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Last Updated on September 24, 2024 by Dr. Gabriel O’Neill, Esq.
Starting your own business is exciting and rewarding, but navigating Indiana’s registration process might feel overwhelming, especially for newcomers. Don’t worry! With the right guidance and resources, registering your business in Indiana can be straightforward and stress-free.
This blog post provides a step-by-step guide designed to simplify the business registration process in Indiana. We also include helpful tips and tools to make things easier. Whether you’re launching a new venture or formalizing an existing one, our guide breaks everything down into 7 easy steps.
To address any challenges you may face, we’ve highlighted top services like Northwest Registered Agent to assist you along the way. Let’s dive in and start your business registration journey in Indiana!
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How to Register Your Business in Indiana in 7 Simple Steps
The process of registering a business in Indiana is uncomplicated when armed with the necessary knowledge. Adhere to these 7 essential steps to expedite the establishment of your Indiana-based enterprise.
Step 1: Select Your Business Entity
The optimal business entity for your venture depends on the nature of your enterprise and your growth objectives. We have previously discussed the various incorporated and unincorporated business structures available in Indiana, and now we will delve deeper into each option and its functions.
Note that you will only need to register your business with the Indiana Secretary of State if you opt for a structure that necessitates incorporation, such as the following:
Sole Proprietorship
A sole proprietorship is the most straightforward business structure in Indiana, where the owner and the business are legally viewed as a single entity. Consequently, the owner is personally accountable for the business’s debts and liabilities. It’s simple to establish and has minimal legal and administrative requirements. In Indiana, you do not need to register your sole proprietorship with the state, but you may need to acquire local permits or business licenses.
General Partnership
A general partnership is a business owned by two or more individuals who share in the profits and losses. Each partner is personally liable for the business’s debts and legal obligations. In Indiana, you do not need to register a general partnership with the state, but you may need to file a “Fictitious Business Name Registration” in the county where your business operates.
Limited Partnership (LP)
In Indiana, a limited partnership comprises one or more general partners who manage the business and possess unlimited personal liability and one or more limited partners who contribute capital but have limited liability. To establish an LP in Indiana, you must file a “Certificate of Limited Partnership” with the Indiana Secretary of State.
Limited Liability Company (LLC)
An LLC is a versatile business structure that merges the liability protection of a corporation with the tax advantages and simplicity of a partnership. In Indiana, you need to file “Articles of Organization for a Limited Liability Company” with the Indiana Secretary of State and create an Operating Agreement to delineate the company’s management and ownership structure.
Corporation
A corporation is a legal entity distinct from its owners (shareholders) that provides limited liability protection. There are two types of corporations in Indiana:
- C-corporations
- S-corporations
To establish a corporation in Indiana, you must file “Articles of Incorporation for a Business Corporation” or “Articles of Incorporation for a Nonprofit Corporation” with the Indiana Secretary of State, depending on your business type. Corporations demand more formalities, such as creating bylaws, issuing stock, and conducting regular board and shareholder meetings.
Select the business entity in Indiana that best aligns with your needs in terms of liability protection, taxation, and management requirements. Consult with a legal or business professional if you need assistance in making this decision.
Step 2: Select a Unique Business Name
In Indiana, there are three primary methods for naming your business: registering a legal entity name, acquiring a trademark, or registering a legal name while operating under another. Naming regulations vary from state to state, so it’s essential to familiarize yourself with Indiana’s specific requirements.
The approach you select for naming your business in Indiana will be determined by your entity’s unique needs and circumstances.
You may opt to pursue all three methods to secure exclusive rights to your business name, or you may simply choose one of the three options. Although not mandatory, it’s often advantageous to maintain consistency across all registration methods.
Here is a more detailed overview of each naming option in Indiana:
Legal Entity Name
Indiana businesses are required to register a legal entity name, which the state utilizes to identify the company. Entity names must be distinct, safeguarding against the possibility of another business sharing the same name.
Indiana naming regulations include guidelines for company suffixes (e.g., LLC, LP, or Corp) and mandate that the name accurately represents the nature of the business being registered. You can verify name availability using the Indiana Secretary of State’s INBiz database.
Trademark
A trademark in Indiana serves as a form of intellectual property that offers national protection for a business name or logo. To secure a name or logo, it’s crucial to conduct a trademark search in the USPTO database to verify it has not already been registered.
Upon registering a trademark, it prohibits others from using the same or similar name or logo for comparable goods or services, providing nationwide protection. However, acquiring a trademark does not automatically authorize the unrestricted use of the name or logo in all situations.
