Ohio LLC Taxes
Ohio LLCs face state pass-through income tax plus any state-level entity-tax requirements. Federal taxation defaults to pass-through.
State entity taxes
Franchise / privilege tax: Commercial Activity Tax (CAT) on gross receipts > $3M.
State income tax on members: Ohio taxes its residents on personal income. Members pay Ohio state income tax on their share of LLC pass-through income at ordinary rates.
Federal taxation
By default, single-member LLCs are disregarded entities and report on Schedule C of the owner’s personal return. Multi-member LLCs file Form 1065 (partnership). Either may elect S-Corp or C-Corp tax treatment via Form 2553 or Form 8832.
Sales tax
If your Ohio LLC sells tangible goods or certain taxable services, you generally need a state sales tax permit. Check the Ohio Department of Revenue / Taxation for the applicable rate and registration process.
Ohio-specific note
Ohio does not require LLCs to file an annual report. The Commercial Activity Tax (CAT) applies only above $3M in gross receipts (raised in 2024).
Self-employment tax (federal)
Members of pass-through LLCs generally pay self-employment tax (15.3% on the first ~$168,600 of net earnings, plus 2.9%+ Medicare beyond that) on their distributive share. Electing S-Corp status can sometimes reduce SE tax but adds payroll-administration complexity.
Frequently asked questions
Does a Ohio LLC pay state income tax?
What franchise tax applies to a Ohio LLC?
How is a Ohio LLC taxed federally?
Sources & further reading
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