None |
3. Sales Tax
| State base rate | 5.75% |
| Combined rate range (with local) | 5.75% – 8% |
| Economic nexus (out-of-state seller) | $100,000 OR 200 transactions per year |
| Marketplace facilitator law | Yes — marketplaces (Amazon, Etsy) collect on your behalf. |
Need to check nexus across multiple states? Use our Sales Tax Nexus Checker.
4. Employer Requirements
| Minimum wage | $10.70/hr (2025) |
| Paid sick leave law | None (federal only) |
| Non-compete enforceability | Enforceable — reasonable scope and duration required |
| Contractor classification test | Common-law (IRS) test |
Full employment law breakdown: Ohio Hiring Laws.
5. Workers' Compensation
Ohio is a monopolistic state — coverage must be purchased through the state fund, not the private market. Coverage is required starting with your first employee.
Estimate your premium with our Workers' Comp Calculator.
6. State Income Tax
Progressive brackets — top marginal rate is 3.5%.
Compliance by Business Structure
Pick your structure to see structure-specific compliance items.
What Makes Ohio Distinctive
Compliance quirks and rules that separate Ohio from other states — worth understanding before you file.
- Ohio charges only $99 for LLC formation and has no annual report requirement — one of the lowest maintenance-cost LLC states.
- Ohio's Secretary of State handles entity filings; Ohio Business Central portal offers online filing.
- Ohio's Commercial Activity Tax (CAT) applies to businesses with taxable gross receipts over $3M (increased threshold 2024).
This is a reference, not legal advice.
State fees and rules change. Verify current values with the Ohio Secretary of State, Department of Revenue, and Department of Labor before filing. For complex situations, consult a licensed CPA or attorney.