Closing a Restaurant in Ohio: What Reddit Gets Right (and Wrong)
Ohio restaurant owners on Reddit are asking the right questions. Threads in r/restaurant, r/restaurantowners, and r/Columbus get posts about lease exits, employee obligations, liquor permit surrender, and sales tax. The answers vary widely. Here is what Ohio law actually says.
Ohio Liquor Permit Surrender
Ohio liquor permits are administered by the Ohio Division of Liquor Control (DOLC). To surrender an Ohio liquor permit, you notify the DOLC in writing of your closure date and return the physical permit. Ohio liquor permits can be transferred to a buyer, and in some permit classes, they can have secondary market value. Ohio uses a quota system for D-5 permits (full liquor) in some jurisdictions, which means a quota permit in a high-traffic Ohio market can be worth money on the secondary market. Before surrendering an Ohio liquor permit, check with a liquor permit broker to determine if your permit has transfer value.
Ohio Final Paycheck Law
Ohio requires that employees receive their final paycheck on the first day of the month following the pay period in which the termination occurred, or on the next regular payday, whichever is earlier. Ohio does not require employers to pay out accrued vacation or PTO upon termination unless the employer's written policy promises it. The Ohio Department of Commerce Division of Labor and Worker Safety enforces wage payment laws. Violations can result in penalties plus attorney fees.
Ohio Sales Tax and LLC Dissolution
Ohio requires businesses to file a final sales tax return with the Ohio Department of Taxation when closing. Ohio's state sales tax rate is 5.75 percent, with county rates adding 0.75 to 2.25 percent on top. Columbus and Cleveland area restaurants pay 7.5 to 8 percent combined. You must cancel your Ohio vendor's license and remit all collected taxes before closing. For LLC dissolution, you file a Certificate of Dissolution with the Ohio Secretary of State. The filing fee is $50 for a domestic LLC.
Ohio Commercial Lease Law
Ohio commercial leases require landlords to mitigate damages -- meaning an Ohio landlord must make reasonable efforts to find a new tenant rather than letting the space sit empty. This gives Ohio restaurant owners more negotiating leverage than states like Texas where there is no duty to mitigate. Ohio's commercial real estate market varies significantly by market -- Columbus and Cleveland have active markets where re-tenanting is faster, while smaller Ohio cities may have more vacancy and less landlord flexibility. If you personally guaranteed your Ohio lease, the landlord can still pursue you individually even with the duty-to-mitigate rule.
Ohio WARN Act
Ohio does not have a state-level WARN Act. The federal WARN Act applies to employers with 100 or more full-time employees. Most independent Ohio restaurants do not meet this threshold. If your restaurant has 100 or more full-time employees, you must provide 60 days written notice to employees, the Ohio Department of Job and Family Services, and the local elected official.