A package that may look innocuous to an outsider might be anything but, if the envelope is stuffed with a ton of legal stuff.
Here’s a look at what you need to pack in order to secure your legal business in Ohio.
A legal business must be located in Ohio or have a registered address in Ohio, or have registered at least $100,000 in assets in Ohio and have an annual income in excess of $250,000.
A business must have a licensed professional accountant or licensed real estate agent as the sole agent for the purpose of conducting business in the state.
In Ohio, businesses are exempt from the $100K cap on gross receipts and property taxes.
An exemption may be granted if the business is a small business that is less than 50% owned by the business owner, is a partnership or corporation, is exempt from paying sales tax, has no gross receipts, and has no assets of $1,000,000 or less.
The business owner must be a U.S. citizen.
The state may also grant a limited exemption if the owner is a resident of Ohio and has not been convicted of a felony, or if the person owns at least 20% of the business, is less a principal of the other 10% of owners, or is less of a spouse or common-law partner or a dependent of the owner, or the person is employed at least 15 hours per week and has a total annual income of at least 200% of average household income.
Businesses must be in the business of supplying and selling goods and services, but they can also provide goods and provide services in other ways.
In some instances, a business can also sell services to individuals and businesses for profit.
The terms of each transaction must be written down on the business’ certificate of incorporation.
In addition to the tax exemptions, the business must maintain records of all sales and business activity.
For tax purposes, a sales or business activity includes the sales or activity of a consumer product, services, or service.
A sale or business action is a sale or transaction made for profit, whether or not there is any gain to be made.
For example, if a consumer sells a product, the sale or activity would be considered a business activity, and not an sale.
The state’s tax code also has a tax exemption for a business with more than five employees.
If the business operates more than 100 hours per year, the state’s business tax exemption does not apply.
This is especially true if the establishment is owned by more than 50 people.
An additional exemption is available for a small-business owner.
This includes businesses that employ one or more full-time employees.
This exemption can only be used for a limited period of time.
The tax code is designed to help small businesses.
The law sets a maximum rate of 9.99% on qualified gross receipts.
A small business is considered a small entity, which means that it does not qualify for an exemption for the tax.
The amount of gross receipts required to qualify for the small business tax is $1.00.
The total gross receipts of the businesses exceeds $50,000 for the taxable year.
The tax rate for a sole proprietorship is 7.99%.
A business must keep an annual revenue report.
The report must show the number of employees and the total gross revenue generated during the calendar year.
The IRS is issuing guidance for businesses to prepare and file their annual tax return and also for the reporting of gross income.
Businesses must file their tax return by December 31, 2020.
For more information on how to file your return, call (800) 662-5999.
