Indiana LLC Formation Guide

This guide will help you set up an LLC in Indiana. It includes step-by-step instructions for obtaining tax IDs and filing documents.

Overview

Because they are affordable to set up, offer flexibility for the owners and are simple to manage, LLCs are the most preferred business structure. Your LLC legalizes your business and limits your personal liability. It also allows you to have tax flexibility. As you go through this process, the following steps will guide you.

Step-by-Step Indiana LLC Instructions

  1. Check Name Availability

    Your LLC’s legal name may not be in conflict with any registered name. You can search for the name you want to check availability.

    Name Search: Indiana Secretary of State – Business Services Division

    Name Search

    Name Reservation: Optional
    Suffix: (d) A limited liability company’s name must include the phrase “limited liability corporation” or the abbreviation L.L.C. or “LLC”. The name of a master limited- liability company must conform to IC 23-18.1-6-7 (b). Names of series with limited liability should comply with IC23-18.1-6-7 (c) and IC23-18.1-6-7 (d).

    IC SS23 0.5-3-2

  2. Designate a registered agent

    Before you can file for your Indiana LLC, it is necessary to choose who your Indiana registered agent will become. Register agents are the legal representative of a business that receives notices about lawsuits and other legal notices.

    Every LLC must have a registered agent as required by state law. When you file Indiana articles or organization with the Indiana Secretary-of-State – Business Services Division, the registered agent will be designated.

  3. Indiana Certificate of Formation

    To create a limited liability company, file the articles of organization

    Agency: Indiana Secretary of State – Business Services Division
    Form:
    Articles by Organization 49459
    Filing Method Mail, in-person, or online
    Agency Fee: $100
    Turnaround: Online: 15 minutes You can also visit us in person 24 hours a day. Mail takes 5-7 business days.
    Law:
    Indiana Code Title 23: Business and Other Organizations – Article 18 Limited Liability Companies
    Notes: Send the original and one additional copy.
  4. Establish Company Records

    Your LLC must maintain accurate and complete records. Your LLC’s first records will be your filed articles of organization. Other official records that your LLC may produce include:

    • Minutes of meetings
    • Operating agreement
    • EIN verification letter
    • The LLC may be amended or filed with other entities throughout its life.

     

  5. Make the Operating Agreement

    An Operating Agreement is the governing document of the LLC. This document outlines the rules and procedures for how the LLC will operate, such as holding an annual meeting. The agreement will be reviewed and approved at your organization meeting.

  6. Organise the Organizational Meeting

    The organizational meeting is the first meeting of members of an LLC. To conduct this meeting, you will need to have your filed articles of organisation and your operating agreement. Keep a record of the meeting and keep it in your company records book.

  7. Register for a Federal Employer Identification Number.

    An EIN is required for any LLC that has more than one member, or hires employees. A bank account opening requires an EIN.

    Agency: Internal Revenue Service (IRS).
    Form:
    IRS Form S-4
    Filing Method You can send mail, fax or online by phone.
    IRS fee $0
    Turnaround: Online or over the phone, immediately. 4 business days via fax. 4-5 weeks via mail
    Notes: Only certain hours are available for the IRS website. Before closing your session, print your EIN. You can find additional guidance at IRS Pub 1635, Understanding Your EIN.
  8. Get Indiana State Tax Identification Numbers/Accounts

    Indiana has a single state tax registration

    Send your submission to:
    Indiana Department of Revenue

    http://www.in.gov/dor/

    Filing method

    Form Bt-1: Indiana Business Tax Application (online).
    Guidance:

    Indiana Department of Revenue Register a New Business Website
    Fee:
    $0. $25 state fee to obtain a sales tax license
    Turnaround:
    Within 48 to 72 hours of submission, the Indiana Department of Revenue will email you with information about your application. Your taxpayer identification number (TID) will be sent to you if your application was submitted successfully. You will be asked for contact information if there are any issues with your application.
  9. Consider Electing C-Corp Taxation or S-Corp Fiscal

    Your LLC will automatically be subject to pass-through taxation. However, the majority of LLCs maintain this tax classification. Some LLCs can choose to elect S-Corp and C-Corp tax treatment.

    • Owner-employees with more than $75,000 per annum can benefit from S-Corp to reduce self-employment taxes.
    • Double taxation is a problem for C-Corps: members pay taxes on distributions and the corporation pays taxes. You may be eligible for C-Corp tax treatment if your profits exceed $250,000 or you offer employee benefits.
  10. Get Business Licenses and Permits

    You must have the appropriate licenses and permits to run your business legally. It is easy to find the right licenses and permits for your state and federal business.

    Indiana Business License

    NOT REQUIRED

     

    In Indiana, licensure for general business licenses is not required at the state level.

    Indiana does not have an Indiana general business license. However, local licenses are required.

  11. You must continue to file for your LLC

    You are required to file both federal and state tax returns.

    To maintain good standing with the secretary-of-state, many states require that business entities file an annual report. The table below shows Indiana LLCs that must file an annual report.

    Indiana Corporation Annual Report Requirements:

    Agency: Indiana Secretary of State – Business Services Division
    Form:
    Indiana Business Entity Report
    Filing Method Mail or online.
    Agency Fee: Online: $32 or by mail: $50
    Due: Bi-annually at the end of each anniversary month. If you were foreign-qualified or incorporated on March 15, your annual report must be submitted every two years by March 31.
    Law:
    IC 23-0.5-2-13
    Penalties: No late fee. You can dissolve or cancel your business within 120 days.
    Notes:
    • Anybody with authority can file.
    • Signatures by an original are not required.

     

    You will need to prove your LLC’s good standing to customers, banks, and other state agencies as your LLC grows. After all the hard work that went into forming an Indiana LLC, you should not let a missed annual reporting filing cause your business to be out of compliance.

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