How to set up an LLC for your rental property in Ohio

If you’re a landlord or real estate investor in Ohio, you’ve probably heard about the benefits of owning rental property through an LLC. But how exactly do you set up an LLC for a rental property here? What does it protect you from, and what does it cost? This guide will walk you through the Ohio-specific details so you can make an informed decision and get your LLC up and running smoothly.

Why landlords in Ohio consider an LLC for rental property

Owning rental properties comes with risks—liability from tenant injuries, property damage, or lawsuits is always a concern. Many Ohio landlords turn to a limited liability company (LLC) as a way to separate their personal assets from their rental business. An LLC may offer a layer of protection, which can help make it harder for someone to go after your personal bank accounts or home if something goes wrong with your rental.

Plus, LLCs can add professionalism to your investment business, sometimes improving your credibility with lenders or partners. But it’s important to understand what an LLC can and cannot do before diving in.

What an LLC is and what it can (and cannot) protect you from as a landlord

An LLC is a flexible business structure that combines some of the liability protection of a corporation with the simplicity of a partnership. When you own rental property in an LLC, the company technically owns the property—not you personally.

What does that mean? If a tenant sues over an injury on your rental, lawsuits often target the LLC, not your personal assets. This protection from personal liability is one of the main reasons landlords use LLCs.

However, an LLC doesn't make you invincible. It won’t protect you if you personally guarantee a loan, commit fraud, or neglect proper maintenance. Also, it doesn't shield you from tax obligations or everyday business risks. So, having an LLC is one part of a broader risk management strategy that should include proper insurance and good property management.

For a deeper dive into why should landlords use an LLC, you can check out Steadily’s detailed article on the topic.

Step-by-step: how to set up an LLC for a rental property in Ohio

Ready to set up your LLC? Here’s how to do it in Ohio:

1. Choose a name for your LLC

Your LLC’s name must be unique and include “Limited Liability Company,” “LLC,” or “L.L.C.” It can’t be the same as or too similar to another registered business in Ohio. You can check name availability on the Ohio Secretary of State’s business name search.

2. Designate a statutory agent

Ohio requires every LLC to have a statutory agent (sometimes called a registered agent) with a physical address in the state. This agent receives official legal documents and government notices on behalf of your LLC.

You can be your own agent if you have an Ohio address, or hire a professional service.

3. File your articles of organization

The key document to officially create your LLC is the Articles of Organization. This form includes your LLC’s name, address, statutory agent info, and business purpose.

Filing can be done online or by mail through the Ohio Secretary of State’s website. The filing fee is $99 as of 2025.

4. Create an operating agreement (recommended)

Ohio doesn’t require an operating agreement, but it’s a smart idea. This document outlines ownership percentages, member duties, how profits and losses are handled, and management rules. It helps avoid disputes later.

5. Get an EIN from the IRS

Most LLCs need an Employer Identification Number (EIN) for tax purposes, opening bank accounts, and hiring employees. It’s free and easy to apply for an EIN online at the IRS website.

6. Register for applicable taxes and licenses

If your rental business needs specific permits or local licenses, check your city or county requirements. You may want to check with a tax professional about sales tax requirements related to rental income.

How much it costs to set up an LLC in Ohio

\So, how much does it cost to set up an LLC? The main cost is the LLC filing fee for the Articles of Organization, which is currently $99 in Ohio.

Beyond that, you might spend money on:

• Hiring a statutory agent service (typically $50-$200/year if you don’t act as your own agent)
• Drafting an operating agreement (if you pay a lawyer)
• Business licenses or local permits depending on your rental location

Ohio does not require LLCs to file annual reports or pay annual fees, which keeps ongoing costs low compared to some other states.

How long it typically takes to set up an LLC in Ohio

If you file your Articles of Organization online through the Ohio Secretary of State’s portal, the approval process usually takes 3-5 business days. Paper filings can take a few weeks.

Ohio offers expedited processing for an extra fee if you need your LLC formed faster.

Articles of organization: what they are and how to file them

The Articles of Organization is the fundamental document that registers your LLC with the state. It includes:

• LLC name
• Principal office address
• Statutory agent name and address
• Names of LLC members or managers (optional in Ohio)
• Effective date of LLC formation

You file the form online or by mail, and once accepted, your LLC officially exists.

For filing details, check the Ohio Secretary of State’s Articles of Organization page.

Do you need a lawyer to start an LLC, or can landlords DIY the process?

Many people start an LLC on their own in Ohio since it’s designed to be straightforward. The Secretary of State’s website walks you through the steps, and filing online is user-friendly.

That said, if your rental business is complex, involves partners, or you want to make sure your operating agreement covers all bases, consulting a lawyer can be worth it. For many landlords, the DIY approach is cost-effective and sufficient.

How to get an EIN for an LLC that owns rental property

Once your LLC is formed, you’ll want an EIN (Employer Identification Number) from the IRS. This is basically a Social Security number for your business.

You can apply directly on the IRS website. It’s free and takes just minutes. An EIN is often needed to open a bank account in your LLC’s name, file taxes, or hire employees.

More on applying for an EIN is available at the IRS EIN application page.

Do LLCs need annual reports and other ongoing compliance in Ohio?

Unlike some states, Ohio does not require LLCs to file annual reports or pay annual fees. This means lower ongoing paperwork and costs for your LLC.

However, you should keep good records, update your statutory agent info if it changes, and comply with any local business regulations or licenses.

S corp vs LLC for landlords (high level, pros/cons)

Sometimes landlords hear about electing S corporation status for their LLC. While both are business structures, an LLC is a legal entity created at the state level, and an S corp is a tax classification with the IRS.

• LLC: Offers liability protection and flexible management structures. By default, income passes through to members’ personal tax returns.
• S corp: Can reduce self-employment taxes for some owners but comes with more IRS rules and filing requirements.

For many Ohio landlords, starting with a basic LLC is simpler, and you can explore S corp election later with a tax professional if it makes sense.

LLC vs umbrella insurance for rental property risk management

An LLC can help protect your personal assets from business liabilities, but it’s not insurance. You still need good landlord insurance to cover property damage, liability claims, and loss of rental income.

Umbrella insurance provides an extra layer of liability protection that extends beyond your landlord policy and personal policies. Deciding between relying on an LLC’s legal protection or purchasing umbrella insurance is a common question.

For a detailed comparison, check out Steadily’s guide on LLC vs umbrella insurance.

When an LLC makes sense for landlords in Ohio and when it may not

An LLC may be beneficial if you:

• Own multiple rental properties and want to separate liabilities
• Want to help protect personal assets from rental-related lawsuits
• Plan to bring on partners or investors
• Want a professional structure for your rental business

It may not be necessary if you’re a single-property landlord with minimal risk or if the cost and paperwork outweigh the benefits.

Remember, an LLC is just one piece of your risk management strategy. Proper insurance, tenant screening, and maintenance are crucial too. For Ohio landlords looking for insurance options, landlord insurance in Ohio can help you find the right coverage.

Final thoughts

Many find setting up an LLC helpful for protecting personal assets and creating a professional business structure. The process is straightforward, with a $99 filing fee and no annual report filings to worry about.

While you can DIY the whole process, don’t hesitate to consult professionals for complex situations. And remember, an LLC doesn’t replace landlord insurance—it complements it.

Good luck with your Ohio rental investments!