How to Start a Indiana Corporation (original) (raw)

Start a Indiana Corporation

When you plan to start a business in Indiana, you must decide on the appropriate structure. Starting a corporation may be more complicated than creating an LLC in Indiana or a sole proprietorship. However, it is not that difficult as well. There are a few guidelines that you should be aware of when it comes to creating Indiana corporation. Starting a corporation involves a legal process, that is, the process of incorporation.

In this article, I will share a step-by-step guide to start a corporation in Indiana. I will also enlighten you on the advantages and disadvantages of having a corporation. Some people consider starting a corporation in Indiana more than other business structures since it has many advantages over other forms.

What is a Corporation in Indiana

In definition, a corporation is a formal organization established by stockholders, shareholders, or other people to make a profit. Like individuals, corporations can undertake contracts, own assets, sue and be sued, pay taxes, limit state and federal taxes, and loan funds from banking institutions.

Common Types of Corporations

Before you start with the process of forming a corporation, you should know what type of corporation you will form. There are several different forms of corporations you can take into consideration, depending on your corporation’s objectives and ownership structure.

C-Corporation: C-Corporation is the most known type of incorporation. They have almost all corporate distinguishing characteristics. Profits are distributed to corporate owners who are taxed at an individual level. The corporation is taxed similarly to a business unit.
S-Corporation: An S-Corporation is set up similarly to a C-corporation but has different tax implications and owner limits. S-corps have no more than 100 stockholders and are not taxed separately. These business units must also file paperwork with the Internal Revenue Service (IRS) to obtain their status.
Non-profit Corporation: Nonprofit businesses are frequently used by religious, educational, and charity institutions to run their operations without making a profit. Thus, a nonprofit corporation is exempt from paying taxes. The nonprofit organization’s gifts, contributions, or cash are reinvested in the company to fund its growth, future endeavors, or operations. Read how to start a nonprofit corp in Indiana to learn about nonprofit corporations.

If you have a small business, it is recommended that you form an LLC instead of a corporation in Indiana. LLCs have more tax benefits than other structures. Besides, LLCs protect your personal assets. However, it is wise to consult a legal expert before you start setting up your business in Indiana.

– LLCBuddy Editorial Team

How to Start a Corporation in Indiana

To start a corporation in Indiana, you must follow the below steps that, include forming a corporation name, appointing a board of directors, filing for Articles of Incorporation, drafting corporate bylaws, meeting with the board of directors, issuing stocks, creating a shareholders agreement, requesting for an EIN, and getting a license and permit. All these steps are basic ones. It can be changed depending on the type of corporation you form and the nature of your business.

Step 1: Choose a Corporation Name in Indiana

Naming your business is one of the most crucial activities during the startup phase. Your corporation name serves as the foundation for your brand. Legal procedures should be taken into account when choosing your corporation name. Choose a corporation name that will enable you to develop a strong brand identity without being hampered by irrelevant factors.

If you are forming an LLC, there is a complete guide on Indiana LLC name guidelines for a proper LLC name. Here are some guidelines you must follow while naming your corporation in Indiana-

Your business name must contain entity identifiers, such as “Incorporated,” “Limited,” “Corporation,” or “Company,” or an abbreviation, such as “Inc.,” “Co.,” or “Ltd.”
Exclude any words in your business name, such as “Trust,” “Bank,” “Credit Union,” or “Trustee,” or words related to a government agency, such as “FBI,” “State Department,” or “Treasury.”

Step 2: Board of Directors Initial Appointment

To form a corporation in Indiana, you must appoint an initial board of directors before making them permanent once the corporation is formed. In Indiana, you may appoint at least Three board of directors. The initial board of directors is in charge of guiding the overall strategy of your business. The structure, responsibilities, and powers given to a board of directors are determined by the bylaws of a company or organization. So, appointing your corporation’s initial board of directors in Indiana is a big step in forming a corporation.

