Eleanor Finch
When establishing a club in Ohio, there are several legal considerations to navigate, including the necessary permits and licenses. The specific requirements may vary depending on the type of club, such as a social or private club, and whether it will serve alcohol. In the case of serving alcohol, a liquor license from the Ohio Division of Liquor Control is required, with the type of license determined by factors like the club's size and location. Additionally, the club's physical location must comply with zoning regulations, and the business structure, such as an LLC, should be established. While some clubs, like the Taekwondo Club at Ohio State, may have a constitution outlining their values and practices, it is unclear if this is a mandatory requirement for all clubs in the state.
| Characteristics | Values |
|---|---|
| Legal structure | Corporation or a limited liability company (LLC) |
| Registration | With the Ohio Secretary of State |
| Location | Commercial building |
| Zoning | Check zoning regulations to ensure the building is zoned for a private club |
| Alcohol | If serving alcohol, a liquor license from the Ohio Division of Liquor Control is required |
| Membership | Members-only |
| Guest policy | Guests allowed |
| Cover charge | Cover charge at the door |
| Discrimination | Members cannot be discriminated against on the basis of age, color, disability, gender identity or expression, national origin, race, religion, sex, sexual orientation, or veteran status |
| Meeting minutes | Secretary to record minutes and distribute to members upon request |
| Finances | Treasurer to handle finances, including expense reimbursement |
| Taekwondo | N/A |
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What You'll Learn
Business structure: corporation or LLC
When deciding on a business structure, you must consider the legal and tax implications of each option. Two common business structures are the corporation and the limited liability company (LLC).
A corporation offers strong protection from personal liability to its owners. This means that personal assets such as vehicles, houses, and savings accounts are generally protected in the case of bankruptcy or lawsuits. Corporations also have an advantage when it comes to raising capital, as they can sell stock and attract employees with stock options. However, the cost of forming a corporation is typically higher than other business structures, and corporations are subject to more stringent record-keeping, operational, and reporting requirements. Corporations pay income tax on their profits, and these profits may be taxed twice—once when the company makes a profit and again when dividends are paid to shareholders.
An LLC, on the other hand, offers the benefits of both a corporation and a partnership. Like a corporation, an LLC protects its owners from personal liability in most cases. However, members of an LLC are considered self-employed and must pay self-employment taxes. LLCs may have a limited life in some states, and they can be taxed as a C corporation, S corporation, or nonprofit. Additionally, the ability to buy, sell, and transfer ownership may be more straightforward in an LLC, as some states require the LLC to be dissolved and re-formed when members join or leave unless there is already an agreement in place for these transactions.
In the context of opening a private club in Ohio, as with any business, it is essential to consider the specific requirements and restrictions of the state. The Ohio Secretary of State can provide guidance on registering your business as a corporation or LLC. Additionally, zoning regulations and liquor license requirements must be navigated when establishing a private club.
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Location zoning
When opening a private club in Ohio, there are several legal requirements to be met and permits to be obtained. One of the most important considerations is location zoning. Here is a detailed guide on location zoning for a club in Ohio:
If you plan to open a private club in Ohio and already own a commercial building, it is crucial to ensure that your desired location is zoned appropriately for a private club. Location zoning regulations can vary depending on the area in Ohio where you intend to establish your club. Thus, it is essential to familiarise yourself with the specific zoning requirements and guidelines applicable to your chosen location.
Zoning regulations dictate the types of businesses or land uses permitted in specific areas. These regulations are established by local governments to promote orderly development, maintain compatible land uses, and protect the health, safety, and welfare of the community. As such, it is imperative to verify that the zoning regulations in your chosen area allow for the operation of a private club.
To determine the zoning requirements for your desired location, you should consult the local zoning ordinances or codes. These documents outline the permitted land uses, building restrictions, and other relevant regulations for each zoning district within a municipality. You can typically find these ordinances or codes on the website of the local planning or zoning department. Additionally, you may need to consult with a local zoning official or planner to gain a comprehensive understanding of the zoning regulations pertinent to your specific situation.
If, upon reviewing the zoning regulations, you find that your commercial building is not zoned for a private club, you may need to explore alternative options. These options could include applying for a zoning variance or requesting a zoning change. A zoning variance is a legal authorisation that grants an exception to the existing zoning regulations, allowing for a use that might otherwise be prohibited. On the other hand, a zoning change involves amending the zoning designation of a property, which can be a more complex and lengthy process.
In conclusion, ensuring that your chosen location is appropriately zoned for a private club is a fundamental step in the process of opening a club in Ohio. By diligently reviewing the applicable zoning regulations, consulting with local authorities, and exploring alternative options if necessary, you can navigate the location zoning aspect effectively and move closer to realising your vision for your private club.
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Alcohol permit
If you are planning to open a club in Ohio and want to serve alcohol, you will need to obtain a liquor license from the Ohio Division of Liquor Control (DOLC), a division of the Ohio Department of Commerce. Obtaining a liquor license in Ohio is not a simple process, as the state government heavily controls the trade of alcoholic beverages.
The type of alcohol permit you will need for your club will depend on several factors, including the club's size, location, and the types of alcohol you wish to sell. For example, establishments that only want to sell alcohol for carryout should obtain a C-class permit, while full-service restaurants and similar businesses that want to allow on-site consumption will require a D-class permit. There are also different subtypes within each permit class, each with distinct privileges. For instance, a D-1 permit allows the sale of beer, while a D-2 permit covers wine and mixed drinks. A D-3 permit is required for spirits, and an establishment can apply for a D-3A permit to extend their hours until 2:30 am. A D-5 permit authorizes the sale of all beverage types, and a D-6 permit allows for Sunday sales.
