Rental property LLCs in Ohio

Local rental rules come first

Cleveland. The owner of a non-owner-occupied residential unit registers each unit with the Department of Building and Housing every year ($70 per unit) and needs a Certificate Approving Rental Occupancy before renting (Codified Ordinances §§ 365.02, 365.03; city Rental Registration page). If the owner isn't a natural person, the application includes a current Certificate of Good Standing from the Ohio Secretary of State (§ 365.02(b)(1)(B)); the city's page tells LLC owners to prove the LLC "is registered in good standing with the Ohio Secretary of State." An LLC also needs a Local Agent in Charge, a natural person who can receive notices of violation and can be held responsible alongside the owner. By the code's wording that agent lives in Cuyahoga County unless the owner is a person living in Cuyahoga or a contiguous county (§ 365.01(k)); the city's page words the county rule differently, so ask the city. Property taxes must be current or on a county payment plan (§ 365.02(d)(5)). Units built before 1978 also need a lead-safe certification from a lead risk assessment or clearance exam; it carries no application fee and lasts two years (§ 365.01(j); city Lead Safe Certification page). Short-term rentals get a new chapter, 686B, passed June 1, 2026 and effective November 28, 2026: renting a dwelling unit for 30 consecutive days or less needs a city license ($150 to apply or renew, with liability insurance of at least $500,000), licenses are "not transferrable from one person to another or from one premises to another," and in residential districts short-term rentals are capped at one or 10% of the units on the block or in a multi-unit building, whichever is greater, unless the Board of Zoning Appeals grants a variance (§§ 686B.03, 686B.07).

Columbus. Chapter 4515, enacted by Ordinance 0923-2026 in April 2026, creates a Registry of Residential Rental Properties. The owner or a Local Operator registers each property every calendar year, and first registration for 2027 is required from October 1 through December 31, 2026 (Ord. 0923-2026 § 2). The ordinance's explanation puts the fee at $15 per unit with a $1,500 cap per complex and says it will be added to the city fee schedule, so check the schedule. For an LLC owner you list a member, manager or officer. The Local Operator is an individual who lives within 100 miles of Columbus, but an owner of fewer than ten dwelling units need not name one (the text says "less than ten" in one place and "no more than ten" in another, so ask the city if you're near ten). Changes are due within 30 days, and a new owner must re-register within 30 days of the transfer, so plan for the LLC to register after the deed and ask the city how it treats a transfer to your own LLC (§ 4515.05(B), (C)). Registered properties get a preventative education inspection every three years of exteriors, common areas and shared building systems, not individual units unless the tenant or owner asks (§ 4515.07), and ignoring a notice of violation can cost $2 per unit per day (§ 4515.995). Properties under a short-term rental permit are outside the registry (§ 4515.04(A)(2)). A short-term rental (a dwelling with five guestrooms or fewer, rented for fewer than 30 consecutive days) needs a city permit before it is listed on a platform (Columbus City Code ch. 598; §§ 598.01(X), 598.02(A)(2)). The host must be the owner or a permanent occupant, an LLC applicant files its articles of organization, and a managing individual of an LLC gives a fingerprint-based BCI background check (§§ 598.04(B), 598.03(B)(10)). A permit lasts one year and cannot be transferred, and any transfer in ownership of the dwelling voids the permit held in the old owner's name, so the LLC applies anew after the deed (§§ 598.03(C), (G), 598.13). Listing without a permit is a misdemeanor fined up to $250, and the revenue goes to the city, subject to forfeiture law (§ 598.20(C)).

Cincinnati. Since September 1, 2020, every residential rental unit in the city must be registered with Buildings & Inspections at $1.00 per unit. The registration asks for owner or manager contact information and a local agent or emergency contact, you must update it when owners or agents change, and registering with the Hamilton County Auditor does not replace it (city Residential Rental Registration page and FAQ). A short-term rental (a unit listed on a platform for fewer than 30 consecutive days) must be registered with the Finance Department before it operates (Cincinnati Municipal Code ch. 856): $250 per unit, valid three years, non-transferable, with a "responsible person" who lives or works within 50 miles. A 7% excise tax on gross revenue applies under chapter 315, and platforms with a city agreement collect it (Short Term Rental General Rules, effective Nov. 6, 2023; city Finance page).

