If you’re interested in learning how to start an LLC in Indiana and become one of the many businesses operating there, there are a few things to know first. Knowing how to get an LLC in Indiana will help you set up a successful business and join this state’s booming economy.
So, are you ready to learn how to form an LLC in Indiana? Keep reading to learn everything you need to know about how to register an LLC in Indiana and set up a solid Indiana LLC operating agreement.
Is an LLC Operating Agreement Required in Indiana?
The state of Indiana doesn’t require business owners to have an operating agreement. However, business owners should still have one so that they can set rules and expectations for running their company.
Indiana Operating Agreement Laws
Even though Indiana doesn’t require businesses to have operating agreements, they do have some laws in place for business owners who do choose to make them – IC 23-18-4-4. These laws state that operating agreements may modify, increase, decrease, eliminate, or limit member duties.
They also allow LLCs to provide for indemnification of members and managers, specify duties, powers, titles, and terms of office, and delegate responsibilities between LLC members.
In addition, Indiana’s LLC laws outline how LLCs may be legally changed. According to state law, this can be done through a merger, an amendment to the operating agreement, or voluntary dissolution.
Remember that Indiana operating agreements need to include a basic provision of the operations that the company will be performing, as well. They should include an overview of the company as well as information regarding the business activities.
In Indiana, you do not have to submit your operating agreement if you choose to write one. However, you should keep it in your company files in case you need to present it in a court of law.
You should also be aware that when naming your LLC it must contain the last words; ‘Limited Liability Company’, ‘L.L.C.’, or ‘LLC’. The name may also contain the name of a member or manager.
How Much Does it Cost to Form an LLC in Indiana?
In Indiana, a domestic LLC costs $100 to form. From there, you’ll need to file biennial reports at a cost of $50.
If you’re starting a foreign LLC, you’ll need to pay $250 in filing fees. The biennial report fee remains the same as for domestic companies.
These fees are all paid to the Indiana Secretary of State. They’re paid when the business owner(s) file their articles of incorporation and with biennial reporting thereafter.
How to Form an LLC in Indiana?
Let’s take a look at what you need to do to form your Indiana LLC:
Step 1 – Get a Registered Agent
The first step in creating an LLC in Indiana is to find a registered agent. This individual will act as the point of contact for a business and will receive the service of process notices, take care of state filings, and handle other important tasks.
You can select any individual as long as they are either a person with Indiana residence or an incorporated business with its own Indiana Registered Agent. The registered agent must have a physical street address in Indiana.
Step 2 – Choose Your Entity Type
Once you’ve found a registered agent for your business, it’s time to choose which type of LLC you want to file. You can either choose to file a domestic LLC, which operates in the state, or a foreign LLC, which operates from an outside jurisdiction.
Step 3 – Pay the Filing Fee
After selecting your entity type, you’ll need to apply for your LLC on the Secretary of State website. You’ll be able to fill out the application online.
Once you’ve done so, you’ll need to make a money order or check out to the Indiana Secretary of State. These are the filing fees that allow you to open your LLC.
Step 4 – Create an Operating Agreement
Although it’s not a required step in the process, it’s highly recommended that LLC members create an operating agreement. This helps the LLC legally lay out the business’s standard operating procedures.
Since the document is not legally required by Indiana, you don’t need to submit it to the Secretary of State’s office. Instead, you should simply distribute the document to the members of the company.
Step 5 – Get an Employer Identification Number (EIN)
The final piece of the puzzle when it comes to setting up an Indiana LLC is to get an Employer Identification Number, also known as an EIN. This number allows the IRS to track business activity for tax purposes.
If you want to hire employees, take out a loan, open a bank account, or apply for a business credit card, you’ll need to have an EIN. Otherwise, you will not be permitted to perform these actions.
You can register for an EIN directly on the IRS website. Or, you can file for an EIN by mail.
Indiana LLC Operating Agreement Template
Are you ready to make your own Indiana operating agreement? If so, check out this Indiana LLC operating agreement template: