Is it cheaper to form an LLC in New York or Ohio?

Ohio is cheaper at formation ($99) than New York ($200). Ongoing costs are also different: $100 vs $130 per year. Total over three years: $399 vs $590.

Can I form an LLC in New York if I live in Ohio?

Yes, but your Ohio business will almost certainly need to register as a foreign LLC in Ohio too, which means paying Ohio's foreign registration fee and any ongoing Ohio obligations on top of the New York ones. The "form elsewhere to save" math usually doesn't work for operating businesses; it only works when you have no physical operations tied to any specific state.

How long does it take to form an LLC in New York vs Ohio?

New York online: 3 business days; Ohio online: 5 business days. New York offers paid expedite from $25. Ohio offers paid expedite from $100.

Which state has lower taxes for an LLC, New York or Ohio?

New York: state income tax applies to member-level pass-through income, plus a $25 minimum entity-level tax. Ohio: state income tax applies to member-level pass-through income, no entity-level franchise or LLC tax.

Do both states require a registered agent?

Yes. Every US state (and DC) requires every LLC to maintain a registered agent with a physical street address in the state. New York and Ohio both have this requirement. You can serve as your own agent if you live in the state; most out-of-state filers use a commercial agent for $50 to $125 per year.

Does New York or Ohio have a publication requirement?

New York does. New LLCs must publish a formation notice in approved newspapers, which can add $50 to $1,800 to your first-year cost depending on the county where the LLC is based. Ohio has no publication requirement.

Do I need a written operating agreement in New York or Ohio?

New York requires LLCs to adopt a written operating agreement by statute. Ohio treats it as strongly recommended rather than required. In practice, any LLC with more than one member, or any LLC planning to preserve its liability shield, should have a written agreement regardless of which state it's formed in.

Which state should I pick if I run an online business from home?

Form in the state you actually live in. Your home state's Department of Revenue treats your residence as nexus regardless of where the LLC is filed, which means you owe state income tax there anyway. Forming in New York or Ohio to escape your home state's tax doesn't work; it adds paperwork. The non-resident filings make sense when you genuinely operate nowhere in particular: international founders, purely passive holding entities, or real-estate LLCs owning property in other states.

New York vs Ohio LLC comparison

New York charges $200 to form an LLC; Ohio charges $99. Day-one sticker price is only part of the story, since most of the real cost comes from the annual obligations that stack up each year you keep the LLC open.

Over a rolling three-year window, Ohio runs about $191 less in total state fees than New York. Whether that gap matters depends on whether you actually operate in one of these states or are weighing a non-resident filing.

New York imposes an entity-level annual tax on every LLC ($25 minimum). Ohio does not. For pass-through LLCs that would otherwise owe nothing at the state level, that minimum is the deciding line.

On speed, New York typically clears standard online filings faster than Ohio. Both states offer expedited tiers at an additional cost for filers on tight timelines.

For most small operators the choice is not really between these two states at all. It is between forming where the business actually operates and trying to route through a non-resident filing. The data below shows what each option actually costs.

Formation filing fee

New York $200

Ohio $99

Ohio saves $101

Year 1 total estimate

New York $330

Ohio $199

Ohio saves $131

Ongoing per year

New York $130

Ohio $100

Ohio saves $30

3-year total

New York $590

Ohio $399

Ohio saves $191

Key differences at a glance

Ohio costs $101 less to form ($99 vs $200).
Ohio is $30 per year cheaper to maintain ($100 vs $130).
New York imposes an entity-level franchise or LLC tax that applies to pass-through LLCs. Ohio does not.
New York requires newly formed LLCs to publish a formation notice in local newspapers; this can add $50 to $1,800 depending on county.
New York requires LLCs to adopt a written operating agreement by statute. The other state treats it as recommended rather than required.
Ohio has no annual report filing at all. New York requires an annual (or biennial) report every reporting period.

Where each state fits

For most filers, forming in the state you actually operate from is the right call. The side-by-side below shows where the two states meaningfully diverge.

