My Indiana LLC

A Brief Primer on Indiana LLCs.

brian — Fri, 07 May 2010 17:48:08 +0000

An Indiana LLC is a “hybrid entity”, one in which co-owners enjoy the liability protection of limited partner status and the management participation feature of the general partners. Indiana adopted its limited liability company statute, known as the Indiana Business Flexibility Act, in 1993.
The owners of an Indiana LLC are called “members” – akin to shareholders in a corporation.
An Indiana LLC can be managed by either its members or a board of managers.
The Indiana Business Flexibility Act provides default rules defining the rights, duties and obligations of the members, and their relationship among each other and with the Indiana LLC itself. Most of these rules may be altered by the terms of an operating agreement.
An Indiana LLC is formed upon filing articles of organization with the Indiana Secretary of State’s office.
An Indiana LLC itself usually does not pay any tax, although some states other than Indiana do subject limited liability companies to franchise taxes.
A major difference between a partnership and a limited liability company is that each of its members enjoys liability protection. Another major difference is that in recent years, most states, including Indiana, have recognized limited liability companies with only one owner. This means that you can protect yourself from personal liability and yet still operate your business, in many ways, as you would a sole proprietorship (presuming you comply with the formalities of the limited liability company).
These so-called “single member LLCs” offer an important tax advantage – annual information can be reported on the owner’s individual tax return, and no separate tax return or identification number is required.

Advantages of Forming an LLC In Indiana.

brian — Fri, 07 May 2010 17:47:58 +0000

An Indiana LLC offers all of the advantages that most people would point to when assessing whether to form an Indiana LLC as opposed to operating a business as a sole proprietorship. Those would include:

Limited liability and protecting personal assets.
Creates credibility with business customers and clients.
The risk of audit can be reduced in some cases.
It becomes easier to deduct certain valid expenses.

An Indiana LLC offers all of the advantages that most people would point to when assessing whether to form an Indiana LLC as opposed to a corporation. Those would include:

An Indiana LLC provides a great deal of flexibility and organizational freedom.
An Indiana LLC can be member managed, manager managed, can have any number or type of officers.
An Indiana LLC has less requirements, restrictions and formalities under Indiana law.
An Indiana LLC can allocate profits, losses, and distrubutions among members in whatever manner the members agree to – not so for a corporation and its shareholders.
An Indiana LLC has far fewer restrictions than an S corp and can have as many members as it needs.
An Indiana LLC can enjoy pass though taxation. Any business profit or loss is passed through to the members, so that they pay the taxes individually on their personal income tax returns. Paying tax at the business level is avoided for an LLC.

Finally, forming an Indiana LLC does have a few advantages over forming an LLC in a different state:

Forming an Indiana LLC is fast! The process of filing articles of organization with the Indiana Secretary of State can be done electronically – and in most cases – your Indiana LLC can be up and running within 24 hours. Some states require documents to be mailed to the state, while other require that certain notifications be published in the newspaper – all of which can take weeks!
Forming an Indiana LLC is can be a private and confidential process. Most other states require that the name and address of members, managers and/or officers of the LLC be filed as a matter of public record. Indiana only requires that the name and address of the registered agent of an Indiana LLC be filed (which can be anyone located in the state of Indiana – typically an attorney or registered agent service provider).
Forming an Indiana LLC only requires a $87.00 filing fee with the state (which is included in in all of our LLC formation packages). Some other states charge double, triple, and even quadruple that amount.

Indiana LLC – Manager Managed vs Member Managed

brian — Fri, 07 May 2010 17:14:58 +0000

An Indiana LLC can be managed by either their members, or by a board of managers (board of managers is the term used in Indiana – some states differ slightly). This is something that needs to be specified in the articles of organization for the Indiana LLC, and although the articles can obviously be amended at any time to change how the Indiana LLC is managed, it is an important decision nevertheless.

