Starting a business is an exciting venture, and one of the most popular ways to structure a business is as a Limited Liability Company (LLC). An LLC offers personal asset protection, tax flexibility, and simplified management compared to other business structures like corporations.
Indiana is a fantastic state to start your LLC, thanks to its straightforward registration process and business-friendly environment.
This guide provides an in-depth, step-by-step walkthrough on how to start an LLC in Indiana in 2025. Whether you are a first-time entrepreneur or someone who wants to move an existing business to Indiana, these instructions will help you navigate the entire process. Let’s dive in!
Steps to Forming an LLC in Indiana
1. Search Your LLC Name
Choosing a name for your LLC is one of the first and most important steps in the process. In Indiana, your LLC name must meet several criteria:
- The name must be distinguishable from existing businesses registered in the state.
- It must include the term “Limited Liability Company” or “LLC” (or “L.L.C.”) at the end.
- Your LLC name cannot contain words that could confuse your business with a government agency (e.g., “FBI,” “Treasury,” “State Department”).
To check if your desired LLC name is available, you can use the Indiana Secretary of State’s business entity database. This allows you to search for existing business names in Indiana and make sure yours is unique. If your desired name is already taken, you’ll need to come up with a new one. It’s a good idea to brainstorm a few options beforehand, just in case.
If you want to reserve your LLC name for a specific period of time (up to 120 days), you can file a Name Reservation form for a fee. Though optional, this can give you peace of mind that no one else will take your name while you finish setting up your LLC.
Tip: Even though name reservation is optional, it can be helpful for those who are planning to start the business soon but need a little extra time to complete the other steps.
2. Choose a Registered Agent
A Registered Agent is an individual or company designated to receive legal documents, government notices, and tax forms on behalf of your LLC. In Indiana, your LLC must have a Registered Agent with a physical address in the state.
The role of a Registered Agent is critical, as they are responsible for ensuring that your LLC receives important documents, such as service of process (in the event of a lawsuit), compliance notices, and tax forms. If you do not have a physical presence in Indiana, you will need to hire a Registered Agent service.
There are two primary options for your Registered Agent:
- An individual: You can choose yourself, another member of your LLC, or someone you trust. However, that person must have a physical address in Indiana and be available during normal business hours to receive legal notices.
- A Registered Agent service: Many LLC owners opt for a professional Registered Agent service. These services often provide additional benefits, such as privacy protection, compliance reminders, and document forwarding.
While you can act as your own Registered Agent, it’s often more convenient to hire a service. This is especially true for out-of-state business owners, as it ensures your LLC remains in compliance with state regulations.
Recommendation: If you’re looking for a reliable Registered Agent service, companies like Northwest Registered Agent are often recommended. They offer privacy protection, which means they will use their address instead of yours on public documents, helping to keep your personal address private.
3. File Articles of Organization
The next step is to officially create your LLC by filing the Articles of Organization with the Indiana Secretary of State. This form is required to register your LLC in Indiana, and it provides essential information about your business.
To file your Articles of Organization, you will need to provide the following details:
- LLC name: The name you selected in Step 1.
- Principal address: This is the address where your business operates.
- Registered Agent information: The name and address of your Registered Agent.
- Management structure: Indiana allows you to choose between two management structures for your LLC:
- Member-managed: All members (owners) of the LLC are responsible for managing day-to-day operations.
- Manager-managed: A designated manager, who may or may not be a member, is responsible for running the business.
- Duration: Most LLCs are perpetual, but if you prefer, you can set a specific end date for your LLC’s existence.
Filing Fee: The filing fee for the Articles of Organization is $95 when done online. If you prefer to file by paper, the fee may be slightly higher.
Processing Time: When filing online, your Articles of Organization are usually processed within one business day. Paper filings can take a bit longer, up to 7-10 business days.
Once your Articles of Organization are filed, the state will officially recognize your LLC. You will receive a confirmation, and your business will be registered with the Indiana Secretary of State.
4. Create an Operating Agreement
Although Indiana does not legally require LLCs to have an Operating Agreement, it is highly recommended. This document outlines how your LLC will operate, including ownership structure, member responsibilities, and management duties.
The Operating Agreement will help clarify internal matters, such as:
- How profits and losses will be distributed among members.
- The process for adding or removing members.
- How decisions will be made, including voting rights.
- How to handle disputes between members.
- What happens if the LLC is dissolved.
Having a written Operating Agreement can help avoid conflicts and ensure your business runs smoothly. It is an essential document for any LLC, even if you are the sole member.
