Indiana LLC Guide

Table of Contents

The first step in creating your LLC is picking a unique entity name. Each state has specific requirements for naming a new LLC.

Here are the basic guidelines for naming your new LLC:

• The entity name must be distinguishable from an existing domestic or foreign entity registered within the state. In other words, if someone has already registered the entity name within Indiana, you cannot use the same entity name.
• The name of the LLC must contain the words “Limited Liability Company” or one of the abbreviations “L.L.C.” or “LLC”.
• The name of the LLC cannot include any words or phrases that indicate or imply it is engaged in a trade or business that the entity is not authorized to pursue. In addition, the name should not create a false implication of government affiliation. For example, your LLC name shouldn’t include “insurer” or “insurance company” unless licensed and registered to do business as an insurance company within the state. The LLC name shouldn’t include “college” or “university” unless the entity obtains the proper state authorization and licensing.

Like many states, Indiana has no stated restrictions on the length of the entity name. However, the IRS does have some limitations on the entity name when applying for an employer identification number (EIN).

The IRS’ online EIN application limits the number of characters to less than 70, so consider using an entity name with less than 70 characters to ensure your entity name matches the name on your CP 575 (EIN Confirmation Letter). In addition, the IRS does not allow the use of a period (.) or many other special characters. The only characters the IRS system can accept are 1) alpha (A-Z), 2) numeric (0-9), 3) hyphen (-), and 4) ampersand (&).

For example, assume you create a company using the legal name “Company ABC, Inc.” and file an EIN application the same day. The IRS will process your EIN and send you a CP 575 confirmation with the entity name “COMPANY ABC INC”. Note how the IRS does not allow the period (.) or the comma (,).

Your LLC must have a registered agent in the State of Indiana. The registered agent is a person or company that agrees to receive any process, notice, or demand required or permitted by law and other official government communications on behalf of the LLC.

The registered agent is not to be used to receive regular mail or other correspondence, such as bank statements. If you don’t have a physical office location to receive mail, consider using a virtual office and mail forwarding service. Some of the most popular providers include Northwest Registered Agent & Bizee.

The registered agent must have a physical address in Indiana and be available during regular business hours (i.e., 9 am to 5 pm, Monday through Friday). Most registered agent service providers charge between $25 and $125 annually for this service.

If you live in Indiana and want to save money, you can act as your own registered agent. Read our blog “Can I Be My Own Registered Agent” for more information.

Although you may be able to serve as your LLC’s registered agent, we recommend hiring a third-party professional service provider as your registered agent. Some of the most popular registered agent providers are Northwest Registered Agent, Bizee, and Registered Agents Inc.

To officially open your LLC, you must file the necessary organizational documents with the State of Indiana. States refer to this document as either the Certificate of Formation or the Articles of Organization.

Indiana identifies this document as the “Articles of Organization for a Domestic Limited Liability Company”. Online filings are available on the Indiana Secretary of State website. If you are forming a Series LLC, you must file “Articles of Organization for a Domestic Master Limited Liability Company”.

Here’s the information that you must include with your filing:

• Name of the Limited Liability Company: Include the full legal name of your LLC, which includes the words “Limited Liability Company” or a permitted abbreviation.
• Principal Place of Business: Enter the principal address for the LLC, which is where the company’s records will be kept. If you hire a registered agent service provider, you should use a different address from the registered agent. If you don’t have a physical office location or don’t want to use your home address for privacy reasons, consider using a mail forwarding service that allows you to purchase a designated address for a low monthly fee.
• Registered Agent: Provide the full name and physical address of the registered agent in Indiana. The registered agent must formally agree to act as your LLC’s registered agent; otherwise, the appointment is invalid.
• Duration: The Articles must include an article that confirms the duration of the entity. The duration of the company is perpetual unless otherwise.
• Management: The LLC must indicate whether the entity will be manager-managed or member-managed.
• Effective Formation Date: Most LLC filings are effective on the date received by the Secretary. Alternatively, you can specify a delayed effective filing date, which can be no later than 60 days after the filing date.
• Organizer: The Articles must include the name and signature of the person who prepares and files the document with the state.

Optional Items for a Series LLC

• Series LLC Naming Requirements: Indiana allows for the use of a Series LLC, which is called a Master Limited Liability Company. If forming a Master LLC, the entity name must be followed with an “-S”. For example, the name may include “Limited Liability Company-S”, “L.L.C.-S”, or “LLC-S”. Read our blog post “What is a Series LLC” for more information.
• Series Designations: If this is a Series LLC, the Articles must include a provision that grants the Master LLC the authority to designate one or more series. If this is a regular LLC, you do not need to include the designation.

How to Send Your Form to the State

There are several ways to file your documents with Indiana.

Online: For the fastest and most reliable processing, file your Articles of Organization online using the online services portal with the Indiana Secretary of State.

