Starting a service business in Ohio comes down to four things: picking a structure, registering with the state, getting licensed for your trade, and setting up a way to bill customers. Filing an LLC in OH costs $99, ongoing reporting is $0 (no annual report), sales tax is 5.75% + local, and personal income tax runs 0%–3.5%. Below is the full sequence, the fees you should budget for, the licenses most trades need, and the deadlines that catch new Ohio owners off guard.
Most new registrations come out of Columbus, Cleveland, Cincinnati and the rest of Ohio — local business licenses are issued at the city or county level, so check yours after the state filing clears.
| Item | OH cost |
|---|---|
| LLC / entity filing (one-time) | $99 |
| Annual / periodic report | $0 (no annual report) |
| Federal EIN (IRS) | Free |
| Sales tax registration | Typically free |
| Trade / professional license | Varies by trade |
| Local business license | Set by city / county |
Fees change — confirm current amounts with the OH Secretary of State and the Ohio Department of Taxation.
Choose your structure and file with the OH Secretary of State ($99). Get your free EIN from the IRS the same day.
Register for Ohio sales tax with the Ohio Department of Taxation, then open a business bank account under the registered name.
Apply for your trade license and local business license. This is usually the longest step: Vendor's license (sales tax); Professional license.
Get general liability insurance (and workers' comp before your first hire), then set up estimates and invoicing so you can bill the day you're cleared to work.
LLC Filing Fee
$99
Annual Report
$0 (no annual report)
Sales Tax
5.75% + local
Income Tax
0%–3.5%
Choose business structure
File with OH Secretary of State
Get EIN
Register for state taxes
Get local permits (including CCA for city tax)
Open business bank account
No annual report for LLCs — just file and go
Many Ohio cities have their own income tax — check CCA or RITA
Yes — many cities charge 1%–3% income tax. Check with CCA or RITA.
Online LLC filings with the OH Secretary of State are typically processed in a few business days, and an EIN from the IRS is issued immediately online. Trade licensing and local permits usually take longest — plan on two to six weeks before you're fully cleared to work, depending on your trade.
No — you can operate as a sole proprietor in Ohio and still invoice customers legally. An LLC ($99 to file, $0 (no annual report)) separates your personal assets from business liability, which matters most once you're on customer property, hiring help, or signing contracts.
Ohio sales tax is 5.75% + local. Materials and goods are commonly taxable, while labor treatment depends on the type of work, so bill parts and labor as separate lines and register with the Ohio Department of Taxation before you start collecting.
Open a business bank account under the registered name, then invoice from a tool that applies OH tax per line item and accepts cards. Glo Invoice sends invoices by text with a one-tap pay link, and Tap to Pay lets you charge on site before you leave the job.