Jump to content
ATX Community

Ohio LLCs


Catherine

Recommended Posts

Anything weird in the Ohio rules on LLCs that I should be aware of? Clients who moved to Ohio last year are thinking of starting a small sideline business. Don't even know yet if it's just him, just her, or a joint venture between them. Only expected to generate a couple thousand in income per year - for a while, anyway.

I know that in MA the only practical thing an LLC does for a small business is add a $520 annual filing fee to the fun. But I don't know if Ohio is similar, or if there are actual advantages. Any info/advice appreciated. Even just a link to the pertinent spot to read up myself.

Link to comment
Share on other sites

Hi Catherine, Generally there is nothing special other than the usual registration on the Secretary of State with Articles of Organization https://www.ohiosos.gov/businesses/   Check the last box about Revised LLC Act as of Feb. 2022. For the clients this might help https://ohio.gov/business/resources/business-first-stop

SMLLC is just Sch. C and no special filing as Ohio income tax begins with federal AGI.  There is a 'big' exclusion of business income for taxes up to $25,000, though.  If MMLLC, then 1065 and, as a pass-through entity, there may be additional requirements for out of state members.  It can get a bit complicated. 

So this is a start and follow up depends on what the clients decide to do.  That, of course, will lead to the right research path.  Good luck!

Oh, just be aware of the multiple municipalities that all want to tax so the location of their business is important to know.

  • Thanks 1
Link to comment
Share on other sites

Margaret. just a heads up on school returns since I do a lot of them.  A few years ago or so if someone l ived in an Earned Income School District, their self employment income is taxed for school district tax.  At one time it was not but they changed that a while ago.  For Traditional School Districts self employmnet income is inded exempt from school tax. This starts on page 4 of the pdf that you linked. 

  • Like 1
Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Restore formatting

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...