Starting a business in Indiana is a huge responsibility. If you want to know how to start a business in Indiana on the right track, you may have to incorporate your business.
Incorporation is a legal process that enables you to structure your Indiana small business as an entity. You can form it as an Indiana LLC, corporation, sole proprietorship, general partnership, S-corporation and others.
Since you’re reading this article, I assume that you’re already done incorporating in Indiana and you’re now ready for the next steps to fully launch your Indiana small business. I understand that incorporating in Indiana was not easy and you’re just glad that it’s finally done.
However, your responsibility doesn’t end here, there are still additional things that you need to complete to launch your startup in the state of Indiana.
To help you get started, here are 5 supplementary requirements that you need to comply with!
Required by the Internal Revenue Service, the Employer Identification Number or EIN is a 9-series identification number which is similar to a Social Security Number in individuals. It is required by the IRS in order to monitor your business activities and state taxes.
Apart from these two important reasons, the IRS requires an EIN for businesses that belong to any of these criteria:
Also, you may want to have an EIN for personal transactions like opening a business bank account, applying for credit card using your business name, applying for business permits and licenses and even for the sake of your own privacy.
If you have many clients, using your Social Security Number is not a safe way to do business because you’re placing yourself at risk for personal identity theft. An EIN is one of the easiest requirements to obtain, you can get it for free at the IRS website.
Obtaining specific business permits and licenses is an essential requirement to be able to launch your Indiana small business officially. You will not be allowed by the state to open your business unless you are able to meet or exceed the standards of licensing in Indiana. The most common licenses that you may need to acquire include building, health, signage, alarm and zoning permits.
Licenses and permits are different from state to state and unique from business to business, which is why you may need to visit your local county clerk’s office to be able to determine which ones are applicable to your Indiana startup.
Consulting a tax professional is not a mandatory requirement in the state of Indiana, however, it is best to speak with one, especially if you’re a first time business owner or a new entrepreneur. A tax consultant explains and helps you understand Indiana tax regulations. They will brief you of your tax options and tax benefits and deductions that can be applied to your Indiana small business.
By taking this necessary step, you’ll be able to know your responsibilities as a business owner and taxpayer. If you need further assistance, most tax consultants also offer services such as tax preparation, federal and state tax compliance and tax computation – for an additional fee.
Be ready for the most grueling times of the year for the majority of entrepreneurs – tax period; consult a tax professional who will give you ample advice on what to do!
Although you can definitely start your Indiana startup without opening a business bank account, this is something that can cost you your business.
Why? Because without having a separate account for your business, you’ll most likely mix your personal money as well as the revenues of your business. Tracking your business expenses can be difficult in this case because you’re not separating it from your personal bank account.
A business bank account is somehow a mandatory requirement if you think about it. You are required by the state to establish your business as an independent entity to be able to receive continued protection and one of the methods to establish this is if you open a business bank account.
Build your financial history into a credible one, don’t think twice to open a business bank account. While doing so, you might also want to apply for a credit card to better track your transactions and finances.
Your business name is your crowning glory. It is the most effective marketing strategy to begin your Indiana small business. For sure, you’ve thought long and hard for the appropriate business name and I’m sure you wouldn’t want to put everything to waste.
While incorporating in Indiana will protect your business name from being used, it will not be protected in the rest of the states. This is where the importance of trademark comes in. If you apply for a trademark, you’ll be able to protect your business name in all 50 states.
There’s no shortcut when starting a business in Indiana, you have to go through the long and endless road so you can open your Indiana startup legally. These requirements are as important as incorporating your Indiana small business so you shouldn’t neglect them even if they’re just “additional” requirements.
Managing an Indiana startup is a continuous cycle. While you may have completed all these requirements and documents now, you have to stay compliant for the rest of your business’ lifetime. Renew what needs to be renewed and obtain whatever additional requirements that the state government imposes in the future. At the end of the day, it’s for the good of your Indiana small business. Create a solid game plan and stick to it!