FAQs - Corporation Franchise Tax

I still have an active charter with the Ohio Secretary of State's office, but have not been in business for years. Am I still required to file the corporation franchise tax reports in Ohio?

Yes, if you have an active charter/license with the Ohio Secretary of State’s office you are required to file and/or pay Ohio corporation franchise taxes until that charter or license has been dissolved through that agency. However, pursuant to the franchise tax phase-out, reports may not be required after the 2009 tax year (taxable year end 2008). Please refer to FAQ #3 and #4.

Section 5733.17 of the Ohio Revised Code states that the mere retirement from business or voluntary dissolution of a domestic or foreign corporation without filing the certificate provided for in Section 1701.86 of the Ohio Revised Code shall not exempt it from the requirements to make reports and pay excise or franchise taxes in accordance with Ohio law until this certificate is filed with the Ohio Secretary of State.

In addition, any corporation that exits Ohio by dissolution or withdrawal in 1998 or thereafter, may be required to file an income-based exit tax on its unreported net income for the taxable year through the effective date in which the dissolution/withdrawal is recorded with the Ohio Secretary of State. The report and payment is due by May 31 of the year following the calendar year in which the dissolution or withdrawal takes place.

The Web site and telephone number for the Ohio Secretary of State is:

www.sos.state.oh.us/SOS/businessServices.aspx

(877) 767-3453 or (614) 466-3910