Doing Business As (DBA)
Indiana also permits registering your business under one “official” name while operating under another, known as a Doing Business As (DBA) name. To do this, you must file a Certificate of Assumed Business Name with the Indiana Secretary of State. DBA names are subject to federal trademark laws, but there is no requirement for them to be unique at the state level.
By comprehending and evaluating these naming options, you can effectively register your business name in Indiana and safeguard your brand identity.
Step 3: Consider Taxes and Other Costs in Indiana
Indiana LLCs are subject to a number of state and federal taxes. The most common taxes that Indiana LLCs will need to pay are:
- Indiana Corporate Income Tax: If your LLC is incorporated in Indiana and does business in the state, you may be required to pay the Indiana Corporate Income Tax. The current rate is 5.25%, but it’s scheduled to decrease to 4.9% by July 2021
- Indiana Income Tax: Any employees of your LLC will also need to pay state income tax. The Indiana income tax rate is 3.23%, but some counties within Indiana have an additional tax rate making the combined tax rate range from 3.73% to 6.13%
- Sales Tax: Indiana has a statewide sales tax of 7%. In addition, many counties and cities also have their own sales taxes
In addition to these taxes, Indiana LLCs may also be subject to a number of other taxes, such as:
- Franchise Tax: Indiana LLCs are required to pay a franchise tax of $150 per year
- Unemployment Insurance Tax: Indiana LLCs with employees are required to pay unemployment insurance taxes. The rate is 1.2% of the first $9,000 of wages paid to each employee
- Property Tax: Indiana LLCs that own real property in the state may be subject to property taxes. The rate of property tax varies depending on the location of the property
It’s important to note that these are just a few of the taxes that Indiana LLCs may be subject to. The specific taxes that your LLC will be required to pay will depend on a number of factors, such as the type of business you’re operating, the amount of income you generate, and the number of employees you have.
If you’re forming an LLC in Indiana, it’s important to consult with a tax advisor to determine which taxes you will be required to pay.
To streamline the registration process, entrepreneurs in Indiana can leverage online services such as ZenBusiness. ZenBusiness extends a multitude of services designed to assist business owners with their registration, which includes filing necessary documents with the Secretary of State, acquiring an Employer Identification Number (EIN), and formulating an operating agreement.
Additionally, they offer sustained compliance assistance to ensure businesses maintain good standing with state authorities.
Step 4: Register and Acquire Licenses and Permits in Indiana
To ensure compliance with the necessary legal requirements, you need to apply for licenses and permits for your business. Here are the steps involved:
Tax Registration: If you plan to sell goods in Indiana, you must register with the Department of Revenue (DOR) to collect sales tax. Additionally, if you have employees, you must register with the DOR for employer withholding taxes. You can conveniently register for these taxes, along with other business taxes, by submitting Form BT-1 (Business Tax Application) online through the DOR website.
EIN (Employer Identification Number): If your business has employees or is taxed separately, you must obtain a federal Employer Identification Number (EIN) from the IRS. Even if it’s not mandatory, obtaining an EIN is often beneficial for business purposes. Banks usually require an EIN to open a business account, and other companies you work with may request an EIN for payment processing. You can apply for an EIN online through the IRS website, and there is no filing fee.
Regulatory Licenses and Permits: Depending on your business activities, you may require various licenses and permits in categories such as health and safety, contractor services, daycare services, financial services, transportation, and professional licensing. For local licenses and permits, check the websites of the cities or counties where your business operates.
Professional and Occupational Licenses: If you or your employees work in specific professions or occupations, you may need professional or occupational licenses. Indiana’s Professional Licensing Agency (PLA) oversees many regulatory boards and commissions responsible for regulating licensed professions and occupations. You can find a list of the professions and occupations under the PLA’s supervision on their website.
Remember to consult the relevant resources and websites for detailed information and specific requirements related to licenses and permits based on your business type and location.
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Step 5: Establish a Business Bank Account in Indiana
Once you have obtained your EIN, you can proceed to open a business bank account in Indiana.
Indiana state laws mandate that LLPs, LLCs, and corporations maintain separate business bank accounts. However, sole proprietors and unincorporated partnerships are not legally required to differentiate between personal and business accounts.
To open a business account in Indiana, visit a local bank and complete the necessary documentation. It’s advisable to research and compare the offerings, rates, and benefits of various banks before finalizing your choice.
Even for sole proprietors and unincorporated partnerships in Indiana, maintaining a distinct company bank account is recommended to segregate personal and business finances. Should you choose to incorporate your business in the future, this practice will alleviate potential difficulties.
