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How Much Does an LLC Cost Iowa?
How Much Does an LLC Cost in Indiana?
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Indiana earned a reputation as one of the best places to start a business in the nation. The Hoosier State charges only moderate Limited Liability Company (LLC) formation and annual fees. It also touts a 77 percent business success rate due to its pro-growth environment. Entrepreneurs reportedly have access to an outstanding $24,502 average financial support in a state known for its favorable cost of living index.
Although state officials have worked diligently to make Indiana an attractive place to launch an enterprise, the creation of a legally recognized Indiana LLC still presents challenges. People with innovative ideas who know how to provide goods and services better and less expensively are tasked with filing complicated documents and paying fees. When starting a new business, hard-working professionals need to know two things. How does the filing process work? And how much does an LLC in Indiana cost? You’ll have an accurate idea about both after reading the following.
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General Steps and Costs When Forming an Indiana LLC
Creating an Indiana LLC requires careful budgeting, planning and an ability to patiently follow a step-by-step process. As you navigate the Indiana Secretary of State’s business portal, you’ll be tasked with conducting refined searches, downloading forms or filling them out digitally, and filing official documents. At almost every juncture, you will be required to pay processing fees.
Naming Your Indiana LLC
You will need to conduct online research to identify a unique business entity name. It may be prudent to jot down a list of possible catchy business names to ensure you come away with one that hasn’t already been taken. Using the Secretary of State platform, click on the Business Search tab. Enter names from your preferred list until you find one that is “distinguishable” from others. Once you have settled on an unused moniker, you can either reserve the name, register it as yours, or add a fictitious name, also known as a “doing business as” (DBA).
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Business names can be reserved for 120 days for $20. -
Renewing a reserved business entity name for 30 days costs an additional $10. -
DBA fees differ by county, ranging from $10 to $35.
Filing Certificate of Organization
To gain legal approval to operate an organization in Indiana, you will need to file Articles of Organization. This document will be reviewed by the Indiana Secretary of State. The process typically checks the business entity name and DBA against the database to ensure your Indiana LLC cannot be mistaken for another. You’ll need to provide personal identification information, a physical address and a registered agent service provider, which is optional.
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Articles of Organization filings cost $97 online, $100 by mail or in person.
Appointing a registered agent
Like most states, the State of Indiana does not necessarily mandate that an LLC has a separate registered agent. That means you can act on your own business’s behalf. It’s not uncommon for entrepreneurs to reach out to a reliable Indiana LLC formation services provider and enlist the support of a registered agent.
The service provides a physical address where official documents can be sent and forwarded as needed. Indiana does not usually allow LLCs to use a P.O. Box without an actual operations hub or office. Along with reducing the workload, a registered agent helps business owners maintain anonymity.
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Indiana does not charge a filing fee for using a registered agent. -
Registered agent services typically run between $199 and $400 annually, depending on your Indiana LLC needs.
Creating an operating agreement
It’s feasible for professionals with backgrounds in contract law to create a sterling Operating Agreement. Unfortunately, you may still need to hire a law firm to review the document to make certain it complies with specific Indiana regulations. Law firms charge approximately $500 on average for merely reviewing Operating Agreements. Hiring an attorney to fill out an in-house template could cost more than $1,000. Given this predicament, startups often prefer to work with an online Indiana LLC formation outfit and take advantage of inexpensive Operating Agreement services and templates.
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An Indiana Operating Agreement could cost more than $1,000 in some cases.
Other Annual and Additional Indiana LLC Costs
In addition to the seemingly straightforward fees, Indiana requires startups and existing enterprises to file annual documents that come with fees. Entrepreneurs would be well-served to keep track of their deadlines and prepare the information in advance. Failing to file paperwork on time can result in late fees, penalties, and the administrative dissolution of your LLC.
Business Licenses & Permits
The state does not require organizations to pay for a general business license, per se. Instead, certain types of businesses must have specific licenses approved. For example, a barber’s license costs approximately $40. The Indiana State Bar Association charges lawyers $178 to $322. In many cases, local municipalities are responsible for permits, licenses, and regulating fees.
Annual Report
An annual report provides detailed information about a company’s activities, including ownership and its registered agent, among other items. In lieu of a perennial report, Indiana requires a Business Entity Report every two years.
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The processing fee for the biannual report is $50.
Certificate of Existence
A Certificate of Existence is equivalent to what some states refer to as a Certificate of Good Standing. You may need to request one in order to access business loans, grants and take advantage of borrowing opportunities.
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A Certificate of Existence costs $15 online and $30 if mailed or filed in person.
Certified Copies of Business Documents
The State of Indiana does not charge an additional fee for original copies of official documents. However, additional certified copies run up to $16.
What expenses you can write off
Starting an Indiana LLC requires a significant financial investment. If there’s any good news after paying for LLC business fees, licenses, permits, and overhead, it’s the fact that many of these expenses reduce your overall tax liability. These items are tax deductible or help lower your bracket at the end of the year.
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Attorney Fees -
Biannual Reports -
Business Entity Name Reservation Fees -
Certificate of Existence -
Certified Copies of Business Documents -
Cost of Adding a DBA -
Cost of Completing Articles of Organization -
Filing Fees -
Indiana LLC Formation Services Provider -
Licenses and Permits -
Operating Agreement Costs -
Registered Agent Services Expenses
Indiana LLC Costs – Summary
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LLC filing fee (articles of organization) |
$97 online, $100 by mail or in person |
|
Business License |
Varies by municipality |
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Registered Agent (optional) |
$199-$400 |
|
Reserve Business Name |
$20 for 120 days and an additional $10 to extend for 30 days. |
|
Filing a DBA (optional) |
$10 to $35. |
|
Certified Copies of Business Documents |
Up to $16 each. |
|
Biennial report |
$50 |
Conclusion
In recent years, surveys indicate that Indiana ranks among the top 5 states in which to start a business. Residents continue to support new ventures, and 64 percent of the population is old enough to work. The Hoosier State enjoys solid infrastructure, and people enjoy an excellent quality of life. Although the filing fees are considered moderate, it may be worthwhile to work with an Indiana LLC formation service provider to negotiate the red tape.
FAQs
Does Indiana Have a Franchise Tax?
The short answer is: No. Although some states level an extra charge for owning and operating a franchise business, Indiana treats LLCs the same.
How Do You Choose an Indiana Registered Agent?
A Registered Agent can save startups considerable time and energy. The key factors include reliability and having a physical address in the Hoosier State. If the Registered Agent service does not have a presence in the state, the Indiana Secretary of State will likely reject your LLC application.
What is the Difference Between Articles of Organization and Operating Agreement?
The pair of legal documents sound similar, but they serve distinctly different purposes. The Articles of Organization are filed when you form an Indiana LLC. The state checks the information for accuracy before giving you standing to conduct business. The Operating Agreement is a legally binding document signed by the members of an LLC. It details the duties, responsibilities, and benefits of the stakeholders. The Operating Agreement is a binding document between the Indiana LLC members.
Can My Indiana LLC Name be Similar to Another Business?
The short answer is: No. The Indiana Secretary of State’s office reviews business entity name requests to ensure they are “distinguishable” from other organizations. For example, adding numbers to a recognizable brand or changing letters such as an “S” to a “Z” will not pass muster.
Do You Need an Employer Identification Number (EIN) to Start an LLC in Indiana?
You do not necessarily need to possess an EIN when filing your LLC paperwork in Indiana. However, an EIN is necessary to hire employees and banks typically require one to open accounts. You may also need a state tax identification number.
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