Registering a Business in Ohio

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Registering a Business in Ohio

  1. 1. WELCOME ! How to Register a Business and Types of Business Organizations Presented by: Resource Partner of the U.S. Small Business Administration
  2. 2. Registering a Business <ul><li>Choose Type of Business Organization </li></ul><ul><li>Register with The State of Ohio </li></ul><ul><li>Obtain Employee Identification Number (EIN) from IRS </li></ul><ul><li>Obtain Vendor’s License </li></ul><ul><li>Obtain County and City Permits if Required </li></ul><ul><li>Obtain Zoning Approval if Required </li></ul><ul><li>Contd. </li></ul>
  3. 3. Registering a Business <ul><li>Contd. </li></ul><ul><li>County Taxes </li></ul><ul><li>Ohio Unemployment Tax </li></ul><ul><li>Ohio Worker’s Compensation Insurance </li></ul><ul><li>Ohio Sales Tax </li></ul><ul><li>Ohio Income Tax </li></ul><ul><li>Federal Income Tax </li></ul>
  4. 4. Types of Business Organizations <ul><li>Sole Proprietor </li></ul><ul><li>Partnership </li></ul><ul><li>Corporation </li></ul><ul><li>Subchapter-S Corporation </li></ul>
  5. 5. Types of Business Organizations: Sole Proprietor <ul><li>Owned by one person </li></ul><ul><li>Simplest form of business organization </li></ul><ul><li>Minimum of legal restrictions </li></ul><ul><li>Owner receives all the profits </li></ul><ul><li>The business is easy to discontinue </li></ul><ul><li>The proprietor assumes the risks of the business to the extent of all her/his assets, whether used in the business or personally owned </li></ul>
  6. 6. Types of Business Organizations: Sole Proprietor <ul><li>Some disadvantages: </li></ul><ul><li>Unlimited liability for the owner. </li></ul><ul><li>Individual owner is legally liable for all debts of the business. Any personal and real property may be attached by the creditors. </li></ul><ul><li>Limited ability to raise capital </li></ul><ul><li>The business capital is limited to whatever the owner can personally secure. Business expansion may be restricted when new capital is required. </li></ul>
  7. 7. Types of Business Organizations: Partnership <ul><li>Two or more persons who join together to carry on a trade or business </li></ul><ul><li>Each person contributes money, property, labor, or skills </li></ul><ul><li>Each partner expects to share in the profits or losses of the business </li></ul><ul><li>Easy to organize. Has definite legal status </li></ul><ul><li>Has greater financial strength than sole proprietorship </li></ul>
  8. 8. Types of Business Organizations: Partnership <ul><li>Some disadvantages : </li></ul><ul><li>Unlimited liability of the partners. </li></ul><ul><li>Each partner may be held liable for all the debts of the business. </li></ul><ul><li>One partner not exercising good judgment can cause the loss of the assets of the partnership as well as the personal assets of the remaining partner(s). </li></ul><ul><li>The authority for decisions is divided. </li></ul>
  9. 9. Types of Business Organizations: Corporation <ul><li>Treated by law as a single entity with rights and duties of its own. </li></ul><ul><li>Owners are the stockholders </li></ul><ul><li>Managers of the corporation may or may not be stockholders. </li></ul><ul><li>The stockholders have limited liability. </li></ul><ul><li>Transfer of ownership is easy (sale of stock) </li></ul><ul><li>contd. </li></ul>
  10. 10. Types of Business Organizations: Corporation <ul><li>Contd. </li></ul><ul><li>It is easy to raise capital and expand. </li></ul><ul><li>Efficiency of management is maintained. </li></ul><ul><li>Life of the business is perpetual. </li></ul><ul><li>Adaptable to both small and large businesses. </li></ul>
  11. 11. Types of Business Organizations: Corporation <ul><li>Some disadvantages: </li></ul><ul><li>Corporation is subject to special taxation. </li></ul><ul><li>It is more difficult and expensive to organize than other forms of ownership. </li></ul><ul><li>The corporate charter restricts the types of business activities. </li></ul><ul><li>The corporation is subject to many State and Federal controls. </li></ul>