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Step 6: Safeguard Your Intellectual Property in Indiana
As you establish your business in Indiana, it’s vital to protect any intellectual property (IP) that may be intrinsic to your company’s success.
This may include securing your brand’s name and logo against unauthorized use by others or shielding your product designs or creative works (e.g., literary, artistic, or musical creations) from duplication.
To achieve this protection in Indiana, consider the following options, and initiate the process as soon as feasible to prevent others from exploiting your IP:
Trademark
A trademark in Indiana consists of a unique symbol, word, phrase, or design that sets a product or service apart from others in the market. To ensure legal protection, trademarks must be registered with the United States Patent and Trademark Office (USPTO).
The registration process usually takes between four to six months. Upon registration, your trademark is protected nationwide, and legal action can be taken against unauthorized users.
By registering your trademark with the USPTO in Indiana, you’re securing your brand and reputation and gaining the legal means to combat unauthorized use.
Copyright
In Indiana, copyright law safeguards original works of authorship, including literary, dramatic, musical, artistic, and specific intellectual creations. This encompasses written material, software, web content, films, sound recordings, images, and other forms of creative expression.
As the creator of a new work in Indiana, you’re automatically granted copyright protection. With exclusive rights to distribute, reproduce, create derivative works, and sell intellectual property, you can control the use of your work.
For additional legal protection and evidence of ownership, you may opt to register your copyright with the U.S. Copyright Office. Registering your copyright in Indiana allows you to defend your work against infringement and enforce your rights in court if necessary.
Patent
If your business in Indiana involves inventing a novel product or piece of machinery, obtaining a patent is crucial. A patent grants the holder exclusive rights to an invention, preventing others from manufacturing, selling, or importing the patented item for a specific duration.
The patent process is intricate and lengthy, sometimes taking up to five years to complete. Consequently, it’s essential to begin the patent application process as early as possible if you have a unique invention to protect. Applications are submitted to the United States Patent and Trademark Office (USPTO).
By safeguarding your intellectual property in Indiana, you can secure your brand, products, and creations, ensuring your business maintains a competitive advantage and continues to thrive.
Step 7: Establish a Robust Payment Framework for Your Indiana Business
To guarantee that your Indiana-based enterprise is prepared to serve clients immediately upon registration, it’s crucial to implement a seamless, streamlined payment acceptance process.
Numerous payment processing solutions are available, providing straightforward interfaces and simple integration with your online presence or point-of-sale (POS) system. Notable options encompass Square, Stripe, and PayPal. These systems afford flexibility and ease in setting up and tailoring to align with your business objectives.
These payment processors facilitate the acceptance of an extensive range of payment options, such as credit and debit cards, ACH transfers, digital wallets like Apple Pay and Google Pay, and more. Opting for a dependable payment processing service enables customers to utilize their preferred methods on a secure platform, guaranteeing a smooth transaction experience for all parties involved.
In addition to selecting a payment processor, it’s essential to ensure your sales tax compliance in Indiana. This entails acquiring an Indiana Sales Tax License from the Indiana Department of Revenue, allowing you to collect sales tax on taxable products and services.
With your payment framework in place, your Indiana-based enterprise will be well-equipped to serve customers and generate revenue securely and efficiently. By adhering to these guidelines, you will be on track to create a legally compliant business in Indiana.
Top 5 Business Registration Services for Indiana Entrepreneurs
As an entrepreneur or small business owner looking to register a business in Indiana, there is a range of business registration services available to assist you. These services offer various solutions to support businesses in their establishment, compliance with state and federal regulations, and growth.
Below are some of the top business registration services tailored for Indiana entrepreneurs:
ZenBusiness
ZenBusiness is an online business registration platform specializing in business formation, registered agent services, annual report filing, and more for Indiana businesses. They provide affordable pricing and packages, including personalized support and resources to ensure compliance and promote business growth. Their user-friendly website streamlines the registration process, making it simple for entrepreneurs to establish their businesses in Indiana.
Swyft Filings
Swyft Filings is a renowned business registration service offering quick and straightforward business formation, including LLC formation, incorporation, and compliance for Indiana entrepreneurs. They supply personalized support and resources to guide businesses through the formation process and ensure compliance with state and federal regulations. With a user-friendly website and competitive pricing, Swyft Filings simplifies the registration process for entrepreneurs.
Tailor Brands
Tailor Brands is an online branding and design service that helps Indiana businesses develop a polished and consistent brand identity. They provide a variety of branding packages, including logo design, business card design, and social media branding.
