Starting a Business

Entity Selection.Starting a Business in Chesterton, Indiana

Common types of entities are sole proprietorships, general partnerships, limited partnerships, corporations (“C” corporations or “S” corporations), and limited liability companies. Limited partnerships, corporations, and limited liability companies are required to file with the Indiana Secretary of State.

Tax Applications.

Your new business will need an employer identification number (Form SS-4) and you will need to file an Indiana Business Tax Application (Form BT-1). If you elect to be taxed as an “S” corporation, that election will also need to be made.

Licenses and Permits.

Depending on the type of business, you may be required to obtain licenses or permits.

Assumed Name Certificates.

If you plan on operating your business under a name different that its legal name, you must file an Certificate of Assumed Business Name with the Indiana Secretary of State as well as in the Office of the Recorder in each county you plan on operating.

Finance.

If you are contributing money to your new business, it can be considered capital (investment in the company) or a loan (which must be repaid) — this classification has important tax consequences. Outside financing may be obtained through loans from financial institutions (possibly SBA loans), loans from venture capitalists/angel investors, loans from friends and family, or public/private offerings of stock/ownership interests (subject to securities laws).

Hiring Employees.

You must register your business with the Indiana Department of Workforce Development (Report to Determine Status) to create a state unemployment account. Also, it is very important to obtain workers compensation insurance.

If you have any questions, we would be happy to help. Please call us at 219-926-2188.