Cutting Ohio Business Fees Equates To A “A Success Dividend”

Date: February 02, 2015

House Bill 3,
Cutting Ohio Business Fees, is priority legislation introduced in the Ohio
House of Representatives, includes a 21% cut in the fee to start a new business
in Ohio, which is the first of its kind in modern Ohio history.  The two main bill sponsors are representatives
Tim Derickson and Mark Romanchuk, both dues paying members of NFIB. This legislation
would reduce the current $125 fee to $99 to start:

  • Limited
    liability companies (LLC)   
  • For-profit
    corporations
  • Non-profit
    corporations
  • Partnerships
  • Limited
    partnerships
  • Limited
    liability partnerships
  • Professional
    associations
  • Cooperatives
  • Business
    trusts
  • Real
    estate investment trusts 

In addition,
the 21% cut will also impact the fee for registering trade and fictitious names
from $50 to $39, commonly used by sole proprietorships. This will collectively
save businesses an estimated $2 million per year.

In other states, filing fees can be as high as $500 and many states
charge an annual fee on top of the initial filing fee, depending on the type of
business. Over a five-year period, taking into account initial and annual fees,
the proposed cut would make Ohio the most affordable place to start a LLC as
compared to our surrounding states of Kentucky, Indiana, Michigan, Pennsylvania
and West Virginia.

Since taking office four years ago, Secretary of State Jon Husted has cut spending in his office
by $14 million – a 16% overall cut. Payroll costs are down by $4.4 million and
the past fiscal year was the lowest spending in payroll in seven years. These
significant savings can now be passed on to Ohio businesses as a “success
dividend” for customers through HB 3.

“This
proposal is a success dividend. We are doing more with less in the Secretary of
State’s Office, providing the best possible customer service, which has led to
record business filings and increased revenues. Now we want to pass the savings
on to our customers,” Secretary Husted said. “Passage of this legislation will
make it even more affordable to do business, attracting more companies to Ohio.
I applaud Speaker Rosenberger and his leadership team for making this a
priority.”

A cut in business fees builds upon efforts to make Ohio even more
business friendly.  Secretary Husted also launched online business
filings in Ohio in October of 2013 and to date 35,000 filings have been
submitted online and half of all businesses in Ohio are started online.

The effort
began with the most-frequently used forms (representing 80% of all filings
received by the office) that can be found at Ohio
Business Central
, and 2015 will continue to see additional online offerings.
Four years ago it took an average of four days to process a business filing,
but now with increased efficiency and service, it is down to a day, and in some
cases, less.

“This is not
only good for Ohio’s businesses, but also for Ohio families,” Secretary Husted
said. “Making it easier to do business encourages economic growth, which can
lead to new and better employment opportunities for hardworking Ohioans.”

Ohio’s
ever-improving business climate can be seen as the state of Ohio experienced
the fifth consecutive year of record new business filings. In 2014, 93,775 new
businesses filed with the Secretary of State’s Office. These numbers were up
from 2013, in which 89,735 filed. 

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