Ohio LLC Taxes 2026: What Your LLC Owes
Updated June 2026 · By Asal Multi Services · Columbus, OH
Ohio LLC Tax Overview
How Ohio LLCs Are Taxed by Default
Ohio LLCs are "pass-through" entities by default — meaning the LLC itself does not pay income tax. Instead, profits and losses pass through to the owner(s) who report them on their personal tax returns.
Single-Member LLC
- • Taxed as a sole proprietorship
- • Report profit/loss on Schedule C
- • Attach to personal Form 1040
- • Pay 15.3% self-employment tax
- • Pay Ohio income tax on profits
Multi-Member LLC
- • Taxed as a partnership
- • File Form 1065 (LLC return)
- • Issue K-1 to each member
- • Each member pays self-employment tax
- • Each member pays Ohio income tax
Self-Employment Tax: The Biggest Ohio LLC Tax
The 15.3% self-employment (SE) tax is often the largest tax burden for Ohio LLC owners. It covers Social Security (12.4%) and Medicare (2.9%) taxes that employees and employers split — but as an LLC owner, you pay both sides.
Example: $80,000 net profit
You deduct half of the SE tax when calculating your federal adjusted gross income, which reduces your income tax liability. But the SE tax itself is still paid on top of income tax.
Ohio Commercial Activity Tax (CAT)
Ohio's Commercial Activity Tax (CAT) is a gross receipts tax — it applies to revenue, not profit. The thresholds for 2026:
- • Under $150,000 in Ohio gross receipts: CAT exempt — pay nothing
- • $150,000 – $1,000,000: $150 flat annual fee
- • Over $1,000,000: $150 + 0.26% of gross receipts over $1 million
Most Columbus small business LLCs earning under $150,000 in total revenue owe no CAT. Register with the Ohio Department of Taxation once you approach the threshold.
S-Corp Election: How to Cut Your Self-Employment Tax
When your Ohio LLC earns more than $75,000–$80,000 in net profit, electing S-Corp status can save thousands per year in self-employment taxes.
S-Corp savings example: $100,000 net profit
Default LLC taxation
LLC with S-Corp election
S-Corp election requires running payroll, filing Form 1120-S, and paying yourself a reasonable salary. The added compliance cost (payroll software, accountant) is usually $1,000–$2,000/year — still a net savings of $4,000–$5,000+ for many Ohio LLC owners.
Ohio LLC Tax Calendar
| Deadline | Filing / Payment | Who |
|---|---|---|
| January 15 | Q4 estimated tax payment | All self-employed LLC owners |
| March 15 | Form 1065 (partnership return) | Multi-member LLCs |
| April 15 | Form 1040 + Schedule C; Q1 estimated tax | Single-member LLCs |
| April 15 | Ohio IT-1040 individual return | All LLC members |
| June 16 | Q2 estimated tax payment | All self-employed LLC owners |
| September 15 | Q3 estimated tax payment | All self-employed LLC owners |
| May 10 / Aug 10 / Nov 10 / Feb 10 | Ohio CAT quarterly filings | LLCs with $150K+ Ohio receipts |
Tax Help for Ohio LLC Owners
Asal Multi Services prepares individual and business tax returns for Columbus LLC owners — Schedule C, Form 1065, Ohio IT-1040, and more. We also help you determine if an S-Corp election makes sense for your business. Somali, Arabic, and English.
Frequently Asked Questions
How is an Ohio LLC taxed?
By default, a single-member Ohio LLC is taxed as a sole proprietorship (Schedule C on your 1040) and a multi-member LLC is taxed as a partnership (Form 1065). All profits pass through to the owners' personal tax returns. Ohio LLCs also pay 15.3% self-employment tax on net profits and Ohio income tax on their share of profits.
Does Ohio have a state income tax for LLCs?
Ohio does not have a separate LLC-level state income tax. Instead, LLC profits pass through to members who report them on their Ohio individual income tax returns. Ohio income tax rates range from 2.765% to 3.99% depending on income level.
What is the Ohio Commercial Activity Tax (CAT) for LLCs?
The Ohio CAT applies to businesses with Ohio taxable gross receipts over $150,000/year. Below $150,000: exempt. $150,000 to $1 million: $150 flat annual fee. Over $1 million: 0.26% of gross receipts over $1 million. Most small LLCs earning under $150K owe no CAT.
Can an Ohio LLC elect S-Corp status to reduce taxes?
Yes. An Ohio LLC can elect to be taxed as an S-Corporation by filing Form 2553 with the IRS. With an S-Corp election, the owner pays themselves a reasonable salary (subject to payroll taxes) and takes remaining profits as a distribution (not subject to self-employment tax). This can save $5,000–$15,000+ annually for LLCs earning $75,000+ in profit.
What tax forms does an Ohio LLC file?
Single-member LLC (default): Schedule C with Form 1040 + Ohio IT-1040. Multi-member LLC (default): Form 1065 + K-1s to each member + Ohio IT-4708 (composite return) or individual IT-1040. LLC with S-Corp election: Form 1120-S + K-1s + Ohio IT-4738 (electing pass-through entity tax). All LLCs must file if they have Ohio gross receipts over $150,000.