An LLC, or limited liability company, is a business structure created and regulated by Indiana state law as its own legal entity, therefore protecting members of an LLC from liability for debt incurred by the company, which is desirable for many potential business owners. Indiana has unique and specific laws regarding how to create and manage an LLC; these laws must be followed correctly to form and maintain your Indiana LLC.
Research the name under which you would like your LLC to operate. The name of your LLC must be distinguishable from the names of all other LLCs on file in the state of Indiana, and your company must identify itself as an LLC in its name, according to Indiana Code 23-18-2-8 Sections 1 and 3. A state database is available in which you can check to see if the proposed name of your LLC is taken by another Indiana business (see Resources).
File Articles of Organization with the Indiana Secretary of State. The Secretary of State's website provides the forms, which ask you to identify the name and address, registered agent and intended duration of your LLC. There is a section in which you will be asked to identify whether the LLC is run by its members or by managers; managers do not have to be members of the LLC. Keep in mind that the registered agent, or individual who is responsible for accepting mail and process of service on behalf of the LLC, must be a resident of Indiana, although the agent need not be a member of your LLC. Filing can be done online (see Resources); the filing fee is $90 as of November 2010.
Apply for an employee identification number, or EIN, from the Internal Revenue Service (See Resources). You will not be unable to hire employees or open a bank account in your LLC's name without an EIN. If you plan on hiring employees, Indiana law requires that businesses with employees other than the business owner must have workers' compensation insurance. Also notify the Indiana Department of Revenue for employee withholding tax purposes.
- The Indiana Secretary of State requires all LLCs to file a Business Entity Report every two years. The form can be filed online. The filing fee is $30 as of November 2010.
- An operating agreement, or document that details how and by whom the company is managed, is not required by state law. However, if an operating agreement is created, it can sometimes supersede default state law that may govern your LLC if you do not have an operating agreement.