Indiana or the “land of Indians” as it is known is the 17th most populated state in the USA. The various and the representative culture, the distinct economy sustained by the small industrialized cities and the rich soil make Indiana a prolific state for doing business as a foreign investor. We invite you to read the general guide to company incorporation in Indiana and understand how a company can be registered in this state. Our company formation agents in USA can help any entrepreneur set up a company in Indiana and enjoy a favorable business climate.

Set up an LLC in Indiana

Starting a business in USA and particularly in Indiana may involve the most solicited and appreciated form of business and that is the limited liability company. Drafting the documents for such company involves the Articles of Association which must comprise information about the owners, the board of directors, the purpose and the activities of the business, the official address and the registered agent. Once your company is registered with the Business Division of the Secretary of State of Indiana, the next step is to register for tax matters and social contributions.

A registered agent for your business in Indiana

Most companies in USA are subject to a very important condition and that is to appoint a local registered agent who will represent the company and the related documents in a legal manner, and who can manage businesses in Indiana. The name of the registered agent, whether a juridical person or a company, must be stated in the Articles of Association when drafting the documents, therefore, it is mandatory to consider this important stipulation. We mention that our USA company formation specialists are at your disposal if you want them to act on behalf of your business in Indiana.

Create an operating agreement

Limited liability companies in Indiana must make proof of an operating agreement, a required and valuable legal document which states details about the owners of the company, the operations, and the working relations between the members of the firm. For a better understanding of the importance of the operating agreement, one must bear in mind that such document has six main divisions like organization, share capital, management, membership change, distributions, and termination.

Taxes in Indiana

If you want to register a company in USA and especially in Indiana, it is suggested to analyze and respect the tax regime. For instance, the corporate income tax rate is set at 8.5%, the sales tax is 7%, and the personal income tax is 3.4%. The Indiana Department of Revenue is a subdivision of IRS (Internal Revenue Service) and oversees the companies from a taxation point of view. Here are a few things to consider about the tax compliance and general rules in Indiana:

• The EIN or the Employer Identification Number is the federal tax ID number showing that your company is registered for business in Indiana.
• If you want to hire employees for your firm in Indiana, you will have to register for employee withholding tax and for unemployment insurance tax in Indiana.
• Even sole traders in Indiana need the Employer Identification number.
• It is good to know that companies can be looked for by simply searching for the EIN.

The tax requirements in Indiana might seem complicated for foreign investors in this state, nevertheless, it is best to talk to our team of company incorporation representatives in USA and find out more about the support we can give in this state. Do not hesitate to get in touch with us if you want to open a company in Indiana and know more about the requirements in this matter.

Accounting services for your business in Indiana

Once you perform trading activities and issue invoices, it means that all the transactions must be recorded in the company with the help of an accounting firm. Bookkeeping, payroll services, tax minimization, annual tax filings or business consulting are part of a properly managed accounting structure which is necessary for the state of Indiana for each type of enterprise you want to form. In such matters, you can solicit us for accounting services.

Special licenses and permits

Considering the type of operations of the firm, special licenses and permits might be necessary. The Professional Licensing Agency in Indiana is the authority that issues the licenses for your business. Moreover, one must comply with the local, federal and state requirements in licensing issues.

The advantages of LLCs in Indiana

The limited liability companies in Indiana have varied benefits and are on top of the list of international investors who want to know what the proper business structure in this state is. An LLC can issue stocks, can be taxed as S-corporations, the owners have limited liability protection, they can report the profits and losses on the personal tax returns, there is no need for an annual general meeting, it can be owned by another company and the business duration is on an indeterminate period. Moreover, the company owners are not liable for the lawsuits and debts in the firm. In terms of profits, the limited liability companies are pass-through entities meaning that the earnings go directly to the stockholders who then will have to report the share of the profits when it comes to tax returns. The flexibility is another reason why limited liability companies are chosen for business in Indiana, and such structure can be formed by one person or can be established by multiple partners. Finally, the limited liability company is a trustworthy business on the market and clients consider it a reliable company structure compared to sole proprietorships, for instance. Therefore, in terms of business structures, you can choose the limited liability company without any doubts.