Toledo. Rental registration runs through the Lucas County Auditor's program under R.C. chapter 5323: register within 30 days of the real estate transfer, with no fee, or face a notice of liability with a civil fine of up to $250, up to $500 for a second violation within two years, and $1,000 per unit after that (Toledo Municipal Code § 1767.09). Lead Safe Toledo requires a Lead-Safe Certificate for rentals of one to four units built before 1978; the city says an LLC "must still comply" and must name a responsible individual (city Lead Safe page). Short-term rentals need a $50, one-year permit per unit under chapter 702, with proof of $1,000,000 in liability insurance, a local contact who can respond within 45 minutes, a neighbor notice sent within 48 hours of applying, and evidence of compliance with any rental registry (§ 702.03). The city lists $100 per week up to $500 for operating or advertising without a permit (city Short-Term Rental Permit page).

County auditor filing. In counties of more than 200,000 people, an owner of residential rental property also files with the county auditor the owner's name, address and phone number, the property's street address and parcel number, and, if an LLC owns it, the name, address and phone number of a member, manager or officer. Changes are due within 60 days, and the auditor may impose a special assessment of $50 to $150 for not filing (R.C. 5323.01(E), 5323.02, 5323.99). An owner who lives outside Ohio names an Ohio agent for service of process or files a certified copy of its Ohio statutory-agent filing (R.C. 5323.03). Cuyahoga County says to file even if the city has your registration, and Hamilton County says to wait until the deeded name matches the deed (Cuyahoga Fiscal Officer; Hamilton County Auditor; Franklin County Auditor).

Elsewhere in Ohio. Rental rules are local. Ask your city and county before the first lease, and see the lodging tax note below if you rent short-term.

What the LLC protects, and what it doesn't

An Ohio LLC is a separate legal entity (R.C. 1706.04(A)), and the LLC Act says: "A person who is a member of a limited liability company is not liable, solely by reason of being a member, for a debt, obligation, or liability of the limited liability company or a series thereof, whether arising in contract, tort, or otherwise" (R.C. 1706.26). The Act adds that failing to observe company formalities is not a ground for imposing that liability.

• Guarantees still bind you. A personal guarantee you sign for a lender is your own promise.
• Your own acts are yours. The statute protects against liability "solely by reason of being a member"; ask an Ohio attorney about your own negligence.
• Your personal creditors get less of the LLC. For a judgment against you personally, a court may charge your membership interest, and that charging order is the creditor's "sole and exclusive remedy" against the interest, with no right to the LLC's property (R.C. 1706.342(A), (F)). Ask an Ohio attorney how this applies to a single-member LLC.
• It isn't insurance. The LLC still needs coverage that pays claims and defense costs.

One LLC, or one per property?

Separate LLCs keep one property's judgment away from the others, at $99 each plus a statutory agent for each. Ohio also allows series LLCs: an operating agreement may set up designated series of assets with separate rights, powers or duties for specified property, with at least one member associated with each series (R.C. 1706.76). A series' debts stay inside the series only if all three conditions hold: the records "account for the assets of that series separately from the other assets of the company or any other series," the operating agreement says so, and the articles of organization say the LLC may have series of assets (R.C. 1706.761(B); 1706.16(A)(3)). Records meet the first test if a series' assets can be identified by listing, category, type, quantity or an allocation formula (R.C. 1706.762(B)). Ask an Ohio attorney and your lender whether a series fits. More: Should you have a separate LLC for each rental property?. Other states: Indiana · Tennessee · Georgia · all states.

Form it where the property is, or register there

The simplest setup is an Ohio LLC for Ohio property. An LLC from another state must register with the Secretary of State before it transacts business in Ohio (R.C. 1706.511(A)): Form 617, $99, naming an Ohio statutory agent. The statute's list of activities that don't count as transacting business includes "Owning real or personal property" and creating or acquiring mortgages (R.C. 1706.512(A)(7), (9)). Leasing isn't on that list, so ask an Ohio attorney before you rely on the exception for a rental. An unregistered foreign LLC can't maintain a court proceeding in Ohio to collect its debts until it registers, owes the state an amount equal to the fee the Secretary of State prescribes, and can be sued by the attorney general for that amount and enjoined from further activity; its members aren't personally liable solely because it operated unregistered, and it can still defend a suit (R.C. 1706.515). An out-of-state owner of rental property in a large county also names an Ohio agent with the county auditor or files a certified copy of its Ohio statutory-agent filing (R.C. 5323.03), and Cleveland asks LLC owners for Ohio Secretary of State good-standing proof, so ask the city how it treats a foreign LLC.