In addition to designing tools and resources for businesses to create and customize their branded assets, Tailor Brands can assist in crafting a professional brand image to attract clientele, even though it’s not a conventional business registration service.
Northwest Registered Agent
Northwest Registered Agent is a reputable online business registration service specializing in registered agent services, compliance management, and document filing for Indiana businesses. Known for exceptional customer service and quality, they offer personalized support to ensure businesses remain compliant with state and federal regulations. They also provide various business formation services for LLCs, corporations, and nonprofits.
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Bizee (Previously Incfile)
bizee is an online business registration service offering fast and cost-effective LLC formation services for Indiana entrepreneurs. They provide packages that encompass registered agent services, compliance management, and document filing. bizee user-friendly and efficient platform simplifies the business registration process, and they offer ongoing support and resources to promote compliance and business growth.
By evaluating and comparing these business registration services, Indiana entrepreneurs can identify the most suitable service to meet their unique requirements, streamlining the registration process for a smooth and efficient start.
Business Registration Laws in Indiana
When setting up a business in Indiana, entrepreneurs must comply with various laws and regulations that govern business operations. It’s essential to understand these requirements to ensure your business remains compliant and avoids any legal complications. Here are the key laws you should be aware of as a business owner in Indiana:
Business Entity Registration
Indiana state law requires all businesses to register their entity type, such as LLC, corporation, partnership, or otherwise, with the Indiana Secretary of State. The type of entity determines the registration process.
Trade Name Registration
If you plan to conduct your business under a name different from its legal name, you must register the trade name. According to Indiana law, LLCs and corporations register their trade names with the Secretary of State. For sole proprietorships or general partnerships, this registration happens at the county level.
Trademark Registration
Safeguarding your business’s identity is crucial. If you want to protect your business’s brand or logo, you can register trademarks with the Secretary of State. This registration helps ensure no other business can use your brand identity.
Professional Licensing
Indiana has specific licensing laws for certain professions and industries. These licenses are administered by the Professional Licensing Agency (PLA) in Indiana. If your business falls within these sectors, make sure to understand and fulfill these licensing requirements.
Local Business Licensing
In addition to statewide licensing, local government units in Indiana may require businesses to hold local licenses. The requirements for these licenses vary depending on the locality and the nature of your business.
Corporate Naming
When selecting a name for your corporation, Indiana law mandates it should not be easily confusable with an existing business. Therefore, it’s important to choose a distinct name and follow the required naming conventions.
Articles of Incorporation
If you’ve chosen to register your business as a corporation, Indiana law requires you to file Articles of Incorporation with the Secretary of State. This document contains vital information about your corporation and its operation.
Annual Reporting
To maintain good standing, corporations are required to file an annual report with the Secretary of State. Non-compliance with this requirement may result in penalties and legal complications.
Employer Identification Number (EIN)
Every business in Indiana is required to obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). This number is akin to a social security number for your business and is needed for tax filing and reporting purposes.
Foreign LLC Registration
If you own an out-of-state business and wish to operate in Indiana, you must register as a foreign LLC according to Indiana law. This step ensures you can legally conduct business across different states.
Alternative Business Formation Procedures in Indiana
Here are some alternative business formation procedures in Indiana:
Benefit Corporation (B-Corp)
If you want your business to have a social or environmental mission in addition to making profits, you can consider forming a benefit corporation. Benefit corporations are required to consider the impact of their decisions on various stakeholders, such as employees, communities, and the environment.
To form a benefit corporation, you need to file Articles of Incorporation with the Indiana Secretary of State and meet specific statutory requirements for benefit corporations.
Series LLC
A series LLC is a unique type of limited liability company that allows you to establish multiple series or compartments within a single LLC. Each series can have its own assets, liabilities, and members, providing a level of internal asset protection and separation. To form a series LLC in Indiana, you need to include specific language in the Articles of Organization when filing with the Indiana Secretary of State.
Foreign Entity Registration
If your business is already registered in another state and you want to expand your operations to Indiana, you may need to file as a foreign entity. Foreign entity registration allows your existing business to operate legally in Indiana. You will need to file a Foreign Entity Application with the Indiana Secretary of State, provide the necessary documentation, and comply with any additional requirements.
Franchise
If you’re interested in owning a franchise business, you can explore opportunities with established franchises operating in Indiana. Franchises involve a contractual relationship between a franchisor (the owner of the established brand) and a franchisee (the individual or entity granted the right to operate under the brand).
Franchise agreements typically have their own specific requirements and regulations, so it’s important to thoroughly review the franchise disclosure documents and consult with a franchise attorney before proceeding.
