Starting Your Own Business is Easier Than You Think: How to Start an LLC in Indiana
POST DATE: 3.4.20
If starting a business is still on your 2020 to-do list, keep reading -- CCHA can help you navigate your entrepreneurial goals.
Whether you are about to start a business, or have been operating as a sole proprietor or a partnership, you may want to know: What’s an LLC? And, how do I start an LLC in Indiana?
What is an LLC?
An LLC -- or limited-liability company -- is a business structure offering limited liability protection and pass-through taxation. Just as with corporations, owners of an LLC cannot typically be held personally responsible for business debts or liabilities (counter to the sole proprietorship) -- in other words, personal assets of the LLC members cannot be claimed to satisfy business debts.
An LLC allows for pass-through taxation, as income is not taxed at the entity level; however, a tax return for the LLC must be completed if there is more than one owner of the LLC. For most people, this is the most important reason to form an LLC. Any LLC income or loss as shown on this return is passed through to the owner(s). The owners -- also called members -- must report the income or loss on their personal tax returns and pay any necessary tax.
In an LLC, members may select managers to be responsible for running the company’s day-to-day operations. The LLC’s members and managers may be the same person (or people).
Starting Your LLC in Indiana
To form an LLC, "Articles of Organization" must be filed with the Indiana Secretary of State’s Business Services Division. Articles of Organization, according to the Secretary of State, must include the following:
- the name of the LLC, which must end with "Limited Liability Company" or "LLC" (you can perform a name search and a web domain search to see if your desired URL is available);
- the period of duration of the LLC;
- the name and street address of the Registered Agent (Note: The “Registered Agent” is simply an individual or business entity that the LLC appoints to accept legal papers on the LLC’s behalf if it is sued. A registered agent may be an individual who resides in Indiana, or a domestic or foreign business entity authorized to do business in Indiana. The registered agent must have a physical street address in Indiana.);
- if the LLC’s Operating Agreement vests management in a manager(s), a statement to that effect;
- the signature of at least one organizer, member or manager.
Have questions? Need help? Want to know more about other business formation options? CCHA can help. Contact our Business Services attorneys for more information on best practices for starting your Indiana business.
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