Looking to start a business in Indiana? Check out this blog post for everything you need to know, from the initial steps to taking your business to the next level.
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Decide the business structure
The first step in how to start a business in Indiana is to decide on the business structure. Will you operate as a sole proprietor, partnership, limited liability company (LLC), corporation, or non-profit? Each has benefits and drawbacks that should be considered before making a decision. Once you have chosen the business structure, you will need to register the business with the state.
Sole proprietorships are the most common type of business in the United States. They are easy and inexpensive to set up and usually require little paperwork. However, sole proprietorships offer the owner no personal liability protection from debts or lawsuits against the business.
Partnerships are similar to sole proprietorships in that they are easy to set up and have few formalities. There are two types of partnerships: general partnerships and limited partnerships. In a general partnership, all partners share equally in profits, losses, and liability for debts of the business. In a limited partnership, there is at least one general partner who manages the business and is liable for its debts, and there are one or more limited partners who invest money in the business but are not involved in its management and are not liable for its debts.
Limited Liability Companies (LLCs) offer owners personal liability protection from debts and lawsuits against the business. LLCs can be formed by one or more individuals, partnerships, or corporations. LLCs are more complex than sole proprietorships or partnerships and usually require more paperwork to set up.
Corporations are businesses that are formed under state law as separate legal entities from their owners. The major advantage of operating as a corporation is that it offers owners personal liability protection from debts and lawsuits against the business. The major disadvantage of corporations is that they are subject to double taxation—once at the corporate level on profits earned, and again at the shareholder level on dividends paid out of corporate profits.
Non-profit organizations must be organized for charitable, educational, religious, or other purposes approved by the IRS under section 501(c)(3) of the Internal Revenue Code. Non-profits exempt from federal income tax must apply to the IRS for recognition of exemption. Donations to non-profits may be tax deductible for donors
Get an EIN
You will need to get an Employer Identification Number (EIN) from the IRS. You can apply for an EIN online, by mail, or by fax. If you apply online, you will need to have a Social Security number, a business name and address, and a business telephone number.
Once you have your EIN, you will need to register your business with the Indiana Secretary of State’s office. To do this, you will need to fill out a Business Entity form and submit it along with the filing fee.
You will also need to register your business with the Indiana Department of Revenue. To do this, you will need to fill out a Business Tax Registration Application and submit it along with the registration fee.
After you have registered your business with the state of Indiana, you will need to get a business license from the city or county where your business is located. To do this, you will need to contact your local Chamber of Commerce or Economic Development office.
File the Articles of Incorporation
Before you can start your business, you need to file the Articles of Incorporation with the Indiana Secretary of State. You will need to provide:
-The name of your corporation
-The address of your registered office
-The names and addresses of your directors
-The names and addresses of your incorporators
-The purpose of your corporation
You will also need to pay a filing fee. The Articles of Incorporation must be signed by all incorporators.
Create corporate bylaws
After you’ve chosen the form of business you want to create and registered your business’ name, you’re ready to move on to the next step: creating corporate bylaws. Corporate bylaws establish the internal rules and procedures for running your company.
A corporate bylaw template is a good place to start when creating your own bylaws, but be sure to tailor the template to fit the specific needs of your company. Bylaws should be reviewed and updated on a regular basis as your business grows and changes.
Once you’ve created your bylaws, you’ll need to file them with the Indiana Secretary of State’s office. The filing fee is $30.
Appoint a board of directors
In order to incorporate in Indiana, you must appoint a board of directors for your corporation. The board of directors will manage the affairs of the corporation and make decisions on behalf of the shareholders. You must appoint at least one director, but there is no maximum number. You may also act as a director yourself.
Hold the first board meeting
The first step is to hold the inaugural board meeting. This is when the organizing directors take their positions. The bylaws are put into effect, and policies are enacted that will guide the startup’s future. You will also want to set a budget for the upcoming fiscal year and elect officers who will serve until the next annual meeting. The board of directors may also choose to appoint a CEO at this time.
Get a business license
You will need to get a business license from the Indiana Department of Revenue. You can do this by mail or online. You will need to provide your business name, address, and contact information. You will also need to provide a description of your business.
Get a sellers permit
To get a seller’s permit, you must first register your business with the state of Indiana. You can do this by going to the Indiana Secretary of State’s website and filling out a business registration form. After you have registered your business, you will be able to apply for a seller’s permit.
When you apply for a seller’s permit, you will need to provide some basic information about your business, such as your business name and address. You will also need to provide proof that you are registered with the state of Indiana. After you have submitted your application, you will be issued a seller’s permit.
Once you have obtained a seller’s permit, you will be able to start selling products in Indiana. You will need to display your permit in a visible location at your place of business. You will also need to keep track of your sales and collect sales tax from your customers.
Register for state and local taxes
You will need to register your business with the Indiana Department of Revenue for state tax purposes. If you will be hiring employees, you will also need to register with the Indiana Department of Workforce Development for unemployment tax purposes.
In addition, if you are located in a city or county that collects income tax, you will need to register with that taxing authority. Finally, if you will be selling any type of commodity, you will need to obtain a license from the Indiana Department of Revenue.
Open a business bank account
You will need to open a business bank account to keep your personal and business finances separate. This will make it easier for you to track your expenses and income, and will also be required if you plan to hire employees.To open a business bank account, you will need to have your business entity documentation and identification for each owner of the company.
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