What is the management of an LLC in Indiana?

One or more managers are in charge of the daily activities of a business in Indiana, and the power of making their own decisions without having to wait for a general voting meeting. In other words, a limited liability company has a centralized management, meaning that the power of decision in the firm is handled by one or more managers appointed by the owners of the company in Indiana. For more details about how to run a business in Indiana and about the ways in which it can be incorporated, you may speak to our team of company formation agents in USA.

Defining the brand and getting online

It is quite a road until a business gets recognized on the market, however, the path to success will pretty much depend on how the brand is defined and if a solid presence on the internet will be developed. This is where a company owner will have to intervene, whether based on his/her experience or with the help of a professional team in the field. Building a brand from scratch is not a complicated thing if you pay attention to a few important steps like offering excellent quality products and services right from the beginning. In this direction, the support of a website will play a major role because it is a fact that numerous customers have directed the attention on the internet shopping for most of the goods and services. A website is recommended to small entrepreneurs in Indiana because this way they can be discovered from a business point of view by many clients. Additionally, the business can grow with the help of social media profiles on Facebook, Google, Pinterest, Instagram or Twitter. Also, you should create review accounts on Google and other well-known sites if you are interested in growing the business fast.

Why choose Indiana for business?

Indianapolis, the capital of Indiana, Michigan City, Fort Wayne, Bloomington, Carmel, and Lafayette are only a few of the most important cities in the state. Indiana relies on the flourishing economy which is sustained by agriculture, tourism, manufacture, and mining. This state is known for the fast industrialization in the 19th century and significant accents on natural resources for exploration purposes. The transportation structure in Indiana allows businesses to develop beyond the state’s borders. Here are a few statistics about the business in Indiana:

• There are more than 500,000 companies registered in Indiana’s major business fields.
• There are more than 550,000 employees in the manufacturing sector in Indiana.
• The average earnings in the private sector in Indiana are approximately $55,300/year.
• The construction sector is a prolific one that recently registered around $13,000,000.

A successful business will pretty much depend on the involvement of the owners and opportunities which can be discovered and developed. A professional team will also help foreign investors rapidly establish the company in Indiana in respect to the applicable regulations.

Having an idea about the tax regime in Indiana will help foreign investors decide on the business type and activities they will perform in this state. The tax benefits in Indiana are linked to the fact that there is no privilege tax and no franchise tax, letting foreign entrepreneurs concentrate on their investments and opportunities. Our company formation agents in USA are at the disposal of business persons who want to open a company in USA and who want to find out more details about the taxes they need to pay.

What is the income tax rate in Indiana?

Corporations in Indiana are levied on the gross income at flat rates that will decrease each year until 2021, as seen in the table below:

Date Tax Rate
July 1, 2017 – June 30, 2018: 6%
July 1, 2018 – June 30, 2019: 5.75%
July 1, 2019 – June 30, 2020: 5.5%
July 1, 2020 – June 30, 2021: 5.25%
Starting with June 30, 2021: 4.9%

What is the sales tax rate in Indiana?

Indiana imposes a sales tax of 7% for goods and services for sale purposes. It is good to know that municipalities in Indiana do not impose their own city sales tax, meaning that the flat rate of 7% will suffer no modifications.

Our general guide to company incorporation in Indiana is at your disposal with information and guidelines about how you can set up a business in this state. If you want to start a company in USA, we invite you to talk to our team of advisors for complete support.

Taxes for LLCs in Indiana

The limited liability companies in Indiana are preferred structures for businesses which are subject to varied tax rules. For instance, the incomes of an LLC are distributed individually to the members that formed this type of company who will have to pay the state’s personal income tax of 3.23% imposed on the federal adjusted gross income.

Tax facts for Indiana

The personal income tax in Indiana is set at 3.23% and it is payable by all residents in this state. Besides this rate, counties in Indiana have their own income taxes ranging from 0.35% to 3.38%. There is no estate tax in Indiana and the inheritance tax was abolished in January 2013, with the mention that citizens in Indiana can claim this tax if paid before 2013.