A Member Managed Indiana LLC

A member managed Indiana LLC is exactly what it sounds like – an Indiana LLC with its daily business managed by its members. This is obviously not a big deal if you have one, or even two members. Problems arise when an Indiana LLC has multiple members. Typically, except as otherwise spelled out in a written LLC operating agreement, all of the members will have the authority to act on behalf of the Indiana LLC (sign checks, execute agreements…etc). This is not an ideal situation.

A Manager Managed Indiana LLC

A manager-managed Indiana LLC, on the other hand, has its daily business matters managed by a board of managers. This would be analogous to a board of directors or even officers in a corporation. Members elect the board of managers, and become much more passive in the operation of the Indiana LLC. Members, of course, can also serve as managers. The flip side of this, and another advantage to having a manager managed Indiana LLC is that you can elect managers that are not members. This can become an important factor as a company grows and may want to bring in outsiders to help manage the business affairs of the Indiana LLC.

Any Indiana LLC, regardless of whether it is managed by its members of its managers, should clearly define the authority of its members and managers in a written operating agreement executed by all the members and the Indiana LLC.

LLC Operating Agreement – For a Multiple Member Indiana LLC – $250

brian — Mon, 19 Apr 2010 19:55:15 +0000

An LLC Operating Agreement is used to define the relationship between the members of an LLC and the operating terms of a Limited Liability Company. Without an operating agreement, your Indiana LLC is subject to Indiana’s default LLC laws, as set forth in the Indiana Business Flexibility Act, IND. CODE § 23-18-1-1 et seq, which may not match your intentions.

An operating agreement is critical to have for a multiple member LLC, since without it, many aspects of the relationship between the members is left undefined. By purchasing this document and legal service, you receive an operating agreement tailored for your Indiana LLC based on the questionnaire you complete:

Customized for either a member managed or manager managed LLC.
Appointment of a Board of Managers (if applicable).
Buy-sell provisions designed to help keep the LLC closely held by restricting the ways in which an interest in the LLC may be transferred.
Definition of the amounts of capital contributed by each member, as well as the ownership interests of each member.

You will receive a word document containing your Multiple Member Operating Agreement as soon as you complete your online questionnaire. You will have the option of submitting your document for review by an attorney a single time.

Click on the link above to purchase. A new window will open asking you to register of login.

Operating Agreement | LLC Agreement | Indiana LLC Operating Agreement

LLC Operating Agreement – For a Single Member Indiana LLC – $190

brian — Mon, 19 Apr 2010 19:46:24 +0000

An LLC Operating Agreement is used to define the relationship between the members of an LLC and the operating terms of a Limited Liability Company. Without an operating agreement, your Indiana LLC is subject to Indiana’s default LLC laws, as set forth in the Indiana Business Flexibility Act, IND. CODE § 23-18-1-1 et seq, which may not match your intentions.

While an operating agreement for a single member LLC is not always necessary, we recommend having one. It helps the single member understand his/her rights and obligations as the single member of the LLC, as well as creates a meaningful paper trail to help support the limited liability protections that an LLC is meant to provide its members.

You will receive a word document containing your Single Member Operating Agreement as soon as you complete your online questionnaire. You will have the option of submitting your document for review by an attorney a single time.

Click on the link above to purchase. A new window will open asking you to register of login.

Indiana LLC Formation Package – Multiple Member LLC – $600

brian — Wed, 07 Apr 2010 17:10:30 +0000

If you are starting a new business, forming an Indiana Limited Liability Company is an excellent option available to you (click here to learn more about why you might form an Indiana LLC. By purchasing this package, we will form an Indiana Limited Liability Company with up to 5 members*, and provide you with the following:

Articles of Organization that have been filed with the Indiana Secretary of State (the filing fee of $87 is included in your price!).
A Certificate of Organization from the Indiana Secretary of State.
A Multiple Member Operating Agreement, including restrictions on resale of membership interest in order to preserve closely held structure of your LLC.
Organizing Resolutions of the Members or Managers.
Membership Interest Certificates for each member, evidencing the ownership interest of each member in the new Indiana LLC.
A memo with instructions on what to do with your documents, how to apply for an EIN, various state reporting requirements, and advice regarding how to maintain the limited liability protections provided by your LLC.

