How to Start an LLC in Indiana

Starting an LLC in Indiana is easy, just follow these simple steps:

To form an Indiana LLC you will need to file the Articles of Organization with the Indiana Secretary of State Business Services Division, which costs $95-$100. You can apply online or by mail. The Articles of Organization is the legal document that officially creates your Indiana Limited Liability Company.

Follow the step-by-step guide below to start your Indiana LLC today and get your business up and running.

STEP 1: Name your Indiana LLC

Choosing a company name is the first and most important step in starting your LLC. Be sure to choose a name that complies with Indiana naming requirements and is easily searchable by potential clients.

1. Follow the naming guidelines:

• Your name must include the phrase “limited liability company” or one of its abbreviations (LLC or L.L.C.).
• Your name cannot include words that could confuse your LLC with a government agency (FBI, Treasury, State Department, etc.).
• Restricted words (e.g. Bank, Attorney, University) may require additional paperwork and a licensed individual, such as a doctor or lawyer, to be part of your LLC.

2. Is the name available in Indiana? Make sure the name you want isn't already taken by doing a name search on the State of Indiana website.

3. Is the URL available? We 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 may want to buy the URL in order to prevent others from acquiring it.

After registering a domain name, consider setting up a professional email account (@yourcompany.com). Google's G Suite offers a business email service that comes with other useful tools, including word processing, spreadsheets, and more. Try it for free

Not sure what to name your business? Check out our LLC Name Generator. Then, create a logo with our Free Logo Generator.

FAQ: Naming an LLC

STEP 2: Choose a Registered Agent in Indiana

You are required to nominate an Indiana Registered Agent for your Indiana LLC.

What is a Registered Agent? A registered agent is an individual or business entity responsible for receiving important legal documents on behalf of your business. Think of your registered agent as your business's point of contact with the state.

Who can be a Registered Agent? a Registered Agent must be a resident of Indiana or a corporation, such as a registered agent service, authorized to transact business in Indiana. You may elect an individual within the company including yourself.

Recommended: ZenBusiness provides the first year of registered agent service free with LLC formation ($39 + State Fees

FAQ: Nominating a Registered Agent

STEP 3: File Your Indiana LLC Articles of Organization

To register your Indiana LLC, you will need to file the Articles of Organization with the Secretary of State Business Services Division. This can be done online or by mail.

When filing your Articles of Organization, you will need to state whether your Indiana LLC will be managed by managers. Before you file, read our member-managed vs manager-managed guide to help you choose the best management structure for your LLC.

If you’re expanding your existing LLC to the State of Indiana, you will need to form a Foreign LLC.

FAQ: Filing LLC Documents

STEP 4: Create an Operating Agreement

An operating agreement is not required in Indiana, but it's a good practice to have one.

What is an operating agreement? An operating agreement is a legal document outlining the ownership and operating procedures of an LLC.

Why are operating agreements important? A comprehensive operating agreement ensures that all business owners are on the same page and reduces the risk of future conflict.

For more information on operating agreements, read our Indiana LLC operating agreement guide.

FAQ: Creating an Operating Agreement

STEP 5: Get an Indiana LLC EIN

What is an EIN? EIN stands for Employer Identification Number. EINs are a nine-digit number assigned by the Internal Revenue Service (IRS) to help identify businesses for tax purposes. It is essentially a Social Security number for a business.

An EIN is sometimes referred to as a Federal Employer Identification Number (FEIN) or Federal Tax Identification Number (FTIN).

Why do I need an EIN? An EIN is required to:

• Open a business bank account
• File and manage Federal and State Taxes
• Hire employees

What if I already have an EIN for my sole proprietorship? The IRS requires that sole proprietorships get a new EIN when converting to an LLC.

Where do I get an EIN? You can get an EIN for free from the IRS. Getting an EIN is an easy process that can be done online or by mail.

FOR INTERNATIONAL EIN APPLICANTS: You do not need a SSN to get an EIN. For more information, read our How to Get an EIN as a Foreign Person guide.