  12. 12. Types of Business Organizations: LLC <ul><li>Shareholders include their share of the corporation’s profits or losses on their personal 1040 forms. </li></ul>
  13. 13. Registering a Business <ul><li>Consider using the services of an Attorney and/or a Certified Public Accountant. </li></ul><ul><li>Lawyer Referral Service </li></ul><ul><li>One First National Plaza 937 222 6102 </li></ul><ul><li>Ohio Society of CPAs 614 764 2727 </li></ul><ul><li>Web: www.ohioscpa.com 800 686 2727 </li></ul><ul><li>Possibly get referral from your banker </li></ul>
  14. 14. Business Registration <ul><li>Ohio Secretary of State, Business Services </li></ul><ul><li>180 E. Broad Street, 16 th Floor, Columbus, OH 43215 </li></ul><ul><li>Web site: w w w . s t a t e . o h . u s / s o s </li></ul><ul><li>One-Stop Business Permit Center 800 248 4040 </li></ul><ul><li>( Business Start-Up Kit) or 614 466 4232 </li></ul><ul><li>Business Incorporation Information 614 466 3910 </li></ul><ul><li>Business Name Availability 614 466 0590 </li></ul>
  15. 15. Business Registration <ul><li>One-Stop Business Permit Center </li></ul><ul><li>Part of the Small Business Development Center. </li></ul><ul><li>Provides direct assistance to new and expanding businesses. </li></ul><ul><li>Business Start-Up kit includes information on Permits and licensing </li></ul><ul><li>Developing a Business Plan </li></ul><ul><li>Incorporating </li></ul><ul><li>Paying Taxes </li></ul><ul><li>Patenting Inventions </li></ul><ul><li>Obtaining copyrights, trademarks and product codes </li></ul>
  16. 16. Business Registration with the IRS <ul><li>Information on: </li></ul><ul><li>Declaration of Estimated Tax </li></ul><ul><li>Withholding Employee’s Income Tax </li></ul><ul><li>Withholding Employee’s Social Security Tax </li></ul><ul><li>Employer’s Social Security Tax </li></ul><ul><li>Federal Unemployment Tax. </li></ul><ul><li>Apply for Employer Identification Number. </li></ul><ul><li>contd. </li></ul>
  17. 17. Business Registration with the IRS <ul><li>contd. </li></ul><ul><li>Employee Identification Number (EIN) to be shown on all business returns, documents and statements in connection with the business. </li></ul><ul><li>IRS Form SS-4 from: </li></ul><ul><li>Internal Revenue Service Center </li></ul><ul><li>4 th Floor, The Federal Building, 200 West Second Street, </li></ul><ul><li>Dayton, OH 45402 800 424 1040 </li></ul><ul><li>website: w w w . i r s . g o v </li></ul>
  18. 18. County and City Permits <ul><li>Vendor’s License </li></ul><ul><li>Required by each person, firm or corporation in the business of retail sales. </li></ul><ul><li>Obtain from County Auditor’s Office. </li></ul><ul><li>In Montgomery County: 937 225 4314 </li></ul>
  19. 19. County and City Permits <ul><li>Food Licenses </li></ul><ul><li>A State license or a local permit is required by any operation selling food of any kind. </li></ul><ul><li>Contact your local Health District </li></ul><ul><li>In Montgomery County call: 937 225 4460 </li></ul><ul><li>For food handler’s certificates for servers, cooks, and others, contact: </li></ul><ul><li>Montgomery County Health Office: 937 225 4500 </li></ul><ul><li> </li></ul>
  20. 20. County and City Permits <ul><li>Zoning </li></ul><ul><li>Check with city or township for zoning clearance. </li></ul><ul><li>Provide address, lot number, and type of business. </li></ul><ul><li>In Dayton call City of Dayton 937 333 3887 </li></ul><ul><li>City Licenses </li></ul><ul><li>Required for many occupations and business operators in the area cities. For example: pipe-laying, home improvement contractors, salvage yard, etc. For City of Dayton call: </li></ul><ul><li>City of Dayton Finance Department 333 3557 </li></ul>
