How to Start an LLC in Indiana: If you’re interested in setting up an Indiana LLC, you’ve come to the right place. Having an LLC not only protects your personal assets but also is less complicated than other business structures. Indiana laws make it easy to establish your LLC in the state of Indiana. On this page, You’ll find all the steps that must be taken to ensure that your LLC has been correctly established. We recommend you read the whole article very carefully, word by word, don’t miss anything 🙂
On this page, you’ll learn about the following:
- How to Start an LLC in Indiana
- Step 1: Decide a Name for Your Indiana LLC
- After Starting Your Indiana LLC
- Indiana Foreign LLC
- Indiana LLC Formation Review
How to Start an LLC in Indiana
An LLC or a Limited Liability Company is a hybrid business entity combining a corporation’s characteristics with a partnership or sole proprietorship. It separates your personal assets from your business assets, thus giving you personal asset protection.
If you wish to start an LLC, you mainly have to file your Certificate of Formation with the State and pay a filing fee of $100. There are some more steps to follow to get your LLC established in Indiana. The following steps explain everything you need to create your LLC in 2022. Let’s get started! It is always recommended to hire a professional LLC formation service in Indiana to set up your LLC.
Step 1: Decide a Name for Your Indiana LLC
The very first step while forming an LLC in the state of Indiana is to give a proper name to your LLC. Before you name your business, you must know that the name should be easy to remember, available in the state, and follows all the LLC naming guidelines.
LLC Naming Guidelines in Indiana
There are a few specific requirements all the LLCs in Indiana have to follow while naming their Company. Some of the most important requirements are as follows:
- Your business name should be available and no other existing business in Indiana can have the same name. Perform a name search from the below-mentioned source to be sure your name isn’t taken already.
- “Limited Liability Company”, “LLC”, and “L.L.C.” – any one of these has to be used as a suffix in your business name.
- You cannot use any name for your business that is confusing or misleading. Terms such as “Treasury”, “State Department”, “FBI”, “CIA”, etc. shouldn’t be included.
- Terms like “Bank“, “University“, “Attorney“, “Doctor“, etc can be added only after the additional requirements by Indiana State Government are fulfilled.
- (Optional) It’s better to name your business something for which your desired domain is available.
|Important Links –|
|Indiana Business Entity Search – Online Search|
Name Reservation Form – Online
Name Availability Standards – Guidelines
Indiana LLC Name Search – Instructions
Reserve Business Name for Future
If you do not wish to file your LLC right now but want to hold the name you have decided then you can reserve your LLC name for 120 days. To keep the name, you have to file a name reservation application and pay $10 to reserve your name with the Indiana Secretary of State.
Doing Business As (DBA) or Trade Name
Once you have a legal name for your LLC, you can register it. However, it is not mandatory. You can, instead, use DBA, Fictitious Name, or Trade Name. In that case, you must register your name with the Indiana Secretary of State by submitting a Certificate of Assumed Business Name form in Indiana along with the filing fee of $35.
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TailorBrands – ($49 + State Fees) Online LLC Setup
TailorBrands offer DIY website templates and incredible logo designs. If you plan to get a website then it is wise to have a “.com” domain for your business but these days you can also use other TLDs like “.company”, “.xyz” etc. With TailorBrands, you can get everything you need at an affordable price.
It is not legally mandatory to use the word LLC in your domain name or email. If you want you can use it. However, it is recommended not to use LLC in the domain name. A domain name should be short and easy to remember.
Step 2: Assign a Registered Agent in Indiana
The second step to forming an LLC in the state of Indiana is to appoint a Registered Agent. A registered agent is a person or business entity that will act or work on your LLC’s behalf. This person or business will receive important tax forms, legal documents, all notices of lawsuits, and other official government correspondence in Indiana. Hence, hiring a competent Indiana Registered Agent for your LLC is necessary.
Make sure your registered agent is a resident of Indiana or has a physical street address. Their business address or the principal address should be in Indiana. Most LLC formation companies also provide registered agent services. Below are two great LLC setup services, even if you buy their cheapest plan (normally $49/year) you also get registered agent service and other services at a reasonable price.
