How to start an LLC in Indiana?

An LLC is a business structure that provides the limited liability of a corporation but with fewer formalities. The acronym stands for Limited Liability Company. Any company or organization can use it. An LLC offers personal protection against lawsuits and other claims because no one individual in the company is at risk financially beyond what they have invested. There are several different types of companies in Indiana, including:

  • Corporations that are more complex to set up and maintain than an LLC
  • Partnerships – offering business owners similar protections as an LLC but without some advantages like being able to issue stock
  • Sole proprietorships where there’s just one owner who bears all responsibility for everything that happens in the company’s name. That owner is also personally liable for all of the company’s debts.

Before we dive in, here’s a really good explanation video on starting a Indiana LLC for those of you who prefer video over text.

Benefits of starting an LLC in Indiana

There are many benefits to starting an LLC in Indiana. These include:

Limited Liability

Indiana LLCs are better protected from lawsuits and claims than companies with other business structures. They do not have any personal liability that can come along with another type of company or organization, like a corporation.

Expedient Formation / Ease of Use

Indiana LLCs can be created online in less than a day and for just $95. There’s no need to draft paperwork, and the process is usually pretty painless. No meetings or resolutions are necessary to form an LLC, and there’s no need for special elections.

Tax Advantages

LLCs are not taxable but pass-through entities. This means that the LLC’s profits (or losses) are passed to its members, who then pay taxes on their returns. For owners of an LLC, they’ll be taxed at lower rates than they would if the company was qualified as a corporation.

Indiana LLC Rules & Requirements

To apply for permission to form an Indiana LLC, the company must have a registered agent in Indiana. Your LLC’s name must include “Limited Liability Company,” or their abbreviation, “LLC.” It can’t be something that resembles another already existing business. The annual report fee is $50 by mail or $32 online. Ensure you as a business owner keep accurate records and reports of your business transactions and hold annual meetings with your members if you want to maintain the legal protections. This article will go into more detail about the steps to create an LLC in Indiana.

Best Indiana LLC Formation Services

We put together comprehensive reviews of the most popular services that help people form LLCs to help our readers find the right service for them. When reviewing these services, we looked at several different criteria, including pricing, online convenience, and customer service quality. Our reviews help people find the best fit for their unique situations.

 Best LLC Formation Services

ZenBusiness got our highest rating because none of its competitors can match it compared to other services on pricing, convenience, and customer service quality. ZenBusiness is one of the cheapest options out there, and its online process makes it super easy to fill out its simple forms. It also has excellent customer service available around the clock via live chat or phone. You can read our full review of ZenBusiness for more detail.

☞ ZenBusiness Review

Zenbusiness offers great LLC formation packages. You can form your LLC in minutes.

The following is a step-by-step guide of what you can expect when forming an LLC in Indiana:

6 Steps to Starting an LLC in Indiana

Step 1: Name Your Indiana LLC

The first step in forming an LLC is to develop a catchy name. Indiana requires that your company’s name include “Limited Liability Company” or its abbreviation, “LLC.” You can’t use something that makes it look like another existing business. If your company name does not meet the requirements, you won’t be able to file your paperwork.

Choosing a good LLC name is an essential first step. This is because of its impact on branding and marketing your business. A unique name that reflects your company’s brand can attract more customers and help establish your business in an industry or niche.

General rules to consider when it comes to choosing a good LLC name:

  • Make sure your name isn’t the same or too similar to a name already taken. Search for similar names in the business directory on the Indiana Secretary of State’s website to avoid duplication.
  • Words suggesting that your LLC is a government agency will not be approved. This means you can’t use words like “FBI”, “CIA”, “Treasury”, etc.
  • Include the words “Limited Liability Company,” or their abbreviation, “LLC.” These words have to be included in the name.
  • Restricted names with the words “Bank,” “Trust,” and “Attorney,” need an additional license and paperwork to be filed.

☞ Run a Business Search of your name to check for duplicates

Before your LLC’s name is approved, it’s good to check if it’s available to register as a domain. You can use Namecheap for this purpose, also telling you the price. It’s never too early to make sure your preferred domain is available.