FAQ: Getting an Indiana LLC EIN

Important Steps After Forming an LLC

Separate Your Personal and Business Assets

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your Indiana LLC is sued. In business law, this is referred to as piercing the corporate veil.

You can start protecting your LLC in Indiana with these steps:

1. Opening a business checking account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Need help finding your EIN for your bank application? Visit our EIN Lookup guide for help.

2. Getting a business credit card:

• Helps you separate personal and business expenses.
• Builds your company's credit history, which can be useful to raise capital (e.g., small business loans) later on.

For other important steps to protect your corporate veil, like properly signing legal documents and documenting company business, please read our corporate veil article.

Find a Business Accountant

One of the main reasons that LLC’s make great business structures is the benefits of pass-through taxation and the ability to write off business expenses. Having a business-savvy accountant to help you with your small business accounting and take advantage of these benefits can literally save you and your business thousands of dollars in taxes each year.

Along with the obvious benefit of massive tax savings, a business accountant can help you to:

• Track business expenses and reconcile your bank accounts
• Discover areas of unforeseen loss or extra profit in your business
• Run payroll for you and your employees
• Prepare and submit your quarterly tax filings
• Advise on advanced business strategies for even deeper tax savings
• Avoid costly errors and ensure your business stays on the good side of the IRS

Starting a relationship with an accountant gives you a head start when it comes to running your business and keeps your finances clean in the future.

However, if you would like to run your own accounting, read our review of the best accounting software for small business.

Get Business Insurance for Your Indiana LLC

Business insurance helps you manage risks and focus on growing your business. The most common types of business insurance are:

• General Liability Insurance: A broad insurance policy that protects your business from lawsuits. Most small businesses get general liability insurance.
• Professional Liability Insurance: A business insurance for professional service providers (consultants, accountants, etc.) that covers claims of malpractice and other business errors.
• Workers' Compensation Insurance: A type of insurance that provides coverage for employees’ job-related illnesses, injuries, or deaths. In Indiana, businesses with one or more employees, excluding business owners, are required by law to have workers compensation insurance.

Read our review of the best small business insurance companies.

Send Out a Press Release

Press releases are among the easiest and best ways to promote your business. They are also one of the most cost-effective strategies as they:

• Provides publicity
• Establish your brand presence on the web
• Improve your website’s search engine optimization (SEO), driving more customers to your website
• Are a one-time cost in terms of effort and money
• Have long-lasting benefits

Read our review of the best press release distribution services.

Keep Your Company Compliant

Indiana LLC Permits and Licenses

To operate your LLC you must comply with federal, state, and local government regulations. For example, restaurants likely need health permits, building permits, signage permits, etc.

The details of business licenses and permits vary from state to state. Make sure you read carefully. Don't be surprised if there are short classes required as well.

Fees for business licenses and permits will vary depending on what sort of license you are seeking to obtain.

Find out how to obtain necessary licenses and permits for your business or have a professional service do it for you:

• Federal: Use the U.S. Small Business Administration (SBA) guide.
• State: Use the State of Indiana's Professional Licensing Agency.
• Local: Contact your local county clerk and ask about local licenses and permits.

Indiana LLC Tax Filing Requirements

Depending on the nature of your business, you may be required to register for one or more forms of state tax.

Indiana Sales Tax

If you are selling a physical product, you’ll typically need to register for a seller's permit through the Indiana Department of Revenue website.

This certificate allows a business to collect sales tax on taxable sales.

Sales tax, also called "Sales and Use Tax," is a tax levied by states, counties, and municipalities on business transactions involving the exchange of certain taxable goods or services.

Read our Indiana sales tax guide to find out more.

Indiana Employer Taxes

If you have employees in Indiana, you will have to register for Unemployment Insurance Tax through the Indiana Department of Workforce Development. You will also need to sign up for the Employee Withholding Tax through the Indiana Department of Revenue on behalf of your employees.

