How to Start an LLC in Indiana (Step-by-Step Guide)
If you’re considering forming an Indiana LLC, you’re making a smart choice for protecting your assets while enjoying flexibility in business operations.
To establish your Indiana LLC successfully, you must choose a unique business name, designate a registered agent, and file Articles of Organization.
But there’s more.
Filing your LLC Articles of Organization online costs $95; the processing time is one business day. If you file your LLC by mail, the state filing fee is $100, and the processing time is five business days.
This guide compiles all the information you need to start an LLC in Indiana today.
What Are the Steps to Start an LLC in Indiana?
To start an LLC in Indiana, you need to:
- Step 1. Choose and search for a unique name
- Step 2. Designate an Indiana registered agent
- Step 3. File Articles of Organization with the state
- Step 4. Create an Operating Agreement
- Step 5. Get an EIN from the IRS
- Step 6. File a Beneficial Ownership Report (BOI)
- Step 7. File Business Entity report
Let us dive more in-depth into these steps so I can show you how to get them:
Step 1: Choose a Unique Name for Your Indiana LLC
Choosing a name is the first step when starting your Indiana LLC. You want a name that stands out and is unique.
Start by using the Indiana Secretary of State’s name availability search. This tool will help you determine whether your chosen name is already in use.
Make sure your name does not too closely resemble other registered businesses. Your LLC name must be distinguishable. This means:
- Use different words, letters, or numbers.
- Change the order of letters or words.
- Minor changes like punctuation or capitalization do not make a name distinguishable.
Ensure your name includes “Limited Liability Company” or its abbreviations (LLC or L.L.C.). Avoid using words that suggest a government connection unless you have permission, like “bank.”
If you love your name and it’s available, consider reserving it for $10 for up to 120 days. This gives you time to complete your filing without losing your name.
Check if the name is available as a web domain. Even if you don’t plan to make a website, having the domain can be helpful later.
If you want to do business under a different name, file a Certificate of Assumed Business Name (DBA). This helps with privacy and credibility.
Step 2: Choose a Registered Agent for Your LLC in Indiana
A registered agent is a person or business that receives essential legal documents for your LLC. This includes notices, legal summons, and official state correspondence.
Who Can Be a Registered Agent?
You have a few options for who can be your Registered Agent in Indiana:
- You: You can act as your registered agent, but remember you must be available during business hours to receive documents.
- A Family Member: A trusted family member can be your registered agent.
- An LLC Formation Service: Professional services offer expertise in handling official correspondence and ensuring compliance with state regulations.
- A Lawyer: A legal service firm can also serve as your registered agent, providing additional legal support if needed.
Requirements for Indiana Registered Agents
Indiana law requires registered agents to have a physical street address, not just a P.O. Box. The address must be where the agent can consistently receive legal documents and official mail during regular business hours.
Additionally, the registered agent must be at least 18 years old and available to accept service of process. This means they must be present to handle any legal notices or court documents delivered to the LLC.
Your registered agent’s name and address will be listed on public records for everyone to see. If you don’t have an address in Indiana or want more privacy, I recommend hiring a Registered Agent Service for your LLC.
What registered agents do I recommend for Indiana?
I highly recommend Northwest registered agent services for obvious reasons.
They offer a range of benefits that set them apart, including a free year of registered agent service, which helps you save (about $300) on initial costs.
You’ll receive a complimentary operating agreement essential for outlining your LLC’s internal structure. My favorite part? Northwest also allows you to use their office address for your LLC filing, keeping your address off public records and enhancing your privacy.
Their free email forwarding service ensures you stay on top of important correspondence, and their exceptional customer support is always available to assist you whenever needed.
Step 3: File Indiana LLC Articles of Organization
You must file the Articles of Organization to form your LLC in Indiana. This document is essential because it officially establishes your LLC. This form includes vital details such as your LLC’s name, address, registered agent, and members’ or managers’ names.