What each state offers that the other does not

Only Ohio

No entity-level franchise or LLC tax
No annual report
No publication requirement
Operating agreement not statutorily required

Both states

Online filing
Paid expedited tier

Three-year cost, side by side

Rough estimate of the state-facing cost to form and keep an LLC through three years. Both totals include a $100 per year registered-agent estimate.

New York Ohio

Year 1

$330

$199

Year 2

$460

$299

Year 3

$590

$399

Running total includes the one-time filing fee and annual ongoing costs (report fee or franchise tax plus a $100/year registered agent estimate).

What it costs under your specific situation

The table below runs the same LLC through four common scenarios. "Non-resident" rows assume a typical home-state foreign LLC registration adds about $200 per year of stacked cost; the real number depends on which state you live in and ranges from $50 to over $800 depending on jurisdiction.

Scenario	Year 1	Each year after	3-year total
You live in New York, business operates there No foreign LLC registration needed. You pay New York fees only.	$330	$130	$590
You live in Ohio, business operates there No foreign LLC registration needed. You pay Ohio fees only.	$199	$100	$399
Non-resident forming in New York with operations elsewhere You pay New York's fees plus a typical home-state foreign LLC registration of about $200 per year.	$530	$330	$1,190
Non-resident forming in Ohio with operations elsewhere You pay Ohio's fees plus a typical home-state foreign LLC registration of about $200 per year.	$399	$300	$999

New York vs Ohio: full comparison

Dimension	New York	Ohio
Online filing Can you file the formation document online?	Yes	Yes
Online approval time Standard, non-expedited	3 business days	5 business days
Expedited option Paid fast-track filing	$25	$100
Annual report Required in addition to tax	Required, $9	None
State-imposed annual tax Franchise, privilege, or LLC tax minimum	$25 minimum	None
State income tax On pass-through LLC income at member level	Yes	Yes
Publication requirement Newspaper publication after formation	Required	No
Operating agreement Required by state statute	Required by statute	Recommended, not required
Foreign LLC fee Cost to register as a foreign LLC in this state	$250	$99
State sales tax General statewide rate	4.0%	5.8%

Taxes in New York and Ohio

How each state handles entity-level tax on LLCs. Pass-through classification means member-level income tax also applies at each member's residence state.

New York tax

$25 minimum annual tax (gross-receipts-tiered basis). State income tax applies to member-level pass-through income. Corporate rate 7.3%.

Ohio tax

No entity-level franchise tax on LLCs. State income tax applies to member-level pass-through income.

Ongoing compliance

The recurring filings each state requires after formation.

New York

Annual report $9, due on your anniversary month. Registered agent required in New York.

Ohio

No annual state filing. Registered agent required in Ohio.

Formation process, side by side

What actually happens from the moment you start filing to the moment you're in good standing. Use this as a checklist.

New York

Prepare a publication-ready notice (required in New York).
Check business-name availability on the New York entity search.
Appoint a registered agent with a physical New York street address.
File Articles of Organization (DOS-1336) for $200.
Wait for approval. Online typically 3 business days. Paid expedite from $25.
Adopt a written operating agreement (statutorily required in New York).
Apply for a federal EIN (free from the IRS).
Open a business bank account to separate personal and business finances.
File your first annual report and pay $9 when it comes due.

Ohio

Check business-name availability on the Ohio entity search.
Appoint a registered agent with a physical Ohio street address.
File Articles of Organization for a Domestic Limited Liability Company (Form 610) for $99.
Wait for approval. Online typically 5 business days. Paid expedite from $100.
Adopt an operating agreement (recommended, not required by Ohio statute).
Apply for a federal EIN (free from the IRS).
Open a business bank account to separate personal and business finances.
No annual state filing required in Ohio.

Before you pick either state

A few things that apply no matter which state you choose. These trip up enough first-time filers that they're worth stating explicitly.

