How to Form a C Corporation in Indiana

Introduction

If you are planning to start a new business, you will likely have several decisions to make. One of those decisions is whether or not you should choose a corporation as your form of business organization. While it is possible for any type of business entity to be successful, only corporations and limited liability companies (LLCs) offer owners the same protection from personal liability that individuals enjoy in their personal lives. This means that if your company is sued or gets into legal trouble, its owners (members) will be protected from paying any damages out-of-pocket—they’ll only lose money if the business itself has been damaged by such an action.

If you are planning to start a new business, you will likely have several decisions to make.

If you are planning to start a new business, you will likely have several decisions to make. One of the first of these choices is that of business structure. There are four main types of businesses: sole proprietorships, partnerships, limited liability companies (LLCs), and corporations. Each type has its own advantages and disadvantages depending on your needs as an entrepreneur.

One major consideration when choosing which entity type is right for your company is whether or not it will be publicly traded in the future or sold at some point in time. If so, then a C corporation might be best suited for you because it gives investors greater protection from personal liability than other entities do. In addition, if you want to take advantage of certain tax benefits related to capital gains taxes on the sale of your company later on down the road (such as installment sales), then incorporating now rather than waiting until after-the-fact could save both money and hassle during this process later down the line.

Choose a business structure.

The most common choice is a C corporation, which is also the default business structure in Indiana. The other options are limited liability company (LLC) and S corporation.

Why choose one over the other? There are many factors to consider when selecting a business structure—from personal preferences to state laws. For example, if you want the protection from liability that comes with being a separate entity from your business and its owners, then forming as a C corporation is probably best for you. If you’re interested in paying lower taxes on your profits than an LLC or S corporation would allow, then those entities might be better choices for your needs.

Select a business name.

Choose a business name. Your corporation must have a name that is distinguishable from other names in its line of business and not too similar to another company’s name. You can’t use words that are considered offensive or misleading, such as “Bank of America” or “Bank Of America Corporation.” Also, check with the Indiana Secretary of State to be sure your proposed business name isn’t reserved or in use by another company.

File the articles of incorporation.

Once you have decided on a name and have checked it for availability, file articles of incorporation with the Indiana Secretary of State. You can do this by mail or in person. If done by mail, make sure to include:

• The name of your corporation
• Its purpose or mission statement
• The names and addresses of the incorporators (you) and a brief description of how you are connected to each other, such as through family or business relationships

The form must be signed by all incorporators before being submitted to the state. It must also include an affidavit stating that no one has been employed or compensated by another person in consideration for filing this document with the secretary’s office; otherwise, it may be deemed invalid.

Create corporate bylaws.

Once you’ve formed your corporation, you’ll need to create corporate bylaws. A corporation’s bylaws are rules that govern how the company is run internally and are not required, but they’re definitely a good idea. The purpose of creating bylaws is to protect shareholders from each other and from themselves.

The first step in creating your own set of bylaws is deciding who should be responsible for drafting them. This can be done either through an existing template or by hiring an outside professional. You should consider adding specific language into your bylaws about when or how often they can be amended (such as amending them upon approval from two-thirds majority).

Once you have established what needs to go into your corporate bylaws, it’s time to print them out on high quality paper with plenty of white space around each paragraph so that it’s easy for everyone involved in the process (and their lawyers) to read and understand what they mean without having any questions left unanswered afterwards!

Hold initial meetings.

Once you’ve obtained the necessary documents, it’s time to hold an initial meeting. The initial meeting is a crucial step in forming your C corporation. This meeting should take place within 60 days of incorporating, and all shareholders must be present at this meeting. At this meeting:

• You will elect a board of directors
• You will adopt bylaws (the rules under which your business operates)
• You will adopt stock certificates with corporate signatures

Apply for an Employer Identification Number (EIN).

An Employer Identification Number (EIN) is a number issued by the IRS to identify your business. It’s similar to a Social Security Number for people, but it’s used to identify businesses.

You must apply for an EIN if you plan on filing a corporate income tax return or paying taxes as an S corporation. For example, if you’re going to pay yourself as an employee of your corporation and file a Schedule C with your personal income taxes along with Form 1120S, then it’s necessary that you have an EIN so that the IRS can match up your business accounts with those of your personal ones (and vice versa). If you do not have one, don’t worry: You’ll still be able to file these forms without one; however, it will take longer and cost more because they’ll have no way of matching up all of the information from both sets of returns together if there isn’t an EIN listed anywhere on them

Setting up and forming your corporation is not as hard as you think it is!

You can do it yourself or hire a lawyer. If you choose to do it yourself, there are lots of resources available that can help you. We’ll go over the steps to setting up an Indiana C Corporation:

Conclusion

We hope that this guide has helped you understand the basics of forming a C corporation. It’s not as hard as it sounds, and it can be a great way to protect yourself and your assets. If you have any questions about how to incorporate in Indiana or if you want help with any other aspect of running your business, please feel free to contact us!