The problem isn’t how hard it is to start a business, but choosing where to locate the business to make it work.
With a Gross State Product of $336 billion, starting a business in Indiana is a great choice for entrepreneurs. The state is listed among the top 10 states for business by Forbes. So what are you waiting for?
Make a leap into entrepreneurship in Indiana by following our simple step-by-step guide and get on the fast track to financial and personal independence.
Indiana offers new businesses a variety of benefits including a strong economic climate, growth prospects in the competitive national and international markets, lower business setup and operation costs, a variety of incentives, and many more.
This guide on how to start a business in Indiana will benefit you a lot.
Facts About Indiana
Indiana is a state in the Midwestern United States. It is the 38th-largest by area and the 17th-most populous of the 50 United States. Its capital and largest city are Indianapolis.
Indiana has a diverse economy with a gross state product of $377.1 billion in 2019. It has several metropolitan areas with populations greater than 100,000 and several smaller industrial cities and towns.
Indiana’s name means “Land of the Indians”, or simply “Indian Land”. It also stems from Indiana’s territorial history. A resident of Indiana is officially known as a Hoosier.
Why You Should Start a Business in Indiana
Here are a few reasons you should consider doing business in Indiana.
Business Incentives
Indiana offers several state and federal incentives, loans, grants, tax credits, etc., available to small and medium-sized enterprises. Let’s inspect the most popular incentives available for businesses. source: incparadise.net
- Indiana Enterprise Zones: If you register a new company in Indiana Enterprise Zone then your business entity can leverage from a variety of incentives and tax credits. If your business was situated in Bloomington, which is one of the Indiana EZ’s then your business would benefit from a variety of credit programs like Inventory Tax Credit, Investment Cost Credit, Employment Expense Credit, Loan Interest Credit, and Gross Income Tax Exemption.
- Hoosier Business Investment (HBI) Tax Credit: HBI is targeted at a startup company in Indiana in order to bring in capital investment, support job creation in the state, and lead to an overall improvement in the standard of living for residents.
- Research & Development Sales Tax Exemption: If your business involves research and development, then you can leveraging from a 100 percent sales tax exemption.
Perfect environment for startups
With a plethora of entrepreneurs in Indiana, the ground is super conducive for startups. This is so because of the healthy business-friendly system that compliments competition.
Tax benefits
Indiana has instituted several tax benefits and incentives to help ease the burden on small business owners. New businesses operate tax-free if they’re located on or near certain universities in the state.
Also, the New Markets Tax Credit Program gives money to businesses and real estate developers to create jobs and foster community development in low-income neighborhoods throughout Indiana State.
If you have good culinary skills you can Start a Food Business in Indiana: follow our guide on how to Start a Food Truck Business.
Indiana Fuels Innovation
At the local and state level, regulatory agencies provide support to existing and new businesses through access to capital for innovation and growth projects.
Exploring the benefits and knowing your reasons for wanting to start a business in Indiana will help you stay motivated, even if you experience obstacles along the way. This motivation will make it easier to overcome any setbacks and scale your cleaning business to success.
How Much Does it Cost to Start a Business in Indiana
To create your LLC in the state of Indiana, you’ll need to file the Articles of Organization with the Indiana Secretary of State and a filing fee of $100. If you file online, the fee is $95. To complete the documents, you’ll need to know the following information: The name and address of your LLC.
How to Start a Business in Indiana- step-by-step Guide
Here are the steps you need to take in starting your own business in Indiana.
#1: Choose a Business Idea
The first step toward business ownership is deciding what kind of business to start. Look for an idea that suits your interests, your personal goals, your natural abilities, skills, and the reason why you want to form the business. You should also evaluate the likelihood of success based on the interests and needs of your community. This will help you stay motivated when the going gets tough and will greatly improve your odds of success.
#2. Plan Your Business
You know what they said, “if you fail to plan, you plan to fail.” Successful businesses are built through careful planning.
To gain proper guidance through each stage of starting and managing your business, you need a business plan. It is a written description of your business’s future. it contains the goal of your business and tells what to plan to do and how you plan to do it.