Registered agent is non-negotiable. Both New York and Ohio (and every other US state) require every LLC to designate a registered agent with a physical street address in the state of formation. You can serve as your own agent if you live in the state; otherwise a commercial agent runs $50 to $125 per year. Using your own home address makes it part of the public record.

Forming elsewhere does not escape your home state's tax. If you live and operate a business from your home state, forming the LLC in New York or Ohio does not avoid your home state's income tax. The moment you transact business at home, your home state requires a foreign LLC registration, and state tax liability follows your residence regardless of where the entity sits on paper.

EIN applications are free. The IRS issues Employer Identification Numbers directly at no cost. Any service charging you to "get your EIN" is reselling a free form submission. Single-member LLCs with no employees technically don't need one for federal tax, but nearly every bank requires an EIN to open a business account.

Operating agreement matters more than the state you pick. A well-drafted operating agreement governs member ownership, management, profit splits, buy-sell terms, and dissolution. Without one, your LLC runs on the state's default rules, which are rarely what you want. California, Maine, Missouri, and New York require a written one by statute; every other state treats it as strongly recommended.

Agency contacts

New York Department of State - Division of Corporations, State Records and Uniform Commercial Code

Website: dos.ny.gov/division-corporations-state-records-and-uniform-commercial-code
Phone: (518) 473-2492
Mail: Department of State, Division of Corporations, State Records, and Uniform Commercial Code, One Commerce Plaza, 99 Washington Avenue, Albany, NY 12231
Office: One Commerce Plaza, 99 Washington Avenue, 6th Floor, Albany, NY 12231
Hours: 9:00 AM to 4:30 PM Eastern, Monday to Friday

Ohio Secretary of State, Business Services Division

Website: www.ohiosos.gov/businesses
Phone: (614) 466-3910
Mail: P.O. Box 670, Columbus, OH 43216
Office: 22 North Fourth Street, Columbus, OH 43215
Hours: 8:00 AM to 5:00 PM Eastern, Monday to Friday

New York State Department of Taxation and Finance

Website: www.tax.ny.gov
Phone: (518) 457-5181
Mail: NYS Department of Taxation and Finance, W.A. Harriman Campus, Albany, NY 12227
Office: W.A. Harriman Campus, Albany, NY 12227
Hours: 8:30 AM to 4:30 PM Eastern, Monday to Friday

Ohio Department of Taxation

Website: tax.ohio.gov
Phone: (888) 405-4039
Mail: Ohio Department of Taxation, P.O. Box 2678, Columbus, OH 43216-2678
Office: 4485 Northland Ridge Boulevard, Columbus, OH 43229
Hours: 8:00 AM to 5:00 PM Eastern, Monday to Friday

Frequently Asked Questions

Is it cheaper to form an LLC in New York or Ohio?

Ohio is cheaper at formation ($99) than New York ($200). Ongoing costs are also different: $100 vs $130 per year. Total over three years: $399 vs $590.
Can I form an LLC in New York if I live in Ohio?

Yes, but your Ohio business will almost certainly need to register as a foreign LLC in Ohio too, which means paying Ohio's foreign registration fee and any ongoing Ohio obligations on top of the New York ones. The "form elsewhere to save" math usually doesn't work for operating businesses; it only works when you have no physical operations tied to any specific state.
How long does it take to form an LLC in New York vs Ohio?

New York online: 3 business days; Ohio online: 5 business days. New York offers paid expedite from $25. Ohio offers paid expedite from $100.
Which state has lower taxes for an LLC, New York or Ohio?

New York: state income tax applies to member-level pass-through income, plus a $25 minimum entity-level tax. Ohio: state income tax applies to member-level pass-through income, no entity-level franchise or LLC tax.
Do both states require a registered agent?

Yes. Every US state (and DC) requires every LLC to maintain a registered agent with a physical street address in the state. New York and Ohio both have this requirement. You can serve as your own agent if you live in the state; most out-of-state filers use a commercial agent for $50 to $125 per year.
Does New York or Ohio have a publication requirement?

