How To Form an LLC in Indiana

If you want to start a business in Indiana, you should consider forming a limited liability company.The personal liability protection of a corporation is provided by this type of business entity.Contact the office of the Indiana Secretary of State Business Services Division if you want to form an limited liability company in Indiana.

Step 1: Before choosing a legal structure for your business, get advice from a lawyer.

It's important to choose a form for your business.The legal structure of your business can affect how much you pay in taxes.Consider your own needs as the owner of your business.If you want to sell your share in the business, consider the long-term issues with the legal structure you choose.Legal advice can't be given by the Office of the Secretary of State.You should contact an attorney if you have legal questions.The Indiana FindLaw Directory, the Indiana Roll of Attorneys, and the Indianapolis Bar Association can be used to find an attorney in Indiana.Know how much you need to be protected from legal liability.Do you want to accept personal liability for losses associated with the business?There are opportunities to reduce taxation.You can learn about the cost of formation and the reporting requirements.

Step 2: Understand the difference between formal and informal associations.

Informal associations don't need to be reported to the Indiana Secretary of State.Sole proprietors and general partnerships are included in the business structures.State income tax is reported as part of the owners personal income.Associations have to file documents with the state.Corporations and limited liability companies are included.These businesses have tax requirements.

Step 3: There is a choice to form a limited liability company.

A hybrid is a corporation and partnerships.With the tax simplicity of a partnership, it provides the business owners with liability protection.The owners report their earnings and losses on their tax returns.An S-corporation has a limit on the number of members.Any member can take part in business operations.It doesn't have to be based on the amount of money put in by each member.They don't have shares or stock certificates.The owners of an limited liability company have to keep a lot of records.It is more paperwork than a partnership.The self-employment tax on the members' share of the profits is 15.3 percent if they work for more than 500 hours per year.

Step 4: Pick a name for the business.

Think about how your business name will look on your website, logo or social media.Your company's philosophy and culture should be reflected in the name you choose.Decide if the name sounds corporate or formal for your business.The name you pick will appeal to your target market.Pick a unique name that won't be confused with similar businesses.

Step 5: Find out if a business name is available.

Indiana law requires you to use a name that is not similar to others.You can call the Name Availability Line to find out if a name is available.This is a preliminary check on the availability of the name.It's not certain that you'll be able to use this name for your business.

Step 6: You can reserve the name with an application.

You can file your articles if the name is available.You can reserve the name for 120 days if you are not ready.To file an application to reserve the name, you must visit the Business Entity registration site.To reserve the name, you will have to pay a fee.

Step 7: You can learn the definition of an operating agreement.

A company has an operating agreement.The daily operations of the business are defined in this way.The agreement must be signed by all of the members.The operating agreement is a binding contract if they have signed it.The members of the company are obligated to abide by the terms.

Step 8: Understand why an operating agreement is necessary.

An operating agreement is not required by the state of Indiana.It's still a good idea to create one.Three functions are served by an operating agreement.It protects the company's status as an limited liability company when it comes to protecting members from personal liability.Agreements are made among members to write.The agreement protects your company in the eyes of the state.The formality of an operating agreement keeps your company from looking like a partnership.The members are protected from personal liability.The operating agreement is the final word about how the business should be run.The state of Indiana has rules on how to run a limited liability company.These apply to limited liability companies.You can modify your rules if you write your own operating agreement.

Step 9: Information about how your business functions should be included.

Explain the voting rights and responsibilities of the member.Tell us about the powers and duties of the managers.How profits and losses are distributed among members is unclear.Discuss how often member meetings are held.Should a member die or sell-out, what procedures should be used to transfer membership?

Step 10: The operating agreement should be kept with other important records.

The operating agreement is not required to be filed with the state.You may need to refer to it in order to complete the articles.The operating agreement is one of the most important business records.The operating agreement should be kept confidential.

Step 11: Request the forms.

You can get the forms in person at the Office of the Secretary of State.The address is in Indianapolis, IN.You can request to receive the forms by mail.You can call the information line and request to have the forms sent to you.The forms can be downloaded from the website.

Step 12: A registered agent can be appointed.

The legal representative is the registered agent.The registered agent can't be the business itself.Another option is to register as the registered agent of a formal business association which was incorporated in Indiana.The registered agent's address can only be a P.O.If there is a rural route number in the box.

Step 13: The articles need to be filed.

You should include the name of the business.The business name must end with "Limited Liability Company" or "LLC", or the length of time in years that your business will operate.The registered agent's name and address should be given.The paperwork needs to be signed by at least one person.The fee for filing the Articles of Incorporation is $90.The Indiana Secretary of State Business Services Online can be used to file your articles of incorporated.You can register your business through an account.If you don't have everything you need at the time you register, you can log out and come back later to finish your registration.You can log in to check the status of your registration.You can file your articles at the office of the Secretary of State.The address is in Indianapolis, IN.You can call the Indiana Secretary of State Business Services Division if you have questions about your registration.

Step 14: Business entity reports are filed biennially.

Current information about your business can be found in a business entity report.The names and addresses of officers and directors of the business are included.Every two years, the report is filed.You should submit the report every year if you formed your company in an even year.If it was formed in an odd year, you have to file the report every year.In the month in which your business was incorporated, you file the report.It is your responsibility to file the report, even though the office of the Secretary of State will send you a reminder.The report can be filed on the website.The report's filing fee is $30.

Step 15: You have to register with the IRS.

You need to get an Employer Identification Number from the IRS.A nine-digit number is used to identify tax payers and what tax forms they need to file with the IRS.You may need to apply for a new number if you already have an EIN.The form can be filed at the IRS website.The EIN will be sent to you immediately.You can either fax the form or download it.The EIN will be delivered within four business days.You can mail the form to the Internal Revenue Service Center, Attn: EIN International Operation, Cincinnati, OH 45999.It will take up to five weeks to get your EIN number.

Step 16: You have to register with the Indiana Department of Revenue.

The Business Tax Application is required to register with the state of Indiana.This will allow the state to set up tax accounts for your business.You can better understand Indiana business tax laws by reading the state's publication.All Indiana business taxes have to be filed online.

Step 17: You can visit the Department of Workforce Development.

Businesses can find publications and newsletters from the Indiana Department of Workforce Development.Information about employee benefits, employer job posting, workforce and economic data, career training and adult education can be found on the website of the Department of Workforce Development.A guide for employers is also published by the state.You can get one by calling the Department of Workforce Development.

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