What it costs the state

• Articles of Organization: $99 (Secretary of State Filing Forms and Fee Schedule, Form 610)
• Name reservation (optional): Form 534B, priced on the Secretary of State's fee schedule; a reservation gives the exclusive right to a name for 180 days (R.C. 1706.07(E))
• Annual report: none for LLCs. "Ohio businesses are not required to file annual reports"; only professional associations and LLPs file biennial reports (Secretary of State, Avoid Business Scams page)
• Statutory Agent Update (Form 521): $25; Reinstatement & Appointment of Agent (Form 525A): $25 (fee schedule)
• Certificate of Good Standing: $5, which Cleveland wants for an LLC landlord (Secretary of State, Avoid Business Scams page)
• Foreign LLC registration (Form 617): $99 (fee schedule)
• Commercial Activity Tax: owed only above $6 million a year in Ohio taxable gross receipts for tax years 2025 and later (Department of Taxation)
• EIN: free from the IRS

Compare services: LLC services compared.

Forming the LLC, in order

1. Pick a name that contains "limited liability company" or "L.L.C.," "LLC," "limited," "ltd." or "ltd" (R.C. 1706.07(A)), and that is distinguishable on the Secretary of State's records. Reserve it first if you want to hold it.
2. Name a statutory agent: a natural person who lives in Ohio, or an entity with an Ohio business address, who signs a written acceptance. The appointment gives a street address, and a post office box isn't a "usual place of business" (R.C. 1706.09(A), (B), (C)).
3. File the Articles of Organization (Form 610, $99) online at Ohio Business Central. They set out the LLC's name and statutory agent and, if you want a series, the series statement; the LLC is formed when the Secretary of State files them (R.C. 1706.16(A), (B)).
4. Write an operating agreement. It can be signed before, at, or after the filing (R.C. 1706.16(D)).
5. Get an EIN and open the LLC's bank account; the Secretary of State's checklist also points new businesses to the Department of Taxation for registration and filing duties.
6. Put the LLC's name and address in every lease. A written rental agreement must contain the owner's name and address, and for an entity the address is its principal place of business in the county where the property sits, with the name of the person in charge (R.C. 5321.18(A)).
7. Register each rental with the city, and with the county auditor if the county has more than 200,000 people (above).

Forming the LLC doesn't move your deed

Putting your rental in the LLC takes a new deed. The grantor signs it and acknowledges the signature before a notary or other listed official (R.C. 5301.01(A)), and it is recorded with the county recorder of the county where the property sits (R.C. 5301.25(A)). An unrecorded deed is treated as fraudulent against a later good-faith purchaser who doesn't know of it. Before the recorder, though, the deed goes through the county auditor.

• The auditor first. Before the auditor endorses a conveyance, the grantee submits a statement of value on the Department of Taxation's form: DTE 100, or DTE 100EX when the transfer is exempt (R.C. 319.202; DTE 100). The fees are paid to the auditor before the deed is presented to the recorder (R.C. 319.202(D); 322.02(A)).
• The conveyance fee. The statewide fee is "one dollar, or ten cents for each one hundred dollars or fraction of one hundred dollars, whichever is greater," of the property's value (R.C. 319.54(G)(3)). A county may add a transfer tax of up to thirty cents per hundred dollars (R.C. 322.02(A)). The grantor pays (R.C. 319.202(D)). For a transfer that isn't a gift, "value" includes "the amount of any mortgage or vendor's lien" on the property, so an existing loan can count. Ask your county auditor for the county's rate.
• Exemptions. R.C. 319.54(G)(3)(a)-(y) lists transfers with no fee, including one where no "money or other valuable and tangible consideration readily convertible into money" is paid or to be paid and the transaction is not a gift ((G)(3)(m)). The reason must be shown on the statement (R.C. 319.202(D)), and the instructions to DTE 100EX warn that the auditor "may inspect any and all documents" to decide whether the exemption applies. A deed to your own LLC is not named in the list, so ask the county auditor which exemption, if any, it accepts for yours, especially if the LLC takes the property subject to a mortgage.
• Recording. The county recorder charges a $17 base fee plus a $17 housing trust fund fee for the first two pages, $4 plus $4 for each later page, and may add a document preservation surcharge of up to $5 (R.C. 317.32(A)(1)).
• Rental property. In counties of more than 200,000 people, the auditor endorses the deed with a reminder that the grantee files its rental information (R.C. 319.202(E)).
• If you live in the home, check the homestead reductions first. Ohio's homestead is a dwelling "owned and occupied as a home by an individual whose domicile is in this state" (R.C. 323.151(A)(1)(a)), and the DTE 100EX instructions say to receive the owner-occupancy reduction "you must own and occupy your home as your principal place of residence." An LLC isn't an individual, so ask your county auditor whether a deed to your LLC ends the reduction before you sign.

