The short answer
It depends. Ohio has trade-offs: Commercial Activity Tax on gross receipts above threshold. For most founders, alternatives like Wyoming or your home state are simpler.
Three deciding questions
1. Do you live or operate in Ohio?
If yes, form here. Out-of-state formation while operating in Ohio costs double, not half.
2. What is the 5-year all-in cost?
$349 (filing + 5 × annual report + $50 registered agent + franchise minimums). This is the actual number to compare across states.
3. What are your three real requirements?
- Privacy: 5/10 (moderate — members appear on public filings).
- Banking: 8/10 (workable but not premium).
- Cost: low 5-year total.
Ohio pros
- No annual report
- No traditional corporate tax
- CAT exemption raised to $3M
Ohio cons
- Commercial Activity Tax on gross receipts above threshold
Most common alternative
Wyoming for cost + privacy. Delaware for VC-backed startups. Your home state if you operate there. Run the 5-question quiz for a personalized shortlist.