To file your Articles of Organization in Indiana, follow these steps:
Step #1. Complete the Form: Obtain and complete the Articles of Organization form from the Indiana Secretary of State website.
Your Articles of Organization should contain:
- Name of your LLC
- Street address of your registered office
- Registered agent’s name at that office
- Duration of your LLC (perpetual or limited time)
- Names of designated managers, if any
- Other relevant matters from your operating agreement
To form a foreign LLC in Indiana, you must file a Foreign Registration Statement with the Indiana Secretary of State, Business Services Division, and obtain a certificate of good standing from the initial filing state.
Step #2: File Online or by Mail: You can file your Articles of Organization online or by mailing the completed form to:
Secretary of State Business Services Division
302 West Washington Street
Room E018
Indianapolis, IN 46204
Step #3: Pay the Filing Fee: The fee is $95 if you file online and $100 by mail.
Once your articles are filed, the state will review and approve them. If you file your LLC online, the processing time is one business day; filing by mail is five business days.
After approval, your LLC is officially recognized, and you can start your business activities, obtain your EIN, open a bank account, etc.
Step 4: Prepare Your LLC Operating Agreement
An LLC Operating Agreement is an essential internal document. It outlines how your LLC will be run.
While an Operating Agreement is not required in Indiana, it is highly advisable. It protects your limited liability status and helps avoid disputes between members.
Creating this document clarifies the structure of your LLC and sets expectations among members, which can prevent misunderstandings.
Here are some key components to include in your operating agreement if you choose to prepare one:
- Ownership Structure: Listing all members and their ownership percentages.
- Management Roles: Specify who will manage the LLC. This can be member-managed or manager-managed.
- Voting Rights: Define how decisions will be made. Will all members have equal votes?
- Profit Distribution: Explain how profits and losses will be shared among members.
- Meeting Procedures: Outline how often meetings will occur and how members will be notified.
- Amendment Process: Describe how changes can be made to the agreement in the future.
A well-prepared Operating Agreement can be a valuable tool for your Indiana LLC. It strengthens your business foundation and fosters teamwork among members.
It serves as your LLC’s rulebook, guiding operations and avoiding conflicts down the line. Keeping everyone on the same page is even more vital if you have partners.
Step 5: Obtain an EIN for Your Indiana LLC
An Employer Identification Number (EIN) is a unique nine-digit number the IRS assigns. It identifies your business for tax purposes.
You will need an EIN to open a bank account, hire employees, file taxes, and apply for business licenses and permits.
How to Apply for an EIN:
- Online: Visit the IRS website. This is the fastest way to get your EIN.
- By Mail: Fill out Form SS-4 and send it to the IRS. This option takes longer.
- By Fax: You can also fax the completed Form SS-4.
- Phone: U.S. residents can call the IRS at 1-800-829-4933 to apply.
How Much Does It Cost To Get EIN?
Obtaining an EIN is free. However, some services charge $100 or more to help you with the entire process.
How Does it Take to Obtain my EIN?
- Online: Get it immediately.
- By Mail: Expect 4 to 6 weeks.
- By Fax: Usually within 1-2 weeks.
Step 6: File a BOI Report
After setting up your LLC in Indiana, you must file a Beneficial Ownership Information (BOI) report. This is a federal requirement for new LLCs.
You must submit this report to FinCEN within 90 days of forming your LLC. Filing is free and can be done online at the FinCEN website.
Here’s what you need to prepare:
- Company Information: Name, address, and formation date.
- Beneficial Owners: Full names, addresses, dates of birth, and identification numbers.
Gather this information along with your LLC formation documents. This will help streamline the filing process.
Completing the BOI report is essential for maintaining compliance with federal regulations. It ensures transparency about who owns and controls your LLC. Take the time to do this correctly to avoid any potential penalties.
Step 7: File Biennial Business Entity Report for your Indiana LLC
As the owner of an Indiana LLC, you must file a Business Entity Report every two years. This Indiana Biennial report is essential to keep your LLC in good standing with the state.