We provide this all to you within 72 hours (weekends and holidays not included) of your submission of a completed Indiana LLC Setup / Formation Package Questionnaire. (If you need faster service, try our expedited Indiana LLC Setup / Formation Package service for 24 hour turnaround). You will receive a single PDF file containing all of your documents.

Click on the link above to purchase. A new window will open asking you to register of login.

*In the event you require more than 5 members, please contact us to get a custom fee quote.

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Indiana LLC | Multiple Member Indiana Limited Liability Company

Indiana LLC Setup Package – EXPEDITED – Multiple Member LLC – $700

brian — Wed, 07 Apr 2010 05:26:01 +0000

Articles of Organization that have been filed with the Indiana Secretary of State (the filing fee of $87 is included in your price!).
A Certificate of Organization from the Indiana Secretary of State.
A Multiple Member Operating Agreement, including restrictions on resale of membership interest in order to preserve closely held structure of your LLC.
Organizing Resolutions of the Members or Managers.
Membership Interest Certificates for each member, evidencing the ownership interest of each member in the new Indiana LLC.
A memo with instructions on what to do with your documents, how to apply for an EIN, various state reporting requirements, and advice regarding how to maintain the limited liability protections provided by your LLC.

We provide this all to you within 1 business day (weekends and holidays not included) of your submission of a completed Indiana LLC Setup / Formation Package Questionnaire. You will receive a single PDF file containing all of your documents.

*In the event you require more than 5 members, please contact us to get a custom fee quote.

Click on the link above to purchase. A new window will open asking you to register of login.

Indiana LLC Formation Package – Single Member LLC – $400

brian — Thu, 01 Apr 2010 02:24:42 +0000

Articles of Organization that have been filed with the Indiana Secretary of State (the filing fee of $87 is included in your price!).
A Certificate of Organization from the Indiana Secretary of State.
A Single Member Operating Agreement.
Organizing Resolutions of the Members or Managers.
A Membership Interest Certificate, evidencing your ownership interest in your new Indiana LLC.
A memo with instructions on what to do with your documents, how to apply for an EIN, various state reporting requirements, and advice regarding how to maintain the limited liability protections provided by your LLC.

We provide this all to you within 3 business days (weekends and holidays not included) of your submission of a completed Indiana LLC Setup / Formation Package Questionnaire. (If you need faster service, try our expedited Indiana LLC Setup / Formation Package service for 24 hour turnaround).

You will receive a single PDF file containing all of your documents.

Click on the link above to purchase. A new window will open asking you to register of login.

Indiana LLC Setup Package – EXPEDITED – Single Member LLC – $500

brian — Thu, 01 Apr 2010 05:27:37 +0000

1 BUSINESS DAY TURN AROUND!
If you are starting a new business, forming an Indiana Limited Liability Company is an excellent option available to you (click here to learn more about why you might form an Indiana LLC. By purchasing this package, we will form an Indiana Limited Liability Company for you, and provide you with the following:

Articles of Organization that have been filed with the Indiana Secretary of State (the filing fee of $87 is included in your price!).
A Certificate of Organization from the Indiana Secretary of State.
A Single Member Operating Agreement.
Organizing Resolutions of the Members or Managers.
A Membership Interest Certificate, evidencing your ownership interest in your new Indiana LLC.
A memo with instructions on what to do with your documents, how to apply for an EIN, various state reporting requirements, and advice regarding how to maintain the limited liability protections provided by your LLC.

We provide this all to you within 1 business day (weekends and holidays not included) of your submission of a completed Indiana LLC Setup / Formation Package Questionnaire.

You will receive a single PDF file containing all of your documents.

Click on the link above to purchase. A new window will open asking you to register of login.