Step 3: Filing the Articles of Incorporation in Indiana

After you appoint the initial board of directors in your Indiana corporation, the next step is to write and file a Articles of Incorporation. In writing, the Indiana Articles of Incorporation, the corporation name, principal place of business, the purpose of business, Indiana Registered Agent contact information, and the names and addresses of incorporators and/or initial board members, should be written.

Filing a Articles of Incorporation in Indiana may be done with two ways, online and by mail. The Articles of Incorporation fee may vary from different states. However, in Indiana, it costs $30 for filing online and by mail.

Online Filing: Create an account/Log in to the SOS site, get the online form, fill it, and submit online
Offline filing: Send the form by mail to Department of Secretary of State Business Services Division, 302 West Washington Street, Room E018, Indianapolis, IN 46204

Step 4: Draft Corporate Bylaws

Now you are done filing a Articles of Incorporation in Indiana, the next step is to draft corporate bylaws. Corporate bylaws are the basic rules that control a corporation. It includes the organization’s structure, processes, laws, and rules. As a result, all personnel, managers, and corporation members must obey the firm’s rules.

In creating corporate bylaws, you should include the following on how the decisions will be made-

The responsibilities are given to each officer.
How will judgments in business be made?
Where and when are the annual shareholder meetings?
The minimum number of shareholders required for decision-making.
Location and timing of dividend payments.

Step 5: Hold the First Board of Directors’ Meeting

After drafting the corporate bylaws, gather all the board of directors for the first meeting. This meeting will be finalized by appointing directors to manage the company’s daily operations, approve the bylaws, choose the corporation’s accounting year, and approve the stock issue. All board meetings should have minutes taken and stored with the company’s records.

Step 6: Issuing Stock in a Corporation

After starting your Indiana corporation, one of the first official corporate actions is issuing stock to the shareholders. Keep track of the number of shares issued to each shareholder and the purchase price. A corporation in Indiana is managed by its shareholders, who contribute to the business in exchange for ownership shares.

Step 7: Draft and Finalize a Shareholders Agreement

Even though drafting and finalizing a shareholders agreement is unnecessary, I suggest you still comply since it will benefit your corporation and its shareholders. A small business’s shareholders enter into a shareholder agreement contract. It establishes how ownership will be handled in unexpected situations, like a shareholder passes away, retires, becomes disabled, or quits the corporation. Early on in the life of your Indiana corporation, signing a shareholders’ agreement can help maintain corporate continuity and prevent future disputes.

Step 8: Request an EIN in Indiana

After everything is in place, you should get or request an Employer Identification Number (EIN). An EIN will serve as the tax ID for your Indiana corporation. EIN can be obtained from the Internal Revenue Service (IRS). It is a 9-digit number similar to Social Security Number. EIN, however, is distinct from SSN. It is only used for business-related activities, particularly for submitting general taxes. The form must be completed and uploaded to the IRS website.

The application of an EIN in Indiana can be through the following:

Apply Online- The EIN online application is the preferred method for customers to apply for and obtain an EIN.
Apply by Fax- Taxpayers can fax the completed Form SS-4 application to the appropriate fax number), after ensuring that Form SS-4 contains all of the required information.
Apply by Mail- The EIN application For m SS-4 can be filed via mail. The processing time frame to receive the mail is 4 weeks.
Apply by Telephone-International Applicants – International applicants may call 267-941-1099 (not a toll-free number) from 6 a.m. to 11 p.m. (Eastern Time) Monday through Friday to obtain their EIN.

After you have your EIN number, you can benefit in a number of ways. It will give your corporation the final advantage necessary to operate at full capacity without encountering legal or judicial issues.

Step 9: Get Licenses and Permits for your Corporation in Indiana

Before your corporation operates in Indiana, you must have a business license. A business license is a document issued by a government agency that permits you to operate your business in the geographic region that that agency governs. To legally operate your corporation, you’ll need a business license. Numerous corporate licenses need to be filed and renewed regularly. Check out how to get business licenses and permits in Indiana to know more.

You must also register a DBA name if you intend to conduct business using a name other than your corporation’s legal name. The DBA name is sometimes known as “doing business as” or a “fictitious business name.” Depending on your location, you may need to register the DBA with your state, city, and county. You can skip this step if your business solely uses your legal company name.