The fee for submitting the Business Entity Report is $31 if you file online. If you choose to file by mail, the cost is $50. Filing online is recommended since it is faster and cheaper.
Your Business Entity Report is due before the last day of your LLC’s anniversary month. This anniversary month is when the state approves your LLC. For example, if your LLC was approved on September 15, 2024, your first report will be due by September 30, 2026.
What are the Different Methods To Start an Indiana LLC?
There are several ways you can form an LLC in Indiana. Each method has advantages and disadvantages, depending on your comfort level and budget.
DIY LLC Formation in Indiana
You can start your LLC by doing it yourself. This method involves filling out the necessary forms and submitting them to the Indiana Secretary of State.
All by yourself, no third party!
Pros:
- Cost-Effective: You save money by not hiring anyone.
- Control: You have complete oversight of each step.
- Learning Opportunity: You gain knowledge about the process.
Cons:
- Time-Consuming: It may take longer if you are unfamiliar with the process.
- Complexity: You must ensure all forms are correctly filled out.
- Privacy issue: If you serve as your registered agent, you risk having your address out there.
- Lack of Guidance: You might miss the necessary steps.
Using a Professional/Online LLC Formation Services
Many online services can help you form your LLC. These platforms guide you through the entire process, handling most paperwork.
Pros:
- Convenient: They manage the filing, saving you time.
- User-Friendly: Most platforms have easy-to-understand instructions.
- Support Available: Many offer customer service for questions.
- Privacy benefits: Most services allow you to use their address for free, so your address doesn’t get compromised
Cons:
- Costs: You’ll pay a service fee.
- Variable Quality: Some services may not be as reliable as others.
Hiring an Attorney
Working with an attorney is another option for forming your LLC. This method ensures you have professional legal guidance throughout the process.
Pros:
- Expertise: An attorney knows the legal requirements and can avoid pitfalls.
- Customization: Your LLC can be tailored to your specific business needs.
- Support with Complex Situations: Ideal for businesses with unique circumstances.
Cons:
- Higher Costs: Legal fees can be expensive.
- Dependence on Others: You may rely heavily on the attorney’s schedule.
- Potential Delays: The process may take longer due to attorney workloads.
What is The Cheapest Alternative Way to Form an LLC in Indiana?
If you’re looking to start an LLC in Indiana on a budget, the most affordable option is to do it online. By filing the Articles of Organization directly with the Indiana Secretary of State, you can keep costs between $95 and $100, depending on your filing method.
This DIY approach helps you avoid the extra fees of hiring a service or lawyer, saving you money for other business expenses.
However, while DIY is cost-effective, it requires some effort. You’ll need to understand all the forms and regulations, and missing a detail could delay your application or create problems later.
Consider using a registered agent if you prefer not to handle everything yourself.
They can make the process smoother by ensuring you receive important documents and helping you stay compliant with state requirements. Although this adds a bit to the cost, it can provide valuable support and peace of mind.
Who Provides the Best LLC Services in Indiana?
There are a myriad of Indiana LLC services from which to choose. Choosing the wrong one can affect your Indiana LLC formation timeline—I know this from my experience using a few and researching a dozen over the years.
Here are some top-rated options you should consider:
| Best Indiana LLC Service | Google Rating | LLC Formation Cost | Registered Agent Fee |
|---|---|---|---|
| Northwest Registered Agent | 4.7/5 | $39 | Free for 1 year |
| Doola | 4.6/5 | $0 (plus state fees) | $297/year |
| Tailor Brands | 4.4/5 | $0 (plus state fees) | $199/year |
| ZenBusiness | N/A | $0 (plus state fees) | $199/year |
Besides, the fact that other services bill you for their registered agent in the first year, and Northwest offers it for free, is a HUGE plus for me.
Northwest Registered Agent stands out in Indiana LLC formation due to its commitment to transparency, customer service, and privacy. Using their address helps protect your personal information, making them a reliable choice.
