Key takeaways:
Ohio's businesses may need various licenses and registrations to operate legally. Review these common requirements to determine which ones can apply to your business.
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A business license is an official document or registration that grants legal permission to operate within a jurisdiction. Most businesses require some type of general license or tax registration before they can legally begin operating. Additionally, certain licenses are required based on your specific industry or occupation.
While Ohio does not have a general business license requirement at the state level, businesses selling taxable goods or services will need to register for a vendor's license. The license is required for each fixed business location where taxable sales occur and can be obtained via an online portal (Ohio Business Gateway) or at a county auditor’s office. Many local governments also require business tax registration, and certain business activities may require local licenses and approvals.
Businesses may need to obtain licenses and permits at the local levels.
Let us take care of the business license paperwork for you. We prepare and file your application and follow up until you have received you license(s). As licensing experts, we streamline the entire license process, making it as painless as possible.
Most Ohio businesses will need various licenses, permits, and registrations depending on their location and industry. For example, corporations, LLCs, and other business entities doing business in Ohio will need to register with the Ohio Secretary of State’s office. Cities and counties may require businesses operating within their limits to obtain a local business license and pay local taxes. Additionally, if your business activities are regulated by a federal agency (such as pharmaceuticals or transportation), you'll need the appropriate federal licenses or permits.
Keep in mind that certain changes to your business (such as opening a new location or adding a new product line) may trigger additional licensing requirements.
Below is a sample of common licensing and registration requirements for Ohio businesses.
Business license requirements, and the processes for obtaining a license, can vary based on your business activities and locations. Below are the general steps for obtaining a business license in Ohio.
Research all licensing requirements early in your business planning process. This should be done for every location where you'll be operating. Check zoning requirements, as these may restrict where you can do business. Many state and local government websites provide online resources to help you identify your specific requirements.
For more information, see Research: The first step in business license compliance
To form a legal entity in Ohio, such as a corporation or LLC, you must register with the Secretary of State’s office. Out-of-state businesses operating in Ohio must register with the state as a foreign business entity. Ohio LLCs and corporations (both domestic and foreign) must also appoint and maintain an Ohio registered agent.
A federal employer identification number (EIN) is issued by the IRS and is required for many businesses. An EIN used for filing and reporting federal taxes, banking, and payments.
Businesses or individuals operating under a DBA “doing business as” name (also referred to as an assumed or fictious name) must file that name with the Ohio Secretary of State. Registering your DBA early helps ensure consistency across all business registrations and license applications where DBA information would need to be provided.
Ohio businesses are responsible for obtaining all required state-level licenses, permits, and registrations. Common state requirements include registering with the Ohio Department of Taxation, reporting new employees to the Ohio New Hire Reporting Center, and obtaining industry- or occupation-related licenses and permits.
Most businesses need at least one license, permit, or registration at the city and/or county level to operate legally in that jurisdiction. Common local requirements include tax registration, business-specific licenses and permits (ex. health permits), zoning approval, certificates of occupancy, signage permits, alarm system permits, and home occupation permits.
Keep in mind that businesses must meet these requirements in each jurisdiction in which they operate. Cities may also require separate licenses for each physical location.
Licenses and permits must be periodically renewed. Create a system to track renewal deadlines and ensure continuous compliance. For certain business events, you may need to update your business licenses or apply for new ones. Common events that trigger a licensing change include a change in business name, address, officer/directors, or ownership structure.
For more information, see How to get a business license.
How long does it take to get a business license in Ohio?
The timeline for obtaining a business license varies depending on the type of license, the issuing authority (federal, state, county, or city), and the application requirements.
Some licenses can be obtained only immediately after payment. Some licenses require additional steps and requirements, which can extend the approval timeline. For example, completing a standard review to obtain a retail food establishment license in Columbus can take up to 30 days.
What are the penalties for failure to obtain a business license in Ohio?
Operating without a required license in Ohio can result in serious consequences, including fines, orders to cease operations, negative publicity, and potential criminal penalties. Violations may also delay important business activities such as mergers, acquisitions, or opening new locations.
How much does a business license in Ohio cost?
Business license costs in Ohio vary by type, location, and industry.
For example, a vendor’s license in Franklin County costs $50. In Vinton County, the application fee for a vendor’s license is $25.
How do you get an Ohio vendor’s license?
Businesses have two ways to apply for an Ohio vendor's license. They can apply online through the Ohio Business Gateway, which provides immediate approval upon payment. Businesses can also apply through their county auditor's office.
Next steps
Navigating Ohio’s business license requirements can be complex, but you don’t have to do it alone. Our team of licensing experts is here to help you every step of the way, from preparing and filing your application to following up until you receive your license(s). We streamline the entire process, making business licensing as painless as possible.
Contact us today for personalized assistance with your Ohio business license and compliance needs.
