Being a successful business owner also means knowing the tax programs and incentives in their business’ state. This is especially important in states that are business friendly and want to attract more businesses, like Ohio. Ohio has several incentives that can help you get your business off on the right foot:
- The Ohio Development Services Agency’s InvestOhioprogram gives a nonrefundable personal income tax credit to anyone who acquires an ownership interest in a small business in Ohio. The benefit is available to individuals or pass-through entities owned by individuals who hold the investment for two years.
- TheOhio Small Business Deduction was established in 2013 and now can be applied to 70% of the first $250,000 of apportioned net business income. The deduction is available to Ohio residents who report on their personal income tax return any income from a pass-through entity, such as sole proprietorships, partnerships, limited liability companies (LLCs), and S corporations.
- Other financial incentives available to Ohio small businesses are theOhio Job Creation Tax Credit available through JobsOhio, enterprise zones and community reinvestment areas, and rural business development grants offered by the U.S. Department of Agriculture.
Source: Ohio University, “Ultimate Guide for Growing a Small Business”