Important Information

Paying your Taxes in Indiana

Even if you have established your corporation in Indiana, pay your taxes and keep everything up to date so you won’t pay any penalty. Unlike an LLC, there is a corporate tax that every corporation in Indiana has to pay. On the other hand, they must pay income taxes based on their business income. Some other types of taxes in Indiana are sales tax, franchise tax (not applicable to all the states), and other state taxes.

Cost of Forming a Corporation in Indiana

A filing and annual fee must be paid to form a corporation in Indiana. Without it, your corporation won’t operate. The initial filing fee for a corporation may vary depending on the state. However, in Indiana, it costs 30forfilingonlineandbymail.ThecorporationinIndianaalsohastofileanannualreport(thoughitmightnotbemandatory,itisrecommendedtofileone).Ensureyoucomplywithallthenecessaryfeesandcostssoyourcorporationwillrunsuccessfullyandsmoothly.If,inthefuture,youmakeanychangestoyourcorporation,youmustfiletheIndianaAmendment.Itcosts30 for filing online and by mail. The corporation in Indiana also has to file an annual report (though it might not be mandatory, it is recommended to file one). Ensure you comply with all the necessary fees and costs so your corporation will run successfully and smoothly. If, in the future, you make any changes to your corporation, you must file the Indiana Amendment. It costs 30forfilingonlineandbymail.ThecorporationinIndianaalsohastofileanannualreport(thoughitmightnotbemandatory,itisrecommendedtofileone).Ensureyoucomplywithallthenecessaryfeesandcostssoyourcorporationwillrunsuccessfullyandsmoothly.If,inthefuture,youmakeanychangestoyourcorporation,youmustfiletheIndianaAmendment.Itcosts30.00 to file an amendment in Indiana.

Advantages of Starting a Corporation in Indiana

Limited Liability: The biggest advantage of setting up a Indiana corporation is that the shareholders are not personally responsible for the debts of the company. As a result, when you incorporate as a corporation, personal assets like homes, vehicles, and other possessions are prohibited. One of the main benefits of setting up a corporation over a general partnership or sole proprietorship business structure is that neither the business nor the owners are held legally responsible for the obligations of the business, even if it means giving up their personal assets.
Limitless Corporation: The fact that a corporation’s existence is independent of its owners is another significant benefit of incorporation. In other words, a corporation has an endless life and will continue operating normally even if the owner dies or decides to sell their ownership.
Advantages in Tax: The deduction of health insurance premium payments made on behalf of an owner-employee is one of the many financial benefits to which corporations are entitled. Corporations also save on self-employment taxes since their revenue is not subject to workers’ compensation, Social Security, or medical taxes. Tax rates on corporate profits are lower than those on individual income.

FAQs

What are the steps to start a corporation in Indiana?

To start a corporation in Indiana, the following steps are recommended

What is the cost to start a corporation in Indiana?

The filing fee for Articles of Incorporation in Indiana is $90. Additional fees may be imposed depending on the type of business and the number of shares being issued.

What legal documents are required to form a corporation in Indiana?

To form a corporation in Indiana, you must file Articles of Incorporation with the Indiana Secretary of State. You may also need to file additional documents such as a Notice of Intent and corporate bylaws.

Do I need a registered agent for my corporation in Indiana?

Yes. Indiana requires all corporations to appoint a registered agent to receive service of process and other official documents on behalf of the corporation.

What are the tax implications of starting a corporation in Indiana?

All corporations in Indiana are required to pay state corporate income tax, as well as local taxes such as property taxes, sales taxes, and payroll taxes. In addition, some businesses may be subject to additional taxes such as special excise taxes or the business personal property tax.

Are there any special regulations I need to be aware of when starting a corporation in Indiana?

Yes. Depending on the type of business you are forming, there may be additional regulations you need to comply with. For example, professional corporations, such as those offering legal or medical services, may need to obtain a professional license from the Indiana Professional Licensing Agency.

What is required to start a corporation in Indiana?

