Form a Ohio Corporation
Ohio incorporation is easy with the Ohio incorporation experts at LawInc.com. Form an Ohio corporation easily by clicking on “Order Now.” Please feel free to call us, anytime, with any questions. Incorporate Ohio today.
Incorporate in Ohio
Incorporating a Ohio corporation can be vital to businesses based of Ohio. At LawInc, we prepare your Ohio corporation Articles of Incorporation, bylaws, stock certificates, stock ledger and more. We can even obtain your Ohio corporation Tax ID number and file your Ohio S corporation election with the IRS.
Ohio Incorporation Information
The following Ohio incorporation information will likely be helpful when deciding to incorporate in Ohio.
Ohio Corporation Name
The first step in forming a Ohio corporation is selecting the business name. Ohio corporation names:
- Must contain “Corporation”, “Incorporated”, “Company”, “Limited”, “Corp.”, “Inc.”, “Co.” or “Ltd.”.
- Must be distinguishable upon the records of the Ohio Secretary of State from any other formally organized entity registered with the Ohio Secretary of State’s office, such as corporations, limited liability companies, limited partnerships, and limited liability partnerships.
An available Ohio corporation name may be reserved with the Ohio Secretary of State for a 180 day period.
LawInc.com permits you to choose up to three names and will conduct a name search for your Ohio corporation, prior to filing. Create a Ohio corporation with confidence that your Ohio corporation name is available.
Ohio Corporation Formation
Ohio Filing Procedure: To incorporate in Ohio, you must file Ohio Articles of Incorporation with the Ohio Secretary of State.
Ohio Corporation Articles of Incorporation: The Ohio Articles of Incorporation should include:
- Name of the Ohio corporation.
- The city and county where the Ohio corporation is located.
- The effective date (optional).
- The purpose of the Ohio corporation.
- Number of shares the Ohio corporation is authorized to issue.
- Name and address of each Ohio corporation initial directors.
Ohio Corporation Authorized Shares: The maximum number of authorized shares for the minimum organizational fee is 1,500 shares.
Ohio Corporation Incorporator: Minimum number of incorporators is one (1) (a natural person over 18 years of age) and there is no requirement that the incorporator be a resident of Ohio.
Ohio Corporation Directors: The minimum number of Ohio directors is one (1).
Ohio Corporation 1244 Stock: Election to have stock classified as IRC Section 1244 stock allows for a substantially larger application of the deduction from business losses to ordinary income than regular stock. With regular stock, you can only offset $3,000 against ordinary income. With the issuance of Section 1244 Stock, the corporation can claim an ordinary loss deduction of as much $100,000.
Ohio Registered Agent: When you incorporate in Ohio, a Ohio corporation must maintain a registered agent and office to receive service of process in Ohio. The Ohio registered agent should be available, at a Ohio physical address, during normal business hours to accept important legal and tax documents on behalf of the Ohio corporation. The registered agent can either be (1) an individual with a physical Ohio address or (2) a corporation authorized to serve as registered agent.
Ohio Corporation Post-Filing Requirements
Ohio Corporate Minutes: Ohio corporations should hold and document annual shareholder and director meetings.
Ohio Corporation Taxes
Ohio Corporation Taxes: For information on Ohio income tax ,visit: http://tax.ohio.gov.
Ohio C Corporation: When incorporating in Ohio, all Ohio corporations formed by default are “C” corporations. A Ohio C corporation is a Ohio corporation that has not made an election to be an “S” corporation. The term C corporation is specifically used because the entity is taxed under subsection C of the IRS code. Ohio C corporations are taxed at two levels (“double taxation”). This means that the corporation itself pays its own tax when it makes money (the first tax). The owners or shareholders are then taxed again when they are paid a salary or dividend by the corporation (the second tax). Despite double taxation, Ohio C corporations offer many planning and benefit opportunities.
Ohio S Corporation: A Ohio S corporation is a corporation that has made an election with the IRS to be treated for tax purposes as a “pass-through entity.” This means that corporate profits and losses are passed through to the shareholders (owners) who report them on their own personal tax returns and pay the tax at the individual level. The corporation pays no federal income tax at the corporate level. Ohio S corporations are not subject to the double taxation C corporations encounter. The State of Ohio recognizes federal S corporation status.
These are the 3 main advantages of forming a Ohio S corporation:
- No double taxation: One of the main advantages of Ohio S corporation status is that it avoids the double taxation that occurs with a regular Ohio C corporation. In a Ohio C corporation, the corporation pays income tax on its profits and, if those profits are distributed to shareholders, the shareholders pay income tax on the distribution.
- Loss deductions: The availability of losses. Shareholders of a Ohio S corporation generally may deduct their share of the corporation’s net operating loss on their individual tax returns in the year the loss occurs. Losses of a Ohio C corporation, however, may offset only the corporation’s earnings.
- Self-employment tax savings: By electing S corporation status, only the earnings actually paid out to you as salary are subject to payroll taxes; money left in the business is not subject to payroll taxes or self-employment tax. All income passes through, but its tax status depends on whether it is classified as salary or ordinary income.
Notice of Subchapter S Election: A notice of subchapter S election must be provided to the Ohio Department of Taxation (ORC 5733.09 (B)).
Federal Tax Identification Number/Employer Identification Number (EIN): The Federal Tax Identification Number, also known as the Employer Identification Number (EIN) is a number that is assigned to a business by the Internal Revenue Service. An EIN is like a Social Security Number for a business. It is a requisite for certain business functions such as opening bank accounts or hiring employees. When incorporating in Ohio, Ohio corporations should obtain an EIN.
Ohio Incorporation Summary
Ohio Incorporation Summary: When incorporating in Ohio, it is important that you consider all of the State of Ohio and Federal tax implications. Prior to Ohio incorporation, always consult with a Ohio incorporation specialist. Here at LawInc, we make the process simple and can provide you with an array of information regarding online Ohio incorporation. Please feel free to call us, anytime, with any question. To form a Ohio corporation online now, simply click on the “order now” button.