☞ Namecheap Domain Availability Check

Check the domain availability for your new company name through Namecheap.com for free.

Step 2: Choose a Registered Agent

The next step is to choose a registered agent for your LLC. This is someone who will receive legal notifications and service of process on behalf of your company. Indiana law requires all businesses to have a registered agent.

Business owners can choose anyone they want to be a registered agent as long as they’re 18 years or older and a resident of Indiana. This could be a friend, relative, or professional service. Just make sure whoever you choose is available to receive notifications during regular business hours.

Many services can act as your registered agent. One of them is ZenBusiness, which is an excellent option because it’s affordable and has excellent customer service. You can read our full review of ZenBusiness for more information.

Get one year of registered agent service from ZenBusiness with any package for free.

Step 3: File the Indiana LLC Articles of Organization

Once you’ve chosen your registered agent, it’s time to file the Articles of Organization with the state of Indiana. This is a short document that states the name and purpose of your LLC. It also includes information about the registered agent and the members of the LLC.

Before filing, you will need to decide between a member-managed and manager-managed LLC. The members run a member-managed LLC, while a designated manager runs a manager-managed LLC.

You can file the Articles of Organization online or by mail. If you choose to file online, you can use the Indiana Secretary of State’s e-filing system. If you choose to file by mail, you can download the form from the state’s website.

The online filing fee is $95, and the mail filing fee is $100.

☞ File the Indiana LLC Articles of Organization Online

☞ Download the Indiana LLC Articles of Organization

If you choose mail filing, you’ll need to send the form to:

Secretary of State

Business Services Division

302 W. Washington St.

Room E-018

Indianapolis, IN 46204

Step 4: Create an Operating Agreement

An operating agreement is not required by law, but it’s a good idea to have one. This document spells out the rules and regulations for your LLC. It covers topics like membership, management, financials, and dissolution.

Having an operating agreement is especially important if your LLC has more than one member. It helps clarify the roles and responsibilities of each member.

You will also need an operating agreement when you open a business bank account.

You don’t have to create an operating agreement yourself. You can use a template or find a service that will create one.

Step 5: Get an EIN for your Indiana LLC

An EIN is a nine-digit number provided by the IRS. It’s used to identify your LLC for tax purposes. You’ll need an EIN before you can file your taxes.

You can apply for an EIN online or by mail. The online application is the easiest and takes just a few minutes to complete.

An EIN is necessary for a few reasons:

– It’s required to open a business bank account

– It’s needed to file taxes for your LLC

– Hiring employees

You can apply for an EIN online at the IRS website.

☞ Apply for an EIN Online

☞ Download form SS-4 for Mail Filing

If you choose to apply by mail, you’ll need to send the form to:

Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999

Fax:

(855) 641-6935

Applying for an EIN for your business is free of charge.

Step 6: Indiana LLC Business Entity Report

After setting up your Indiana LLC, you must file the Indiana LLC Business Entity Report. This report is due every other year and covers the previous period’s activities. You can file online or by mail.

The online filing fee is $32, and the mail filing fee is $50.

☞ File the Indiana LLC Business Entity Report Online

☞ Download the Indiana LLC Business Entity Report Form

If you choose mail filing, you’ll need to send the form to:

302 W. Washington St.
Room E-018
Indianapolis, IN 46204

Indiana LLC Processing Time

The processing time for an Indiana LLC is 5-7 business days when filing by mail and 24 hours when filing online. There is no expedited processing available in Indiana.

Indiana LLC Frequently Asked Questions

The online filing fee is $95, and the mail filing fee is $100.

Step 1: Choose a name for your Indiana LLC

Step 2: Choose an Indiana registered agent

Step 3: File the Articles of Organization

Step 4: Create an Operating Agreement

Step 5: Get an EIN

There is a $32 online filing fee and a $50 mail filing fee for your biennial report.

It takes 5-7 business days to start an LLC in Indiana when filing by mail and 24 hours when filing online. There is no expedited processing available in Indiana.

Contents

How to Start an LLC in Indiana

A Beginner’s Guide to Starting an LLC in Indiana