Launching a business venture can be scary and exhilarating at the same time. It opens new doors for an entrepreneur. However, it also comes with challenges and various responsibilities, including filing the Articles of Organization in Indiana.
Starting An LLC In Indiana
Forming a limited liability company (LLC) is more than just selling products or offering services. There are certain steps that need to be taken, documents to be filed, and fees to be paid.
Companies have to learn and understand the process set by the state. For many entrepreneurs, Indiana is an appealing state to start a business due to the business friendly environment and amount of tax credits available. Indiana has a strong economic climate. Setting up and maintaining an LLC in the state is also affordable. Additionally, the state offers various incentives for business entities.
Understanding The Articles Of Organization in Indiana
Before enjoying the advantages that the state offers, a company will have to complete the business formation process first. Under state laws, an LLC will have to file a completed Articles of Organization in Indiana with the Business Services Division of the Secretary of State. The LLC filing costs $100. But if the company files online, the fee will only be $98.
The Articles of Organization in Indiana will officially create the LLC and legalize its business operations in the state.
Step 1: Get a copy of the form.
A company can obtain a copy of the Articles of Organization from the website of the Secretary of State. For online filings, the company will have to create an account on the website of the Secretary of State and complete the form online. To continue with the registration of the business, the company has to provide an email address.
On the other hand, those who prefer to submit the documents in paper form will have to get the PDF copy of the Articles of Organization from the website of the Secretary of State. Download and print the form.
Step 2: Complete the Articles of Organization in Indiana.
The second step is to accomplish the form. To do this, the company will have to provide the following pieces of information:
- LLC Name – Having a creative name is important for a business. However, it is also necessary to make sure that it is legally appropriate. Indiana requires LLCs to comply with the state’s naming regulations.First, the company name needs a proper designator. It has to end with the phrase “Limited Liability Company” or any of its abbreviations, such as “LLC” or “L.L.C.”Second, it cannot have any term that could confuse the company with a government agency. Some examples are “Treasury,” “State Department,” and “FBI” among others.
Third, the company needs to obtain the approval of the Department of Financial Institutions if it wants to use the word “bank” or any of its variations in the LLC name.
Last, the name should be distinguishable. If an existing business entity in the state is using the name or has reserved it, no other company can claim it. To ensure the availability of the name, conduct a business entity name search. Here are some of the things that a company can do:
- Search on Google.
- Check the database of the U.S. Patent and Trademark Office.
- Do a business entity name search on the website of the Secretary of State.
Companies that have already thought of a business name but are not yet ready to register as an LLC in Indiana can choose to reserve their preferred name for 120 days. Application for the reservation can be done online through the INBiz, which is the Secretary of State’s online resource for business entities. The reservation comes with a $20 filing fee.
- Registered Agent And Office – All companies operating in Indiana will have to nominate and maintain a registered agent in the state. The agent is in charge of receiving and sending legal documents on behalf of the LLC. It is also necessary to list a registered office address. For a complete list of qualifications, read our article on the Indiana Registered Agent.
- Dissolution Information – The company has to inform the state whether the LLC will be perpetual or if it plans on setting a specific dissolution date.
- Governing Authority – Indiana gives LLCs the freedom to choose how the company will be run and managed. However, they have to inform the state which structure they choose.Generally, there are two types of LLC management structures. The first one is member-managed. The owners of the company, who are known as members, will be responsible for the day-to-day operations of the business.The second type is the manager-managed structure. Under this, the company will assign some members or hire non-members to take care of the management of the business. For a more detailed explanation of this, check out our article on the LLC Management Structure.
Step 3: File the formal paperwork.
To formally register the business, the company will have to file a completed Articles of Organization form with the Secretary of State. Online filings can be accomplished on the INBiz website. As for mailed submissions, companies will have to use the following address:
Business Services Division
Secretary of State
302 West Washington Street
Indianapolis, Indiana 46204
What To Do After Registration
The LLC filing is only one of the tasks a company needs to accomplish. There will be other steps to take and requirements to comply with.
- Create the company’s operating agreement. Indiana does not require LLCs to have an operating agreement. However, having one can help protect not only the business but the company owners as well.The operating agreement is an internal document that will outline the ownership and management structure of the LLC. It will set out the roles, powers, duties, and rights of the members. It will also provide details on how to run the company. Other provisions may include the dissolution process and addition or removal of members.Having an operating agreement can also keep the limited liability protection that the LLC structure offers. It proves that the company is a separate legal entity and that the members are not personally liable for its actions and debts.
- Get an Employer Identification Number (EIN). The EIN is similar to a social security number, but it is for business entities. The EIN may be necessary for tax filing purposes. LLCs that plan on hiring employees or opening business bank accounts will also need an EIN.To obtain an EIN, the LLC will have to apply for it through the Internal Revenue Service (IRS) by mail, fax, or online.
- Obtain necessary business licenses and permits. Some industries, activities, or locations may require certain business licenses or permits. Check the guide of the U.S. Small Business Administration to find out if there will be necessary federal business licenses.As for the state level, the Indiana government released a guide for business owners. Meanwhile, the company may have to contact the local county clerk’s office to find out if there are licenses and permits it needs to acquire.
Getting Expert Help
Business formation in Indiana involves a state process that companies need to follow. Among the multiple steps are the LLC filing and payment of fees.
Aside from those, there may be other state obligations that require compliance. It is important to ensure a proper understanding of those requirements. A company may need to research in order to prepare for the process.
The problem is that some business owners may find it hard to set aside time to study the requirements and handle the tasks because they have to focus on properly launching the company in the marketplace.
In such cases, the best option is to hire a reliable business filing service company like DoMyLLC. Our team of experts has the necessary knowledge and experience in handling the requirements in Indiana. From LLC formation to ongoing compliance, we are here to help. Additionally, DoMyLLC is authorized to serve as a registered agent in the state of Indiana. We also offer personalized solutions based on the needs of our clients. Talk to us now to find out how your company can benefit from our services.
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