Starting a service business in Ohio

Form your business in Ohio

Ohio LLCs are formed with articles of organization filed at the Secretary of State, online through Ohio Business Central or on paper. The filing fee set by Ohio Revised Code 111.16 is $99, which is the amount to expect in October 2026; confirm it on the form when you file. The Secretary of State offers expedited filing with a guaranteed processing time for an added fee that depends on the level of expedite.

Ongoing state filings

Ohio LLCs do not file an annual report. The Secretary of State's FAQ lists regular reporting only for professional associations and LLPs, nonprofit corporations, and periodic renewals of trade names, fictitious names and marks. Your main state-level recurring item is tax: the Commercial Activity Tax applies only to businesses with more than $6 million a year in Ohio gross receipts for tax years 2025 and forward, and the annual minimum tax ended in 2024, per the Department of Taxation.

Using a business name (DBA)

Ohio offers two name filings with the Secretary of State. A trade name must be distinguishable from other names on file and gives you exclusive use in Ohio; a fictitious name does not need to be distinguishable and grants no exclusive rights. Either registration costs $39 under Ohio Revised Code 111.16, lasts five years, and renews for $25. The Secretary of State mails a renewal notice six months before it expires.

Not sure whether you need an LLC at all? Read LLC vs sole proprietor for contractors, then get your free EIN from the IRS.

Licensing for service trades

Ohio's state trade license comes from the Ohio Construction Industry Licensing Board (OCILB), which licenses electrical, HVAC, plumbing, hydronics and refrigeration contractors who pass the PSI exam. The board says it regulates commercial contractors, and that local building and health departments regulate residential contractors; state law lets those local departments require the state license for residential work. So an HVAC tech or plumber going out on their own should ask the building department in every city and county they plan to work in. OCILB's list does not include painting, remodeling or handyman work, so ask your city's building department what it requires for those trades. Anyone hired to apply any pesticide to someone else's property, including weed and feed on lawns, needs a commercial pesticide applicator license from the Ohio Department of Agriculture (for example the turf category), and the business needs a pesticide business license. Applicator licenses expire every September 30.

• Ohio Construction Industry Licensing Board: Electrical, HVAC, plumbing, hydronics and refrigeration contractors
• Ohio Department of Agriculture, Pesticide Regulation: Commercial pesticide applicator licenses and pesticide business licenses

Workers' compensation

Ohio is a state-fund state for workers' comp. The Bureau of Workers' Compensation (BWC) says all employers with one or more employees must carry coverage. Employers pay into the state insurance fund under Ohio Revised Code 4123.35 unless they qualify to self-insure (the statute requires sufficient financial ability). In practice, a new small business buys its coverage from BWC, not from a private carrier. Coverage is elective for sole proprietors, partnerships, LLCs filing as a partnership or sole proprietorship, and an individual incorporated with no employees, so a solo owner can choose whether to cover themselves. Open a BWC policy before your first hire starts work.

More on coverage: business insurance for contractors.

Sales tax on services

Ohio taxes a list of services that hits home-service businesses directly. Per the Department of Taxation, pest control is taxable; lawn care and landscaping, snow removal, and building cleaning or janitorial services are taxable once the provider earns $5,000 or more in a year. Janitorial includes housekeeping or maid service and power washing or cleaning building exteriors, including siding, roofs, chimneys and gutters, on houses as well as offices. Repair services are taxable unless the item being repaired is exempt. To collect tax you need a vendor's license; the application fee is $50 as listed by the Department of Taxation in October 2026 (it rose from $25 on April 9, 2025). Rates differ by county, so look up the rate for each county where you work.

Recording business calls in Ohio

Ohio is one-party consent. Under Ohio Revised Code 2933.52(B)(4), you can lawfully record a call you take part in, or one where a participant gave you prior consent, so long as the purpose is not criminal or tortious. Many Ohio companies still play a notice because customers can call from all-party states; our guide to recording business calls explains why.

See our guide to recording business calls before you turn on call recording or an AI receptionist.

How the seasons shape the work

Ohio's season splits by the lake. The snow belt east of Cleveland gets heavy lake-effect snow, which makes plowing and salting contracts a real winter business, while Cincinnati and the southern hills get more freeze-thaw and ice. Mowing runs roughly April through October statewide, spring and fall bring gutter and cleanup work, and humid summers keep air conditioning techs busy. Because Ohio taxes lawn care and snow removal past $5,000, a mow-and-plow company usually needs a vendor's license in its first season.

Pressure washers: how you invoice changes the tax

The Department of Taxation's information release on building services gives the example of washing a driveway: that part is not taxable if it is separately stated on the invoice, but if a taxable building wash and the driveway are billed as one amount, the entire amount is taxable. Put house washing and flatwork on separate lines.

Selling at the customer's door

Ohio's Home Solicitation Sales Act covers sales of services where the seller solicits the sale in person at the buyer's home. The buyer has three business days to cancel, and the contract must say so (Ohio Revised Code 1345.23). It excludes sales under $25 and repair visits the buyer asked for, so door-knocking crews selling washing or sealing are the ones most likely to be covered.

Then set up the back end that gets you hired

The paperwork makes you legal. Customers still have to find you, reach you and pay you. Before your first job, set up a business phone number, email on your own domain, a Google Business Profile, a simple website, and a way to send quotes and take card payments. The launch checklist lays out the order.

Ohio questions