Launching a small business in Ohio is an exciting venture, but navigating the regulatory landscape can be overwhelming. Starting a business is both exciting and daunting, with many requirements to address promptly, including what business licenses and permits you need to have in place. As experienced business attorneys, we’ve guided countless entrepreneurs through this process and want to share essential information about the licenses and permits your Ohio business might need.
Business Registration: Your First Step
Ohio doesn’t have a general operating license, but most business structures (except sole proprietorships and general partnerships) must register with the Secretary of State. This registration effectively acts as a general business license for many purposes. You can complete this process through the Ohio Secretary of State’s online portal at https://www.sos.state.oh.us/businesses/.
Doing Business Under a Different Name
When doing business under a different name from your own, you need to register it with the state. In Ohio, that name must be unique. You can use the online database at https://www.sos.state.oh.us/businesses/ to search for already registered names. Once you find a unique name, you’ll need to fill out the Name Registration form and file it with the Secretary of State’s office.
Federal Requirements: EIN and More
If your business will have employees, you will need an Employer Identification Number (EIN) from the IRS. This identifies you as a business to the IRS. Obtaining an EIN is free when you do it directly with the IRS. Beyond this basic requirement, certain industries require federal licenses or permits. For example, businesses involved in alcohol production, commercial transportation, food production, or broadcasting need federal permits from agencies like the Alcohol and Tobacco Tax and Trade Bureau or the Food and Drug Administration.
Ohio Sales Tax Compliance
If you plan on selling products or services, you may need a sales tax permit. In Ohio, this is called a vendor’s license. It allows you to collect taxes on taxable products and services, then send those funds to the state. You can obtain a vendor’s license by creating an online account through the Ohio Business Gateway (available at business.ohio.gov) or contacting your county auditor. The vendor’s license is usually available immediately after completing your registration and costs $25.
Location-Specific Requirements
Many cities and counties in Ohio use zoning laws to restrict where businesses can operate. You should check with your city or county zoning office to see if you need a special permit for your desired location. Additionally, some local Ohio governments require home-based businesses to have a home occupation permit.
Major cities like Columbus, Cleveland, and Cincinnati have their own specific licensing requirements. You can find information for these cities at:
- City of Columbus License Section: https://www.columbus.gov/publichealth/programs/licensing-program/
- City of Cleveland Division of Assessments and Licenses: https://www.clevelandohio.gov/node/11
- City of Cincinnati Businesses: https://www.cincinnati-oh.gov/licenses/
Industry-Specific Permits
Specific professionals and businesses need special licensing in place before they can open their doors. For example, in Ohio, doctors and lawyers need to be certified and licensed before they can offer their services. Day care centers are another business that needs to obtain and keep special licensing. You can apply for professional licenses through Ohio’s eLicense system at https://elicense.ohio.gov/.
Health and Safety Permits
A health permit is required for most businesses that sell food or beverages that are cooked and served to the public. In Ohio, these permits are handled at the county level through your local Health Department. Additionally, businesses that store and use flammable liquids or offer a place for people to assemble may need a fire department permit after inspection and certification of the space.
Environmental Considerations
Businesses of all sizes must comply with environmental regulations, controls, and laws. The Ohio EPA is responsible for ensuring compliance. If your business will create, transport, store, treat, or dispose of any hazardous waste, you need to contact the Ohio EPA about regulations. At the city and county level, you will need approval from your local sewer department before connecting to a publicly owned wastewater system. Learn more at https://epa.ohio.gov/divisions-and-offices/environmental-services/permitting/permits.
Building, Construction, and Signage
Some Ohio city and county governments have laws that require businesses to get a signage permit before putting up a sign, with regulations on size and placement. If you’re renovating a building for your business, you may need building and construction permits from the local building department at the city or county level. Always contact these departments before starting construction or installing signage.
The Consequences of Non-Compliance
You might think getting a business license isn’t a big deal and it’s easier to start your business without the hassle. That’s where you’re wrong. If caught without proper licenses and permits, you could face stiff penalties, business closure, and in some cases, jail time. It’s just not worth the gamble.
Keeping Your Business Compliant
Remember that many licenses require periodic renewals, and some need inspections or recertifications to remain active. If you make significant changes to your business, such as opening a new location, you should apply for new licenses or update your current registrations accordingly.
Don’t Navigate Compliance Alone
Before you open your doors, it’s a smart idea to consult with an attorney that specializes in business law. An attorney can help you determine the business licenses and permits you need and how to obtain them.
Our firm has extensive experience guiding small business owners through Ohio’s regulatory landscape. We can help identify exactly which permits and licenses your specific business needs and assist with the application process to ensure you’re fully compliant from day one.
Ready to ensure your business is fully compliant with all Ohio licensing requirements? Contact our office today for a free 30-minute consultation. We’ll help you navigate the complexities of business compliance so you can focus on what matters most—growing your business.