How Much Does It Cost To Form an LLC in Indiana?
To form an LLC in Indiana, consider a few essential costs. The main expense is the state filing fee, which is $95(online) or $100 (mail). This fee is paid when you submit the Articles of Organization to the Indiana Secretary of State.
Here’s a breakdown of the costs associated with forming an LLC in Indiana:
| Requirement | Cost |
|---|---|
| New LLC Filing Fee (Articles of Organization) | $95 (online) or $100 (mail) |
| Name Reservation (optional) | $10 |
| LLC Formation Service | $39 (via Northwest) |
| Registered Agent Fee (optional) | $0 (via Northwest) |
| Business Entity Report (Biennial Report) | $31 (online), $50 (mail) |
| Total Estimated Cost | $130 – $200 |
When forming a new company in IN, budgeting about $130-$200 for the first year is ideal. Then, if you want to go further, you can get other bells and whistles like a virtual mailbox, custom website, trademark services, premium EIN services, etc.
The most significant (and essential) expense for every Indiana business owner is filing the Articles of Organization, which costs $95 or $100, depending on the filing method.
Pros and Cons of Forming an LLC in Indiana
Indiana LLC Pros
Indiana LLC Cons
6 Important Things To Do After Creating Your Indiana LLC
1. Research the Best Licenses and Permits for Your Business
Depending on your business type, you may need specific licenses and permits to operate legally in Indiana.
Start by checking local, state, and federal requirements. Then, visit the Indiana Professional Licensing Agency to determine if your profession requires a license.
Standard permits include health permits for food businesses and zoning permits for retail shops. Some industries, like construction, may have stricter guidelines. Make a list of needed licenses and prioritize getting them.
2. Create Business Accounts for Your Indiana LLC
Opening a separate bank account for your LLC is essential for keeping your business finances organized and distinct from your funds. This separation simplifies your accounting and helps safeguard your assets by clearly distinguishing between personal and business transactions.
When choosing a bank, look for one that offers business-friendly services, such as waived fees, free online banking, and other features that can benefit your business. To open the account, be prepared to provide your EIN and a copy of your Articles of Organization.
A dedicated business account streamlines your financial management and simplifies tax preparation.
Having all your business transactions in one place lets you easily track your income and expenses, ensuring everything is well-organized and accessible when tax season rolls around.
3. Understanding Indiana Tax Requirements and Managing Your Taxes
As an LLC owner, you’re responsible for understanding Indiana’s tax requirements. First, apply for an Employer Identification Number (EIN) through the IRS. This number helps track your business taxes and is often necessary for hiring employees.
By default, the IRS taxes an Indiana LLC according to its number of members, and the Indiana Department of Revenue follows the same tax treatment at the state level.
If your LLC has one owner (Single-Member LLC), it is taxed like a Sole Proprietorship. It is taxed as a Partnership if it has two or more owners (Multi-Member LLC). These are considered the “default statuses,” automatically applied based on the number of members in your LLC.
However, you can choose an “elective status” for your LLC by filing an additional form with the IRS. Depending on your preference, your LLC can be taxed as a Corporation (either an S-Corporation or C-Corporation).
Consider consulting with an accountant for tailored advice and to optimize your tax strategy. They can help ensure you meet all requirements and take advantage of available tax benefits.
4. File your Indiana Business Entity Report
As the owner of an Indiana LLC, you must file a Business Entity Report every two years. This Indiana Biennial report is essential to keep your LLC in good standing with the state.
This report updates the state with your business information. It includes your LLC’s address, registered agent, and management details.
The fee for submitting the Business Entity Report is $31 if you file online. If you choose to file by mail, the cost is $50. Filing online is recommended since it is faster and cheaper.
Your Business Entity Report is due before the last day of your LLC’s anniversary month. This anniversary month is when the state approves your LLC. For example, if your LLC was approved on September 15, 2024, your first report will be due by September 30, 2026.