  21. 21. County and City Taxes <ul><li>County Real Estate Tax </li></ul><ul><li>If a business owns real estate, County Auditor assesses taxes. </li></ul><ul><li>For information and forms contact County Auditors office. </li></ul><ul><li>For Montgomery County call: 937 225 4315 </li></ul><ul><li>County Personal Property Tax </li></ul><ul><li>All personal property, including inventory, used in business in the State of Ohio is subject to taxation. A return must be filed within 90 days of the business start. </li></ul><ul><li>For Montgomery County call: 937 225 4315 </li></ul>
  22. 22. County and City Taxes <ul><li>City Income Tax </li></ul><ul><li>Every individual, partnership or corporation having a taxable income, must pay City Income Tax. </li></ul><ul><li>Each employer is required to withhold tax from their employees. </li></ul><ul><li>City of Dayton acts as the collection agency for adjacent cities. </li></ul><ul><li>Contact: </li></ul><ul><li>Department of Taxation, 101 West Third Street, </li></ul><ul><li>Dayton, OH 45385 Telephone: 937 333 3500 </li></ul>
  23. 23. Ohio Taxes <ul><li>Ohio State Sales Tax </li></ul><ul><li>Each person, firm or corporation in the business of retail sales must obtain a Vendor’s License from the County Auditors office. The Dept. of Taxation in Columbus will automatically receive a notice of this issuance and will forward to the Vendor all the necessary forms and information for the collection of sales tax. </li></ul><ul><li>Ohio Corporation Franchise Tax </li></ul><ul><li>All domestic corporations organized for profit under Ohio law are subject to an Ohio Franchise Tax and will automatically receive information from the Ohio Taxation Department. </li></ul>
  24. 24. Ohio Taxes <ul><li>Ohio Income Tax </li></ul><ul><li>All compensation paid to employees in Ohio is subject to withholding for this income tax. </li></ul><ul><li>Contact: </li></ul><ul><li>Dept. of Taxation, Box 267, Columbus, OH 43270 </li></ul><ul><li>or </li></ul><ul><li>Dayton District Office, 15 East Fourth Street </li></ul><ul><li>Dayton, OH 45402 937 285 6210 </li></ul>
  25. 25. Ohio Taxes <ul><li>Ohio Unemployment Tax </li></ul><ul><li>Businesses with one or more employees must pay an Ohio Unemployment Compensation Tax. </li></ul><ul><li>Contact: </li></ul><ul><li>Dept. of Taxation, Dayton District Office, </li></ul><ul><li>15 East Fourth Street, Dayton, OH 45402 </li></ul><ul><li>Telephone: 937 285 6210 </li></ul>
  26. 26. Ohio Taxes <ul><li>Ohio Workers Compensation Insurance </li></ul><ul><li>All employers of one or more persons in their business must participate in the State Insurance Program </li></ul><ul><li>Contact: </li></ul><ul><li>Bureau of Worker’s Compensation Building </li></ul><ul><li>Ohio Department, 246 North High Street, </li></ul><ul><li>Columbus, OH 43246 Phone: 614 466 1015 </li></ul><ul><li>for Darke, Miami, Montgomery, Preble, and Shelby counties contact: </li></ul><ul><li>Dayton Service Office </li></ul><ul><li>3401 Park Center Drive, Dayton, OH 45414 </li></ul><ul><li>Phone: 937 264 5217 </li></ul>
  27. 27. SCORE Services <ul><li>Counseling on all business matters </li></ul><ul><li>Assistance with development of the Business Plan </li></ul><ul><li>Assistance with development of the Financial Plan </li></ul><ul><li>Counseling on securing business financing </li></ul><ul><li>Training through business workshops </li></ul><ul><li>Onsite business consulting and mentoring </li></ul>
  28. 28. Helpful Web Sites, www. <ul><li>sba.gov U.S. Small Business Administration </li></ul><ul><li>score.org Service Corps of Retired Executives </li></ul><ul><li>uspto.gov Patents and Trademarks </li></ul><ul><li>state.oh.us/sos Ohio Secretary of Sate; forms, information </li></ul><ul><li>toolkit.cch.com CCH Business Owners toolkit </li></ul><ul><li>vfinance.com Loans and investment for business </li></ul><ul><li>bplans.com Examples of Business Plans </li></ul><ul><li>startupjournal.com Wall Street Journal Center for Entrepreneurs </li></ul>
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