The state of Indiana had a gross state product (GSP) of $355.9 billion in 2022, which amounted to a growth of 1.8% from 2017. This means that it’s a promising place to start a business, as the state’s economy is on the rise.
There’s never been a better time than now to quit your job and pursue your passions. And if you know how to start an LLC in Indiana, then you’ll be up and running before you know it.
In this article, we’ll discuss the steps to creating an LLC in Indiana.
Pick a Business Name
You might already know what your business will sell, so pick a name based on that. If you’re still not sure, then don’t choose a name until you are, as this is what you’ll be using for your branding.
To be on the safe side, you should select a few, as there’s a chance they may already be taken. You can check the Indiana Secretary of State Business Entity Database to see if they are.
Do note that your business name needs to be recognizably different from already registered ones. In addition, you need to have the words “Limited Liability Company”, or the abbreviations (“L.L.C.” or “LLC”). Also, you can put the name of a manager or member of the group, but it’s not mandatory.
When you’re happy with the chosen name, you should file a Reservation of Business Name, which will hold that name for up to 120 days with the Indiana Secretary of State while you get everything else done. You must file online and pay $20 for the filing fee too.
Another thing that’s good to know is that you don’t have to use the official LLC name when you do business. You can have a fictitious business name or trade name, which must also be filed with the Indiana Secretary of State. This can be done online ($20 fee) or by mail ($30 fee).
Choose Your Registered Agent
State law requires all businesses to have a registered agent.
A registered agent (RA) is a person or business that can receive your company’s legal documents. Because they’re served papers, this means the registered agent’s name and address are public information. So it’s not a good idea to be your own RA, even though it’s allowed.
You can choose anyone (or any organization) you want, so long as they reside in Indiana or have the right to do business in the state. Their physical address has to be in Indiana too, and they must be available to receive mail for you during normal business hours.
File Your Articles of Organization
To officially create your business, you need to file your Articles of Organization with the Indiana Secretary of State Business Services Division.
In these articles, you’ll need to list your LLC’s name and address, and your registered agent’s name and address. Also, you’ll have to specify if the LLC is temporary or perpetual (meaning it’s indefinite or permanent), and if it’ll be managed by a manager or LLC member.
Lastly, you’ll need to sign all the articles before filing. You can do this online or by mail, and it’ll cost you $100.
If your LLC articles are approved by the secretary of the state, then they’ll send you a certificate. This proves that your LLC is an official legal business entity.
Write Up Your Operating Agreement
The state of Indiana doesn’t require businesses to file operating agreements. However, it’s still beneficial to write one up, as it can aid in future disputes. If you don’t have one, then court decisions are made based on state LLC laws, which may not be in your best interest.
This legal document outlines who owns the LLC and how it operates. You should include everything in the Articles of Organization, plus the purpose of your company, the members, how members will join and leave, how you’ll divide profits and losses, and anything else you find important.
Apply for Your Employer Identification Number
An Employer Identification Number (EIN) is a 9-digit number given to your LLC by the IRS for taxes. It’s the equivalent of a Social Security Number (SSN) for businesses.
Not every LLC will need an EIN. You won’t need to apply for one if you’re running it on your own. However, if you plan on hiring in the future, or you want the company taxed as a corporation, then you’ll need an EIN.
The good news is, it doesn’t cost anything to complete an online application for one. So it doesn’t hurt to do so.
We can handle all the above for you with our business registration services if you don’t want this burden.
The Next Steps
What you do next depends on what type of products and services you offer, and whether you’ll work from home or need a physical space. If it’s the latter, then you’ll need to find a suitable spot to set up shop, then furnish it accordingly.
Regardless, it’s wise to get a business bank account. That way, you can separate your personal and business assets. This will make things much easier come tax time, and if your LLC is ever sued, your personal assets won’t be at risk.
While you’re at it, consider getting a business credit card. It’ll help you build business credit and keep track of your spending better.
You should also hire a business accountant. They’ll make sure that you’re financially compliant and will save you time and money too.
Don’t forget to get business insurance too. The most common ones are general liability, professional liability, and workers’ compensation insurance. Speak with an agent to see which ones are optimal for your LLC.
Start Your LLC in Indiana Today
Starting your LLC in Indiana can be a rewarding experience, especially if you make your dreams a reality.
While starting a business in Indiana can sound complicated, they’re simple to get through. Plus, there are services like ours that take all the hard work off your hands. As a result, you can focus on being a new business owner.
To get help starting a small business in Indiana, sign up with Business Anywhere. We’ll get your business registered in no time.