Choosing the Structure of Your Company
- angela94599
- Jan 20, 2022
- 2 min read
Deciding to start a company can be exciting and scary at the same time. I think we have talked about this in other posts in this blog. The good thing is that by breaking it down into small tasks those emotions can be eliminated or minimally reduced.
For these next few posts, we will be discussing the steps of getting a company up and going in Ohio. The mechanics of it; the types; people you should engage; and other important aspects. I’ll reference resources for you and try to give you some insights on what to do and what not to do. I am by no means an expert, just sharing my experience of what has worked for me. To get started, keep reading.
The first step is deciding on the structure. The structure is the type of company that you want to have. There are sole proprietorships, LLC’s, partnerships, sub-s corporations, and c-corps. Each one has different advantages and reasons for selecting. Unless you have extensive knowledge in this area, I would consult with an attorney and or CPA on this. They can help you decide what makes the most sense for you and the entity.
Once set up, you need to get a tax id number if you are not a sole proprietorship. This is so you will be able to file tax returns and additional business reports, as well as, set up a bank account. If you are comfortable with doing this on your own, the IRS provides this information at:
https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online. If this is something that you would prefer to have done for you, an attorney or CPA can also take care of it.
With that completed, you will need to register with the state to do business. Although this is relatively easy, some of the verbiage and requested information can be confusing. With my first few companies, I had my attorney set them up and register them. However, you can take care of it yourself here: https://www.ohiosos.gov/businesses/filing-forms--fee-schedule/
With all of that done, you are a company! Of course, the above is a quick overview. Each step has many other steps to get you where you need to be. You will be working with your attorney on operating agreements or other documentation to determine how your company will run and who will do what. Depending on the type of company and goods you sell you may need to set up different accounts with the state—you may need to pay sales and use tax, CAT tax, and employer tax.
So to recap:
Decide on a company structure
Set up a tax ID number: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online
Register with the your state: https://www.ohiosos.gov/businesses/filing-forms--fee-schedule/
This link provides resources, checklists and additional information should you run into any stumbling blocks.
Good luck!
For now, Angela