- How to form an LLC in Indiana.
Indiana is an excellent place to form a new LLC.
Ranking number one in Ease of doing business
in the country.
Every state has slightly different
requirements for forming an LLC.
Follow along closely to learn the required steps
for creating your own Limited Liability Company,
in the state of Indiana.
There are two ways to form an LLC in Indiana.
You can form one yourself.
Or you can hire a service to do it for you.
Let's start by looking at the five basic requirements
to form an LLC in Indiana on your own.
You can also find these steps and more detail,
on our website, linked in the description below.
One, name your LLC
Every state has its own rules about
what kind of names are allowed for LLC's.
In general, you will need to observe
these naming guidelines.
Your name must include the phrase,
Limited Liability Company, or one of
its abbreviations. LLC or, L.L.C,
with a period following each letter.
Restricted words such as,
bank, attorney, law office, etc.
May require additional paperwork,
and may also need
a silenced professional
to be part of the LLC.
Your name cannot include words
that could confuse your LLC
with a government agency.
Such as FBI, Treasury State Department, etc.
You cannot use a name
that has already been registered.
To see if your name is available in your state,
you will need to do a name search.
This free service is available
on your State, Secretary of State website.
Check out our free guide
for finding the direct link
to your state.
We also recommend
that you check to see
if your business name
is available as a web domain.
Even if you don't plan
to make a business website today,
you might want to buy the URL
in order to prevent others
from acquiring it.
Two. Choose a registered agent.
Indiana requires,
that you nominate a registered
agent for your LLC,
who is your business's
point of contact with the state.
The registered agent
can be an individual,
within the company, including yourself,
or you can hire a professional service,
authorized to do business in Indiana.
They will send and receive
legal papers on your behalf.
These documents include official correspondence like,
legal summons and document filings,
which a registered agent will receive,
and forward to you.
Your registered agent will help remind you
to file the necessary reports.
Failure to properly maintain your LLC,
can result in fines and disillusion.
So this assistance is valuable.
Three. File the articles of organization.
To register your Indiana LLC,
you'll need to file the articles of organization
with the Indiana Secretary of State.
This can be done online,
or by mail.
You'll need to state whether your LLC
will be member managed,
or manager managed.
Member managed means,
all members of the LLC,
manage the company.
This is good for small organizations,
where everyone is involved
in the day to day operations.
The second option is manager managed.
Where individuals are appointed
to manage the LLC.
This is appropriate for larger organizations,
where not everyone is involved
in the day to day affairs of the business.
Four. Create an operating agreement.
Al though not every state requires it,
you should always
create an operating agreement
to establish ownership terms
and member roles for your LLC.
This foundational document
is the core of your LLC,
and will help you maintain your organization,
as well as further establish your LLC
as a separate legal entity.
There are six main sections
of an operating agreement.
Organization outlines when and where
the company was created,
who the members are,
and how the ownership is structured.
Management and voting addresses
how the company is managed,
as well as how the members vote.
Capitol contributions covers
which members financially support the LLC,
and how more funds will be raised in the future.
Distributions outlines how
the company's profits and losses
are shared amongst members.
Membership changes describes the process
for adding or removing members
as well as if, and when
members can transfer their ownership shares.
In Dissolution,
which explains the circumstances
in which the LLC may be dissolved.
An operating agreement is an internal document.
It does not need to be filed with the State.
However, it should be updated
every time there is a change in membership,
or management at the company.
You can download a free sample Operating Agreement,
or create a custom one using
our free operating agreement tool at
Howtostartanllc.com
Five. Obtain an EIN.
Lastly, you'll need to get
an Employer Identification Number.
Or EIN, from the IRS.
Also known as a Federal Tax Identification number,
your EIN is like a social security number
for your LLC and is how
the IRS track your business for tax purposes.
An EIN is also necessary to open
a business banking account
and legally hire employees.
EIN's are free of charge,
and can be obtained from the IRS online,
or through the mail.
And with that,
you'll have formed an Indiana
LLC on your own.
Option two. Hire a professional service.
The second way to create an Indiana LLC,
is to hire a professional service
to create your LLC for you.
Hiring a professional service to file your forms
and act as your registered agent for the LLC,
will cost you an additional $50 to $150.
However, there are several benefits
to working with a pro.
A hired, registered agent
helps with getting your reports
filed on time.
Helps you stay organized
by keeping your business mail separate
and is available at all regular business hours
to accept official mail and legal papers
on your LLC's behalf.
A final and important additional benefit
of using a service is privacy.
A professional service will provide a level of privacy
by withholding your personal name and home address
from the LLC's contact information.
There are many reasons why
you might not want your personal
information easily accessible
and associated with your business.
Hiring a professional LLC formation service
is an easy way to accomplish this.
Now that you've seen the different requirements,
and ways you can form an LLC in Indiana,
visit our site and take some time
to research your options,
and establish a solid foundation
for your business activities.
Click on the links
in the description below to research
the Top 5 professional formation services,
or, get more information,
on how to form an Indiana LLC
on your own.
Now you know all the steps to form
an LLC in your state.
For a more detailed guide, go to
Howtostartanllc.com
You can also create an Operating Agreement,
and use our Business Plan tool,
free of charge.
Give the video a like, if you found it useful.
And subscribe if you'd like to see more.
And if you have questions,
or encounter any roadblocks.
Leave a comment below.
Good luck in starting your small business.
(music)