Ready to set up your Indiana LLC? Here’s how to do it:
1. Name Your Indiana LLC
Your LLC’s name must be unique in Indiana and include “Limited Liability Company,” “L.L.C.,” or “LLC.” Search the Indiana Secretary of State’s business database to ensure your desired name isn’t taken. Indiana lets you reserve a name for 120 days for a $20 fee if you need time, but if you’re prepared, you can proceed directly to forming the LLC.
2. Select a Registered Agent in Indiana
Indiana requires an LLC to have a registered agent with a physical Indiana address (no PO boxes). The agent can be an individual (like you or someone on your team) or a professional registered agent service. The agent must be available during normal business hours to receive legal documents. You’ll list your chosen registered agent in your Articles of Organization.
3. File Articles of Organization
File the Articles of Organization (Form 49459) with the Indiana Secretary of State, Business Services Division. The fee is $95 if you file online via INBiz (Indiana’s online portal) or $100 if you file by mail. The Articles will require:
- LLC name,
- Principal office address,
- Registered agent name and address,
- Management structure (whether the LLC is managed by managers or members),
- Names and addresses of at least one member or manager (not all states require this, but Indiana asks for it),
- Duration of the LLC if not perpetual,
- Organizer’s name and signature. Online filing is recommended for speed (often processed within a day or two). Mail filings will take longer. Once approved, you’ll receive a confirmation and your LLC will be officially formed.
4. Create an Operating Agreement
Indiana doesn’t mandate an operating agreement, but it’s extremely advisable to have one. This document will outline how the LLC is governed and how business decisions are made. It covers ownership shares, how profits and losses are allocated, and procedures for things like adding members or dissolving the business. Having a solid operating agreement can prevent disputes and clarify expectations, especially in multi-member LLCs.
5. Obtain an EIN
Get an EIN (Employer Identification Number) from the IRS for your LLC. This is free and can be done on the IRS website in minutes. An EIN is necessary if your LLC has more than one member or any employees, and even for single-member LLCs, it’s useful for separating personal and business finances and is typically required to open a business bank account.
6. Open a Business Bank Account
Open a dedicated bank account for your LLC to keep financial activity separate from your personal transactions. This is key for maintaining liability protection. Bring your EIN and a copy of your Articles of Organization when opening the account. Many banks in Indiana offer free business checking for small businesses, so shop around for a good option.
7. Register for Indiana Business Taxes
Determine if your LLC needs to register with the Indiana Department of Revenue. If you’re selling goods (or certain services) and need to collect sales tax, register for a Retail Merchants Certificate (basically a sales tax permit) via INBiz or using Form BT-1. If you have employees, you’ll need to register for withholding tax and unemployment insurance. Also, Indiana has a state income tax (and counties have income taxes too) – your LLC’s profits will flow to your personal return where you’ll pay those. If your LLC will owe any other specific business taxes (like food & beverage tax, etc., depending on your business), get registered accordingly.
8. Obtain Any Necessary Licenses
Indiana, at the state level, doesn’t require a general business license, but specific industries might require licenses (e.g., contractors, real estate agents, etc. have licensing boards). Check INBiz or relevant professional boards. Also, verify if the city or county where you operate requires a local business license or permit (for example, some localities require permits for certain types of businesses like alcohol sales, vending, etc.).
9. File the Business Entity Report Biennially
Indiana requires LLCs to file a Business Entity Report every two years. The due date is the end of the month of your LLC’s formation anniversary. So if you formed on July 10, your report is due by July 31 every two years. The filing fee is $50 online ($32 if you file by mail). The report confirms your LLC’s principal address, registered agent, and principal officers/members. Mark your calendar for this biennial requirement so you stay compliant.
Tip: Registered Agents Inc. can make forming an Indiana LLC and staying compliant a breeze. They handle the paperwork, provide a registered agent if needed, and can manage your biennial reports. Form your Indiana LLC with Registered Agents Inc. to save time and ensure nothing is overlooked in the setup process.
Final Thoughts
Starting an LLC in Indiana is relatively low-cost and straightforward. By following the steps above, you’ll have peace of mind that your business is properly established. Remember to maintain separation between personal and business activities and keep on top of state filings like the biennial report. With your Indiana LLC in place, you can focus on growing your business in the Hoosier State. Congratulations on taking this important step!
Ready to start your Indiana LLC? Don’t wait – form your Indiana LLC now and launch your business with confidence!
