Starting a LLC In Indiana: Everything You Need to Know
Starting an LLC in Indiana is an easy process that involves several steps to ensure your company is set up in compliance with the guidelines required by the state. 3 min read
Starting an LLC in Indiana is an easy process that involves several steps to ensure your company is set up in compliance with the guidelines required by the state. The legal guidelines are in place to protect consumers from issues that could arise if proper regulations and guidelines haven't been implemented.
Things to Consider When Starting a Limited Liability Company
- A limited liability company is a top choice in structuring a business. Starting a business requires a critical look at your business idea before putting a business plan into place.
- Choose a business idea that fits the type of company you're interested in developing.
- Once you've determined the business structure for your LLC and have a solid grasp on what you want in your business plan, you are ready to formally organize your business into a company and file the necessary paperwork with the state.
- Consider building a website to promote your business.
- Open a separate business account to keep your personal assets protected from potential lawsuits and creditors.
- While the State of Indiana does not require an operating agreement for a limited liability company, it does recognize the agreement as governing documents.
General Information Covering a Limited Liability Company
As a viable business structure and a popular choice for new businesses, it's important to understand and determine if a limited liability company is the right choice for you.
- An LLC business structure is privy to several benefits such as flexibility within the organizational operation of the company, access to tax efficiencies, and limited liability provided to members.
- Member type is not limited. An LLC may include corporations, other LLCs, individuals, and foreign entities. Another benefit is a limited liability company has no maximum to the number of members who can be part of the business.
- The term "hybrid" is often used when referring to an LLC because it brings elements of a limited liability partnership and a corporation together with the LLC.
- An Employer Identification Number (EIN) is required if the business will have employees or you've opted to have the LLC taxed as a corporation versus a sole proprietorship.
Steps for Starting a Limited Liability Company in Indiana
- Select an appropriate name for your business.
- You'll want the name chosen to be accepted by the state once it's filed. To help increase the chances it will pass, choose a name that stands out from other LLCs and includes any specific keywords required by the state. The name must distinguish itself from LLCs already registered with the Indiana Secretary of State.
- To do a search for name availability, do a business name search at the Secretary of State website. The name you've chosen must contain the words Limited Liability Company, L.L.C., or LLC. The name cannot contain words considered confusing or misleading to consumers such as state and federal entities. Names with designations such as Attorney, Bank, or University require additional paperwork.
- A registered agent is required for an Indiana LLC to serve as the agent for service of process. A registered agent is an individual or business that has agreed to send and receive any legal paperwork on behalf of your limited liability company.
- Create your Indiana LLC by filing Articles of Organization with the Secretary of State Business Services Division. The Articles of Organization are an outline of the LLC. The information required includes:
– The name and principal address of the LLC
– The name and address of the registered agent
– Duration of the LLC, if applicable
– Whether it is a member-managed or manager-managed LLC
– Name, address, and signature of the organizer
- You may want to consider creating an operating agreement although it is not a requirement in Indiana. An operating agreement is a legal document that serves as an outline of the operating procedures and clarifies ownership of the LLC. It is recommended that an LLC comprised of more than a single member create an operating agreement. The agreement includes information such as the roles of each member, voting rights, admittance or removal of members who manage the LLC, amendment procedures, and information about the dissolution of the LLC, if applicable.
- File the Articles of Organization along with the applicable filing fee.
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