These LLC formation services are recommended registered agent services as they are authorized to conduct business in Indiana. Some LLC formation services offer standalone Indiana registered agent services. You can purchase only Registered Agent services from them without purchasing any other LLC formation services.
A person who is above 18 years of age and has a physical address in the state of Indiana can be a Registered Agent. A Registered Agent can be an independent person or can be a business entity. One who is responsible for handling all the legal documents.
Yes, you can be your own registered agent if you are a resident of the state of Indiana and you are above 18 years of age. To become a registered agent you must have the authority to conduct any type of business in Indiana.
Registered Agent Consent Application
In Indiana, there is no separate Consent Letter to be produced to the Secretary of State. At the time of change of Registered Agent (or the name or address), the new Registered Agent has to sign the consent letter. It comes with the Application form to Change the Registered Agent. There is no fee or charge to be paid for it. For more information on the same, read our guide on Indiana Registered Agent.
Step 3: File Articles of Organization in Indiana
The third and most important step in forming an LLC is to file the Articles of Organization. This Indiana Articles of Organization is a legal document needed to officially register your business with the Secretary of State. It costs $100 (by mail and $95 online) to file your formation certificate in Indiana. (Read more on LLC cost in Indiana).
The Certificate of Formation includes details like the name of the LLC, registered agent’s name, address, employees’ details, and structure of the company (member-managed or manager-managed). Before hiring employees in Indiana LLC, one should know about the rules and regulations thoroughly. Also, if you are expanding your existing business (an LLC) to Indiana, then you need to register as an Indiana Foreign LLC.
How to File Online
Go to the Secretary of State Online Service. You will get the online service page. If you are already a subscriber, you have to “log in to Subscribe Account” and file your business. If you’re not subscribed, then you need to sign-up with the portal. Click on the below buttons to sign-up or sign in. Read more about the Indiana Articles of Organization for online registration.
How to File by Mail
If you prefer filing real-life forms for your LLC registration, then you can download Domestic LLC Formation Form (Form 49459). Read the form thoroughly, fill it out, and mail it to the following address,
Secretary of State Business Services Division
302 West Washington Street
Indianapolis, IN 46204
Processing Time: It takes around 3 to 4 business days to form an LLC by mail. For online filings, it takes 1 hour to form an LLC. By paying an additional fee, it can be expedited.
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TailorBrands – ($49 + State Fees) Online LLC Setup
Step 4: Create Your LLC Operating Agreement in Indiana
Moving on to the fourth step, filing your operating agreement. An operating agreement is an internal document that legally outlines the proprietorship and operating procedures of your LLC. This document is vital as it ensures that all business owners are on the same page regarding how they operate, thus reducing future conflicts.
When it comes to filing an Indiana LLC Operating Agreement, the state does not require you to have a comprehensive operating agreement, but it is ideal to have one that contains all the details of your business operation. Like Indiana, there are other states that do not have a mandatory rule to file operating agreements. But, this document would be useful if you decide to dissolve Indiana LLC later. Hence, having an operating agreement may not be necessary but it is definitely ideal.
Recommended: You can get operating agreement templates at only $29 with TailorBrands. You don’t need to worry about drafting it as they will take care of it on your behalf. We recommend using –
TailorBrands – ($49 + State Fees) Online LLC Setup
Step 5: Filing an LLC EIN in Indiana
The Employer Identification Number or, simply, the E.I.N. is a nine-digit number given by the Internal Revenue Service (IRS) to make it easier to identify the type of business for tax purposes and taxes in general. The EIN is necessary for any active business or any form of business for that matter.
EIN is needed when the LLC hires employees. Hiring employees in Indiana LLC requires following specific rules and regulations. On the other side, EIN for Indiana foreign LLC should be obtained if your LLC is based in other states.
To obtain EIN (aka FEIN) one has to fill up a form (Online or by mail) and submit it to the IRS. Enter details of your LLC, and finally complete the form and send it to the address given. You can also get an EIN Assistant who can help you with the process.