Have an Ohio attorney prepare the deed. After it records, update leases, rent payment instructions, deposits and insurance, update your city and county registrations, and re-apply for any short-term rental license or permit.

Check the mortgage before you transfer

Federal law lets a lender enforce a due-on-sale clause, and a transfer to an LLC isn't one of the exceptions for 1–4 unit homes (12 U.S.C. § 1701j-3(d)). Fannie Mae allows a transfer to an LLC the borrower controls for loans it acquired on or after June 1, 2016 (Fannie Mae Servicing Guide D1-4.1-02). Ask your servicer in writing.

Insurance and taxes

Tell your insurer before title moves. For federal income tax, a single-member LLC is disregarded unless it elects corporate treatment (IRS).

• Commercial Activity Tax. The Department of Taxation says the CAT applies to all kinds of business structures, "including single owners, partnerships, LLCs, and corporations," and that for tax years 2025 and later businesses with more than $6 million a year in Ohio taxable gross receipts need to pay it. A business must register within 30 days of passing the threshold. Check your receipts against it with a CPA.
• Short-term rentals and lodging tax. Ohio's sales tax reaches "lodging by a hotel" furnished to transient guests (R.C. 5739.01(B)(2)). A "hotel" is an establishment with five or more rooms used for guests, and "transient guests" stay fewer than thirty consecutive days (R.C. 5739.01(M), (N)). The Department of Taxation says a bed and breakfast with fewer than five rooms available to transient guests is not a hotel (Information Release ST 1995-01), so ask the Department whether your listing is one. Cities add their own lodging taxes, such as Cincinnati's 7% excise tax and Columbus's short-term rental excise tax under chapter 371 (§ 598.04(E)).

Keeping each LLC in good standing

• There is no annual report for an LLC (Secretary of State).
• Keep the statutory agent current. The Secretary of State says a registered agent change is due within 30 days and that failing to update may result in cancellation. If an LLC has no agent, the Secretary of State sends notice, and unless the default is cured within 30 days the articles are canceled (R.C. 1706.09(L)). Reinstatement within two years takes an application, a new agent appointment and a filing fee, and restores the company's rights "as if its articles or registration had not been canceled" (R.C. 1706.09; 1706.46(A)).
• Order a Certificate of Good Standing ($5) each year you register with Cleveland.
• Update the county auditor within 60 days of any change in your contact information (R.C. 5323.02(C)).
• Renew city registrations on their own clocks: Cleveland rental registration every year and lead-safe certification every two years, Columbus registry every calendar year and its short-term rental permit every year, Cincinnati short-term rental registration every three years, Toledo short-term rental permits every year, and, once chapter 686B takes effect, Cleveland short-term rental licenses on a December 1 to November 30 year.

Before you file or transfer a property

• Attorney: the deed, the conveyance fee exemption, series vs. separate LLCs
• Servicer: is the transfer allowed?
• Insurance agent: named insured, coverage
• County auditor: DTE 100 or 100EX, homestead and owner-occupancy reductions, rental filing
• CPA: income tax, lodging tax, Commercial Activity Tax
• City: rental registration and short-term rental permit in the LLC's name
• Calendar: Cleveland's annual registration, the Columbus registry window, permit renewals, the 60-day county update

Form it with Corpus

Corpus prepares and files your Articles of Organization and includes the first year of registered-agent service. The Ohio page shows the current price. Corpus isn't a law firm: the deed, the loan, taxes and city permits are separate steps.

