Ohio is a solid, low-cost option for founders who want a US LLC without ongoing state fees. This guide covers what Ohio costs in year one and after, what the state requires, and when you should look at Wyoming or Delaware instead.
Who Ohio suits
Ohio works well if you want a straightforward LLC with a low filing fee and no recurring state filing fee after formation. It suits founders running online businesses, consulting, software, or e-commerce who do not need a Delaware C-corp for fundraising. If you plan to raise venture capital later, read the Delaware section below before you commit to Ohio.
What it costs in year one
Ohio's state filing fee is $99 for both an LLC and a corporation. Your total year one cost is your PowerLaunch plan price plus that $99 state fee.
| Plan | Plan price | Ohio state fee | Year one total |
|---|---|---|---|
| Launch | $295 | $99 | $394 |
| Run | $1,995 | $99 | $2,094 |
| Scale | $2,995/yr (or $329/mo) | $99 | $3,094/yr |
If you need your EIN faster, the expedited EIN add-on is $295 on Launch and Run, and it is already included in Scale.
Yearly cost after formation
Ohio has no separate annual report fee for LLCs and no yearly franchise minimum tied to the report itself, so your ongoing state cost is $0 in most cases. This can change, so check the Ohio Secretary of State's site each year to confirm nothing has shifted before you rely on it.
Your PowerLaunch renewal is the plan price only, since there is no Ohio state fee to add back on for most LLCs. Corporations should double check their own filing obligations with the state, since requirements can differ slightly from LLCs.
Registered agent requirement
Ohio requires every LLC and corporation to keep a registered agent with a physical street address in the state. This agent receives legal and state mail on your behalf. All PowerLaunch plans include registered agent service, along with a virtual mailing and business address, so you do not need a separate Ohio address to meet this requirement.
Annual report and franchise tax
Ohio does not require a traditional annual report filing with an ongoing fee for most LLCs, which is a real advantage over states that charge every year regardless of income. That said, Ohio does have a Commercial Activity Tax that can apply once a business crosses certain revenue levels. The rules and thresholds for this tax change from time to time, so check the Ohio Department of Taxation's site directly rather than relying on older figures. If your revenue grows, this is worth a proper review with a tax professional, which is included in the Run and Scale plans.
State income tax, in general terms
Ohio applies its own state income tax rules to businesses and individuals with Ohio-source income. If you are a non-resident founder with no physical presence, employees, or property in Ohio, your state tax exposure is usually limited, but this depends on your specific setup. General federal filing duties still apply regardless of which state you pick. If your LLC is foreign-owned and single-member, you need to file Form 5472 with a pro forma 1120 by 15 April each year. Under the 2026 interim FinCEN rule, US-formed companies are currently exempt from BOI reporting, but rules can shift, so it is worth checking again closer to your filing date.
When Wyoming or Delaware fit better
Ohio is a good general-purpose choice, but it is not the only option, and it is not always the best one.
Wyoming tends to suit founders who want the fastest possible formation and a simple LLC structure with no plans to raise institutional funding. PowerLaunch can typically form Wyoming LLCs in 1 to 3 business days, faster than Ohio's roughly one week turnaround.
Delaware tends to suit founders planning to raise venture capital through a C-corporation. Many US investors are more comfortable with a Delaware corporation because it is the standard structure they expect to see, with well understood corporate law behind it. If you already know you will raise a funding round in the next year or two, forming in Delaware from day one can save you a costly conversion later.
| Factor | Ohio | Wyoming | Delaware |
|---|---|---|---|
| Best for | General LLCs, no VC plans | Fast, sim |