5. Get Business Insurance for an LLC
Just as you wouldn’t leave your home without coverage, your LLC also needs the right business insurance to guard against potential risks and liabilities. Insurance protects your company’s assets and ensures financial stability in case of unforeseen issues or legal claims.
Your insurance needs will vary based on your business operations.
For example, general liability insurance covers risks such as slip-and-fall accidents or property damage if your LLC operates from a physical storefront.
Conversely, if you run your business as a consultant and work remotely, you might only need professional liability insurance to cover potential service errors or omissions.
Consult with an insurance agent to tailor your coverage. This investment can save you from significant out-of-pocket expenses in case of a claim.
6. Setup Your Business Online Presence (optional)
In today’s digital world, online presence can boost your business. Start by creating a professional website that outlines your services and contact information.
Social media is also essential. Choose platforms like Facebook, Instagram, or LinkedIn to engage with customers. Regular updates can attract new clients and keep current customers informed. Focus on providing valuable content to build your brand online.
Indiana LLC vs. S Corp vs. Partnerships vs. Sole Proprietorship vs. Corporations
When deciding on a business structure in Indiana, you have several options. Each has its features, benefits, and responsibilities.
Sole Proprietorship
An Indiana sole proprietorship is the most straightforward way to start a business. Imagine you’re running a lemonade stand on your own. You make all the decisions and keep all the profits.
However, there’s no legal separation between you and your business. If your lemonade stand faces financial trouble or legal issues, your assets, like your car or home, could be at risk. It’s easy to set up and manage, but it does leave you personally responsible for any business debts.
Partnership
An Indiana partnership involves teaming up with one or more people to run a business together.
Think of it as joining forces with a friend to open a café. You share the profits and responsibilities, and you both make business decisions.
However, like a sole proprietorship, each partner is personally liable for any business debts or legal issues. If the business encounters financial trouble, your assets could be at risk, too. Partnerships are relatively easy to set up but require clear agreements between partners to avoid conflicts.
LLC (Limited Liability Company)
An LLC offers a blend of flexibility and protection.
Picture it as a protective umbrella over your lemonade stand. This structure separates your assets from your business, so if your LLC faces legal issues or debts, your personal belongings are generally safe.
LLCs are more formal than sole proprietorships or partnerships but offer management and tax treatment flexibility. They are ideal for small—to medium-sized businesses that want liability protection without the complexity of a corporation.
S-Corporation
An S Corporation is a more structured business form.
Think of it as a business where owners are shareholders, much like a small-scale company with multiple investors. It protects liability and allows profits to pass through to your tax return, avoiding double taxation.
This means you report the income and losses on your tax return, which can be beneficial for tax purposes. However, S Corps have stricter operational requirements and formalities compared to LLCs.
Corporation
An Indiana corporation is the most complex structure, suitable for larger businesses aiming for significant growth.
Imagine a big company with many shareholders. A corporation offers robust liability protection and is a separate legal entity from its owners, meaning your assets are protected.
Corporations can raise capital more efficiently by issuing stock and can offer employee benefits. However, they come with extensive regulatory requirements, formalities, and paperwork, making them more suitable for businesses with significant resources and expansion plans.
My Final Thoughts: Forming an LLC in Indiana
Starting an LLC in Indiana is an exciting step toward bringing your business idea to life. Although it might seem like many steps initially, breaking them down makes the process more manageable and ensures you cover all the essential bases.
To form an LLC in Indiana, follow these steps:
- Choose a name for your LLC.
- Select a registered agent.
- File the Articles of Organization.
- Draft an Operating Agreement.
- Obtain an EIN (Employer Identification Number).
- File a BOI Report
- File your Biennial Business Entity Report.
The filing fee for the Articles of Organization is $95 if filed online and $100 by mail.
After forming your LLC, prepare for Biennial Business Entity Reports, which cost $31 if filed online and $50 if filed by mail.
