How to Become a General Contractor in Ohio

The Process Has a Specific Order

Becoming a general contractor in Ohio involves completing several steps in the right sequence. Skipping ahead — like trying to register with a city before you have your LLC and any required BWC coverage — means getting your application kicked back, which can delay your first project by weeks.

Here's the full path, in order.

Step 1: Form Your Business Entity

Register your LLC with the Ohio Secretary of State by filing Form 533A through the Ohio Business Central portal. The filing fee is $99. Ohio has a notable advantage over many states: LLCs don't pay annual report fees or recurring maintenance costs, as long as you keep a registered statutory agent with a physical Ohio address.

After your LLC is approved, get a federal Employer Identification Number (EIN) from the IRS. You'll need it for every registration and tax filing that follows.

Step 2: Enroll in Ohio Workers' Compensation

Ohio is a monopolistic state-fund state for workers' comp. You cannot buy coverage from a private insurer — it all goes through the Ohio Bureau of Workers' Compensation (BWC). File Form U-3 with a minimum opening deposit of $120.

If you're a sole proprietor or single-member LLC with no employees, BWC coverage is technically optional. But most municipal building departments want to see proof of coverage as part of your registration, and many general contractors on commercial projects will require it from subcontractors.

Step 3: Set Up Your Tax Accounts

Register with the Ohio Department of Taxation for the Commercial Activity Tax (CAT). The CAT is 0.26% on Ohio gross receipts, but there's a $6 million exclusion threshold — if your receipts are below that, you don't owe anything. You still need to monitor your receipts and register within 30 days of crossing the threshold.

You'll also need local tax registrations. Many Ohio cities (Cincinnati, Columbus, Cleveland, Dayton) have their own municipal income taxes administered through agencies like RITA or the CCA. Cincinnati specifically requires a Contractor Income Tax Application as part of the registration process.

Step 4: Get Your Insurance and Bond

Before a municipality will register you, you'll need:

General liability insurance: Minimums vary by city. Columbus requires $300,000 per person and $500,000 per occurrence. Cleveland requires $200,000 with specific sub-limits. Cincinnati requires $100,000/$300,000. Get quotes that meet the highest threshold you'll need.

Surety bond: Most Ohio cities require a contractor bond, typically $25,000. Cincinnati is a notable exception — no bond for standard general contractor registration. The bond must be issued in your exact legal business name (matching your Secretary of State filing), and Cleveland requires a Power-of-Attorney form from the surety with matching dates.

Step 5: Register With Your Target Municipalities

This is the step most states handle centrally, but Ohio doesn't. You register separately with the building department of every city or county where you'll pull permits. Each one has its own application, fee schedule, and requirements.

The three largest cities:

• Columbus: $350/year, $25,000 bond using the official BZS form, notarized application. Commercial GC applicants don't need an exam, but Home Improvement Contractors must pass the ICC 767 (70% minimum) and document three years of residential experience.
• Cleveland: $150 initially ($120 renewals), $25,000 bond expiring December 31 annually, proof of $200,000 liability with the city as additional insured.
• Cincinnati: $131.25/year (includes surcharges), no bond required, BWC and tax proof required. Same-day processing available for an extra $208 if you need it.

Step 6: Understand Your Contract Obligations

For residential projects valued at $25,000 or more, the Home Construction Service Suppliers Act (ORC Chapter 4722) requires a written contract for non-cost-plus projects with specific disclosures: your tax ID, business address, phone number, detailed scope of work, estimated timeline, and a copy of your general liability certificate (minimum $250,000). For covered non-cost-plus contracts, down payments are capped at 10% of the contract price. Cost-plus contracts are exempt from these written-contract and down-payment requirements.

What Comes After Registration

Once you're registered and have any required bond in place, you can pull building permits and bid on projects in that jurisdiction. Our Ohio General Contractor License Guide covers the full process, including city-by-city workflows and the HCSSA contract requirements you need to comply with from day one.

See more Ohio guides →