Sources

• Ohio Rev. Code § 1706.26, member liability (Corpus official text): https://corpuslaw.us/code/9c1bac7c-d1d3-47aa-9e35-ca0153fb6cfd ; § 1706.04, separate legal entity: https://corpuslaw.us/code/50818f52-d7c5-45b5-973e-896e9c464268 ; § 1706.342, charging order: https://corpuslaw.us/code/f2a6eb72-97a2-4a64-a67b-d52ddc9af232 ; Ohio Laws and Administrative Code, read 2026-10-24: https://codes.ohio.gov/ohio-revised-code/section-1706.26 and https://codes.ohio.gov/ohio-revised-code/section-1706.342
• Ohio Rev. Code § 1706.76, series (Corpus official text): https://corpuslaw.us/code/405abd65-99f3-4900-9876-beaee866401c ; § 1706.761: https://corpuslaw.us/code/7b2bb316-e9c9-45bb-a69a-c6c367ca73f2 ; § 1706.762: https://corpuslaw.us/code/d3e57cf2-3a0d-459b-8ea4-cc65607ffc40 ; Ohio Laws: https://codes.ohio.gov/ohio-revised-code/section-1706.761
• Ohio Rev. Code § 1706.07, names (Corpus official text): https://corpuslaw.us/code/a4bb3d00-4b9e-436a-979e-4994201e3404 ; § 1706.09, statutory agent and cancellation: https://corpuslaw.us/code/4129d722-668e-4731-b825-278ce1bfac61 ; § 1706.16, articles of organization: https://corpuslaw.us/code/2f4ed1d2-9183-4a80-b45e-e41e6da9a480 ; § 1706.46, reinstatement: https://corpuslaw.us/code/55da11d1-0524-4d22-aac2-f290fd94fd76 ; Ohio Laws: https://codes.ohio.gov/ohio-revised-code/section-1706.09
• Ohio Rev. Code § 1706.511, foreign LLC registration (Corpus official text): https://corpuslaw.us/code/60275ee0-1acb-4164-9cd3-cc4423b3d78e ; § 1706.512, activities not constituting transacting business: https://corpuslaw.us/code/634aac0a-61a0-4eb9-98fd-45e90bce3be8 ; § 1706.515, consequences of no registration: https://corpuslaw.us/code/035da426-5802-4947-849d-13f1e9e8f3d8 ; Ohio Laws: https://codes.ohio.gov/ohio-revised-code/section-1706.515
• Ohio Rev. Code ch. 5323, residential rental property (not on Corpus; Ohio Laws, read 2026-10-24): https://codes.ohio.gov/ohio-revised-code/section-5323.01 ; https://codes.ohio.gov/ohio-revised-code/section-5323.02 ; https://codes.ohio.gov/ohio-revised-code/section-5323.03 ; https://codes.ohio.gov/ohio-revised-code/section-5323.99
• Ohio Rev. Code §§ 319.202, 319.54, 322.02, 317.32, 5301.01, 5301.25, 323.151, 5321.18, 5739.01 (not on Corpus; Ohio Laws, read 2026-10-24): https://codes.ohio.gov/ohio-revised-code/section-319.202 ; https://codes.ohio.gov/ohio-revised-code/section-319.54 ; https://codes.ohio.gov/ohio-revised-code/section-322.02 ; https://codes.ohio.gov/ohio-revised-code/section-317.32 ; https://codes.ohio.gov/ohio-revised-code/section-5301.01 ; https://codes.ohio.gov/ohio-revised-code/section-5301.25 ; https://codes.ohio.gov/ohio-revised-code/section-323.151 ; https://codes.ohio.gov/ohio-revised-code/section-5321.18 ; https://codes.ohio.gov/ohio-revised-code/section-5739.01
• Ohio Secretary of State, Filing Forms and Fee Schedule: https://www.ohiosos.gov/business/business-filing-forms ; Avoid Business Scams (no annual reports; Certificate of Good Standing $5): https://www.ohiosos.gov/public-integrity/protect-your-business/important-warnings ; Keep Your Active Status: https://www.ohiosos.gov/business/keep-your-active-status ; Starting a Business: https://www.ohiosos.gov/business/ohio-business-roadmap/starting-a-business