Mail to: Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999
Fax: (855) 641-6935 | Fee: Free
Recommended: This hassle will be reduced when you hire an LLC formation service. They take care of obtaining EIN and all other things for your LLC. We recommend using –
TailorBrands – ($49 + State Fees) Online LLC Setup
Note: You don’t need a Social Security number when getting an EIN. You can proceed to fill out I.R.S. Form SS-4 and leave section 7b blank. You must then call the IRS at (267) 941-1099 to complete your application. Agents or employees will help you with that.
Congratulation, you are now done with all the necessary steps to form your LLC in the state of Indiana. If you do it yourself, it should take you a long time to properly understand and do all the steps.
However, if you use TailorBrands, it should be way faster. You will always have a live chat option as well as phone support with experts for any help you need. Their worry-free service will make things easier for you.
After Starting Your Indiana LLC
After forming your LLC, there are still some things that you will need. Take note of the following:
- Get a company business bank account
- File Indiana business permits & licenses
- Get general liability insurance and professional liability insurance with coverage for employees
- File an Indiana LLC annual report or biennial report
This page has provided you with steps to LLC formation and filing processes. You now have to remember upcoming filing deadlines and filing fees or filing costs, including fees for late filings, to make sure your LLC is up-to-date.
Cost of Starting an LLC in the State of Indiana
Forming an LLC in the state of Indiana is no doubt more cost-effective than other structures of a business. There are some fees and charges one has to bear to form an LLC. LLCs have pass-through taxation. Hence, your LLC in the state of Indiana won’t bring you a massive tax burden. Here are some of the fees and taxes are needed to be paid while forming an LLC in the state of Indiana,
|Fees/Tax||Amount to be Paid|
|Name Reservation Fee (online & By mail)||$10|
|Articles of Formation Fee||$100 (by mail and $95 online)|
|LLC Biennial Report Fee (Online)||$31|
|LLC Biennial Report Fee (By Mail)||$50|
In Indiana, an LLC name reservation is not mandatory. You can register your LLC name at the time of registering your LLC. If you wish to hold the name for some time without registering your LLC, then you can do that online. Your LLC name will be reserved for 1 year without registering your LLC. It can be done by paying $10.
In Indiana, a Biennial Report has to be produced every 2 years. It costs $31 (online) and $50 (by mail). Also, LLCs have to pay a Sales Tax of 7% every year. Read our guide on LLC costs in Indiana for more information.
Indiana Foreign LLC
If you are interested in forming a Foreign LLC in the state of Indiana, then you need to file the Certificate of Foreign LLC to the Indiana Secretary of State. Foreign LLCs allow you to operate your business in more than one state. Along with the Certificate of Foreign LLC, you need to submit some more documents like the Certificate of Good Standing, etc. to the Indiana SOS to form your foreign LLC in the state of Indiana. To know more in detail, check out our guide on Indiana Foreign LLC.
Reasons to Start an LLC in Indiana
With the Gross State Product worth $336 Million, Indiana has gained a position in the Top 10 business states by Forbes. Along with tax benefits, there are some long-lasting benefits to starting an LLC. If you have a woman-owned business then you can get additional benefits from the state. On the tax part, LLCs with employees have to pay certain employment taxes. The benefits that a business person will enjoy when they start LLC in the state of Indiana are below,
Reporting is made biennial by the government
Reporting of any business by the government takes a considerably high time. It nearly disturbs the whole working set-up of a company, but if you have LLC, you don’t have to care about it much. Here the government has set the reporting of an LLC twice a year which makes it easy for the member, and above that, the filing fee is only around $32 if a person is filing the report online.
Continuous decreasing rates of Income-tax
In Indiana, the tax is only required to pay by the LLC members on their personal profits. This rate of personal income tax is meager, i.e., 3.23%. It means that the LLC profits don’t matter if your profit is 100,000 USD or 10,000,000, then the tax one member has to pay will be the same for all the levels of people. Read more on Indiana’s classification of LLC Tax.
Hoosier Business Investment Tax Credit
The Hoosier Business Investment is an incentive-based program that is provided to the LLCs, mainly the start-ups. The main motive of this Tax credit is to provide some investment to the start-ups and support the task of job creation in the states through these LLCs. This will improve the financial status of the state and also the standard of living.