If you want to have maximum privileges, sometimes referred to as a "full-service" permit, you will likely need a combination of these permits. Additionally, it is important to note that a limited number of D- and C-class liquor permits are allocated to each city and township, determined by the area's population data.
The process of obtaining a liquor license for your club in Ohio should begin with identifying the specific type of permit needed based on the nature of your business and your intended operations. This will ensure that you comply with the relevant regulations and can legally serve alcohol to your patrons.
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Membership requirements
When it comes to membership requirements for a club in Ohio, there are a few key considerations to keep in mind. Firstly, it's important to determine whether the club will be a private or public entity. If you plan to establish a private club, you will need to navigate specific legal requirements and obtain the necessary permits. Here are some detailed guidelines for membership requirements:
Membership Eligibility
Clearly define the criteria for membership eligibility. This could include factors such as age, affiliation with a particular group or organization, shared interests or hobbies, or any other specific qualifications relevant to the nature of the club. For example, a book club may require members to be residents of a particular neighborhood, or a fishing club may limit membership to students enrolled at a specific university, such as the Bass Fishing Club at Ohio State University, which is open to students who are in good academic and disciplinary standing.
Membership Process
Outline the steps that individuals must take to become members. This could include completing an application form, paying membership fees, attending an orientation session, or any other relevant procedures. For instance, if your club will serve alcohol, members might be required to present valid identification to comply with liquor license regulations.
Membership Fees and Dues
Determine whether there will be any membership fees or regular dues. If so, specify the amount and the payment schedule. Also, consider any discounts or waivers that may be offered, such as for students or senior citizens.
Membership Privileges and Benefits
Clarify the rights and benefits that members will enjoy. This could include access to exclusive events or facilities, discounts on products or services, voting rights within the club, or any other perks that are relevant to your specific club. For instance, members of the Bass Fishing Club at Ohio State University serve as representatives of the university at regional and national tournaments.
Membership Expectations and Responsibilities
Outline the expectations and responsibilities of members. This might include a code of conduct, attendance requirements for meetings or events, volunteer commitments, adherence to any club bylaws or policies, and the consequences for non-compliance. For example, members of a private club may be expected to uphold a certain dress code or maintain confidentiality regarding club activities.
Membership Termination and Removal
Establish procedures for membership termination or removal. This could encompass voluntary resignation, non-payment of dues, violation of club rules or code of conduct, or any other circumstances that may lead to the termination of membership. Outline the process for removing members, including any votes or hearings that may be required, and specify whether members have a right to appeal.
By carefully considering these aspects of membership requirements, you can establish a clear framework that aligns with the nature and purpose of your club in Ohio.
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Liquor license regulations
When it comes to liquor license regulations for a club in Ohio, there are several important considerations to keep in mind. Firstly, the state of Ohio requires businesses that wish to serve alcoholic beverages to obtain a liquor license from the Ohio Division of Liquor Control (DOLC), which operates under the Ohio Department of Commerce. The DOLC controls all alcohol sales within the state, from manufacturing to distribution to sales, and offers different licenses and permits depending on the specific circumstances of the business.
The type of liquor license required will depend on factors such as the size and location of the club, as well as the types of alcoholic beverages that will be served. For example, a club serving only beer and wine may have different license requirements than one also serving spirits. Additionally, local regulations can impact the license requirements, as some areas may have restrictions on the types of alcohol that can be sold and the hours during which alcohol can be served. For instance, alcohol sales on Sundays may be prohibited in certain locations without a special permit.
To obtain a liquor license in Ohio, applicants must be at least 21 years old and a United States citizen. There is also a non-refundable $100 application fee. A background check is conducted as part of the application process, and certain felony convictions may disqualify an applicant. Local requirements, such as zoning, health inspections, food service certificates, and insurance, must also be met, and these can vary depending on the specific location of the club. It is important to contact local authorities to understand the specific requirements for the area in which the club is located.
In terms of staff serving alcohol, Ohio law permits individuals who are at least 19 years old to serve alcoholic beverages for on-site consumption, as long as the alcohol is not wine or spirits, in which case the server must be at least 21. While a bartending license is not required by state law to serve alcohol, many establishments prefer their staff to have one. Additionally, some counties may require staff to pass the Ohio Safe Alcohol Sales Training (Ohio Alcohol Server Knowledge Program) to ensure responsible alcohol service.
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Frequently asked questions
If your club will serve alcohol, you need to obtain a liquor license from the Ohio Division of Liquor Control. The type of license depends on factors such as the club's size, location, and the type of alcohol served.
If your club is private and does not fall under the authority of a license issued by the Ohio Department of Liquor Control, you may not need a liquor license. However, specific regulations and restrictions may apply, so it is essential to research and consult with legal professionals.
You can structure your club as a corporation or a limited liability company (LLC). This involves registering your business with the Ohio Secretary of State.
Yes, your LLC can file a Fictitious Name Registration with the Ohio Secretary of State to conduct business under a different name while retaining the protections of the LLC.
Yes, you need to check the zoning regulations for your area to ensure that your club's location is appropriately zoned for a private club. If not, you may need to apply for a zoning change or variance.
