How to start an Indiana corporation

It might seem like a lot at first, but once you understand the steps, it’s very doable. This guide will walk you through everything you need to know to start your Indiana corporation.

How to start a corporation in Indiana

Incorporating means registering your business as a corporation so the law sees it as its own entity, separate from you. Each state has its own rules for how to do this, so the process can seem confusing. Let’s go through each step: 

1. Choose a name for your Indiana corporation

Your corporation’s name should be unique and make a statement about your business. Make sure it complies with the following Indiana requirements:

• Include "Company," "Corporation," "Incorporated," "Limited," or an abbreviation of one of these terms in your name.
• Do not use a deceptive name. For example, calling your business "The Gift Shop, Inc." is deceptive if you actually sell office equipment.
• Your name must be unique and not too similar to an existing business name already on file with the Indiana Secretary of State.

Need help coming up with a business name for your corporation? Try the Rocket Copilot™ AI Business Name Generator, a free tool to help you brainstorm business names and get started registering your corporation.

2. Decide between an Indiana S-Corp and C-Corp tax designation

There are similarities between an Indiana S-Corp and a C-Corp regarding personal liability, management, structure, and compliance. The differences, however, come down to the following:

• Ownership Rules: C-Corps may have unlimited stock classes and shareholders. S-Corps may have only one stock class and no more than 100 shareholders. Only U.S. or legal residents may hold shares in an S-Corp.
• Taxes: A C-Corp files a corporate tax return as a separate entity from its shareholders. Dividends paid to the shareholders may then be taxed on those shareholders' individual returns. An S-Corp does not file its own return. It is a "pass-through" entity, meaning that income passes to shareholders and is reported on their individual returns.
• Documents: Becoming an S-Corp requires filing IRS Form 2553, Election by a Small Business Corporation.

3. Appoint directors and shareholders for your Indiana corporation

Each state has its own personnel requirements for incorporating. In Indiana, most corporations must have at least one director. Corporations with fewer than 50 shareholders may dispense with directors by stating in their Articles of Incorporation how the board's duties will be performed.

All directors of Indiana corporations must be at least 18 years old; however, Indiana does not require that directors live in the state

State the number of your corporation's directors in either your Bylaws or your business's Articles of Incorporation. 

4. Choose a Registered Agent

A Registered Agent is the person or business responsible for receiving tax, legal, and government documents during regular business hours. It's important that every business has one. You can either serve as your own registered agent (if you have an Indiana address) or choose one to do that service for you (if you are not located in Indiana or would like an extra layer of privacy).

5. File your Articles of Incorporation with the state of Indiana

Once you have a business name and registered agent, you can register your business as an Indiana corporation with the state by filing your Articles of Incorporation. This document may be referred to in other states as "Certificate of Organization," "Certificate of Filing," or "Articles of Organization."

6. Get an Employer Identification Number (EIN)

Before opening your doors for business, apply to the IRS for an employer identification number, or EIN. All corporations with employees in Indiana must have an EIN. An EIN is similar to your Social Security number, but it's for businesses. You'll also need an EIN to open your corporate bank account.

Congratulations! After you have completed all these steps, you have formed your Indiana corporation.

What to do after incorporating in Indiana

Indiana requires that you keep corporate records to maintain your status. These are the two most important documents you must create:

• Corporate Bylaws formalize how your corporation will operate. Provisions in your bylaws must be consistent with your Articles of Incorporation and Indiana law.
• Corporate Minutes are a written record of all actions taken and decisions made during meetings of your board or with your shareholders. You must keep copies of your minutes for three years.

You don't have to file these documents with the state. Keep them with your other corporate papers. We have more detailed information about Indiana's requirements for Bylaws and Corporate Meeting Minutes.

Still have questions? Learn more about how to start your own business with Rocket Lawyer and get started today!
 

Key takeaways Starting a corporation in Indiana means following state rules, like choosing a unique name, filling out paperwork, and paying fees to make it official. One important choice is deciding how your corporation will be taxed in Indiana, either as an S-Corp or a C-Corp. This affects how the business and owners pay taxes, and the differences between the two change from state to state. After forming the corporation, you must also keep records – like Bylaws and Meeting Notes – to stay in good standing with the state and prove your business is real and operating correctly.

Additional resources

Learning how to enforce a contract is just one step. Explore these additional topics to learn more and take the next steps.

• What is a corporation?
• What is an S-corporation?
• How are corporations taxed?
• How to start a corporation
• How to register a corporation by state