While the Operating Agreement is an internal document and is not required to be filed with the state, it is crucial to have one in place. It acts as the foundation of your LLC’s operating procedures and can protect your business from future misunderstandings.
5. Get an EIN for Your LLC
An Employer Identification Number (EIN) is a unique nine-digit number assigned by the IRS to identify your business for tax purposes. You will need an EIN if your LLC has more than one member, if you plan to hire employees, or if your LLC will be taxed as a corporation.
You can apply for an EIN directly from the IRS, and the process is simple and free. Here’s how to get your EIN:
- Visit the IRS website and complete the online EIN application.
- The process is free and typically takes only a few minutes to complete.
- After applying, you’ll receive your EIN immediately.
Having an EIN is essential for opening a business bank account, filing taxes, and hiring employees. It also protects your personal Social Security Number (SSN) from being used in business-related matters.
What to Do After Your LLC is Approved
Once your LLC is approved, you’ll need to complete a few additional tasks to ensure your business remains in compliance with Indiana state laws.
File Your Biennial Business Entity Report
In Indiana, LLCs are required to file a Biennial Business Entity Report with the Secretary of State every two years. This report provides updated information about your LLC, such as its principal address, Registered Agent, and members.
The Biennial Report is due on the last day of the month in which your LLC was formed. For example, if your LLC was formed on March 15, the report will be due on March 31, every two years thereafter.
The fee for filing the Biennial Report online is $32. The paper filing fee is higher, typically $50. To avoid penalties or late fees, make sure to file your report on time. If you fail to file the report, your LLC may be administratively dissolved.
Open a Business Bank Account
Once your LLC is officially formed, you’ll want to open a business bank account. Keeping your business finances separate from your personal finances is critical for maintaining your LLC’s limited liability status.
To open a business bank account, you’ll need the following:
- EIN: The IRS-issued number.
- Articles of Organization: Proof that your LLC is registered.
- Operating Agreement: To show the structure and rules of your LLC.
- Valid ID: To verify your identity.
Having a separate business bank account will make managing your finances easier, simplify tax filings, and help maintain the legal separation between your personal and business assets.
Get the Necessary Permits and Licenses
Depending on the type of business you’re starting, you may need local, state, or federal licenses or permits to operate legally. Indiana businesses may require:
- Local business licenses from your city or county.
- State-level licenses, especially if you’re in regulated industries like health care, food service, or construction.
Check with the Indiana Department of Revenue, the Secretary of State, and local government offices to ensure you’re meeting all licensing and permit requirements.
How Much Does It Cost to Start an LLC in Indiana?
Starting an LLC in Indiana involves several fees, including:
- Articles of Organization filing fee: $95 (online).
- Biennial Business Entity Report: $32 (online filing).
- Registered Agent service: Costs vary, but generally range from $49 to $300+ per year.
The total estimated initial cost to start an LLC in Indiana is typically between $176 and $447+. The exact amount depends on the services you use and whether you choose to file by paper or online.
LLC Taxation in Indiana
Indiana LLCs are generally subject to state income tax and federal taxes. Indiana’s state income tax rate is currently 3.23%. Additionally, if your LLC sells taxable goods or services, you may need to collect sales tax, which is 7% in Indiana.
As an LLC, you also have the option to elect corporate tax treatment by filing the appropriate forms with the IRS. This is often beneficial for LLCs that expect to retain profits rather than distribute them to members.
Conclusion
Starting an LLC in Indiana is a relatively simple and affordable process. By following the steps outlined in this guide, you’ll be well on your way to forming your LLC and running a successful business in the Hoosier State.
Remember to choose a unique name, designate a reliable Registered Agent, file the Articles of Organization, and create an Operating Agreement to set a strong foundation for your LLC. Lastly, ensure you maintain compliance with state laws by filing the Biennial Report and keeping up with necessary licenses and permits.
With the right tools and resources, your Indiana LLC will be up and running smoothly in no time!
FAQs About Starting an LLC in Indiana
Do I need to live in Indiana to form an LLC?
No, you do not need to be a resident of Indiana to form an LLC there. However, you must designate a Registered Agent with a physical address in the state.
Can I file the Articles of Organization by mail?
Yes, you can file the Articles of Organization by mail, though online filing is faster and cheaper.
Do I need an Operating Agreement?
While not required by Indiana law, an Operating Agreement is highly recommended to clearly define your LLC’s ownership and management structure.
How often do I need to file the Biennial Business Entity Report?
You must file the Biennial Report every two years by the last day of the month in which your LLC was formed.