| Do you own a car, a house, cash, bank accounts, or | | | | of a corporate book with all entity documentation |
| other personal or real property? Do you earn wages, | | | | inside, including Corporate Shares of Stock or Limited |
| 1099 funds, or receive other income? Do you have | | | | Liability Company units issued, minutes of entity |
| any personal net worth? If you answered yes to any | | | | meetings, and any resolutions made by the entity. |
| of the above, it is imperative that you form a legal | | | | Finally, a business owner should open bank accounts |
| entity for your business to protect those personal | | | | and credit cards and execute customer and vendor |
| assets. If you don't, you take the risk of losing all or | | | | contracts in the name of the name of the legal entity. |
| some of your hard-earned personal assets in the | | | | Starting a legal entity for your business and following |
| event of business catastrophe. | | | | the above basic steps will ensure that your personal |
| Forming an entity is a simple process that can be | | | | assets are separate from your business assets and |
| performed by a business attorney at very little cost. | | | | thus, will protect them from being taken if your |
| The basic requirements in Ohio to form a legally | | | | business should fail or a judgment is obtained against |
| recognized entity are threefold. First, a business owner | | | | the business. It should be noted that there are |
| must register or file with the Ohio Secretary of State. | | | | exceptions to this general rule, one being the execution |
| Second, a Tax Identification number must be obtained | | | | of a personal guaranty but, in general, the formation of |
| for that entity from the IRS. Third, an Operating | | | | an entity and compliance with Ohio law in doing so will |
| Agreement must be drafted and executed by the | | | | protect you from personal liability. Websites that |
| business owner(s). This Agreement sets forth the | | | | contain more information about the above are: and A |
| rights and responsibilities of the business owner(s). | | | | business forming an Ohio entity should always consult |
| Additional steps that should be taken is the completion | | | | an Accountant to discuss possible tax implications. |