A limited liability company, commonly referred to as an LLC, is a popular form of business structure in which members are afforded protection from personal liability. This means that members generally will not be personally liable for lawsuits against their LLC.
Unbeknownst to many, forming an LLC is quite simple. Here are the basic steps that you can follow to create your own LLC.
Step 1: Name Your LLC
As obvious as this sounds, you must first come up with a name for your LLC. While you have wide discretion in choosing the name, it must contain the phrase “limited liability company,” or the abbreviation “LLC.” Also, the name must not resemble that of any government agency. To check if the name of your choice is available, go to the Indiana Secretary of State's website and conduct a search.
Step 2: Appoint a Registered Agent
Indiana requires you to appoint a registered agent for your LLC. The registered agent acts as the point of contact for your LLC and will be responsible for receiving important legal documents. Your registered agent can be an individual, a corporation, or even yourself. In any case, your registered agent must have a permanent address in Indiana.
Step 3: File the Articles of Organization
The Articles of Organization is a document that conveys foundational information about your LLC. It must include the following: (1) Name of your LLC, (2) address of your LLC, (3) name and address of your registered agent, (4) duration of your LLC, (5) type of management (whether your LLC will be member-managed or manager-managed), and (6) organizer’s signature. You must file the Articles of Organization with the Secretary of State Business Services Division.
Step 4: Create an Operating Agreement
In Indiana, you are not required to have an operating agreement for your LLC. However, you should; an operating agreement is an internal document that establishes the rules for your LLC and its members. Without an operating agreement, your LLC will be subject to the default rules of your state, which may be unfavorable to your LLC. Also, an operating agreement can help develop stability, credibility, and safety of your LLC.
Step 5: Get your Employer Identification Number (EIN)
The EIN is a number assigned by the IRS for tax purposes. If your LLC contains 2 or more members, you need your EIN to pay income tax, open business bank accounts, file tax returns, and more. To obtain your EIN, go to the IRS website and submit an application.
With these 5 steps, you can form your own LLC. If you are looking to create your own LLC and need legal assistance, contact us at any time at 317-643-1813.