LLC Annual Report and Tax Filing Requirements in Ohio

If you want to start and run an Ohio limited liability company (LLC), you'll need to prepare and file various documents with the state. This article covers the most important ongoing reporting and state tax filing requirements for Ohio LLCs.

No Ohio LLC Annual Report

Unlike most states, Ohio doesn't require LLCs to file annual reports.

State Business Taxes in Ohio

When it comes to income taxes, most LLCs are considered pass-through tax entities. In other words, the responsibility for paying federal income taxes passes through the LLC itself and falls on the individual LLC members. By default, LLCs themselves don't pay federal income taxes, only their members do.

Ohio's Commercial Activity Tax

Ohio imposes an annual privilege tax (also known as a "franchise tax") on some businesses. In Ohio, this franchise tax is called a "commercial activity tax" (CAT). Some LLCs will need to pay this tax, but most small businesses won't.

In 2024, the laws around the CAT changed significantly. As of 2024, Ohio eliminated the CAT annual minimum tax and raised the exemption from $1 million to $3 million. As a result, businesses, including LLCs, with $3 million or less in taxable gross receipts in a year no longer have to file for or pay the CAT. In 2025, the CAT annual exclusion amount will increase from $3 million to $6 million.

These changes will mean that many small businesses will no longer have to worry about the CAT. If you don't anticipate your LLC making more than $3 million in taxable gross receipts, then you can cancel your CAT account, if you have one.

Pass-Through Entity Tax Election

As noted earlier, an LLC is taxed as a pass-through entity and the owners, not the LLC, pay taxes on the LLC's income. However, multi-member LLCs and other pass-through entities can choose to have their income taxed at the entity level instead of at the individual level.

Under this method, the LLC will pay income tax on behalf of the LLC members. The LLC members will then claim credit on their personal return for the tax already paid on their behalf by the LLC. File Form IT 4738 with the DOT to make the election.

See Ohio's electing pass-through entities webpage for more details and guidance.

Electing Corporate Tax Status

Your LLC can choose to be taxed as a corporation. Ohio doesn't have a corporate income tax. But your corporation would still be responsible for paying the CAT, if liable. If you elect to have your LLC taxed as a corporation, then you'll need to pay the federal corporate income tax. (Read how corporations are taxed for more on the benefits and drawbacks of corporate taxation.)

You can find more details in our article about Ohio business income tax. Ohio's tax laws and requirements can be confusing. If you have questions about your tax obligations, consider speaking with a business or tax attorney.

Ohio Employer Taxes

If your business has employees, then you'll be responsible for additional taxes as an employer. As an employer, you have obligations to the federal government and the state governments.

Withholding employee wages. You'll need to withhold and pay employee income taxes to the DOT. Begin by registering your business with the DOT online through the Ohio Business Gateway. Once you've registered, you'll need to file withholding taxes on a periodic basis (for example, monthly, quarterly, or partial-weekly) typically using Form IT-501. You'll also need to use Form IT 941 each year to reconcile your LLC's tax withholding. The DOT provides helpful resources, including tax filing guidelines and due dates, on its employer withholding webpage.

Unemployment insurance (UI) tax. In addition, you'll probably need to register to pay the state UI tax. The Ohio Department of Job and Family Services (ODJFS) handles this tax. You can register for these taxes online through the SOURCE or on paper using Form JFS-20100. Then, on a quarterly basis, you'll need to file wage reports with the ODJFS. For more information, see the UI tax for new employers section of the ODJFS website.

Ohio Sales and Use Tax

Ohio, like many other states, collects sales and use tax. So, if your business will provide taxable goods or services, you'll need to collect and report sales tax.

You must register with the DOT to obtain a vendor's license. You can apply for a license either online through the Ohio Business Gateway or with your county auditor. Then, on a periodic basis—either monthly, quarterly, or semiannually—you must file a sales tax return through the Business Gateway. Use Form UST-1 for sales tax and Form UUT-1 for use tax.

In addition to state sales and use tax, you might be responsible for reporting and paying sales and use tax to your city or county. Make sure you check with your local taxing authorities for your reporting responsibilities.

For more information, check the sales and use tax section of the DOT website.

LLC Registration in Other States

If you formed your LLC in Ohio, but plan to do business in other states, you might need to register as an out-of-state business with those states. For example, many states require you to register as a foreign (out-of-state) business, if you have a business location (office, store, or warehouse) in the state or if you have employees or representatives in the state.

To find out more about the foreign registration process, see our state guide to qualifying to do business outside your state.