Q: We need to get a business license in Ohio. Would you be able to help with that?
Thank you to a client from Ohio for that great question! While Ohio doesn’t have a general business license, most businesses in Ohio will need one or more licenses to operate legally. The most common license for Ohio businesses is the Ohio Vendor’s License. Many Ohio businesses will also need a local business license. And for specialized industries such as medicine, law, and architecture, you’ll need a professional license as well.
If you’re in the middle of starting your business, you’re probably already sick of filling out paperwork and reading up on legal requirements. So we’ve created a simple guide to help you understand Ohio business licenses and learn how to get one.
Ohio Vendor’s License
According to the Ohio Department of Taxation, anyone selling tangible property or taxable services in Ohio needs to apply for a vendor’s license. Getting a vendor’s license (called a sales tax permit or seller’s permit in some states) allows the state to collect sales tax from your business.
How do I get an Ohio Vendor’s License?
Here are the steps to getting a vendor’s license:
- Review the OH Dept. of Taxation Licensing Requirements to find out which type of license you need. Ohio has different licenses for vendors with a fixed business location in Ohio, transient vendors (who don’t have a fixed business location), and out-of-state vendors.
- Find out your Ohio NAICS code—a numerical code describing your business activity.
- Apply for a vendor’s license online through the Ohio Business Gateway or in person through your local county auditor’s office.
Note: Out-of-state vendors have the option to apply for sales tax permits for multiple states at once through the Streamlined Sales Tax Registration System.
How much does the Ohio Vendor’s License cost?
The cost of the vendor’s license depends on the type of license:
- Vendors with a fixed business location in Ohio—$25.
- Transient vendors—$25.
- Out-of-state sellers—No fee.
Professional Licenses
If the service you offer requires specialized training to be performed safely, you probably need a professional license. Here are some of the professions that require a professional license in Ohio:
- Accountants
- Architects
- Auctioneers
- Cosmetologists
- Car mechanics
- Funeral directors
- Medical workers
- Social workers
- Therapists
You can read the whole list on the Ohio.gov website.
How do I get a professional license in Ohio?
For many types of professional license, you can apply through the eLicense Ohio portal. You will need to create an online account before you can apply.
For professions that do require a license but aren’t managed by eLicense Ohio, you should apply through the state board that regulates your profession. For example, boxers and mixed martial artists must apply for a license through the State of Ohio Athletic Commission.
Local Ohio Licenses
Check with your local county government to find out what licenses they require. Some cities and counties in Ohio require a local business license for all business owners, whereas others only require one for certain professions. For example, in Franklin County, a local license is required for junk yard dealers and professional dog breeders.
Another license to be aware of is the Ohio Cigarette Dealer’s License. This is a statewide license for anyone who sells cigarettes, and business owners must purchase it through their local county auditor.
Federal Licenses
While most businesses won’t need a federal licenses, a few industries do, including drug manufacturing, transportation, and alcohol, tobacco, and firearms sales, among others. If your business needs a federal license, you should apply through the federal agency that regulates your industry. For example, ground transportation businesses need to be licensed by the US Department of Transportation.
Check out the Northwest guide to doing business in Ohio.