An LLC, L.L.C., or limited liability company is a US-specific form of a private company. So how do you go about forming an LLC in Indiana? What do you need to prepare beforehand and what is the process like?
|LLC Filing Fee||$95||$150||$99||$50||$130.38|
|LLC Annual/Biennial Fee||$30 (every 2 years)||$75 (every year)||$0 (no fee and no information report)||$25 (every year)||$89.34 (every year)|
|Corporate Tax Rate||4.90%||9.50%||0%*||6.00%||5.60%|
|Nominal GDP per capita||$61,760||$74,052||$62,517||$56,554||$64, 773.08|
What To Do Before Creating An LLC In Indiana
There are a couple of things you need to do before forming an LLC in Indiana. First, you need to choose a name for your LLC. Indiana’s law dictates that your chosen name contain the words “limited liability company” or “LLC” in it.
The name you choose must be recognizably different from any other business entity already on file with the Indiana Secretary of State. You can check that this is the case by looking at the registered name database.
Once you’ve confirmed that your chosen name isn’t on the database, you can reserve it in advance. By doing so before you start your LLC, you can make sure that no one else claims the name you have chosen before you’re ready to start your LLC.
You can reserve your name months before you ever start your LLC if you so choose to. The cost of reserving your chosen name will be $20.
Another thing you need to do before starting an LLC in Indiana finds a registered agent in the state of Indiana. This agent can be a business or individual that can accept papers on behalf of your LLC.
They have to either be an individual residing in Indiana or a business that’s allowed to do business in the state. If you are over 18 years of age and if you have a physical address in Indiana, then you yourself can be your LLC’s registered agent.
|ZenBusiness – $49 + state fees to register your LLC (read review)|
|Incfile – $0 + $50 state fees to register your LLC (read review)|
The Process Of Starting An LLC
Now that you have a name and have found an agent, you can go ahead and start your LLC. To do so, you will need to file Articles of Organization with the Indiana Secretary of State Business Services. Here’s what these articles need to include:
- Your LLC’s name.
- Your LLC’s address.
- The name and address of your LLC’s registered agent.
- Whether your LLC will be a perpetual business or whether it will be operational for a specified period of time.
- Whether your LLC will be manager-managed or member-managed.
- The signature of your LLC’s organizer.
Once you’ve filed your Articles of Organization, it would be advisable for you to create an Operating Agreement. You’re not legally required to create one in the state of Indiana.
But on the whole, it is a sound thing to do, as these will clearly lay out how your LLC will be managed. Your Operating Agreement will be something to turn to in terms of how you will go about organizing the structure of your LLC.
Get Your EIN
The next step to starting your LLC will be getting your Employer Identification Number (EIN). You need an EIN even if you don’t have any employees.
If you have formed a one-person LLC, then you only need to get an EIN if you decide to hire other employees. Luckily, getting an EIN is fairly easy. All you have to do is complete your application for it on the IRS website.
Once you do, you will be able to open a bank account for your LLC. This will help you keep your personal finances and your business finances separate in the future.
How Much To Start An LLC In Indiana?
You now know the answer to the question, “How to start an LLC in Indiana?” The next question that probably pops into your mind is how much starting an LLC will cost you in this state.
You might even be asking: “How to start an LLC in Indiana for free”? Though there are some costs associated with starting an LLC, they’re fortunately very manageable:
- First, the Indiana Secretary of State charges a $100 filing fee to file your Articles of Organization.
- Second, if you want to reserve your chosen LLC name before registering it, then you will have to pay a $20 reservation fee to the Indiana Secretary of State.
- Indiana requires that you file biennial reports every other year after you’ve formed your LLC. If you choose to file this report by mail, it will cost you $50. If you choose to do it online, it will cost you $32.
Considering all this, all told, starting an LLC in Indiana will cost you a minimum of $152 and a maximum of $170.
Steps To Start Your LLC
You now know exactly what you need to do to start your LLC. But let’s go over all the steps again, just to sure you know what to do.
- Register Your LLC’s name.
- Find a Registered Agent for your LLC.
- File your Articles of Organization.
- File your Operation Agreement.
- Get your EIN.
- File your biennial reports every other year following your LLC’s founding. Don’t worry, the state will send you reminders to do this a few months before the filing date.
