Read verified reviews from business owners, find state/local incentives, and understand key decision data.

Target Industries

Healthcare and Biomedical

This sector is a cornerstone of the region's economy, leveraging a robust network of hospitals, research institutions, and biomedical companies. It is recognized for its innovation in medical research, healthcare services, and biomedical product development.

Manufacturing

Historically rooted in the area's economic fabric, this sector has evolved with advancements in technology and now focuses on high-tech manufacturing, including aerospace, automotive, and advanced materials. The region's strategic location and infrastructure support its continued growth and innovation in manufacturing processes.

Information Technology

This sector is rapidly growing, driven by a surge in software development, data centers, and IT service companies. It benefits from a collaborative ecosystem that fosters innovation, entrepreneurship, and a skilled workforce prepared to meet the demands of the digital economy.

Tax Rates

Sales Tax: The sales tax rate is 8%, which equates to $8 per $100.

 

Corporate Income Tax: Ohio does not have a traditional corporate income tax but rather a Commercial Activity Tax (CAT) with a rate of 0.26% on gross receipts over $1 million, which is equivalent to 26 cents per $100 of gross receipts over $1 million.

 

Property Tax: The average property tax rate is approximately 2.79%, translating to $2.79 per $100 of assessed value.

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Business Incentives

Job Creation Tax Credit (JCTC)

A performance-based tax credit offered by the state of Ohio to assist companies in expanding or locating in Ohio. The credit is measured against new payroll and can be applied to the company's commercial activity tax, state income tax among other taxes.

Economic Development Grant Program

This program, offered by Cuyahoga County, provides financial assistance to businesses expanding or relocating within the county. The grants are designed to support projects that will lead to significant job creation and retention, as well as substantial capital investment.

Ohio Enterprise Zone Program

A state program that provides real property tax incentives for businesses that expand or locate in Ohio-designated enterprise zones. Tax incentives are negotiated locally and can provide significant savings for businesses undertaking new construction or renovation projects.

Business Climate Overview

Cleveland, Ohio, is strategically located on the southern shore of Lake Erie, at the heart of the Great Lakes region. This prime location offers easy access to major highways such as I-90, I-71, and I-77, facilitating convenient transportation and logistics. Cleveland is also in close proximity to other major city centers, including Chicago and New York City, making it a pivotal hub for commerce and trade in the Midwest.

Demographics: Cleveland boasts a diverse population with a rich cultural heritage, contributing to a dynamic and inclusive workforce. The city's population is characterized by a mix of age groups, with a notable presence of young professionals. This diversity is reflected in the workforce, which is skilled in various sectors, from manufacturing to healthcare and technology.

Wages: The median household income in Cleveland is approximately $30,907, while the median rent stands at around $725 per month. These figures indicate an affordable cost of living when compared to other major cities, making Cleveland an attractive place for both individuals and families.

Key Industries: Cleveland is renowned for its manufacturing sector, particularly in automotive and aerospace components. Additionally, the city has made significant strides in healthcare, with world-class medical facilities contributing to its reputation as a healthcare hub. The technology and service sectors are also growing, further diversifying the city's economic base.

Quality of Life: Cleveland offers a high quality of life, with numerous parks, museums, and cultural institutions enhancing the city's livability. The Cleveland Metroparks system provides ample outdoor recreation opportunities, from hiking and biking to boating on Lake Erie. The city's vibrant arts scene, including the Cleveland Orchestra and the Rock and Roll Hall of Fame, adds to its appeal as a great place to live and work.

Education: The city is home to several top universities and community colleges, including Case Western Reserve University, known for its research and engineering programs, and Cleveland State University, which offers a wide range of undergraduate and graduate degrees. Cuyahoga Community College also serves the community with accessible education and workforce training programs.

Businesses: Cleveland is the headquarters for several Fortune 500 companies, including KeyCorp, Sherwin-Williams, and Progressive Corporation. These corporations, along with a vibrant ecosystem of small businesses and startups, drive the city's economic growth and innovation.

Economic Development Organizations: The Greater Cleveland Partnership and Team NEO are among the leading organizations dedicated to economic development in the region. These entities work collaboratively to attract investment, support business expansion, and foster job creation, ensuring Cleveland's competitive edge in the global economy.

FAQ

Cleveland offers a variety of incentives for small businesses, including the Small Business Administration (SBA) loans, Economic Development Grant Program, and specific local grants aimed at fostering small business growth and development. Additionally, the city's economic development organizations provide resources and support for business planning, site selection, and workforce development.
The Commercial Activity Tax (CAT) is a gross receipts tax levied on businesses with gross receipts over $1 million annually, at a rate of 0.26%. Businesses with gross receipts below this threshold are subject to minimal annual fees but are exempt from the percentage tax. This tax structure benefits both small and large businesses by providing a low, flat tax rate on gross receipts over the threshold, encouraging business growth and investment in Cleveland.
Yes, Cleveland is home to several workforce development programs aimed at enhancing the skills of the local workforce. Programs offered through Cuyahoga Community College, as well as initiatives by the Greater Cleveland Partnership, provide training and development opportunities in various sectors including manufacturing, healthcare, and IT. These programs can help businesses upskill their employees to meet industry demands.
Absolutely. Cleveland's prime location on the southern shore of Lake Erie, coupled with its access to major highways like I-90, I-71, and I-77, makes it an ideal hub for logistics and distribution. The city's proximity to other major U.S. city centers enhances its role in regional and national supply chains, offering businesses competitive advantages in transportation and distribution efficiency.
Tech startups in Cleveland can take advantage of a vibrant ecosystem that includes incubators, accelerators, and venture capital funding. Organizations like JumpStart and the Cleveland Technology Center provide resources, mentorship, and investment to support tech entrepreneurs. Additionally, the city's growing IT sector and collaborative environment foster innovation and growth for tech startups.