No sales taxes are applied
Many states impose sales taxes on their LLCs, like taking nickel and dimes from members’ pockets. But in LLCs, these taxes are not imposed on them, which means that they only have to pay the basic sales tax, which leaves them with plenty of money for hiring and research, and development.
Top 3 Businesses Running In Indiana
If you are an entrepreneur and want to Start an LLC in Indiana, you must have a business idea. For starting the legal formalities, you need a complete business idea and company name. If you are still looking for the best business, then here are some of the best ones.
The automobile sector in Indiana is the one that has helped in recovering the state from unemployment. This field’s employment generation is so massive that it has helped more than 20,000 employees come from other states and work daily. You can choose any one of the best manufacturing fields which fascinate you the most and start setting up your business.
The state of Indiana is known for producing products that are used in the medical sector. It includes various types of equipment, both surgical and non-surgical. The quality of Indiana products is high, which attracts people towards the orthopedic capital of the world. Moreover, the business owners are offering 50% more wages to their workers, which shows how profitable this business can be for you.
Renewable energy Business
The business-related to renewable energy is settling well in the state and is appreciated by the government. They have some attractive offerings to those who are investing their money in renewable energy sources. Today the state has around six hydro plans, and 16 biofuel plants are aimed at serving clean and better energy to the people.
Moreover, the largest 17.5 MW solar energy plant is also present in Indiana, making it the biggest plant in the country. The business gives plenty of options and opportunities to work for the betterment of humanity.
If you are looking to invest some money in a small business then the businesses are:-
- E-commerce consultancy
- Smartphone and accessory business
- Gym and fitness center
Indiana LLC Formation Review
Time needed: 5 minutes.
Just to recap, here are the easy steps again when forming an Indiana LLC. Click on the steps in this list to read the full detail.
- Name your Indiana LLC
The first thing you must do is to choose a company name, which should be unique, easy to find, and available in the state.
- Choose a Registered Agent
In Indiana, it is mandatory to select a registered agent for your LLC. Get a professional Registered Agent from LLC formation services to get things done hassle-free.
- File a Formation Certificate
Filing a formation certificate is necessary when forming a Limited Liability Company in Indiana. Depending on the state, it could be called any of the following: Certificate of Formation, Articles of Organization, or Certificate of Organization.
- Create an Operating Agreement
An operating agreement is not a strict requirement in Indiana but something encouraged when you start an LLC to avoid future conflicts.
- Get an EIN
The Employer Identification Number (EIN), also called Federal Tax Identification Number, serves to identify a business entity like a social security number but for a company.
Things to Consider While Starting an LLC in the State of Indiana
In this article, I have already shared all the basic steps to form an LLC. However, there are a few things that all entrepreneurs need to consider. Based on the business entity type, your LLC must meet different criteria. After you form your LLC, you need business accounts. It is required to separate personal and business accounts. Get a business credit card and other business cards to separate personal expenses and business expenses. You might need a business accountant for various business checking like business tax accounts and all.
LLC is a simple business structure. For single-member LLCs, the tax structure is similar to sole proprietorships. For multi-member LLCs, the tax structure is similar to a typical corporation by default. At the time of registration, LLCs get tax classification options which help LLCs to decide on the tax structure. An LLC does not have to pay any massive taxes. Members have to pay federal income taxes based on their personal income, not based on LLC’s revenue.
Another thing to consider is a business plan. A proper business formation plan is required to run your LLC. In this business plan, you need to list all the Indiana LLC information related to the business. Business type, business funding details, business location, LLC business entity details, the form of business ownership, business taxes, and so on. If you’re a foreign business entity, this should be mentioned in your business plan too.
There are business experts who can help you with the procedures. For example, you can search LLC names in the business name database or reserve the name through an online process. But if you hire a professional service provider, you will get the business name reservation service, including amendment filing service, government filings, tax filing service, domain name registration service, and other services. They provide a domain name search tool, and business license report service and also help you decide on proper licensing for your LLC.