To start a corporation in Indiana, you must first file articles of incorporation with the Indiana Secretary of State, appoint a registered agent, publish a notice of intent to incorporate, and pay the filing fees.

How much does it cost to start a corporation in Indiana?

There is a 90filingfeetostartacorporationinIndiana,plusa90 filing fee to start a corporation in Indiana, plus a 90filingfeetostartacorporationinIndiana,plusa30 expedited filing fee if you need your documents processed within 24 hours.

How long does it take to start a corporation in Indiana?

The processing time for the articles of incorporation can take anywhere from one day to two weeks, depending on the state’s volume.

What is the difference between a C Corporation and an S Corporation in Indiana?

A C Corporation is a standard corporation that is taxed separately from its owners, while an S Corporation is a pass-through entity in which the owners pay taxes on their individual income tax returns.

What are the requirements for an Indiana Corporation?

To form an Indiana Corporation, you must file articles of incorporation with the Indiana Secretary of State, appoint a registered agent, publish a notice of intent to incorporate, and pay the applicable filing fees.

What are the advantages of starting a Corporation in Indiana?

Starting a Corporation in Indiana offers many advantages, including limited liability protection for its owners, perpetual existence, and transferable ownership interests. Additionally, Indiana offers a favorable business tax climate and a variety of incentives and resources to help businesses succeed.

What is the Registered Agent requirement in Indiana?

In Indiana, all corporations must appoint and maintain a registered agent who is responsible for receiving important legal documents, such as service of process and tax forms, on behalf of the corporation. The registered agent must be a resident of Indiana or a corporation authorized to transact business in Indiana.

Are there any fees associated with forming a Corporation in Indiana?

Yes, there is a 90filingfeetoformaCorporationinIndiana,plusa90 filing fee to form a Corporation in Indiana, plus a 90filingfeetoformaCorporationinIndiana,plusa30 expedited filing fee if you need your documents processed within 24 hours.

How do I dissolve a Corporation in Indiana?

To dissolve a Corporation in Indiana, you must file articles of dissolution with the Indiana Secretary of State, pay the applicable filing fees, and complete additional requirements based on the type of business entity you have formed.

What is the process for starting a corporation in Indiana?

The process for starting a corporation in Indiana includes selecting a unique name, filing articles of incorporation with the Indiana Secretary of State, obtaining a registered agent and address, creating corporate bylaws, issuing stock and appointing directors.

Are there any special requirements for starting a corporation in Indiana?

Yes, corporations in Indiana must have a registered agent, a physical address in the state, and must file articles of incorporation with the Indiana Secretary of State.

What are the fees associated with filing articles of incorporation in Indiana?

The fee for filing Articles of Incorporation in Indiana is $90.

Do I need a lawyer to start a corporation in Indiana?

No, it is not necessary to hire a lawyer to start a corporation in Indiana. However, it is recommended to seek legal advice if you have questions or concerns about the process.

What is the minimum amount of money needed to start a corporation in Indiana?

There is no minimum amount of money required to start a corporation in Indiana. However, it is recommended to have enough capital to cover the filing fees, business expenses, and other costs associated with running a business.

Do I need to obtain a business license to start a corporation in Indiana?

Depending on the type of business you are operating, you may need to obtain a business license in Indiana. It is recommended to contact your local county or city clerk for more information about the applicable licensing requirements.

Does Indiana have any special taxes for corporations?

Yes, corporations in Indiana are subject to the Indiana Corporate Adjusted Gross Income Tax, the Financial Institutions Tax, and the County Economic Development Income Tax.

What is the Indiana Corporate Adjusted Gross Income Tax?

The Indiana Corporate Adjusted Gross Income Tax is a flat tax rate of 8.5% that applies to corporations doing business in Indiana.

Are there any other taxes or fees associated with starting a corporation in Indiana?

Yes, corporations in Indiana are subject to the Financial Institutions Tax and the County Economic Development Income Tax. Additionally, corporations may be subject to excise taxes or other fees depending on the type of business they are operating.

Is a registered agent required for corporations in Indiana?

