Introduction
Starting a business can be one of the most rewarding experiences in your life. Being your own boss, creating a product or service that you believe in, and watching it grow can be extremely fulfilling. And if you’re considering starting a business, Ohio can be a great place to do it!
Ohio is home to a thriving business community that’s supported by a strong economy and an abundant amount of resources. With a booming job market and a diverse range of industries, Ohio offers a wealth of opportunities for entrepreneurs.
So, if you’re ready to take the plunge and start your own business in Ohio, we’ve got you covered. In this comprehensive guide, we’ll take a deep dive into the step-by-step process of starting a business in Ohio. We’ll also discuss the various resources available for business owners, share success stories, and explore specific niche industries that are ripe for starting a business. Let’s get started!
Chronological Steps
The first step in starting a business in Ohio is to make it legal. This section will highlight the critical steps that need to be taken to make your business legal in the state of Ohio.
A. Registering with the State
The first step in starting your business in Ohio is to register with the Ohio Secretary of State’s office. This process can be done online or through the mail. You’ll need the following information to complete your registration:
- The name of your business
- Information about your business structure (sole proprietorship, LLC, etc.)
- Your business address
- A registered agent (someone who will receive legal documents and notices on behalf of your business)
Once your business is registered, you’ll receive a Certificate of Good Standing from the Secretary of State’s office, which is proof that your business is legitimate and authorized to operate in Ohio.
B. Obtaining Any Needed Licenses and Permits
Depending on your industry, you may need additional licenses and permits to operate your business in Ohio. The Ohio Business Gateway is an online resource that can help you determine which licenses and permits you may need. Here are some examples of licenses and permits you may need:
- Professional licenses (e.g. real estate, accounting, etc.)
- Health and safety permits (e.g. food service, childcare, etc.)
- Environmental permits (e.g. air quality, waste management, etc.)
C. Finding a Location for Your Business
Finding the right location for your business is critical to its success. In Ohio, there are many factors to consider when choosing a location, such as:
- Accessibility to customers
- Access to transportation and shipping lanes
- Availability of a skilled workforce
- Tax incentives
When choosing a location, it’s important to do your research and weigh the pros and cons of each option carefully.
D. Understanding Tax Requirements
Ohio has a complex tax system, and it’s essential to understand your tax obligations as a business owner. Here are some of the taxes to be aware of:
- Income tax
- Sales tax
- Employer withholding tax
- Commercial activity tax
The Ohio Department of Taxation website is an excellent resource for understanding your tax obligations and staying compliant with the law.
E. Launching Your Business
Once you’ve completed the above steps, it’s time to launch your business in Ohio! This includes things like:
- Purchasing equipment and supplies
- Marketing your business
- Hiring employees (if necessary)
- Setting up a business bank account
Launching a business can be a daunting task, but with careful planning and execution, it can be an incredibly rewarding experience.
Business Resources
One of the wonderful things about starting a business in Ohio is the abundance of resources available to support entrepreneurs. Here are some resources to take advantage of:
A. Local Small Business Associations
Ohio has a vibrant small business community supported by several organizations that provide support and resources to entrepreneurs. These include:
- The Ohio Small Business Development Center (SBDC)
- The Ohio Minority Business Assistance Center (MBAC)
- The Ohio Small Business Association (SBA)
These organizations provide a wealth of resources, including business counseling, networking opportunities, and funding assistance.
B. Startup Incubators
Ohio has several startup incubators that provide entrepreneurs with resources and support to help them launch and grow their businesses. Some of the top startup incubators in Ohio include:
- The Brandery (Cincinnati)
- The TechColumbus Incubation Program (Columbus)
- The Akron Global Business Accelerator (Akron)
These incubators provide a range of resources, including mentorship, office space, and funding.
C. Funding Resources
Ohio has many funding resources available to entrepreneurs, including loans, grants, and venture capital. Some top funding resources include:
- The Ohio Third Frontier Program
- The Ohio Development Services Agency
- JumpStart Inc.
These funding resources can provide critical seed funding that can help you launch your business successfully.
Success Stories
Ohio has many success stories of businesses that have thrived in the state. Here are a few examples:
A. Jeni’s Splendid Ice Creams
Jeni’s Splendid Ice Creams is an Ohio-based artisanal ice cream company that has gained national recognition. Founder Jeni Britton Bauer started the company in 2002 with the goal of creating ice cream that was delicious, natural, and made with local ingredients. Today, Jeni’s has over 30 flavors and has won numerous awards.
B. CoverMyMeds
CoverMyMeds is a Columbus-based healthcare technology company that was founded in 2008. The company provides electronic prior authorization of prescription drugs, streamlining the process for healthcare providers and patients. CoverMyMeds was acquired by McKesson Corporation in 2017 for $1.1 billion.
These stories show that Ohio is a great place to launch and grow a business. By taking advantage of the abundant resources available to entrepreneurs, you can follow in their footsteps and experience similar success.
Niche Industries
Ohio is home to many niche industries that are ripe for starting a business. Here are two examples of industries in Ohio that are perfect for entrepreneurs:
A. Agriculture
Ohio is home to a thriving agricultural industry, with over 75,000 farms contributing over $124 billion to the state’s economy. Agriculture is a great industry to start a business in Ohio because of the state’s fertile soil, abundant water resources, and favorable climate. Some examples of agriculture-related businesses in Ohio include:
- Organic farms
- Farm-to-table restaurants
- Farmers markets
B. Technology
Ohio has a growing technology sector, with over 20,000 tech companies calling the state home. Columbus, in particular, has been dubbed the “Silicon Valley of the Midwest.” With a highly educated workforce and access to funding and resources, Ohio is an excellent place to start a technology business. Some examples of tech-related businesses in Ohio include:
- Software development companies
- Medical technology companies
- Cybersecurity firms
Legal Considerations
Starting a business in Ohio requires a thorough understanding of the legal environment. Here are some of the most critical legal considerations to be aware of:
A. Taxes
The tax code in Ohio can be complex, and it’s essential to understand your tax obligations as a business owner. Some tips for staying compliant with Ohio’s tax laws include:
- Keep detailed records of all financial transactions
- Pay taxes on time
- Understand your tax filing requirements
B. Business Permits and Licenses
As mentioned earlier, Ohio has specific permits and licenses that businesses must obtain to operate legally. Here are some tips for navigating this process:
- Research which permits and licenses you need before starting your business
- Apply for permits and licenses as early as possible to avoid delays
- Understand the consequences of operating without the proper permits and licenses
C. Employment Laws
Ohio has specific employment laws that businesses must follow, such as minimum wage and anti-discrimination laws. Here are some tips for staying compliant with Ohio’s employment laws:
- Understand your obligations as an employer
- Comply with minimum wage and overtime laws
- Have clear employment policies in place
Conclusion
Starting a business in Ohio can be a fantastic opportunity for entrepreneurs. With a thriving business community, abundant resources, and specific industry niches, Ohio provides a wealth of opportunities for those looking to start and grow a business. By following the step-by-step process outlined in this article, entrepreneurs can launch their businesses confidently and get on the path to success in no time.
