Starting a Business in Indiana: 7 Things You Need to Know

Starting a business anywhere means learning the local rules and regulations. A place like Indiana has plenty to offer small business owners, but you need to know how to get set up correctly in order to make a real thing happen. This guide explains the ins and out of business setup in Indiana.

Why Indiana?

There are plenty of amazing cities throughout the state that can provide a highly nurturing environment for small businesses. This makes it a popular choice for entrepreneurs.

Set Out Your Plan

Every business starts with a plan, and this is hard to avoid. So, it is time to put pen to paper or fingers to keyboard and write up yours. It should include:

1. A clear definition of what your business will be. 
2. Some marketing strategies. 
3. A budget including profit expectations for the first year of trading. 

Keep in mind that this document should be a flexible, evolving thing and it is not a strict depiction of what you should do. It is a space to get your ideas down and figure out whether or not seeing them through is realistic and attainable. 

Registering a Company in Indiana

In order to begin trading, a business needs to be first officially registered with the state. This means a decision is needed about what kind of business you are going to be. There are six options in Indiana from sole proprietorship to LLC and it is up to you to define where you are going to fit. LLC is a strong option with the most protection, but you need to find information around forming an LLC in Indiana from an authentic source. This can help you to figure out tax obligations and so on. 

How to Register?

Once you have the first bit set in stone, the actual registration process can begin. Go to the official website and file the required documentation which includes things like a certificate of limited partnership. Then, there is a fee of $90 to pay which you will need to do in order to complete the application. 

Consider the Financial Side of Business

Alongside having a solid budget to work with, you will also need a tax account and an official business-based income model. The IRS website will provide you with an EIN which is non-negotiable for all small companies trading in Indiana regardless of whether you make money in that first year or not. This bit won’t cost you anything, but you will need it for things like accessing a bank account. 

Look at Investment Options

Unless you have the entire sum of capital needed to get things rolling, you might need to look for grants and investment options. This will require you to look at the complete cost of starting up and determine whether external investment is necessary, or you can go it alone for the time being. You will need to cover all of the costs of stock, space, and employees (if applicable) plus have enough money to live off in your personal life. However, the business accounts and personal accounts should always be completely separate. 

Don’t Forget Insurance

Once you have all the necessary permits, licenses, registration numbers, and accounts set up, you need to make sure your new asset venture is protected through an insurance policy. There are thousands to pick from, and what you need will be determined by what you are doing and how big the operation is. Policies can always change as your business develops, but having something in place for that first year and beyond is an essential protective factor that you can’t do without. 

Get your idea straight, find the funding, and make sure you speak to an attorney to protect the business from the very beginning.

Also Read: 4 Funding Options to Consider When Starting a Small Business