Yes, a registered agent is required for corporations in Indiana. The registered agent must have a physical address in the state and must accept official documents on behalf of the corporation.

What happens if I don’t have a registered agent in Indiana?

If you do not have a registered agent in Indiana, the Secretary of State may refuse to file your articles of incorporation.

Is the name of my corporation protected in Indiana?

Yes, the name of your corporation is protected under Indiana state law. However, it is recommended to check for any potential conflicts with existing businesses before filing your articles of incorporation.

Are there any restrictions on the type of business I can operate in Indiana?

Yes, certain types of businesses are subject to additional licensing or registration requirements in Indiana. It is recommended to contact your local county or city clerk for more information about applicable restrictions.

Is there any advice you can provide for starting a corporation in Indiana?

Yes, it is important to seek professional legal advice if you have any questions or concerns about the process. Additionally, it is important to make sure you have adequate capital to cover the filing fees, business expenses, and other costs associated with running a business.

What are the requirements to start a corporation in Indiana?

To start a corporation in Indiana, you need to file Articles of Incorporation with the Indiana Secretary of State’s office. The document must include the corporation’s name, purpose, duration, registered agent, and other details.

What are the fees associated with forming a corporation in Indiana?

The filing fee for the Articles of Incorporation is $90. This fee is non-refundable.

What are the tax obligations of an Indiana corporation?

Indiana corporations must pay state and federal taxes. They must also register with the Indiana Department of Revenue to obtain a tax identification number.

What is the process for registering a corporation in Indiana?

The process for registering a corporation in Indiana involves filing Articles of Incorporation with the Indiana Secretary of State’s office and paying the filing fee. Additionally, corporations must register with the Indiana Department of Revenue to obtain a tax identification number.

Why Indiana Corporation is So Important

One of the primary reasons why Indiana Corporation is so important is its ability to stimulate economic activity within the state. By providing a platform for businesses to thrive and prosper, Indiana Corporation serves as a catalyst for investment and job creation. Through its diverse range of industries and sectors, the corporation fosters healthy competition and entrepreneurial spirit, bolstering the overall economic health of Indiana.

Moreover, Indiana Corporation plays a crucial role in fostering innovation and technological advancement. By supporting research and development initiatives, the corporation encourages companies to push the boundaries of innovation and bring new technologies to market. This not only benefits businesses within the state but also contributes to advancements in various fields, positioning Indiana as a hub for cutting-edge technology and innovation.

In addition to its economic impact, Indiana Corporation also plays a significant role in community development. Through its corporate social responsibility initiatives, the corporation actively engages with local communities, supporting philanthropic efforts and community programs. Indiana Corporation’s commitment to social responsibility extends beyond business operations, as it aims to create a positive impact on society as a whole.

Furthermore, Indiana Corporation serves as a model for corporate governance and ethical business practices. By upholding high standards of integrity and transparency in its operations, the corporation sets an example for other businesses to follow. Indiana Corporation’s commitment to ethical conduct not only garners trust and respect from stakeholders but also ensures long-term sustainability and success.

Another key reason why Indiana Corporation is so important is its role in driving workforce development and talent retention within the state. By offering opportunities for career advancement and professional growth, the corporation attracts top talent from diverse backgrounds and fields. This not only benefits businesses within Indiana but also enhances the overall competitiveness of the state.

Overall, Indiana Corporation plays a vital role in the economic, social, and cultural fabric of the state. Its commitment to driving economic growth, fostering innovation, supporting community development, upholding ethical standards, and nurturing talent sets it apart as a key player in Indiana’s success story. The corporation’s continued dedication to excellence and excellence ensures that Indiana remains a vibrant and dynamic place to live, work, and thrive.

Conclusion

When determining which corporate form is best for you, be selective. You must know which business structure is bet-fitted for your product/service in Indiana. Consult a legal professional before you take the first step while setting up your business. Finding the ideal ratio of corporate advantages and legal protection that meets your unique needs is very important. In forming a corporation in Indiana, you need to ensure that every detail is well-formed so that your corporation will be successful. And if you have any questions, share them in the comment section below.