Ohio does not have a corporate income tax which benefits businesses enormously. The State of Ohio is very friendly and easy to access information and resources for small business owners and entrepreneurs to help you make your business idea a reality. The latest statistics show that 97.9 percent of all companies in Ohio are small companies.
Ohio’s small businesses are thriving. New tax benefits and other incentives drive enormous growth in small businesses throughout the state. The Buckeye State provides the eighth-best tax environment for small companies in the United States.
Complete Guide: How to Start a Painting Business
How To Start A Painting Business In Ohio:
- Getting Started
- Write a Business Plan
- Legal Structure in Business
- Naming Your Painting Business
- Workers’ Compensation Coverage
- Benefit from tax and government incentives
- Open a Business Checking Account
- Get Liability Insurance
- Get Health Insurance
- Final Thoughts
Getting Started
If you run a painting company, it is critical for you to be aware of the Ohio EPO rules for your work. There are many regulatory areas that could relate to you. Ohio government maintains a number of helpful websites to help you get your business started. You will be required to notify the Ohio EPA and comply with hazardous waste regulations if you produce hazardous waste.
Secretary of State of Ohio:
Ohio’s official website has listed several clear steps to help you complete your painting business registration process. The initiatives apply to nearly all new enterprises.
Write a Business Plan
Developing a business plan is a critical phase in starting a business. A business plan outlines the objectives, resources, and knowledge that a business must develop and acquire before it can begin. A business plan can also be used to obtain financing. It informs bankers and prospective employees about a business’s financial condition.
Create a One-Page Business Plan
You should be able to complete your one-page business plan in less than 20 minutes. It’s super-simple: Print our free PDF template and write down one to two sentences to the questions in the free template below:
Download template: PDF
Legal Structure in Business
It is necessary as an entrepreneur or potential business owner to determine how to register your company.
Choosing the correct business structure at first will shield you from potential problems.
There are six legal structures for companies in Ohio:
• Sole proprietorship
• General partnership
• Limited partnership
• Limited liability partnership
• Limited liability company (for profit and nonprofit)
• Corporation (for-profit, nonprofit and professional)
You can register by submitting forms based on the legal framework you want. Your company name will also be protected when you submit these particular forms. Check the choices and discuss them in the U.S. Small Business Administration (SBA) overview:
As the type of company you register will affect tax and legal liability both, it is highly advised to obtain competent legal and/or accounting advice in establishing your company. Find out if your company needs to be registered at the national, local, or federal level.
| Business structure | Ownership | Liability | Taxes |
| Sole proprietorship | One person | Unlimited personal liability | Personal tax only |
| Partnerships | Two or more people | Unlimited personal liability unless structured as a limited partnership | Self-employment tax (except for limited partners) Personal tax |
| Limited liability company (LLC) | One or more people | Owners are not personally liable | Self-employment tax Personal tax or corporate tax |
| Corporation – C corp | One or more people | Owners are not personally liable | Corporate tax |
| Corporation – S corp | One or more people, but no more than 100, and all must be U.S. citizens | Owners are not personally liable | Personal tax |
| Corporation – B corp | One or more people | Owners are not personally liable | Corporate tax |
| Corporation – Nonprofit | One or more people | Owners are not personally liable | Tax-exempt, but corporate profits can’t be distributed |
Naming Your Painting Business
The Ohio Secretary of State’s office is the official repository for your business’s legal structure and name.
If a proposed name is already licensed as a trade name, the Secretary of State’s office will inform you that you cannot use it unless the company that registered the name grants permission.
You can conduct a business name search using the Secretary of State’s Business Search tool or call the Secretary of State’s Business Services Division at (877) 767-3453.
No other business may use a trade name. The filing prohibits any other company from registering with the Ohio Secretary of State under the same name. A filing fee is needed (Name Registration Form 534A).
A fictitious name does not have the same level of security as a trade name. The Ohio Secretary of State registers a fictitious name, but everyone can use it. A filing fee is needed (Name Registration Form 534A).