Federal LLC Tax Requirements

Most LLCs will need to report their income to the IRS each year using:

• Form 1065 Partnership Return (most multi-member LLCs use this form)
• Form 1040 Schedule C (most single-member LLCs use this form)

How you pay yourself as an owner will also affect your federal taxes. Visit our guide to learn more about how to pay yourself from your LLC.

File Your LLC Biennial Report

Most states require LLCs to file an annual report. However, Indiana requires LLCs to file a biennial report, also known as a business entity report, with the Indiana Secretary of State.

Avoid Automatic Dissolution

Indiana LLCs may face fines and even automatic dissolution when they miss one or more state filings. When this happens, LLC owners risk the loss of limited liability protection. A quality registered agent service can help prevent this outcome by notifying you of upcoming filing deadlines and by submitting reports on your behalf.

Hiring Employees in Indiana

If you plan to hire employees, stay compliant with the law by following these steps:

• Verify that new employees are able to work in the US
• Report employees as "new hires" to the State
• Provide workers' compensation insurance for employees
• Withhold employee taxes
• Print workplace compliance posters and place them in visible areas of your workspace

Find employer services at Indiana Department of Workforce Development.

FAQ: Hiring Employees in Indiana

Small Business Resources

Women in Business Tools and Resources

If you have a woman-owned business, many resources are available to help you concentrate on your business’s growth:

• Funding - (ie. grants, investors, loans)
• Events - (ie. conferences, meetups)
• Guides - (ie. business formation, personal growth)
• Support - (ie. advice, communities, business strategies)

Our information and tools will provide educational sources, allow you to connect with other women entrepreneurs, and help you manage your business with ease.

Free LLC Legal Forms

TRUiC offers a number of free LLC legal forms to help with creating documents like:

• Operating agreements
• LLC resolutions
• Hiring documents, including:
  
  • Employment contracts
  • Independent contractor service agreements (ICSA)
  • Non-disclosure agreements (NDA)

All you’ll need to do to download the forms is sign up for the TRUiC Business Center, which is also free, forever.

How to Make a Website

Check out our how to build a website guide to learn how creating a website isn’t as difficult as it might seem. With the right tools, a good guide, and a bit of patience, you can learn how to make a website for your business in no time.

How to Build Business Credit

Learning how to build business credit can help you get credit cards and other business funding options in your business's name (instead of yours), with better interest rates, higher lines of credit, and more.

TRUiC’s Small Business Tools

TRUiC believes business tools should be free and useful. Our tools help solve business challenges, from finding an idea for your business, to creating a business plan, writing an operating agreement for your LLC, and more.

Check out TRUiC’s small business tools:

• Business Name Generator
• Business Idea Generator
• Free Logo Maker
• Operating Agreement Tool
• Business Plan Generator
• Entrepreneurship Quiz

More Indiana LLC Information

Register as a Foreign LLC in Indiana

Forming a foreign LLC allows your company to operate as one entity in multiple states. If you have an existing LLC and want to do business in Indiana, you will need to register as a foreign LLC. This can be done by mail or online.

How to Obtain a Certificate of Good Standing in Indiana

A Certificate of Good Standing, known in Indiana as a Certificate of Existence, verifies that your LLC was legally formed and has been properly maintained. Several instances where you might need to get one include:

• Seeking funding from banks or other lenders
• Forming your business as a foreign LLC in another state
• Obtaining or renewing specific business licenses or permits

You can order an Indiana LLC Certificate of Existence online. 

How to Dissolve an LLC in Indiana

If at any point in the future you no longer wish to conduct business with your LLC, it is important to officially dissolve it. Failure to do so in a timely fashion can result in tax liabilities and penalties, or even legal trouble. To dissolve your LLC, there are two broad steps:

• Close your business tax accounts
• File the Articles of Dissolution

When you are ready to dissolve your LLC, follow the steps in our Indiana LLC Dissolution Guide.