STARTING A BUSINESS IN INDIANA

Doing Business In Indiana

Business Facts

Indiana has remained one of America’s strongest manufacturing states. The state has the highest percentage of laborers employed in manufacturing; it is a leading producer of steel, heavy machinery, and automotive parts. It also has notable mining and energy sectors, though like the rest of the country it has seen a large growth in service industries in the last two decades.

The state is a major exporter of cars, car parts and pharmaceuticals, sending more products to Canada than any other country. Indiana’s natural resources also contribute heavily to its economy, with the state producing 36 million tons of coal annually.

The total gross state product in 2017 was US$359 billion, and Indiana‘s per capita income was $44,165. A high percentage of Indiana’s income is from manufacturing. Indiana has been the largest steel producing state in the U.S. since 1975, with the Calumet region of northwest Indiana being the largest single steel producing area in the U.S.

Small Business and Startup Environment

Indiana has 451,437 small businesses, according to the most current federal data available. Of those 451,437 small businesses in Indiana, 122,716 have employees. The remaining 328,721 are Indiana small businesses that have no employees.

As Indiana enters its third century, Indiana will grow as the global leader in turning big ideas into reality, attracting investment, and nurturing top talent.

Through this initiative, Indiana is working to build the nation’s top environment for innovative ideas to transform into high-growth companies and industry leaders. Spearheaded by Governor Holcomb, this plan will strengthen an environment that enables big ideas to thrive in our state, foster talent that will fuel the ideas’ growth, and drive investment capital to take those ideas to the market.

Major Companies

Indiana is home to large companies such as: Thor Industries, Eli Lilly and Co., Cummins, Steel Dynamics, Zimmer Biomet Holdings, Berry Global Group, Simon Property Group.

Step 1: Choose A Business Structure

The most common business structures are sole proprietorship, partnership, limited liability company (LLC), and a few different types of corporations—the standard corporation (often called a C corporation or “C corp”), the small business corporation (often called an S corporation or “S corp”), and the benefit corporation (often called a B corporation or “B corp”).

The most common business structures are:

► Sole Proprietorship in Indiana:

Happens when you operate your business as yourself. There is no separate legal entity created; the law treats you and your business as one person. You are responsible and personally liable for all business activities or wrongdoing.

► Indiana Partnership:

The same thing as a Sole Proprietorship, but just with 2 or more people. Like a Sole Proprietorship, a Partnership doesn’t create a separate legal entity and the partners are responsible and personally liable for any business activity or wrongdoing.

► Indiana Corporation:

A more complex legal structure that requires a board of directors, corporate officers, and shareholders. Corporations don’t usually work for most small business owners since they face double taxation. Corporations can be beneficial to companies that are looking to raise capital investment, take the company public, or have large healthcare expenses for their employees. The most common types of companies that form Corporations are high-growth technology and startup companies.

Unlike a Sole Proprietorship or a Partnership, a Corporation is a separate legal entity from its owners (called shareholders). It provides them with personal liability protection.

► Indiana LLC:

A legal entity that combines the benefits of a Corporation and a Sole Proprietorship/Partnership.

An LLC in Indiana is a separate legal entity under the law. And like a Corporation, it provides personal liability protection for the owners. If the LLC is sued, the owner’s personal assets – like their home, cars, and bank accounts – are protected. And like a Sole Proprietorship/Partnership, an LLC has pass-through taxation (so there’s no double taxation).

A Indiana LLC is the most popular option and a good choice for people who want to run a small business for two reasons:

Personal liability protection (personal assets are kept safe)
No double taxation

Unlike a Sole Proprietorship (and a Partnership), your Indiana LLC’s assets are separate and distinct from your personal assets. In the event your LLC gets sued, your personal assets are protected.

And unlike a Corporation, your LLC is not subject to double taxation. Instead, your LLC’s profits will “pass-through” to your personal tax return and federal taxes are paid just once.

Step 2: Choose The Right Business Name

Choosing a business name is important, you want to make it easier for your customers to remember it, here are some tips:

Avoid hard-to-spell names.
Don’t pick a name that could be limiting as your business grows.
Conduct a thorough Internet search.
Search and purchase a domain name.
Use a name that conveys some meaning.
Conduct a trademark search.

Step 3: Register Your Business

Depending on the business structure you chose you will need to register your business.

Resale license site

Department of corporations

Step 4: Obtain an EIN Tax Number

With limited exceptions, most businesses require an Employer Identification Number (EIN), also known as a Tax ID Number. An EIN is used to identify a business in its federal tax filings. Without an EIN, you can’t hire employees or open a business bank account.

Click Here to Apply for EIN number online

Get Inspired by these Indiana Startups

https://www.freightrover.com/

https://smarterhq.com/

https://www.theodysseyonline.com/

https://www.springbuk.com/

Step 5: Open A Bank Account

– Open a business bank account:

Separates your personal assets from your company’s assets, which is necessary for personal asset protection.
Makes accounting and tax filing easier.

– Get a business credit card:

Helps you separate personal and business expenses.
Builds your company’s credit history, which can be useful to raise capital later on.

Step 6: Licenses & Permits

Now that you’ve registered your business name you need to obtain a business license for your company – this authorizes your company to do business in your city or county. Typically this also involves registering for state taxes and permits (the city may require them as part of the business licensing process).

Here are some links for Indiana Businesses:

Selling products? Check Indiana Resale Permit

Business Licensing for the State of Indiana

Step 7: Branding & Marketing

Your brand is the image customers have of your business, so it’s important to determine who is your audience and what is the message that you want to project. That way, your company’s image will be what you intend it to be. It should be strategic and intentional.

Step 8: Establish a Web Presence

Creating an optimized website helps you to gain important visibility for the right terms. A website is a powerful sales tool and one that allows you to address your customers’ concerns, give them the information they need to make a decision and create compelling calls to action.

In addition to a website, you should also consider other avenues for promoting your business online: