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How to Start an LLC in Indiana (A Step-By-Step Guide)

Max Smith

Reading Time: 6 minutes

Are you seeking better opportunities to form and grow your LLC? Then you may choose Indiana, but a question may arise, “How to start an LLC in Indiana?”

However, you must understand the costs and processes of forming an LLC. It will help you make informed decisions about planning your budget and preparing for an LLC. 

Besides, you must abide by the state rules and follow specific steps in forming an LLC. It will save you time and money. 

So, let’s cover a step-by-step guide to starting an LLC in Indiana and it’s estimated costs.

Before we get to the cost breakdown of setting up an LLC in Indiana, you must know that the total cost varies depending on two factors. Whether you:

  • Hire a professional service provider or do the process yourself.
  • Pay for optional costs or skip them.

The cost can be divided into 3 categories: required, optional, and annual.

1. Required Fee

The only required fee you must pay is the Articles of Organization filing fee. You will pay the fees while registering your LLC with the Indiana Secretary of State. But the amount depends on what medium you will use.

  • Online filing: $95
  • Mail-in Filing: $100

Besides, filing online may incur a small processing fee.

2. Optional Fee

Optional fees are those you are only sometimes required to pay. Moreover, you can skip them if you see them as convenient.

  • Registered Agent Service

Indiana law requires you to appoint a registered agent for your LLC. You can hire a professional individual or a company authorized to act as your agent. In this case, the cost can range from $50 to $300 per year. You can also act as your agent to avoid that cost.

  • Business Licenses and Permits

You might be legally required to obtain a few licenses and permits. However, it depends on the location and nature of your business. These licenses and permits can be at the local, state, or federal level.

  • Potential Expenses

There are some possible expenses that you might need later after your LLC formation, such as obtaining an EIN to open a bank account or hiring employees. Or, you might need to pay an attorney to draft an operating agreement.

3. Biennial Fee

The Indiana Secretary of State requires you to file a business entity report. It is due every two years, which will maintain your LLC’s active status. Again, the filing fee for the report is $50.

Now, you can get a budget set for forming your LLC. However, do you know the steps to create your LLC correctly? Let’s read our next section!

How to Start an LLC in Indiana?

Likewise, in other states, Indiana offers opportunities and sets rules for creating an LLC. You can get expert help in that regard. The more you follow the formal process, the less chance you have of making mistakes. Thus, the Indiana LLC registration steps are shown below.

1. Decide on Your LLC Name

Start by deciding on a name for your LLC. It should not be similar to other business names. Find something that is unique and distinctive. Also, be mindful of complying with Indiana’s naming requirements.

Remember to include “Limited Liability Company” or “LLC” in your chosen name. Or, you can use acronyms like “”LLC”” or “”Ltd. Liability Co.”

2. Appoint a Registered Agent

A registered agent must be appointed to receive official documents on your company’s behalf. It does not matter whether that agent is an individual, a company, or yourself. To start an LLC in Indiana, all that an agent should have is:

  • A physical address in Indiana.
  • Must be 18+ in age.
  • Availability during official hours.
  • Authorization to be an agent.

You can also change your registered agent at anytime. But remember to update the appearance and inform the officials about the change in your registered agent.

3. File Articles of Organization

You can file Articles of Organization through mail or online, along with the fee. While filing for it, you will need to provide information to start an LLC in Indiana about:

  • Your LLC’s name.
  • The principal’s office address.
  • Registered agent’s name and address.
  • The duration of your LLC.
  • Your LLC’s duration.

Moreover, you can get the help of an expert service provider to arrange the papers and help you submit them accordingly. Note that if you make a mistake, it causes a delay in submitting the article to the organization.

4. Establish an Operating Agreement

Although Indiana law does not require an operating agreement, it is strongly recommended. It is a type of contract that documents an LLC’s internal operations. This contract helps to outline the following:

  • Ownership and management structure
  • Member rights, roles, and responsibilities
  • Profit and loss shares

An operating agreement can play a massive role in reducing conflict between members and finishing off an LLC. 

5. Get a Certificate

Once you have successfully submitted all the necessary documents for LLC formation, the state will give you a certificate. 

Yes, the certificate will permit you to operate your LLC business hassle-free. It’s a legal right for you to collect the certificate and continue operating your business legally. 

Besides, it will also help you get an EIN, a business bank account, or a business license.

6. Apply for an EIN

Obtain an Employer Identification Number (EIN) by applying to the Internal Revenue Service (IRS). There is no filing fee when applying for an EIN online via the IRS website. You will need it when starting your LLC if you:
Have more than one member.
Hire any employee.
Elect to be taxed as a corporation.

7. Adhere to Further Conditions

Contact the Indiana Secretary of State, the Indiana Department of Revenue, and local authorities. When starting your Indiana LLC, check for any further conditions you must comply with. Depending on the type of business you operate, you might need:

  • Licenses,
  • Permits, &
  • Registrations. 

These can be local, state, or federal.

8. Register as a Business Entity

Your formal steps continue after forming and starting your LLC. You must submit a business entity report to the Indiana Secretary of State to keep your LLC status active. This biennial report is due every 2 years.

It will contain up-to-date information about your LLC. So, you have to be careful about this report. Otherwise, administrative dissolution may occur at your LLC.

9. Maintain Ongoing Compliance

After LLC formation, there are a few compliances that you need to sustain continuously. All of your LLC activity records should be kept accurate and up-to-date. For example:

  • Member resolutions,
  • Meeting minutes,
  • Financial transactions & more.

Also, pay attention to all tax requirements, like filing federal and state tax returns or paying applicable taxes on time. Also, stay informed about current or modified state regulations.

Conclusion​

An expert service provider can deeply enlighten you on how to start an LLC in Indiana. But there are some basic things to follow. 

You should know the state rules, follow a simple process, and submit forms for an LLC. Plus, you must bear the associated fees and expenses to open and start your new LLC. 

Furthermore, the state rules change, so remember to get the updated rules. In the end, Indiana is undoubtedly one of the best states in which to form an LLC.

Key Points

Let’s go over the discussion one more time by looking over the key points:

  • There are various kinds of Indiana LLC formation costs. For example, there are required, optional, and biennial fees. 
  • You will pay registered agent service ($50–$300 per year), business licenses, and permits. Moreover, there will be an Articles of Organization filing fee ($95 online, $100 mail-in). 
  • Also, obtaining an EIN or attorney associated with an operating agreement is a potential expense. You may also pay the business entity report filing fee ($50).
  • Simple and formal LLC formation steps to follow. It can be deciding on a name, hiring a registered agent, or submitting an article for an organization. Creating an operating agreement and more. 
  • Continue to maintain all state filings and regulations.

Frequently Asked Questions

How do you start an LLC in Indiana for free?

Starting an LLC in Indiana is not free of charge. You must pay the filing fees and other associated fees.

How long does it take to get an LLC in Indiana?

The time is variable based on the medium used to submit files. If you choose to submit the files online in person, it may take one business day. However, if you select the mail system, then it can take more than two weeks.

Max Smith - LLC Formation

He is a seasoned entrepreneur and legal expert at LLC Formation Hub. With a stellar track record in both business and law, Max simplifies the complexities of LLCs. His practical insights, featured on LLC Formation Hub, empower entrepreneurs across the USA. Max merges business finesse with legal acuity to guide businesses toward success.


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