If your limited liability company (LLC) sells physical products or certain types of services, you will need to collect and pay sales tax. In Ohio, the first step is visiting the department of taxation website and registering for sales tax in order to acquire a seller’s permit, or sales tax permit.
What Products and Services Are Subject to Sales Tax in Ohio?
Any tangible property that is transferred or sold to another person is subject to sales tax in Ohio. Services that are subject to sales tax include lodging, landscaping, repair or installation of tangible property, dry cleaning, and several other services. Exemptions from sales tax include groceries, prescription drugs, and some medical equipment.
Ohio Sales Tax Rate
The sales tax rate in Ohio is 5.75%.
Five states have no sales tax. Colorado has the lowest sales tax at 2.9%, while California has the highest rate at 7.25%.
How to Register for Ohio Sales Tax
In Ohio, acquire a seller’s permit by following the department of taxation’s detailed instructions for registration:
- Register for an account on the Ohio Gateway business portal.
- Fill out the vendor’s permit application.
- Pay the $25 fee.
Use our Sales Tax Calculator to calculate taxes and total purchase amount.
In Ohio, and across the country, collecting sales tax is a must if you want to avoid potentially heavy fines and even closure. It’s crucial that you follow your state’s laws, and you might consider consulting with an accountant or tax attorney to make sure you’re in full compliance.