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Entries in Form an Indiana LLC (4)

Monday
May102010

Why form an LLC in Indiana? | LLC Attorney

There are lots of reasons and advantages to setting up an LLC for your business.  Lots of times people wonder, though, which state is the best in which to form an LLC.  I usually recommend that people form an LLC in their home state, although that advice can vary from time to time depending on the exact circumstances. For Indiana businesses, forming an LLC in Indiana is a no brainer for a few reasons, as I detailed in a recent post on myIndianaLLC.com:

 

  • 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.

 

 

Wednesday
Apr212010

Form an LLC Online. Fast. Using an attorney.

A good first step for anyone starting a business is to form a separate legal entity through which to conduct business.  Usually this means that a limited liability company or corporation is formed.  Except in certain instances, I usually recommend that an LLC be formed.  The business owner then has a choice to make - how to form the entity.  

 

  • Do it yourself?
  • Use a non-attorney legal forms provider like legalzoom.com?
  • Retain the services of an attorney?

 

This decision usually comes down to one factor - cost.  Most people, in the absence of the typical relatively high cost of using an attorney to set up an LLC, would likely use an attorney.  This is why non-attorney legal forms providers have become so prevalent and successful - the provide a pseudo-legal service at a much lower cost that an actual attorney. In the past, I myself have lost clients seeking to form an LLC when opted to use a legal forms provide rather than retaining my services - simply due to cost.

That is what inspired me to launch myIndianaLLC.com - which is designed to give clients the best of both worlds - the LLC formation services of an attorney with the afford-ability and speed (although our services are much faster than most legal forms providers).  myIndianaLLC.com allows you to create single and multiple member Indiana LLCs online by walking you through an interactive questionnaire that has been carefully crafted by me to mimic the exact same process I use when setting up an LLC for a client in the traditional manner.  The system then analyzes the answers provided and generates a set of documents that are sent to me for my review.  After I review them, I make th appropriate filings with the Indiana Secretary of State, send the documents back to the client, and POOF - a brand new Indiana LLC has been formed!  All of this can be done in as fast as 1 business day.

If you are interested, check out myIndianaLLC.com.  

Sunday
May312009

Business Incorporation - Why you should consider your home state.

Martin Zwilling over at Startupprofessionals.com has a nice post regarding why start-ups should consider incorporating / organizing their business in their home state.  The post can be found here, but here is a brief summary:

  • Don't automatically flock to incorporating in Delaware.  Sure there might still be some advantages to doing so, but they don't really apply to start-ups.
  • In Indiana, where I practice law, the filing fees for incorporating a business are inexpensive and the process is relatively straightforward - not the case in popular states such as Delaware and Nevada.
  • Attorneys in your home state, if you are using an attorney (hopefully you are), will be more familiar with your state incorporation laws.
  • Your company may qualify for an intrastate securities law exemption in the event it offers securities for sale.
  • There is no need to register as a foriegn entity in your home state - and added expense if you incorporate elsewhere. 

As he points out, there are many other concerns that should be addressed when determining in what state you should incorporate - concerns you should address with a corporate attorney in your home state.

Monday
Apr272009

Starting A Business - Forming an LLC (Limited Liability Company)

Beginning in the late 1980s, various states began exploring a hybrid entity, one in which co-owners would enjoy the liability protection of limited partner status and the management participation feature of the general partners. Wyoming was the first state to enact its limited liability company statute and many states quickly followed suit. Indiana adopted its limited liability company statute, known as the Indiana Business Flexibility Act, in 1993.

Most of the characteristics of a partnership are shared by the limited liability company. The company is formed upon filing articles of organization with the Secretary of State’s office; rights and responsibilities are spelled out in a written operating agreement; the interests are freely transferable (though again, the transferee does not automatically become a member in the company); and the entity 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 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.

A limited liability company can either be managed by its members, or the members may select one or more managers (e.g., a board of managers similar to a corporate board of directors) to run the business. Most states will require you to decide upfront how the company will be managed. All things being equal, most business owners will choose the limited liability company form over the partnership form. However, things are almost never equal and nuances do exist. It is important to discuss these details with your attorney.

 

The Law Office of Brian V Powers works with new and prospective business owners to aid in the purchase, structuring and formation of a new business. We also provide convenient, fixed pricing for certain business formation legal services.  Contact us today at inquiries@bvplegal.com for help forming your Indiana Limited Liability Company.