Starting an LLC can be straightforward and rewarding. It offers flexibility and protection for your assets. To maintain your business in good standing, make sure to keep up with your filings and regulations.
Learn More About Starting an LLC in Indiana
If you need additional help to start an LLC in Indiana, check out these valuable resources:
Frequently Asked Questions
How long does it take to get an Indiana LLC, and can it be expedited?
The standard processing time for forming an LLC in Indiana is one business day if you file online and five business days by mail. If you need it faster, you can choose expedited service for an additional fee.
What if I already have an LLC in a different state from Indiana?
If you have an existing LLC in another state, you can either register as a foreign LLC in Indiana or create a new LLC in Indiana. Foreign registration maintains your original LLC while allowing you to operate in Indiana.
Can You Form an LLC For Free in Indiana?
Unfortunately, you cannot form an LLC for free in Indiana. You must pay a filing fee of $95 if you file online or $100 by mail to submit your Articles of Organization.
Can I form an LLC in Indiana without a lawyer?
Yes, you can form an LLC in Indiana without a lawyer. It is a straightforward process. You will need a registered agent with a physical address in Indiana to receive legal documents.
What is the process for registering an LLC in Indiana online?
To register your LLC online, visit the Northwest Registered Agent website. Follow the steps to complete the process quickly.
Can I change my registered agent in Indiana?
Yes, you can change your registered agent in Indiana. You must file a new form with the Secretary of State and pay the associated fee.
How do I change my Indiana LLC’s name?
To change your LLC’s name in Indiana, file an Amendment to Articles of Organization with the Secretary of State. This process includes a form and a fee.
How do I renew my Indiana LLC?
Renewing your LLC involves filing an Indiana Business Entity Report. This report is due every two years and includes a $31 fee if filed online and $50 by mail.
How do I dissolve an LLC in Indiana?
To dissolve an LLC in Indiana, you must file the Articles of Dissolution with the Secretary of State. Ensure all debts are settled before doing this.
How do I add a member to an Indiana LLC?
To add a member, you generally update your operating agreement and record the change in your business records. You do not need to inform the Secretary of State unless you change your Articles of Organization.
How do I add a DBA to an LLC in Indiana?
To add a DBA (Doing Business As) name, file a Certificate of Assumed Business Name with the county clerk’s office. There is typically a small fee involved.
Can a minor own an LLC in Indiana?
Yes, a minor can own an LLC in Indiana. However, a parent or guardian may need to act on their behalf in legal matters.
When is the Indiana Business Entity Report due?
The Indiana Business Entity Report is due every two years. The due date falls on the anniversary of your LLC’s formation date.
Does LLC expire in Indiana?
An LLC in Indiana does not generally expire unless it is dissolved or fails to file the required reports. You must keep up with your filings to maintain active status.
Can a non-resident open an LLC in Indiana?
Yes, a non-resident can open an LLC in Indiana. However, they must have a registered agent with a physical address in the state.
Can I buy a house or car with my LLC in Indiana?
Yes, your LLC can buy a house or car in Indiana. The assets will belong to the LLC, not to you personally.
Can you have multiple businesses under one LLC in Indiana?
Yes, you can have multiple businesses under one LLC using DBAs. This allows you to operate different business names without creating separate entities.
Is Indiana an excellent state in which to form an LLC? Is it worth it?
Indiana is often seen as business-friendly, particularly for LLCs, due to lower fees and easy management. Whether it’s worth it depends on your specific business needs.
Can one person form an LLC in Indiana?
Yes, one person can form an LLC in Indiana. This is a single-member LLC, which offers the same legal protection as a multi-member LLC.
Disclosure: We may earn commissions if you buy via links on our website. Commissions don’t affect our opinions or evaluations. We’re also an independent affiliate of many platforms, including ClickFunnels, Kartra, GoHighLevel, Podia, Northwest Registered Agent, and others. We’re not employees of these services. We receive referral payments from them, and the opinions expressed here are our own and are not official statements of these companies.