By Mail: If you prefer to paper file the document, you can complete the filing and mail the documents to the Secretary with the required fees. Ensure you include two copies of all documents (one original and one photocopy) and mail to the following address:

Secretary of State Business Services Division
302 West Washington Street, Room E018
Indianapolis, IN 46204

Remember that mailing addresses and in-person locations are often subject to change, so check the Secretary of State’s website for current addresses and other information.

LLC Filing Fees

Like many states, Indiana charges a filing fee to open an LLC. The filing fee for a domestic LLC is $100.

Most states do not require an LLC to have an operating agreement; however, it is highly recommended, even in cases where the LLC has only one member.

The LLC operating agreement is a business agreement between the members and managers that lays out the operating rules for the business. The operating agreement usually includes provisions that address ownership, member rights and responsibilities, member ownership percentages, tax considerations, allocation of profits and losses, distribution of capital, and the dissolution of the LLC.

Under Indiana LLC statutes, your LLC is not required to have a written LLC operating agreement. However, if you form a Series LLC (i.e., a Master LLC), the Master LLC must have a written operating agreement.

Your LLC needs an entity taxpayer identification number (TIN) called an employer identification number (EIN). The EIN will help the entity open bank accounts and credit cards, apply for business licenses, set up company payroll for employees, and file income tax and payroll tax returns.

The EIN application is free and can be accessed online using the IRS website. You can find the application page in the “Small Business and Self-Employed Section” of the IRS website. If you are unsure about how to complete the EIN application, you can hire a third-party provider to file the necessary application. Companies like Northwest Registered Agent can provide this service.

Sometimes, the LLC is ineligible to apply online, and it must paper file or fax the IRS Form SS-4 to the appropriate IRS office. For example, an LLC with non-U.S. ownership may be unable to use the online application. View our post “Form SS-4 (Application for EIN)” for more details and video tutorials on EIN filings for an LLC with non-U.S. ownership.

Once the EIN is approved, the LLC receives a CP 575 (EIN Confirmation Letter), which assigns the EIN and confirms the default federal tax treatment based on the number of LLC members. A single-member LLC is, by default, a disregarded entity, while a multi-member LLC is a partnership.

If the LLC desires to change its tax classification to either an S Corporation or C corporation, the LLC would need to separately file Form 2553 (Election by Small Business Corporation) or Form 8832 (Entity Classification Election).

The LLC should open a business checking account using the LLC name, EIN, and company address. As an LLC owner, you do not want to use your personal bank account to receive payments and pay company expenses. Commingling business and personal accounts can create issues for the LLC and its members, such as piercing the company veil by challenging the entity’s separate existence.

To open a business bank account, you’ll generally need the following information and documents:

• The LLC’s Certificate of Formation or Articles of Organization.
• The LLC’s operating agreement, if applicable.
• The LLC’s EIN with a copy of the IRS CP 575 confirmation notice.
• The name, address, and U.S. taxpayer ID number for any substantial owner of the LLC. A substantial owner generally owns more than 25% of the company.
• Provide a completed and signed Form W-9 (Request for Taxpayer Identification Number and Certification). A foreign-owned disregarded LLC may be required to provide a Form W-8. View our blog post “Form W-8 Withholding Certificate – Which One Do You Need?” for more information.

When choosing a business bank account, there are many factors to consider. Those factors may include account fees, minimum balance requirements, monthly transaction limits on deposits and withdrawals, interest rates on savings products, bank solvency and stability, access to credit, and the quality of their customer service.

Popular banking options for new small businesses include Wise and Mercury.

A business credit card is critical for making business purchases and paying expenses. By opening a credit card, you open a credit profile for your LLC. Building credit history for your business is just as important as building credit for an individual. A solid business credit score and positive history will make obtaining loans, lines of credit, and other financing easier for your LLC.

For more information on banking products, please visit the “Banking & Credit” section of our website.

Beginning January 1, 2024, there are new reporting requirements for entities that are domestic or foreign reporting companies. The Corporate Transparency Act (CTA) implemented these new filing requirements, which require all reporting entities to provide information about beneficial owners and company applicants to the Financial Crimes Enforcement Network (FinCEN).

A domestic LLC is an entity formed within the United States and is generally classified as a domestic reporting company that must file these reports with FinCEN.

What are the Filing Deadlines for an Initial BOI Report?

The filing deadline for an initial BOI report depends on when you opened the LLC. If you opened the LLC before January 1, 2024, the LLC must file its initial BOI report on or before January 1, 2025. If you opened the LLC in 2024, the LLC must file its initial BOI report within 90 days of the entity formation date. If you opened the LLC on or after January 1, 2025, the LLC must file its initial BOI report within 30 days.

What are the Filing Deadlines for a Corrected/Updated BOI Report?

The LLC must file an updated report when there is a change to previously reported information about the company or its beneficial owners. The LLC must file a corrected report if the previously reported information was incorrect when originally submitted.

The LLC must file an updated or corrected report within 30 calendar days of the change in information or discovery of the inaccuracy.

What Information Must be Reported?

