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?
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).
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:
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.