To form an Ohio limited liability company, a separate legal entity must be created. This formation is necessary to secure the limitation of liability for the members’ personal assets from the liabilities of the business.
The separate entity is created by first registering the Articles of Organization with the Ohio Secretary of State, making the necessary tax filing, receiving any necessary federal, state, or local authorization, and taking the necessary steps to separate the owner(s) of the company from the business.
It is important to maintain this separation to ensure the limitation of liability remain in effect. By not following the proper procedures, a member’s personal assets may be at risk to creditors of the business.
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