How To Get A Business License In Ohio (2024 Guide)

Along with most states, Ohio does not have one comprehensive state business license. However, nearly all businesses in Ohio will need to acquire at least one, if not multiple business licenses before opening the doors. Most businesses will be required to obtain a vendor license, sometimes also called a seller’s permit, if selling tangible goods or taxable services.

Businesses may also be required to obtain licenses on the local level, managed by either city or county governments in the jurisdiction(s) where the business operates. These licenses may be generic business licenses or they might be industry or profession-specific.

When Do You Need a Business License in Ohio?

If you start your business in Ohio, you will likely need to obtain a few business licenses or permits to legally operate your business. While, on the state level, Ohio does not require a general business operating license, a number of professions and industries need to acquire specific licenses or permits. Additionally, any business selling or leasing tangible property or services ordinarily subject to retail sales tax will be required to obtain what’s called a vendor license. A vendor license authorizes Ohio businesses to collect the appropriate sales and use taxes on tangible items and taxable services.

In Ohio, you may also need certain licenses or permits from your local government depending on your business activities or the location where your business is based. For example, the city of Cincinnati requires several different types of businesses to obtain a business license before conducting business. Most of these businesses are in entertainment, transportation, health or food industries. For the full list for Cincinnati, head to the Cincinnati Department of Finance & Budget website. For other cities or counties, contact your city clerk or county recorder or head to the business page of your local jurisdiction’s website.

Finally, your business may be required to obtain federal licensing to operate legally. Though federal licenses are less common, they are required for businesses operating in specific fields.

Step 1. Name and form your company

If you have not already started a company, your first step before applying for an Ohio business license should be to do so. For help starting your business, check out one of our Forbes Advisor guides on starting a business, forming an LLC and, for those who desire assistance with forming a commonly used business structure, Best LLC Services. Once you have officially started your business, get your paperwork in order and make sure you have:

• A business name
• An EIN (Employer Identification Number) or SSN (if you’re a sole proprietor)
• A business entity type (LLC, partnership, corporation, etc.)
• A business address and phone number
• A business plan that includes anticipated revenue and expenses
• A COI (certificate of insurance) for your business insurance policy, where required

Step 2. Apply for your Ohio vendor license, if needed

If your business will sell or lease taxable goods or services, you’ll need to collect sales tax. To do this, you must obtain an Ohio vendor license. Ohio makes this easy with the Ohio Business Gateway site, a one-stop web page for all the business registration, licensing and permitting your business may need at the state level.

Step 3. Determine which local licenses may be applicable

Next, you’ll want to see which local licenses may be applicable to your business. Most larger cities in Ohio require licenses for only some professions and occupations while some smaller cities and villages require licenses for all businesses. Visit your local municipalities’ websites to learn more and apply for any applicable licenses. You can find these websites by heading to the Ohio Municipal League’s list of cities and villages or the directory of counties.

Step 4. Apply for any additional statewide license(s) you need

It’s important to check to see if you need any state-regulated licenses. These licenses are primarily for certain professions and occupations in industries such as health and wellness, food service, liquor, entertainment, construction and finance, but run a quick search for your business activity even if it’s not in these categories. For a full list of business and professional licenses and to apply, head to the Ohio state website’s Licenses & Permits page. 

Step 5. Apply for federal licenses and tax treatment (as necessary)

The majority of small businesses will not need to obtain any federal licenses or permits, but if your business conducts any activities regulated on the federal level, you may need a federal license. Common federal business licensing areas include:

If you operate in any of these industries, contact the appropriate federal agency to see which, if any, required licensing or permits you’ll need.

The primary business license in Ohio is the vendor license, which has a $25 registration fee. The vendor license does not need to be renewed, but businesses will need a unique vendor license for each location of a multilocation operation. Other business licenses in Ohio can vary in cost depending on the location or industry of the business. For example, an arcade operating in the city of Cincinnati will pay $75 a year for a business license while an arcade in the city of Toledo will pay $400 a year plus $15 for each machine over 15 machines.

The Ohio vendor license does not ever need to be renewed, but professional licenses for businesses regulated by either the state or local municipalities may require renewal on an annual or biennial basis. Check with the department or agency issuing the license for information about the renewal schedule and the fee schedule for renewals.