Ohio

Ohio Franchise Tax Guide for LLCs

Complete 2026 guide to Ohiofranchise tax — rates, due dates, filing forms, exemptions, and how to minimize your LLC's state tax burden.

Does Ohio have franchise tax on LLCs?

Yes — 0.26% CAT tax on gross receipts over $150K

Ohio Franchise Tax Structure

How it's calculated

Commercial Activity Tax: 0.26% on Ohio gross receipts above $150K. Under $150K = exempt. Above = $150 base + 0.26% on amount above threshold.

Due date

Quarterly or annually depending on revenue

Filing form

CAT 12 or CAT Return

Key Things to Know About Ohio Franchise Tax

CAT is on GROSS receipts, not net income
Applies to companies selling into Ohio even without physical presence (economic nexus)
$150K exemption threshold is per person, not per entity

Possible Exemptions

Ohio gross receipts under $150K annually

Verify eligibility with a CPA or the Ohio Department of Revenue before claiming an exemption.

FAQ

Does my LLC owe franchise tax in Ohio?

Yes. Ohio imposes franchise tax or equivalent: Commercial Activity Tax: 0.26% on Ohio gross receipts above $150K. Under $150K = exempt. Above = $150 base + 0.26% on amount above threshold.

When is Ohio franchise tax due?

Quarterly or annually depending on revenue. Missed deadlines typically trigger penalties, interest, and loss of good standing. Always mark your calendar or use FormifyAI's compliance reminder service.

How do I file franchise tax in Ohio?

CAT 12 or CAT Return. Most states now offer online filing through their Department of Revenue or Secretary of State portal. Payment can usually be made by ACH, credit card, or check.

What happens if I don't pay Ohio franchise tax?

Failure to pay triggers: monetary penalties + interest on unpaid amounts, loss of good standing with the state, inability to file lawsuits or enforce contracts, and eventual administrative dissolution of the LLC. Administrative dissolution can retroactively pierce liability protection.

Can I avoid Ohio franchise tax by forming elsewhere?

Generally no. If your LLC operates in Ohio (has employees, office, or significant activity there), you'll owe Ohio state taxes regardless of formation state. Forming in Delaware or Wyoming to "avoid" Ohio taxes typically costs MORE (both states' fees) while providing no real tax benefit.

Are there exemptions from Ohio franchise tax?

Possible exemptions: Ohio gross receipts under $150K annually. Consult a CPA familiar with Ohio tax law for your specific situation.

Stay compliant with Ohio franchise tax

FormifyAI tracks your Ohio compliance deadlines and sends reminders so you never miss a franchise tax filing. Plus EIN, operating agreement, registered agent, and BOI report all bundled.

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