Making it Legal

Whether you are in the entertainment industry or running an online store, we want to help you get started!

Check out the different business structures and contact us when you're ready to get your paperwork together.

Here are your options:

  1.  Nonprofit Corporation 

  2. Sole Proprietorship

  3. Partnership 

  4. Limited Liability Company 

  5. C-Corporation

  6. S-Corporation

Nonprofit Corporation
501(c)(3)

To become recognized as a tax-exempt corporation (or “nonprofit” corporation) in Ohio, the organization must take multiple steps through several state agencies. The Secretary of State is responsible for all corporation filings in the state, including tax-exempt corporations. The Attorney General’s office regulates “charities.” The Department of Taxation provides an exemption from state taxes. (These requirements are separate from federal charity and tax-exempt status requirements, which are discussed in another section).

State filing can take up 30 days.

Federal filings can take up to 60 days.

Work with our team to get you started or move forward with Tax-exempt status. 

Sole 
Proprietorship

In this form of doing business, one person (you) owns and operates the business. On the
plus side, your business earnings are taxed just once, and you alone are in charge of all business decisions. On the downside, sole proprietors are personally liable for any claims against their
businesses, and often have more trouble getting financing. Many businesses start out as sole proprietorships, then switch to more complex structures.

Partnership

IIn a general partnership, both partners manage the business and are responsible for its debts. In a limited partnership, certain (limited) partners are investors but do not manage the business.
One advantage of partnerships: The partnership doesn’t pay tax; partners report profits or losses on their personal tax returns

Work with our team to get you started or move forward with this option.

Limited Liability Company

An LLC offers liability protection like a corporation, but without double taxation
because earnings and losses are reported on the owners’ personal taxes. There is no limit
on the number of members. Owners or members in a multiple-member LLC should
have a written membership agreement reviewed by an attorney.

C-Corporation

Incorporating protects you from liability for the company’s debts or claims against it. A corporation can sell stock, enabling you to raise money. However, corporations are strictly regulated and are taxed twice—the corporation pays income tax, and shareholders pay taxes on any dividends.

S-Corporation

An S corporation protects owners against liability and provides more tax benefits than a corporation. The corporation doesn’t pay federal income taxes; profits and losses are reported on
shareholders’ individual tax returns. But complying with regulations can be costly and time-consuming, and you’re limited to a set amount of shareholders, which may be restrictive if you’re seeking to raise lots of capital.