How to Start Your LLC in Indiana

It takes you through the steps of LLC naming, filling the Articles of Organization, selecting a registered agent, getting licenses, obtaining EIN, and compliance afterward. At the conclusion, you would have absolutely no doubt as to how to establish and operate your Indiana LLC.

1. Name Your Indiana LLC

One of the initial steps in the formation of the Indiana LLC is the selection of the proper name. Your company name must be distinctive, easy to recall and it must convey what your company does. Since this name will be your brand name both in legal and in publicity, then you need to take time and make a wise decision.

Identify your business concept first before brainstorming to come up with names. Knowing your services, products and the audience you are targeting enables you to easily get a name that can suit your long term objectives. It is also common to get fresh opinions by seeking the views of friends, family, or trusted colleagues by the entrepreneur. Online searches are another necessary measure to determine whether the name is similar and whether the domain name is not registered.

Business name generators online may also be useful in inspiring ideas, although it should be utilized as a source of inspiration. These tools do not necessarily learn about branding peculiarities and legal naming limitations.

After you do a shortlist, a business name search is done on the Indiana Secretary of State web site. This makes sure that the name is not already taken up or that it is very similar to an already registered business in Indiana. Also, you are advised to search beyond the exact matches to prevent the occurrence of trademark or branding disputes in future.

You would highly recommend searching the database of the US Patent and Trademark Office (USPTO) after state level verification. This assists in making sure the name is not already registered as a trade name at the federal level to save you the hassle of having to pay off lawyers in future.

In case you are not willing to establish your LLC now, the state of Indiana lets you reserve your business name. The name reservations are done online via the Access Indiana business services site. Upon the creation of an account, you will fill in the application, sign with your electronic signature, and pay.

Doing Business as (DBA) Indiana

Although you are done with LLC naming, you might need to use a different business name as a branding or expanding business. An assumed business name in Indiana is called a Doing Business As (DBA), which is an element into this situation.

As an example, suppose your LLC name is JJ Waffles, LLC and you want to sell baked goods under the name JJ Muffins, you can file JJ Muffins as a DBA. A single LLC may also have any number of DBAs, which gives it some flexibility of operation without creating any other legal entity.

DA DBA will also enable you to open bank accounts, receive payments made by customers, and promote your business under the assumed name. In Indiana, business names of the assumed names are registered in the Access Indiana (INBiz) platform.

The Costs of DBA filing depend on the business and mode of filing. In the case of LLCs, corporations, LPs, and LLPs, the single time filing cost is 20 online or 30 at the mail or in-person counter. Indiana does not have an annual fee structure in DBA filings, except that sole proprietors and nonprofits have different fee structures.

2. Select a Registered Agent

The law of Indiana demands that all LLCs must have a registered agent. The registered agent receives legal filing, tax notices and official correspondence by the state on behalf of your business. This is so that your LLC is in touch and up to date with the requirements of the state.

An Indiana registered agent may be either a business entity or a person, such as an LLC member, but must meet the state requirements. The agent should be a minimum of 18 years old, with a physical street address in the state of Indiana, and should be accessible during the normal business hours. In the case of a business agent, he or she should be entitled to do business in Indiana.

Although it may be cheaper to serve as your own registered agent, a lot of business owners will seek the services of an experienced registered agent. This offers privacy, reliability and flexibility- at least when traveling frequently, or not wanting your personal address posted on open records.

3. Identify Your Management Structure

Indiana LLCs may also be member-managed or manager-managed, and the appropriate structure to use determines the level of involvement of the owners in the day to day running.

In member managed LLC, all the members are involved in the day to day running and making decisions of the business. This is typical of small firms in which owners are actively engaged in their activities.

One or more managers, who may or may not be members, are granted the authority to manage the LLC under manager-managed LLC. This is a good structure whereby some owners would like to be passive investors. A manager may be a member, but he or she must be accompanied by at least one non-member manager.

The reason why having the right management structure is significant is that it influences authority, liability, and it determines how your business operates on the day-to-day basis.

4. File Articles of Organization

In order to officially establish your Indiana LLC, you need to submit Articles of Organization on the site of Indiana Secretary of State. Once you sign in to your account, under the New Business creation, you should choose the option of Starting a New Business and proceed as required.

The Articles of Organization needs to know about your LLC name, address of principal office, information about your registered agent, address of registered office and the governing authority. The system has a step by step guide of each part and you can read and re-read it then place payment.

Contact Information at Indiana Secretary of State

Indiana Business Services Web site
Business Services Division
302 W. Washington Street, Room E018
Indianapolis, IN 46204

Email: INBiz@sos.in.gov
Phone: 317-234-9768

5. Write up an Operating Agreement

An operating agreement is a plan of ownership and management of your LLC. Indiana does not have a legal requirement of operating agreement though it is strongly advisable to have one even in the case of single-member LLC.

This document would specify the percentage of ownership, rights to vote, and powers as well as power to manage the business, distribution of profits and losses, and dispute resolutions. It is also useful in strengthening limited liability protection and banks usually insist on opening of a business account.

Although templates are found on the internet, an attorney can draft or review your operating agreement, which will guarantee its compliance with the state laws of Indiana and its purpose to meet your business requirements.

6. Get Your Employer Identification Number (EIN)

The IRS issues an Employer Identification Number (EIN) which is required in reporting federal tax. EIN is necessitated in the case your LLC contains more than one member, employs staff, or establishes a business bank account.

On the IRS, you are able to apply to an EIN at no charge. In the application, you have to establish a responsible party, who is the person that governs and administers the funds and activity of the LLC.

7. Acquire Business Licenses and Permits

The State has no general business license in Indiana. Nevertheless, you might require licenses or permits of federal, state, or local agencies depending on your business activity.

On the federal level, some industries must obtain the permission of agencies like the OSHA. Professional and occupational licenses are handled in the state level under the Professional licensing agency of Indiana. Companies that sell goods or services that attract a tax are also required to apply an application to get a sales tax permit.

There could be local restrictions on zoning, signage or operation permits by the local cities and counties and hence it is advisable to ensure the local requirements are checked where your business is within the locality.

This step is important to comply with the attempt to avoid fines, penalties, or shutdowns, which may occur due to operating without the required licenses.

8. Determine Your Tax Status

Indiana LLCs are taxed as pass-through entities by default, i.e. the LLC does not pay federal income tax. Rather, the personal tax returns of the owners are subjected to the profits and losses.

Single member LLCs are taxed like sole proprietorship whereas multi-member LLCs are by default taxed as partnerships. LLCs can also choose to vote to become C-corporation or S-corporation as long as it suits their financial interests.

The state of Indiana has a personal income tax of 3.05 percent and other taxes are possible depending on the business operations, staff and sales.

Continuing demands of Indiana LLCs

Once you have established your LLC, you will be required to maintain business and personal finances apart, open up a business bank account and keep proper records. Liability and operational risks also require business insurance to protect against the risks.

Indiana expects LLCs to report on Business Entity after every two years. This report should be submitted within the month of anniversary of your LLC. The fee is $22.44 online or $30 by mail. Any failure to file may lead to penalties/dissolution by the administration.

Indiana LLC FAQs