• Ohio Department of Taxation: Commercial Activity Tax: https://tax.ohio.gov/business/commercial-activity-tax ; DTE 100 statement of value: https://tax.ohio.gov/static/forms/real_property/DTE_DTE100.pdf ; DTE 100EX: https://tax.ohio.gov/static/forms/real_property/dte_dte100ex_fi.pdf ; Real Property Conveyance Fee summary: https://tax.ohio.gov/static/communications/publications/brief_summaries/new%20internet%20feb_7_2012/real_property_conveyance_fee_2_8.pdf ; Information Release ST 1995-01: https://tax.ohio.gov/business/ohio-business-taxes/sales-and-use/information-releases/st199501
• Cuyahoga County Fiscal Officer, residential rental property disclosure: https://cuyahogacounty.gov/fiscal-officer/departments/transfer-and-recording/residential-rental-property-disclosure ; Hamilton County Auditor, rental registration: https://www.hamiltoncountyauditor.org/tax_rentalregistration.asp ; Franklin County Auditor, rental registration: https://auditor.franklincountyohio.gov/Real-Estate/Rental-Registration
• Cleveland: Codified Ordinances ch. 365 (https://codelibrary.amlegal.com/codes/cleveland/latest/cleveland_oh/0-0-0-49160 and https://codelibrary.amlegal.com/codes/cleveland/latest/cleveland_oh/0-0-0-49141) and ch. 686B (https://codelibrary.amlegal.com/codes/cleveland/latest/cleveland_oh/0-0-0-54037) ; Rental Registration: https://www.clevelandohio.gov/city-hall/departments/building-housing/divisions/records-administration/rental-registration ; Rental Properties: https://www.clevelandohio.gov/residents/codes-ordinances/residents-first/rental-properties ; Lead Safe Certification: https://www.clevelandohio.gov/residents/codes-ordinances/residents-first/lead-safe-certification
• Columbus: Ordinance 0923-2026 (record and text): https://webapi.legistar.com/v1/columbus/matters/136837/texts/136402 ; Housing For All: https://www.columbus.gov/Government/City-Council/Programs-Initiatives/Housing-For-All ; City Code ch. 598: https://library.municode.com/oh/columbus/codes/code_of_ordinances?nodeId=TIT5BURELICO_CH598HOMOSHRMREOP ; short-term rental permit page: https://www.columbus.gov/Business-Development/Get-a-Permit/Get-a-Short-Term-Rental-Permit
• Cincinnati: Residential Rental Registration: https://www.cincinnati-oh.gov/buildings/property-maintenance-code-enforcement/residential-rental-registration/ ; RRR FAQ: https://www.cincinnati-oh.gov/buildings/property-maintenance-code-enforcement/rrr-faq/ ; Short Term Rental: https://www.cincinnati-oh.gov/finance/short-term-rental/ ; General Rules and Regulations: https://www.cincinnati-oh.gov/sites/finance/assets/File/Rules-&-Regulations--STR1.pdf
• Toledo: Municipal Code ch. 1767: https://codelibrary.amlegal.com/codes/toledo/latest/toledo_oh/0-0-0-160811 ; ch. 702: https://codelibrary.amlegal.com/codes/toledo/latest/toledo_oh/0-0-0-161234 ; Short-Term Rental Permit: https://toledo.oh.gov/business/how-to-do-business-in-the-city/business-licenses/short-term-rental-permit ; Lead Safe requirements: https://toledo.oh.gov/residents/landlord-tenant-resources/toledo-lead-safe/property-owners-lead-safe
• 12 U.S.C. § 1701j-3 (Corpus official text): https://corpuslaw.us/code/2fc8c7eb-0b53-4b5a-821a-477c5d2baf63
• Fannie Mae Servicing Guide D1-4.1-02: https://servicing-guide.fanniemae.com/svc/d1-4.1-02/allowable-exemptions-due-type-transfer
• IRS single-member LLCs: https://www.irs.gov/businesses/small-businesses-self-employed/single-member-limited-liability-companies ; get an EIN: https://www.irs.gov/businesses/small-businesses-self-employed/get-an-employer-identification-number