What Forms Do You Need To Register Your LLC In Indiana?
To recap, the forms you need to register your LLC in Indiana are your Articles of Organization and your Operation Agreement, which aren’t mandatory, but strongly recommended. You need to also fill out an EIN application form on the IRS website.
You can find all business forms on the Indiana Secretary of State’s website.
What Are Taxes Like For An LLC In Indiana?
If you’re starting an LLC in Indiana, you’ll be pleased to know that your LLC will not have to pay federal income tax. Only the LLC’s members will have to pay federal income tax.
As a business owner, you will have to pay a state income tax for the money that you pay to yourself. Any employees of an LLC will also have to pay state income taxes.
Currently, the state income tax of Indiana s fixed at 3.23%. However, some counties in Indiana have additional tax rates. This can raise your state income tax to between 3.73% to 6.13%. You can check different counties’ additional taxes in the table provided by the Department of Revenue.
If your LLC sells physical products or services, then you may have to collect retail sales tax. Once you’ve done so, you’ll have to pay that tax to the Indiana State Department of Revenue. In Indiana, sales tax is collected at the point of purchase. The current listed rate for the Indiana State sales tax is 7%.
For Comparison’s Sake:
- Indiana ranks as the 35th best state where taxes are concerned in the US.
- The state with the highest tax rate in California.
- The state with the lowest tax rate in Alaska.
What To Do Once You’ve Started Your LLC In Indiana
You’ve started your LLC. Congratulations! Now what? Here are the steps we suggest you follow after forming your LLC:
- Create a logo. Your LLC’s logo is its signature, in a sense. A logo is how your customers, those in the market, and your industry will come to know you. It will become a symbol of who you are and what the values associated with you are. Creating a logo is important for brand recognition, especially in the age of the internet and social media.
- Build your website or e-commerce store. Speaking of the internet, no matter what business you’re in, your LLC will need a website. Your website will be your gateway to the world. It’ll be the platform you use in order to introduce who you are, what your vision is, what product and services your LLC offer, and why people should choose you. If you want to build a loyal client-customer base, then you will need to create an aesthetically pleasing yet simple and easy-to-use website.
- Open a bank account for your LLC. It’s highly advisable that you start a bank account for your LLC. This will help you keep your personal finances and your business finances separate, which will be especially important come tax season. Remember, you will need an EIN in order to be able to open a bank account for your LLC.
- Get business insurance. Getting business insurance is always a good idea. It’s a level of security that will put your mind at ease, especially in times of economic turbulence.
- Create a marketing plan. Having a marketing plan in place for after you start your LLC is a very smart step to take. Your marketing plan is your strategy to get the word out about your LLC and the services you provide, grow your client and customer base, and later on, grow as a company. As time goes by, you can adapt, change and expand your marketing plan, depending on how your needs change. You can and should include social media platforms such as Twitter, Instagram, and Facebook in your marketing plan.
How To Dissolve An LLC In Indiana
There is one more thing you need to know before you go ahead and start your LLC: How to dissolve an LLC in Indiana. Fortunately, the process to do so is quite simple in the event that you have to consider it.
To dissolve your LLC in Indiana, all you have to do is fill out an Article of Dissolution (form 49465) and prepare one copy of it. You can then submit both the original Article of Dissolution and the copy that you prepared to the Indiana Secretary of State (SOS).
You can file your Article of Dissolution online or via physical mail. If you’re filing online, you can pay your filing fee either via a credit card (a MasterCard, Discover, or Visa Card) or through IN.gov.
The Address You Need
If you’re filing your Article of Dissolution via physical mail, you will have to do so by sending it with regular mail or express mail. You can also file your Article of Dissolution in person at the Indiana Secretary of State.
In either of these cases, you will have to present a check to cover the filing fee. If you’re physically mailing your Article of Dissolution, the address you’ll have to send these materials to is as follows:
Business Services Division
302 West Washington Street, E-018
Indianapolis, Indiana, 46204
In case you need it, the phone number for the division is (317) 232-6576.
We covered all the steps you have to go through if you want to form an LLC in Indiana. We also mentioned how you can dissolve the LLC if you decide you don’t need it anymore.
You know everything you need to know to start an LLC in Indiana.