Workers’ Compensation Coverage
The Ohio Workers’ Compensation Insurance Fund is a no-fault system that protects all employees and employers in the event of a workplace accident, occupational disability, or death.
All employers in Ohio with one or more employees are required to provide workers’ compensation insurance. If you are self-employed, a partner in a company, or an officer of a family farm corporation and do not intend to hire workers, you are not automatically covered.
You have the option of obtaining additional coverage for yourself. Please visit the Ohio Bureau of Workers’ Compensation’s website to review coverage options.
Benefit from tax and government incentives
Understanding and preparing for tax advantages and other government incentives are critical components of any business development strategy. Small business owners in Ohio may take advantage of a variety of tax programmes and incentives designed specifically for increasing small businesses.
The InvestOhio programme administered by the Ohio Development Services Agency provides a nonrefundable personal income tax credit to anyone who acquires an ownership interest in a small business in Ohio. Individuals or pass-through entities held by individuals who keep the investment for two years are eligible for the payout.
The Ohio Small Business Deduction, which was founded in 2013, now applies to 70% of the first $250,000 of apportioned net business profits. The deduction applies to Ohio residents who declare income from pass-through entities such as sole proprietorships, partnerships, limited liability companies (LLCs), and S corporations on their personal income tax returns.
Additional financial benefits available to Ohio small businesses include the Ohio Job Creation Tax Credit administered by JobsOhio, enterprise zones and community reinvestment areas, and USDA rural business growth grants.
Freebie: Business Card Templates for Painting Contractors
Open a Business Checking Account
When you start a new company, you face an endless list of tasks, from agreeing on a business name and legal framework to acquiring licences, locating office space, recruiting staff, and establishing your business banking. As a business owner, there are several items that you must possess in order to get started.
Many people overlook the importance of opening a business checking account, reasoning that they can think about it later once they start earning serious money. Others, on the other hand, want to use a personal checking account for business purposes.
As a sole proprietor, you are not required by law to maintain a business checking account. However, from a company management perspective, it makes sense. Additionally, many banks have terms and conditions that prohibit the use of personal checking accounts for business transactions.
It is critical to establish a business checking account at the beginning of your business.
Get Liability Insurance
If you want to minimize the risk of your company being destroyed in the event of an accident, you should have general liability coverage in your business insurance policy. Indeed, this form of policy is regarded as one of the most critical aspects of business insurance, owing to the frequency in which businesses in every sector depend on it. After all, there is always a possibility that you will be sued for damages resulting from incidents caused by your company. Commercial liability insurance, in general, protects against physical injuries, collateral loss, medical expenses, and personal injury.
Get Health Insurance
Health insurance will benefit your small business in two ways: by providing excellent medical coverage for you and your workers and by assisting you in attracting and retaining the best employees.
Your company has been built by the efforts of both you and your employees. Now is the time to reinvest in your most valuable asset: your people. This includes health care for many small and medium-sized companies. You recognize its worth, as do your staff.
Request a quote for a small business health insurance package that covers medical expenses and offers financial security in the event of an accidental accident or illness.
Coverage for you and your employees, as well as their dependents. By offering attractive benefits, you can attract and retain the best workers. Choose from a diverse variety of policies offered by reputable insurers.
Receive complimentary personal assistance and guidance from licensed agents.
Final Thoughts
Starting a painting company has a number of advantages and disadvantages.
With low startup costs and an established business model, a painting business can be an excellent option for both novice and experienced entrepreneurs seeking financial success.
However, this results in a fierce rivalry. You’ll need to be able to market your company effectively in order to increase sales and succeed in the market.
It’s a good idea to have a plan in place when determining how to start a painting company. To begin a painting company, you’ll want to have a business plan, a brand, a marketing strategy, and funding in place.
In general, starting a painting company can be a worthwhile investment for the aforementioned reasons. If you’re new to painting or have years of experience as a painter, starting a company may be the next step toward increasing your profits.
Read our complete guide on How to Start a Painting Business