An Ohio LLC operating agreement is a legal document that outlines an LLC’s operation rules and ownership details. This document can inform members on topics like capital contributions and member responsibilities.
All LLC company members must sign an LLC operating agreement for it to have validity. Instead of filing with an authoritative body, members can keep copies of an operating agreement in their personal records.
No, an operating agreement is not required in Ohio, but creating one can help you organize your business.
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Create guidelines for managing a single-owner limited liability company.
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Develop strategies for managing your Limited Liability Company with multiple members.
The Ohio Revised Limited Liability Company Act in Chapter 1706 of the Ohio Revised Code contains laws dictating LLCs’ operation.
If you choose to create an operating agreement, you can
Whether you’re forming a domestic or foreign LLC in Ohio, you’ll have to pay a $99 filing fee for the articles of organization. Other fees to expect include:
Here’s a list of steps to help you form an LLC in Ohio:
Choosing your name can be difficult. It needs to be unique enough from existing business names, and it also has to contain one of the following at the end:
You also can’t use words like “bank” or “trust” unless you have specific state permission, and you can’t use titles like attorney or doctor unless you (or another owner) hold those professional licenses.
When you decide on a name, check with the Secretary of State to see if it is taken already. You can use their online search tool to conduct research.
You can also reserve a name for up to 180 days while you prepare your articles of organization. To reserve it, fill out a name reservation form online or by mail and pay a $39 processing fee.
A statutory agent (often called a registered agent in other states) is a company or individual who can accept official documents and legal mail on your behalf. They’re responsible for sharing these documents with you.
Every LLC registered in Ohio must have a statutory agent. Individuals must be at least 18 years old, be an Ohio resident, and be available to accept documents during normal business hours.
A company can act as your statutory agent if they have a business address in Ohio.
You can designate yourself or another owner as the statutory agent, but this might be problematic if you cannot accept legal or other official documents. A registered agent service is one way to simplify this process.
Certain types of companies require a business license to operate. For example, if you are selling tangible items, you’ll need a vendor’s license. Check with the Secretary of State to determine if you need a business license to operate your LLC.
To file your articles of organization, you must complete Form 533A if you’re a domestic LLC and Form 533B if you’re a foreign LLC. Information to include in your articles of organization is:
Once you submit your articles of organization, it will take the state three to seven business days to process and file them. You can request expedited processing and filing for an additional fee.
After you receive approval, the state will send you a stamped copy of your articles of organization. Ensure to retain this copy for your records.
While you’re not required to create one of these documents in Ohio, you should consider it. This written contract will protect you, your partners, and your business.
The information in an operating agreement includes:
An employer identification number (EIN) may not be necessary. For example, you won’t need one if you don’t have any employees. If you have at least one employee, you’ll need to apply for an EIN with the IRS.
This identifier can also help you take out loans on behalf of your company.
Start building your Ohio LLC operating agreement today!
