Ohio does not issue a general state business licence. The Secretary of State registers your LLC, and licensing is handled by other agencies depending on what you do. Most new Ohio businesses need a vendor's licence if they sell taxable goods, city income tax registration, and a licence only if their activity is regulated. This guide explains each step.
Step 1: Form the LLC
An Ohio LLC is formed by filing Articles of Organization (Form 610) with the Secretary of State for $99. You must appoint a statutory agent in Ohio. Ohio LLCs file no annual report, but you must update your statutory agent within 30 days of any change, or the LLC can be cancelled. See our Ohio LLC guide for every step.
Step 2: Vendor's licence (sales tax)
If you make taxable sales or provide taxable services in Ohio, you need a licence from the Ohio Department of Taxation before you start. Since 9 April 2025 the fees are:
- Vendor's licence: $50 (previously $25) — one for each fixed place of business in Ohio.
- Transient vendor's licence: $50 — for trade shows, flea markets and other temporary locations, valid statewide.
- Out-of-state seller's registration: free — required once you have more than $100,000 in Ohio sales or 200 or more Ohio transactions.
You can register online through OH|TAX eServices or the Ohio Business Gateway, or through your county auditor.
Step 3: Commercial Activity Tax
Ohio's Commercial Activity Tax (CAT) only applies once your Ohio taxable gross receipts exceed $6 million a year (from 2025). The rate is 0.26%, and the old annual minimum tax was abolished in 2024. Businesses below the threshold do not register or file. If you still hold an old CAT account, you must keep filing until you cancel it.
Step 4: City income tax and city licences
Ohio's largest cities do not issue a general business licence. Instead, they levy a municipal income tax that businesses register for, and they license specific activities:
- Columbus: 2.5% income tax; register business and withholding accounts on the city's CRISP portal. A net profit return is required even if the business made a loss. City licences cover activities such as mobile food vending, short-term rentals, vehicles for hire and alarm dealers.
- Cleveland: 2.5% income tax, collected by the Central Collection Agency (CCA). LLCs doing business in a CCA community file a net profit return. The city issues over 140 types of licences and permits for specific activities.
- Cincinnati: 1.8% income tax; open an account with the city's income tax division. Licences cover about 40 activities, such as peddlers, massage and public vehicles.
Step 5: Professional and contractor licences
Most state professional licences are applied for and renewed through eLicense Ohio. Electrical, HVAC, plumbing, hydronics and refrigeration contractors are licensed by the Ohio Construction Industry Licensing Board for commercial work, with at least $500,000 of liability insurance. Ohio has no statewide general contractor licence, and cities usually require contractors to register locally — Cincinnati, for example, charges $130 for a contractor registration.
Hiring staff: ODJFS and BWC
- Unemployment insurance: register with the Ohio Department of Job and Family Services (through ERIC) once you pay $1,500 or more in wages in a quarter, or have at least one employee in each of 20 weeks in a year.
- Workers' compensation: any business with one or more employees must have coverage from the Ohio Bureau of Workers' Compensation (apply with Form U-3). Owners of an LLC can elect to cover themselves.
Trade names and fictitious names
To trade under another name, register it with the Secretary of State for $39. A trade name must be distinguishable and gives you exclusive use in Ohio; a fictitious name does not need to be distinguishable and gives no exclusive rights. Both last 5 years and renew for $25.
Checklist and costs
- Form your Ohio LLC — $99 (details).
- Get your EIN — free from the IRS.
- Get a vendor's licence if you sell taxable goods or services — $50.
- Register for municipal income tax with your city.
- Get any city licence your activity needs.
- Obtain any professional or contractor licence your work requires.
- Register with ODJFS and BWC when you hire.
Not sure which licences apply to you? Our business licence research service identifies every federal, state, county and city requirement for your Ohio LLC, with forms and fees. Or start with the company: form your Ohio LLC now.
General information, not legal or tax advice. Fees, rates and rules are set by each agency and city and change over time — confirm with the issuing office before you apply. Checked October 2026.