When you create a plan, you will have a better idea of the startup costs, your competition, and strategies for making money. Investors and lenders will ask to review your business plan before providing financial assistance.
When planning your business, take into consideration the following:
#3. Decide on the Legal Structure
Setting up a legal structure for your business helps increased credibility and protects your business from personal liability in the event your business is sued.
The most common legal structures for a small business are:
Choose the business entity structure that offers the type of liability protection you want and the best tax, financing, and financial benefits for you and your business.
#4. Choose a Name
For limited liability companies (LLCs) and corporations, you will need to check that your name is distinguishable from the names of other business entities already on file with the Indiana Secretary of State (SOS).
You can check for names by doing a business name search on the SOS website. You can reserve an available name for 120 days by filing a name reservation application with the SOS. There are certain name requirements for LLCs and corporations (like including a word such as “LLC” for LLCs or “Company” for corporations).
If you plan on doing business online, register your business name as a domain name. Ensure you check online to see if your business name is available as a web domain. Even if you don’t plan to create a business website today, buy the URL in order to prevent others from acquiring it.
#5. Apply for Licenses and Permits
Application for licensing and permits covers the following procedures.
Tax Registration
Is it goods you want to sell in Indiana? You must register with the Department of Revenue (DOR) to collect sales tax.
Will your business have employees? You must register with the DOR for employer withholding taxes. You can register for both types of tax, and other business taxes, by submitting Form BT-1, Business Tax Application, online through the Business Tax Application section of the DOR website.
EIN
If your business is taxed separately from you or has employees, you must obtain a federal Employer Identification Number (EIN) from the IRS. Even if you are not required to obtain an EIN, there are often business reasons.
Banks often require an EIN to open an account in the business’s name and other companies you do business with may require an EIN to process payments. You can get an EIN by completing an online application on the IRS website. There is no filing fee.
Regulatory licenses and permits
Some of the main categories covered by these licenses and permits are:
- Health and safety
- Contractor services
- Daycare services
- Financial services
- Transportation, and
- Professional licensing.
Professional and occupational licenses
This type of licensing takes care of people who work in various fields. The state’s Professional Licensing Agency (PLA) oversees many(not all) of the state’s regulatory boards and commissions.
Those boards and commissions are in turn responsible for regulating the various licensed professions and occupations. The Professions section of the PLA website lists the many professions and occupations that the PLA oversees.
#6. Pick a Business Location and Check Zoning
Choose a location for your business and check local zoning regulations. Before you commit to a location, review the costs of running your business in the desired spot, including rent and utilities. Refer back to your business plan to evaluate whether you can afford your desired location during your company’s early months.
Also, verify that the spot is zoned for your type of business. You might find zoning regulations for your town or city by reviewing your local ordinances and contacting your town’s zoning or planning department.
#7. File and Report Taxes
Whether you are starting a new business or purchasing an existing one, you will need some basic information about Indiana’s Tax Law and regulations.
Indiana Indiana Tax Handbook for New and Small Business outlines the procedures to follow and the forms to file with the Indiana State Department of Taxation and Finance (the Tax Department). This publication also contains valuable information for those purchasing an existing business or purchasing assets from an existing business.
#8. Create business banking and credit accounts
Using dedicated commercial bank and credit accounts is essential to protecting personal assets.
When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is known as piercing your company veil.
Additionally, when you learn how to build business credit, you can get credit cards and other finance on behalf of your business (instead of yours), better interest rates, higher lines of credit, and much more.
There are two steps you can take to protect your business:
1. Opening a commercial bank account:
- Separates your personal assets from the assets of your company that are necessary for protecting personal assets.
- Facilitates bookkeeping and tax returns.
2. Get a business credit card:
- Helps you separate personal and business expenses.
- Creates your company’s credit history, which can be useful for later raising capital (such as small business loans).
#9. Join Professional-Associations
Joining professional organizations will give you a chance to network- you never know where a business lead will come from. So you have to be open to exchanging services with other professionals.
You also may be able to receive discounted insurance rates for being part of one of these organizations.
Creating an online presence that highlights the type of services you are offering is one of the best ways to attracts potential clients in today’s world.