These are additional options for business formation in Indiana. Each option has its own advantages, legal requirements, and implications. It’s crucial to conduct thorough research, consult with professionals, and ensure compliance with all relevant laws and regulations before proceeding with any business formation method.
Benefits of Choosing Indiana for Your Business
Registering your business in Indiana can bring a variety of benefits, including:
- Competitive Business Costs: Indiana offers lower costs for businesses compared to many other states, including affordable commercial real estate, utilities, and workforce wages. These cost advantages can directly impact a company’s bottom line and contribute to its overall success.
- Manufacturing Strength: Indiana is known for its strong manufacturing base, providing ample opportunities for businesses in this sector. The state’s skilled workforce, infrastructure, and business-friendly policies create a supportive environment for manufacturing companies to thrive.
- Robust Infrastructure: Indiana boasts an extensive transportation network, including highways, railways, airports, and access to the Great Lakes. This enables businesses to conveniently connect with customers and suppliers, both domestically and internationally.
Business Registration Necessity in Indiana: Uncover the Facts
In Indiana, business registration requirements vary depending on the chosen business structure and specific circumstances. Sole proprietorships and general partnerships operating under the owner’s legal name are not required to register with the Indiana Secretary of State.
However, if they use a fictitious business name (DBA), they must register it with the appropriate county recorder’s office. Corporations, Limited Liability Companies (LLCs), and limited partnerships must register with the Indiana Secretary of State.
To ensure compliance with all applicable regulations, it’s advisable to seek professional legal or tax guidance when establishing your business in Indiana.
How to Register Your Business in Indiana – Frequently Asked Questions
What Do I Need to Register a Business in Indiana?
To establish a business in Indiana, you must decide on a suitable name, select a legal structure, and submit the required documentation to the Indiana Secretary of State. The exact prerequisites will vary based on the nature of your enterprise, but generally, you will be required to file Articles of Incorporation or Organization, designate a registered agent, and secure any relevant licenses or permits.
How Much Does It Cost to Register a Company in Indiana?
The financial obligation for registering a business in Indiana is contingent on the legal configuration of the company and the requisite submissions. A Limited Liability Company (LLC) necessitates a $90 filing fee for the Articles of Organization while incorporating an Indiana corporation demands a $90 filing fee for the Articles of Incorporation. Additional expenditures may arise depending on further filings and essential permits for the business.
Can a Foreigner Start a Business in Indiana?
Certainly, international entrepreneurs can establish a business in Indiana, provided they adhere to all pertinent legal guidelines. Foreign business owners need to secure the necessary visas or employment authorizations, as well as register their businesses with the relevant state and federal government entities.
Do I Need to Register My Online Business in Indiana?
If you’re running an online business in Indiana, registering your enterprise with the state may depend on the structure of your business and the nature of your online operations. While sole proprietorships and partnerships might not need to register, corporations and limited liability companies (LLCs) typically do. Additionally, you may have to acquire specific permits and licenses, such as a retail merchant’s certificate from the Indiana Department of Revenue.
We recommend consulting a knowledgeable attorney or accountant to ascertain the precise requirements for your business in Indiana. They can assist you in navigating the intricate rules and regulations governing businesses in the state, ensuring that you adhere to all pertinent laws and regulations.
Bottom Line on How to Register Your Business in Indiana
Ensuring your business complies with Indiana’s laws and regulations is a critical step in the registration process. By following the required steps and meeting the necessary criteria, you’ll build a strong foundation for your business. It’s important to choose a business name and legal structure that aligns with the Indiana Secretary of State’s guidelines, complete all paperwork, and secure any licenses and permits specific to your industry and location.
Using a business registration service like Northwest Registered Agent can help simplify the process and ensure you meet all regulations. Properly registering your business in Indiana is key to avoiding legal and financial issues while setting yourself up for future success.
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About the author
Dr. Gabriel O'Neill, Esq., a distinguished legal scholar with a business law degree and a Doctor of Juridical Science, is a leading expert in business registration and diverse business departments. Renowned for his academic excellence and practical insights, Dr. O'Neill guides businesses through legal complexities, offering invaluable expertise in compliance, corporate governance, and registration processes.
As an accomplished author, his forthcoming book is anticipated to be a comprehensive guide for navigating the dynamic intersection of law and business, providing clarity and practical wisdom for entrepreneurs and legal professionals alike. With a commitment to legal excellence, Dr. Gabriel O'Neill, Esq., is a trusted authority dedicated to empowering businesses within the ever-evolving legal landscape.