COLUMBUS – Ohio Secretary of State Jon Husted is urging lawmakers to pass legislation to cut fees associated with forming a business in Ohio by approximately 21% to make it easier and less expensive to do business in Ohio. The proposed bill has been identified as a legislative priority for the Ohio House of Representatives by Speaker Cliff Rosenberger (R-Clarksville) and the majority leadership team.
“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.”
Under the proposed legislation, Ohio will see the first reduction in fees associated with business filings in modern history and make Ohio more competitive with other states. The cost to start a business in Ohio would drop from the current $125 to $99. 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 limited liability company as compared to the surrounding states of Kentucky, Indiana, Michigan, Pennsylvania and West Virginia.
Secretary Husted also noted that the benefits of cutting filings fees extend beyond making it easier to do business in Ohio.
“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.”
The push to cut filing fees is the latest in a series of efforts by Secretary Husted to roll out the red carpet for businesses.
In October 2013, Secretary Husted launched Ohio Business Central, allowing businesses to file some of the most commonly-used forms online. This saves businesses time and money and has significantly streamlined administration at the Secretary of State’s Office. To date, more than 35,000 filings have been submitted and half of all new companies are now started online in Ohio.
Ohio is in a position to reduce filing fees as a result of Secretary Husted’s fiscal stewardship over the past four years. During that time Secretary Husted saved taxpayers more than $14 million in spending compared to the previous administration – representing a 16% cut. As part of that, payroll costs were down by $4.4 million and Fiscal Year 2014 marked the lowest spending on payroll in seven years.
Ohio’s ever-improving business climate is evident in Secretary Husted’s recent announcement that the state 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. This is a positive trend Secretary Husted hopes will continue to build in the years ahead.
For more information, please contact Matt McClellan at (614) 995-2168.