Corporations, limited liability corporations, sole proprietorships, and limited liability partnerships (LLP) are all different options to create a business. With an LLP, each partner still has the right to run the business while also protecting themselves. Partners are only liable for the LLP up to the amount of money they have invested into the company. Your company can only be an LLP if it is registered as such with the Indiana Secretary of State.
A company is obligated to satisfy a number of requirements if it is to be an LLP in Indiana. Perhaps the most important requirement is that the LLP must file paperwork with the Officer of the Indiana Secretary of State. The name of the LLP has to include the words “Limited Liability Partnership,” “L.L.P.”, or “LLP”. Additionally, the name must be unique, for the most part, when compared to other names. LLPs also have to choose a registered agent that is either a person or a company that is registered with the Indiana Secretary of State and can receive any necessary official documents. Another critical requirement for an LLP is that the company must have at least two partners.
The necessary paper work for an LLP can be filed either online or by mail. LLPs that begin in Indiana, known as domestic LLPs, have to file an Articles of Registration for a Limited Liability Partnership. Foreign LLPs, which are LLPs that began in another state and now want to expand into Indiana, are required to fill out an Application for Registration for a Foreign Limited Liability Partnership. Both forms require much of the same information. The information required for both forms include the name and address of the LLP, the name and address of the registered agent, and a statement of purpose that describes is what sort of business the LLP is planning to engage. Each form must also be signed by a of the LLP. A foreign LLP must also disclose where and when it was formed on the Application for Registration for a Foreign Limited Liability Partnership.
Indiana is one of the few states with a flat tax rate for income, which is rather low compared to other states because it is only at 3.3%. This is a great benefit for an LLP because the profits of an LLP are only taxed once as part of the partners’ personal income.
Back when Vice President Mike Pence was still governor of Indiana, the state government passed a law that has had a very harmful effect on both businesses in the state and the state’s economy as a whole. That law is Indiana’s Religious Freedom Restoration Act of 2015. Since being passed, the law has resulted in the economy of Indianapolis, the state capital, losing about $60 million in revenue in 2016 alone. Many businesses have left the state as a result, and it may cause issues for businesses wanting to continue in Indiana as people continue to boycott Indiana-based businesses due to this law.
It can be difficult to establish an LLP on your own. Assistance from an Indiana business lawyer can prove indispensable in making sure that you do not make a mistake when completing and filing your LLP’s paperwork.