Should I form an Ohio LLC?

Elliott Stapleton Limited Liability Company-LLC

An Ohio Limited Liability Company (LLC) may be formed to sell goods or services. An LLC is a separate legal entity; this type of entity is sometimes mistakenly called a limited liability corporation.

Unlike a corporation, the ownership units of an Ohio LLC are called a Membership Interests instead of shares.  Each owner of the Company is known as a Member.

There are many benefits to having an Ohio LLC rather than a corporation.  We offer an initial consultation to assist in evaluating the pros and cons of an Ohio LLC and Corporation.

The following is a brief summary of some of the tax benefits:

  • The entity only has one level of taxation; whereas a corporation (specifically a C-corp) has two levels of taxation.
  • A Limited Liability Company allows the owners to distribute profits (or allocate loss) in any manner they choose regardless of capital contributions.
  • Losses from the business can be passed through to a member’s individual tax return.
  • An LLC can elect to be taxed as a corporation (but a corporation cannot elect to be taxed in the same manner as an LLC).

On a quarterly or semi-annual basis, business owners should address your tax planning goals and questions with your accountant (CPA). This will allow you to adjust your tax structure as the business grows.

For more information on Estate Planning, Estate Administration, Trust creation, contact Elliott Stapleton.

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About the Author

Elliott Stapleton

Elliott is a partner in the firm of Cornetet, Meyer, Rush and Stapleton serving clients throughout Ohio. Elliott's business clients range from small single member companies to large privately-held businesses. CMRS Law provides legal services which include advice on Business Formation and Transactions, Real Estate Transactions, Trademark Law, Copyright Law, Estate Planning, Trust Administration, Probate Administration, and Succession Planning. CMRS Law serves clients at two locations: 123 Boggs Lane, 1st Floor, Cincinnati, Ohio 45246 and 2101 Grandin Road, Suite A, Cincinnati, OH 45208