Steps to Form an LLC
To set up an LLC in Indiana:
- Ensure the business name is available.
- File the Articles of Organization with the Indiana Secretary of State Business Services Division and pay a $95-$100 filing fee.
- Appoint a Registered Agent.
- Get an Employer Identification Number (EIN).
- Comply with any additional licensing and administrative requirements.
You can apply online or by mail. The fastest way is through online filing, where approval can be instant with less traffic, and online filing approval typically takes 1 day. Mail filings can take 2-3 weeks – accounting for 1 week processing time plus mail time.
Costs and Timeframes
Initial Costs
- Certificate of Formation filing fee: $95
- Annual report fee (every 2 years): $30
- Name reservation fee: $10
- Registered agent fees (variable)
Filing Timeframes
- Online approval: 1 day to instant with less traffic
- Mailed forms: 5-7 business days
- Expedited processing: Available for a fee
It may take 1-2 weeks to set up a bank account post-formation.
Additional Information
LLCs in Indiana do not pay corporate income tax unless they elect to be taxed as a C corp. In such cases, they pay a 4.9% Indiana Corporate Income Tax. It’s advisable to consult a small business accountant for tax advice.
An LLC does offer personal liability protection, but business owners should still ensure they have proper insurance coverage, including liability insurance and workers’ compensation insurance.
While some services advertise "free" LLC formation, this often excludes the mandatory state filing fee.
Types of LLCs
- Single-member LLCs
- Multi-member LLCs
Naming Your LLC
When choosing a name for your LLC:
- Ensure it complies with Indiana’s naming requirements.
- Ensure it is not currently in use through a search on the Secretary of State’s website.
Forming an LLC in Indiana
Indiana is considered a favorable state for forming an LLC due to its tax flexibility, management structure choices, and limited liability protection.
Remember, the cheapest way to form an LLC in Indiana is by filing yourself, but you can also opt for LLC formation services for a stress-free experience.