Reasons for doing business in Ohio
Ohio offers several competitive advantages to businesses looking to expand or relocate. An affordable cost of living, a sense of community, and a wealth of parks, museums, and other amenities are a few of the reasons why companies have decided to locate here instead of the major coastal cities in the U.S.
A central location and strong transportation network also make Ohio ideal for businesses where logical considerations play a major role. UPS, DHL, FedEx, and the U.S. Postal Service all have large distribution and processing centers in Ohio.
Ohio has also made efforts to prioritize technology and innovation by investing in innovation districts and by setting up various tax credits, grants, and funds.
What is the cost of doing business in Ohio?
Businesses may find Ohio more affordable in terms of costs for wages, utilities, and office and industrial space.
Ohio does not have a corporate income tax. It does, however, levy a gross receipts tax in the form of a commercial activity tax (CAT). The CAT is one of the reasons why the state was ranked 37th overall on the Tax Foundation’s State Business Tax Climate Index.
How is Ohio ranked for infrastructure?
Ohio has received conflicting scores for its infrastructure. Ohio received a grade of A- for this category by CNBC in its Top States for Business report, while the American Society of Civil Engineers (ASCE) gave the state a C- grade in its last Infrastructure Report Card. A train derailment in February 2023 in East Palestine, Ohio, also raised concerns about the state of American infrastructure.
What are the challenges of doing business in Ohio?
Although Ohio performed well overall in CNBC’s top states report, the state received a D- for the category of “business friendliness”. State leaders are in the process of streamlining the administrative code, including removing outdated provisions and duplicative language, as well as increasing efficiency at the state level.
Ohio has also struggled with a shortage of talent in its workforce. Per U.S. Census estimates, the population for Ohio has trended lower from 2020 to 2022. However, Warren County and several counties surrounding Columbus all experienced population growth during those two years.