Social media can play a huge role in overcoming that industry problem by giving you an outlet to point out the good your company is doing. Remember, social media reviews are the new word of mouth.
What Type of Business Can I Start In Indiana?
Indiana is full of startups that create new business models, develop new industries, and come up with ideas that positively transform the economy.
Any business idea can be great and successful if it’s solving a specific audience’s core problem and creating value.
Here is a list of small and mid-sized business ideas to start in Indiana:
Food Delivery
Freshly cooked homemade food during lunchtime is an awesome treat for people at work, but time limitation doesn’t allow them to travel long for it. Offering a service whereby they can subscribe for a weekly or monthly package online and get the lunch delivered every day, right before the lunch break can be a great business in Indiana.
Luxury Travel Planner & Discount Deals
Even though it’s a developed sector already, topping up your service with unique offers can bring you a huge customer base. Do not just stick to overseas tours, luxury travel, and cruise international deals, but also find exotic places to explore nearby or across the state!
Property Management
The rich in Indiana has so many things to think about. Sometimes they don’t provide due attention to their properties and have difficulty in managing them. Find them and offer them your exclusive services!
Specialized Recruitment Agency
Though too many recruitment agencies are already there, and the presence of web portals makes it quite a saturated market, there’s still a huge gap that needs to be filled. Specialized recruitment companies are very few as they offer their services for a minimal set of industries. Get hold of two or three relevant industries and set up your unique presence with better value delivery.
Daycare
The biggest concerns of working parents are their kids’ safety and security when they are away for work. Thus, daycare centers provide the best option for them. Not only does it ensures the child is safe, but it also makes them learn good things.
House Keeping
As people are getting so busy with their professional lives that there is hardly any time to look after the home. Thus, in such circumstances, that option of maids, cleaning service, and handyman jobs comes handy and affordable. Establishing such a company is easy and can prove quite successful within a short time frame.
Bakery
There are many reasons for celebration in the day-to-day life, snacks and cakes make up an important part of all celebrations. Yes, there may be tens of others offering the same services, but if you’re a master of the skill, you can get a bigger market share with a simple Facebook Ad campaign even.
Flowers Delivery Service
As there’re too many reasons to celebrate everyday events, there’re too many ways to do so. A bouquet is one most powerful ways to express your joy occasionally, but no one can always afford to go to a florist! This makes it an amazing business idea.
Related post: How to Start an Online Boutique in 2022: The Ultimate Guide, Step-by-Step
eCommerce
Selling on Amazon and eBay is a quick and fine way to start your online trading business, but you must have something awesome to sell at an amazing price to succeed in the business.
Being Webpreneur
If you’ve expertise in content, marketing, or web development, you can make your own empire in a limited time. Let it be a content agency, a business networking portal, or a marketing platform. All you need is a product/service that attracts a bigger audience!
To promote your company, you can create a marketing video with the business video maker makewebvideo.com.
Business Broker
The trend of entrepreneurship has shot up the demand for buying established businesses that meet existing clients’ business requirements and much more. This is aptly suited for business brokerage. Even though this field is slightly tricky and complex and requires some B2B experience, it can prove to be quite profitable for you.
Insurance Broker
To meet the insurance sector’s ever-growing demand, you can act as an insurance company agent and earn your share of the profit.
Dry Cleaning Service
Like cooking and cleaning, laundry is yet another tedious and time-consuming task for the working-class, and you will see a large population always avoiding it as much as they can. If you are considering a laundry business plan, then consider that mobile laundry pickup and delivery services address the laundry concerns in a better way.
Here are tips on how to start and run a cleaning business successfully.
Beauty/Hair Salon
Depending upon the locality and target audience, you can start a business that offers multiple services, or stick to a hair salon only!
Mobile Auto Workshop
Having a mobile car workshop in a state where there are cars will not just give you a competitive advantage, it will also solve an aged-long issue.
A mobile workshop can provide the ideal help in all cases including emergencies and bring a lot of customer satisfaction and profit for the workshop.
Conclusion
There are unique benefits associated with starting a business in Indiana. If you think strategically and take advantage of every opportunity to minimize costs while maximizing the value you add for customers, you can build a foundation for long-lasting business success in the state.
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