What is the most common business entity used in Ohio?

The Limited Liability Company (LLC) is indeed the most common business entity used in Ohio, largely due to its combination of flexibility and liability protection. LLCs provide their owners, known as members, with limited liability, meaning that the personal assets of the members are typically protected from the debts and liabilities of the business. This aspect makes LLCs attractive to small business owners who want to minimize personal risk.

Additionally, LLCs in Ohio have relatively simple formation and operational requirements compared to corporations. They also allow for pass-through taxation, where profits are taxed at the member's individual tax rate rather than at the corporate level, which can lead to tax savings for the owners. The flexibility in management structure and taxation options makes LLCs a favored choice among entrepreneurs and small business owners in Ohio.

In contrast, while C Corporations also provide liability protection and may be preferred by larger companies seeking investment, their complexities in tax compliance and corporate governance can deter many small business owners. Partnerships, on the other hand, do not provide limited liability protection, which is a significant drawback for many. Nonprofit Corporations serve specific missions and do not operate with the aim of profit, thus they attract a different type of business model. Overall, the attributes of LLCs