Indiana Business Flexibility Act Changes
The Indiana General Assembly recently approved changes to the Indiana Business Flexibility Act. These changes impact LLCs, especially related to estate planning and fiduciary relationships. The revisions become effective July 1, 2013.
The biggest changes affect Indiana LLCs:
- Nonprofit LLCs can now be explicitly formed.
- New alternatives for LLC management structure are available.
- Indiana is business-friendly with rules to protect owners and officers from business liabilities.
Indiana LLC laws provide guidelines for LLC operating agreements, which can protect and benefit your business.
Starting an LLC in Indiana
Understanding Limited Liability Companies (LLCs), Indiana offers four typical business structures for entrepreneurs: sole proprietorships, partnerships, limited liability companies (LLCs), or corporations. An LLC is a popular choice for its simple structure, liability protection, and tax benefits.
Deciding a name
To check if your name is available can be done through the Secretary of State’s website.
Get a Registered Agent
Some benefits of establishing an S-corp in Indiana include limited personal liability protection for owners and potential flexibility in tax treatment.
LLCs and S-corp tax treatment differ; LLCs are generally taxed like sole proprietorships but can elect to be treated as a corporation or partnership for tax purposes.
Benefits and Process of Forming an LLC in Indiana
Forming an LLC in Indiana can be a great way to protect your personal assets.
Advantages of an Indiana LLC:
- Limited liability protection
- Pass-through taxation
- Affordable formation
Requirements for starting an Indiana LLC include:
- Filing Articles of Organization
- Choosing a business name
- Having a registered agent
- Paying a filing fee
Cost of starting an Indiana LLC
An Indiana LLC can be formed 24/7 on the INBiz website, as highlighted by Lindsey Eaton, communications director for Indiana’s Secretary of State.
Tax treatment and protection
LLCs in Indiana are pass-through entities, thus avoiding double taxation. An LLC provides liability protection, separating personal assets from business assets.
The process includes filing articles of organization, obtaining necessary licenses or permits, and creating an operating agreement.