When starting a new company, there are many business forms to choose from. A relatively new and common form is a Limited Liability Company (“LLC”). An LLC is a type of business entity that combines the limited liability protection of a corporation with the flexibility and tax benefits of a partnership.
There are many advantages to establishing your business as an LLC. First, LLCs can protect the members from personal liability for the debts and obligations of the business so long as the LLC is being treated as an independent legal entity. Second, LLCs utilize the check-the-box rule, meaning that LLCs can also utilize pass-through taxation, like partnerships. Additionally, LLCs offer flexibility regarding ownership structure and management, which can help accommodate the members’ needs and goals. Under Indiana law, Ind. Code § 23-18-4-1, the members of the LLC may be the ones who manage the organization. This results in a relatively easy and inexpensive business formation, as there are fewer regulations to comply with than are applicable to corporations.
To start an LLC from scratch, there are certain documents that you must fill out with the State of Indiana. First, you need to draft an Operating Agreement for you LLC. This is a document that outlines the business’ financial and functional decisions including rules, regulations, and provisions. The purpose of an Operating Agreement is to govern the internal operations of the LLC in a way that fits the needs of the LLCs’ members. Once the Operating Agreement is signed by the members of the LLC, it acts as an official contract binding them to its terms. In addition, you also need to file Articles of Organization with the Indiana Secretary of State. A form for the filing can be found on the Indiana Secretary of State’s website. This form officially establishes the LLC with the State of Indiana. It is only a two-page document that requests basic information about the LLC. Lastly, if applicable, you need to file a certification of assumed business name. This document is fairly self-explanatory, as it certifies your LLC name with the state. Once all of the documents are drafted and signed, you are on your way towards owning an LLC in Indiana.
Having the assistance of legal counsel when forming an LLC will ensure a smoother process. Contact McNeelyLaw today as we have an experienced team of attorneys eager to assist you with all of your business needs.
This McNeelyLaw LLP publication should not be construed as legal advice or legal opinion of any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own lawyer on any specific legal questions you may have concerning your situation.