The principal purpose of BOI reports is to report information on the natural persons who beneficially own or control a company and the persons who prepare and file the organizational documents.

A beneficial owner includes an individual who exercises substantial control over the reporting company or owns or controls at least 25% of the ownership interests in the reporting company. A company applicant is an individual who directly files the document that creates the company (e.g., the Articles of Organization or Certificate of Formation). A maximum of 2 individuals may be reported as company applicants. There is no limit on the number of beneficial owners included in a BOI report.

For a sample BOI filing for an LLC formed in 2024, view our blog post “How to File BOI Report – Example for Single Member LLC,” which includes a related video tutorial.

Here are some other items you should consider when opening your LLC.

Annual Reporting in the State

Like many states, your Indiana LLC must comply with regular filing and reporting obligations to maintain good standing with the state. The state may administratively dissolve the LLC if the entity does not remain in good standing.

Each LLC must file a Business Entity Report (BER) every two years. The first report is due two years after the business is formed and registered. The due date is the end of the same month the business was organized. For example, if you open an Indiana LLC on June 15, 2022, your first BER is due by June 30, 2024. The filing fee to submit a BER is $32 if filed online, or $50 if filed via paper filing.

More information can be found in the Business Filing section of the Indiana Secretary of State website.

Company Payroll & Related Taxes

Most early-stage companies do not have employees because the owners find themselves bearing all of the responsibility to getting the company up and running.

However, if you plan to hire employees for your new LLC, consider using a payroll service provider to manage payroll and maintain compliance with federal, state, and local payroll tax obligations. Companies like Wave and Gusto Payroll have a combined accounting and payroll service platform.

You’ll need to register your LLC for unemployment taxes through the Indiana Department of Workforce Development and a withholding account through the Indiana Department of Revenue. 

Launch a Company Website

Launching a website for your new business is essential because it establishes your online presence, making your brand accessible to a global audience 24 hours a day.

A website builds credibility, allowing potential customers to learn about your products or services, read testimonials, and contact you for more information.

Many business create their website using WordPress because it is user-friendly, flexible, and highly customizable. Select a web hosting service and purchase a domain name to get started. You can check out hosting providers like Bluehost, Hostgator, and WP Engine.

Virtual Mailing Address & Mail Forwarding Services

If you are a new entrepreneur running your business from home, consider using a virtual mailbox and mail forwarding service provider.

A virtual office address provides a physical address rather than a P.O. Box. The virtual office enhances the company’s credibility and provides the business owner some privacy protection by preventing them from using their home address for contact information, invoicing, and other correspondence.

A third-party mail forwarding service provider will receive and open your mail, scan the documents, and upload those documents to a secure portal for your review. If you need to obtain the original document, the provider can forward the original mail to your residential address for a small fee.

You can check out mail forwarding providers such as Northwest Registered Agent and Bizee.

Business Licenses & Insurance

Every LLC should have the proper business licenses and insurance to ensure the business stays compliant with all local and federal regulations.

In Indiana, not every LLC is required to obtain a business license. Permits and licenses are only required if the LLC is engaged in a particular business activity within the state. The license requirements vary by county, city, or municipality where the business operates, so it is always best to check with local authorities for business license and permit requirements.

Depending upon the type of activities conducted by the business, you’ll want some form of business insurance to protect the LLC and its owners against future risks and other liabilities. Consider using a provider like Next Insurance to get a quote.

Annual Income Tax Filings

All U.S. companies, including LLCs, must comply with all federal, state, and local tax filing obligations. A U.S. LLC is, by default, a pass-through entity for federal tax purposes, meaning the entity itself is not subject to income taxes because the earnings are passed through to the LLC members and reported on their respective income tax returns.

For a new Indiana LLC, the tax filing obligations will largely depend upon the tax classification of the LLC (i.e., is the entity a partnership, S corporation, C corporation, or a disregarded entity).

For example, a multi-member LLC treated as a partnership for federal tax purposes should file an annual Form 1065 (US Return of Partnership Income) and an Indiana Form IT-65 (Indiana Partnership Return).

For more information on business taxes for LLCs, please visit the “Business Taxes“ section of our website.

Payment Processing Services

Most customers expect to be able to pay for goods and services using a debit or credit card. If your business plans to accept credit & debit card payments from customers, you’ll need to partner with a credit card processing company to receive these payments. Some of the most popular choices for credit card processing are Stripe, Paypal, and Wave Invoicing.

Processing credit & debit card payments usually result in a processing fee, which is a fixed percentage of the payment amount. For example, suppose you run an online store, and a customer purchases a product for $50. The payment processor may charge a 3% processing fee on the $50 sale. The processor will keep a fee of $1.50 (3% times $50) and deposit the remaining $48.50 into your company bank account.

Summary

Starting an LLC in Indiana is the first step to launching your new business venture. Our state LLC guide helps you navigate the various steps and complete the process as smoothly as possible.

If you need help and want to hire a third-party service provider, entity formation service providers can help you complete each step of the process.