When it comes to licensing requirements, it is necessary to get all details of business licenses beforehand. Pay the required fees for business licenses to legalize your LLC. To operate your Indiana limited liability company smoothly, you need Indiana LLC permits and licenses. An Indiana single-member LLC’s requirements are similar to a sole proprietorship’s requirements. Hence, the license and permits might be the same as well.
These are some of the broad steps one has to keep in mind while forming an LLC. Hiring a professional service would be a wise decision as there will be no late filings or late filing fees to be paid for anything.
How Fast Can I Form an LLC in Indiana
When filing via mail it takes upto 3-4 business days for Indiana LLC. Online procedure is instant, as it is completed within 1 hour of payment.
Fortunately, forming an LLC in Indiana is a relatively easy process. The state requires little documentation for the formation of a limited liability company. The process involves a few steps and is generally inexpensive. An LLC is a legal entity that separates the owners’ personal assets from their business operations. It is also a ‘pass-through’ tax structure, allowing owners to pay taxes at the corporate level rather than on a personal basis. An LLC is often the preferred entity type for small businesses because it can provide a variety of benefits.
The first step in forming an LLC in Indiana is to choose a registered agent. This person or organization is appointed by the state to receive legal and government notices on behalf of the business. The agent can be a person or an entity, and must reside in the state. A registered agent’s name and address will be published on the state’s website.
The next step is to file articles of organization. These documents are filed with the Secretary of State’s Business Services Division. The documents are available online, and processing is typically quick. Depending on the number of submissions in the queue, processing times range from a few hours to a few days. It is also possible to file articles of organization in person, which can be a good choice if you’re going to be conducting business in the state.
Aside from the articles of organization, the Indiana Secretary of State also requires you to file an operating agreement. An operating agreement is a legal document that contains information about the organization’s operations, structure, and members. This is especially useful for an LLC that has multiple managers. It also outlines the legal rights and responsibilities of the LLC’s members and managers.
Aside from the articles of organization, you will also have to file an annual report. This document is required by law for many states. An annual report is the best way to keep track of your business’s activities, as well as a good way to prevent accidental lapses in your business’s compliance with the law. Most states require annual reports to be filed by the end of the month of the entity’s registration anniversary. Some states require these reports to be filed even more frequently. However, these documents can be time consuming, especially if you’re not tracking them properly.
One of the biggest reasons why LLCs are popular is their ability to protect the owners’ personal assets. An LLC can also provide basic tax benefits of a partnership. In addition, they can provide limited liability protection, which makes them a good choice for individuals and businesses alike. However, the IRS scrutinizes S corps more closely than non-S corps.
Another small but useful gizmo is the EIN (Employer Identification Number). An EIN is the corresponding social security number that the IRS uses for tax reporting purposes. You can get an EIN through the IRS website or by applying for one at a local office. Using a valid EIN can help ensure your LLC’s tax compliance.
If you are a resident of Indiana, then you can file your LLC by yourself. However, it is always worth having a professional than doing it yourself to handle legal complexities, paperwork, and other documentation.
Apart from the formation fee of $95 (domestic LLC) and $105 (foreign LLC), LLC costs in Indiana include $31 for Biennial Reports every 2 years. LLCs are liable to pay sales tax of 7% every year.
It takes 1 hour to get an Indiana LLC if you file it online. For the mail filing, it takes 3 to 4 business days to get an LLC. If you hire a professional LLC service, then it might take less than that. We recommend TailorBrands, which has an impeccable turnaround time.
Every year all the LLCs have to submit an Annual Report and pay $31 every 2 years to the Indiana Secretary of State and renew the LLC. It is mandatory to renew your LLC every year.
Generally, for LLCs, it is a default tax structure. Once you obtain the EIN, you will get the various tax structure options to select. Sometimes LLCs choose S Corp to reduce federal tax burdens. Read more on the Indiana Classification of LLC Tax.
LLCs are easier to establish than other business structures. Small businesses, especially start-ups, can easily start an LLC in the state of Indiana at a bare minimum cost. LLCs have a ‘pass-through taxation’ advantage for which they are excluded from certain taxes. The formation of limited liability companies requires much lesser documents and legal processes. Share your queries with us, and leave a comment below.