Indiana LLC Formation Guide

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This guide to starting a LLC in Indiana gives step-by -step instructions for filing paperwork, obtaining tax IDs, setting up company records, and obtaining formation documents.

Overview

LLCs are the most common business structure. They are cost-effective, flexible, and easy to operate. The legal formation of an LLC allows you to establish your business, limit your personal liability, and gives you tax flexibility. You will find the steps below helpful as you complete this process.

Step-by–Step Indiana LLC Directions

  1. Check Name Availability

    Your LLC’s legal title may not conflict or be confused with any other registered name. Conduct a name look to verify availability.

    Name Search Indiana Secretary-of-State – Business Services Division

    Name searching
    Name Reservation Optional
    Suffix: (d). The name of a limited-liability company must contain the phrase “limited responsibility company” or “L.L.C.” “LLC” The name and address of a master limited company must comply with IC23-18.1-6-7B. The name of a series with limited liabilities must be consistent 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 officially file to form your Indiana LLC LLC, you must decide who your Indiana registered representative will be. A registered agent allows a business to be notified of any legal or government notices.

    A registered agent is required by law in every state. The registered agent must be identified when Indiana Articles of Organization are filed with the Indiana Department of State-Business Services Division.

  3. Indiana Certificate for Formation

    Register the articles to form a limited liability corporation.

    Agency: Indiana Secretary-of-State – Business Services Division
    Form:
    Articles from Organization 49459
    Filing Method Mail, in-person and online
    Agency Fee $100
    Turnaround: Take only 15 minutes online. 24 hour in-person 5-7 businessdays by mail
    Law:
    Indiana Code. Title 23, Business and Other Associations. Article 18, Limited Liability Companies.
    Notes: Send one copy and the original.

  4. Establish Company Records

    Your LLC must keep accurate records and books. Your LLC’s documents begin with your filed articles. Your LLC will produce other official records like:

    • Minutes of a meeting
    • Operating agreement
    • EIN verification letter
    • Amendments and other filings to the LLC throughout its lifespan

  5. Sign the Operating Agreement

    You can draft an Operating Agreement by using a template. This is the governing document that governs the LLC. It describes the details of how the LLC operates, such as the holding of an annual meeting. You will discuss and approve the agreement at your organizational meeting.

  6. Host the Organizational Meeting

    The organizational meeting is a first meeting for the LLC members. For this meeting you will need your operating agreement as well as your filed articles. Keep the minutes of this meeting.

  7. Get a Federal Employee Identification Number (EIN).

    EIN is required if your LLC employs more than one person or has multiple members. EINs are also required to open bank accounts.

    Agency: Internal Revenue Service
    Form:
    IRS Form
    Filing Method Mail, phone or fax
    IRS fee $0
    Turnaround: Instantly online or by telephone 4 business day by fax. 4-5 weeks via post
    Notes: The IRS website can only be accessed during specific hours. Print your EIN before you close the session. You can also refer to IRS Pub1635: Understanding Your.

  8. Get Indiana State Tax Identification Numbers/Accounts

    Indiana offers a state-wide tax registration system:

    Submit to
    Indiana Department of Revenue

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

    Filing method

    BT-1 Form: Indiana Business Tax Application.
    Guidance:

    Indiana Department of Revenue. Register for a New Website
    Fee:
    $0. $25 is the state fee for a license to sell sales tax.
    Turnaround:
    48-72 hour after your submission, Indiana Department of Revenue will send an email with status information. Once your application has been received, you will receive your taxpayer identification (TID). If you have any concerns about the application, you’ll be asked to contact Department.

  9. Consider Electing C-Corp taxation or S-Corp governance

    Your LLC automatically receives pass through taxation. The vast majority of LLCs however, keep this tax category. Some LLCs have the option to choose S-Corporation or C-Corp tax treatment.

    • S-Corp is a way for owner-employees earning more than $75,000 to save on self-employment taxes.
    • C-Corps have double taxation. Members pay taxes on the profits of the corporation, while members pay taxes when they receive their distributions. C-Corps can offer lower tax rates to retained earnings.

  10. Apply for Business Permits and Licenses

    The necessary licenses or permits are necessary to operate your business legally. Searching by business type and location using the Small Business Administration Business License & Permit search tool is the easiest way to navigate the vast array of federal, state, or local requirements.

    Indiana Business License

    NOT REQUIRED

    Indiana does not require general business licensure.

    Indiana does have a local business license, but not a general one at the state level.

  11. Keep your LLC afloat with ongoing filings

    Federal and state tax returns must be filed.

    For good standing with the secretary, many states also require business entities that file an annual return. Below is a table that explains what an annual report for Indiana LLCs.

    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 $32 online, $50 by post
    Due: Every two years by the end the month of your registration anniversary. If you are foreign-qualified, or were incorporated on March 15th, your annual report should be due every two years by the 31st March.
    Law:
    IC 23.5-2-13
    Penalties: No late fee. There is no late fee for a business dissolution or revocation.
    Notes:
    • Anyone may file if they have authority.
    • Original signatures will not be required

    As your LLC grows, it will become more important to show your good standing to banks and customers. After all that work in creating your Indiana LLC, do not allow a missed filing of your annual report to cause your new company to be out-of- compliance.