New York does. New LLCs must publish a formation notice in approved newspapers, which can add $50 to $1,800 to your first-year cost depending on the county where the LLC is based. Ohio has no publication requirement.
Do I need a written operating agreement in New York or Ohio?

New York requires LLCs to adopt a written operating agreement by statute. Ohio treats it as strongly recommended rather than required. In practice, any LLC with more than one member, or any LLC planning to preserve its liability shield, should have a written agreement regardless of which state it's formed in.
Which state should I pick if I run an online business from home?

Form in the state you actually live in. Your home state's Department of Revenue treats your residence as nexus regardless of where the LLC is filed, which means you owe state income tax there anyway. Forming in New York or Ohio to escape your home state's tax doesn't work; it adds paperwork. The non-resident filings make sense when you genuinely operate nowhere in particular: international founders, purely passive holding entities, or real-estate LLCs owning property in other states.

Full state guides

New YorkOpen New York LLC guide →
OhioOpen Ohio LLC guide →

More New York and Ohio comparisons

More New York vs ...

More Ohio vs ...

Sources

Filing fee: dos.ny.gov/fee-schedules · verified April 21, 2026
NY DOS Division of Corporations fee schedule: domestic LLC Articles of Organization filing fee = $200. Professional service LLC same fee.
Expedited filing: dos.ny.gov/fee-schedules · verified April 21, 2026
Expedited surcharges on top of the filing fee: 24 hours = $25, same day = $75, 2 hours = $150. We report the cheapest 24-hour tier. Biennial Statements cannot be expedited.
Foreign LLC registration fee: dos.ny.gov/application-authority-foreign-limited-liability-companies · verified April 21, 2026
Foreign LLC Application for Authority filing fee = $250 (standard). Professional service foreign LLC = $200. Foreign LLCs are also subject to the publication requirement.
Operating agreement requirement: www.nysenate.gov/legislation/laws/LLC/417 · verified April 21, 2026
NY LLC Law Section 417(a): 'the members of a limited liability company shall adopt a written operating agreement.' Must be adopted before, at, or within 90 days after the filing of the Articles of Organization. The agreement is not filed with the state, but is statutorily required.
Publication requirement: www.nysenate.gov/legislation/laws/LLC/206 · verified April 21, 2026
NY LLC Law Section 206 requires publication of a notice of LLC formation in two newspapers for six consecutive weeks within 120 days of formation, followed by filing a Certificate of Publication ($50) with DOS. Failure to publish suspends the LLC's authority to carry on, conduct, or transact business in New York. Cost ranges are referenced via county clerk designations; representative estimate ~$1,200 mid-range.
Annual report fee: dos.ny.gov/biennial-statements-business-corporations-and-limited-liabi… · verified April 21, 2026
Biennial Statement fee = $9, mandated by NY LLC Law Section 301(e). Filed via the e-Statement Filing Service. Filing period is the calendar month of original Articles of Organization filing, every two years.
Franchise tax: www.tax.ny.gov/pit/efile/annual_filing_fee.htm · verified April 21, 2026
New York charges an annual LLC filing fee on Form IT-204-LL, tiered by NY source gross income: <=$100k = $25; $100,001-$250,000 = $50; $250,001-$500,000 = $175; $500,001-$1M = $500; $1M-$5M = $1,500; $5M-$25M = $3,000; over $25M = $4,500. Disregarded-entity single-member LLCs pay a flat $25. Recorded as gross-receipts-tiered franchise-style charge because it functions as a mandatory annual state charge on the LLC entity even when pass-through.
Corporate income tax rate: www.tax.ny.gov/bus/ct/def_art9a.htm · verified April 21, 2026
Article 9-A NY corporate franchise tax: base rate 6.5% for most corporations; 7.25% applies to business income over $5M (extended through 2026 under the 2021 state budget). LLCs are pass-through by default and do not owe Article 9-A unless they elect C-corp status federally.
Sales tax rate: www.tax.ny.gov/bus/st/stidx.htm · verified April 21, 2026
NY statewide sales and use tax rate is 4%. Local jurisdictions add additional rates; combined rates range from about 7% to 8.875% (NYC). We record the statewide rate only.
Business name search: apps.dos.ny.gov/publicInquiry/ · verified April 21, 2026
NY DOS Division of Corporations Public Inquiry entity search. Can lookup by entity name or DOS ID.
Online filing portal: dos.ny.gov/articles-organization-domestic-limited-liability-company-0 · verified April 21, 2026
Official DOS page for Articles of Organization for domestic LLCs. Links to online filing. Acknowledgement receipt emailed within minutes; processing typically completed in 2-3 business days.
Certificate of Formation name: dos.ny.gov/system/files/documents/2024/05/articles-of-organization.pdf… · verified April 21, 2026
Form DOS-1336, Articles of Organization for a Domestic Limited Liability Company, published by the NY DOS Division of Corporations.
Filing fee: www.ohiosos.gov/globalassets/business/forms/610.pdf · verified April 21, 2026
Ohio Secretary of State Form 610 Articles of Organization for a Domestic LLC. Filing fee $99 stated on the form. Authority: Ohio Rev. Code §111.16 (Secretary of State fee schedule) and §1706.16 (LLC formation).
Expedited filing: www.ohiosos.gov/businesses/filing-forms--fee-schedule/ · verified April 21, 2026
Ohio SoS expedite tiers: Level 1 $100 (2 business days); Level 2 $200 (1 business day); Level 3 $300 (4 hours, drop-off only). Ohio Rev. Code §111.16(M). Level 1 recorded as the default expedited tier.
Annual report fee: www.ohiosos.gov/businesses/information-on-starting-and-maintaining-a-b… · verified April 21, 2026
Ohio does not require LLCs to file an annual or biennial report. Ohio Rev. Code Chapter 1706 (Ohio Revised Limited Liability Company Act) imposes no recurring SoS report. Fee recorded as null accordingly.
Franchise tax: tax.ohio.gov/business/ohio-business-taxes/commercial-activities · verified April 21, 2026
Ohio has no LLC franchise tax. The Commercial Activity Tax (CAT) applies to taxable gross receipts above an exclusion of $3 million for tax year 2024 and $6 million for tax year 2025 and beyond (HB 33, 2023). Rate 0.26% of taxable gross receipts above the exclusion. CAT is classified as a gross-receipts tax, not a franchise tax, so franchiseTax.applies is false.
Operating agreement requirement: codes.ohio.gov/ohio-revised-code/chapter-1706 · verified April 21, 2026
Ohio Rev. Code §1706.08 recognizes operating agreements but does not require one to be in writing or filed. Ohio Revised LLC Act (Chapter 1706) governs default rules when no operating agreement is adopted.
Foreign LLC registration fee: www.ohiosos.gov/globalassets/business/forms/617.pdf · verified April 21, 2026
Ohio Secretary of State Form 617 Registration of a Foreign Limited Liability Company. Filing fee $99. Authority: Ohio Rev. Code §1706.511.
Publication requirement: codes.ohio.gov/ohio-revised-code/chapter-1706 · verified April 21, 2026
Ohio does not require newspaper publication for LLC formation. Confirmed via Ohio Rev. Code Chapter 1706 which contains no publication requirement.
Business name search: businesssearch.ohiosos.gov/ · verified April 21, 2026
Ohio Secretary of State Business Search tool. Used to confirm name availability before filing Articles of Organization.
Sales tax rate: tax.ohio.gov/business/ohio-business-taxes/sales-and-use · verified April 21, 2026
Ohio statewide sales and use tax rate is 5.75%. County permissive and transit authority additions can bring combined local rates up to approximately 8.00%.
Corporate income tax rate: tax.ohio.gov/business/ohio-business-taxes/commercial-activities · verified April 21, 2026
Ohio repealed its corporate franchise/income tax; there is no general corporate income tax. The Commercial Activity Tax is a gross-receipts tax, not an income tax, and is not expressed as a rate on net income. maxCorporateRate is therefore null.

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