General RequirementsIndiana does not have any one single, comprehensive business license. However, all businesses operating in Indiana are subject to regulatory requirements that may involve several state agencies. Businesses that are starting, expanding, hiring employees for the first time, changing ownership or organizational structure, or moving into Indiana will need to consider the areas listed in this section. Show
In addition to the general requirements, certain types of businesses will be subject to specific licensing or permitting requirements. Although the most common permits and licenses are mentioned in this document, it is always advisable to contact the State Information Center at 317-233-0800, 800-45-STATE to discuss the most current requirements for any individual business. Business StructureThe first decision you must make is what type of business organizational structure will best meet the business owner's goals. The organizational structure of a business entity will determine what must be done to officially "form" the entity, how taxes are paid, and many other details that will affect its day-today operation. The types of structure, formal and informal, and their corresponding filing requirements are outlined below. There are financial and legal advantages and disadvantages to each type of business organization. Anyone unsure of which structure will be best for any business should attend a "Starting a Business Workshop" offered by one of the assistance providers listed in Section IV. Additionally, paid professional assistance may be needed.
Establishing Tax Accounts
Additional Employer ResponsibilitiesEmployment may be defined differently by laws regarding taxes, worker compensation, labor, and unemployment. Often, a worker's status as an employee is dependent on how much work is performed and how wages are paid. Some laws use tests involving the amount of control the payer has over how, where,and when the work is done. The IRS has Publication 15A, which outlines the criteria it uses to make the determination of whether a worker is an employee or an independent contractor. The term "independent contractor" is used to refer to a business, a business owner with employees, or a self-employed business owner with no employees. This should not confuse the issue of employer responsibilities. If you have employees, you are responsible for them. If you are unsure of whether someone who performs services for you is an employee or independent contractor, consult each agency listed in this section to be sure of which definitions apply for which purposes.
Specific Licensing & Permitting IssuesBuilding/Facility Ownership
Specific Occupational Business LicensesIndiana has over 400 different licenses, permits, certifications, and other permissions, which could be required to engage in certain activities. In order to simplify this area, the most commonly requested approvals will be addressed here. This is not intended to be a complete listing, nor should the omission of any license imply that it is not required. However, there are some service-oriented businesses that do not require a license from the state to operate in Indiana. Any questions regarding which licenses or permits are necessary can be addressed to the State Information Center.
Local RegulationCities and Counties in Indiana have jurisdiction over many areas, which can affect small business. Zoning regulations and signage issues are almost always local issues. As mentioned earlier, contractor licensing (for contractors other than plumbers) is also a local option. Some areas also have a "transient merchant" license or some other regulation of those doing business without an established business location. Since regulations vary from city to city and county to county, it is always necessary to contact the local government wherever work id done. Consult a local telephone directory for contact information regarding local government offices. For general information regarding the federal government agency contact: Federal Citizen Information Center (800) 333-4636 or (800) 688-9889 AssistanceIndiana offers many assistance programs for business, some of which are mentioned in this document. Often, the best source of information regarding assistance is a local economic development office. National Programs
Statewide Programs
What is a written contract granting permission to operate a business to sell products and services in a set way?Ch. 5 Vocabulary Review - Business Ownership. What is a written contract granting permission to sell someone else's product?The term licensing agreement refers to a legal, written contract between two parties wherein the property owner gives permission to another party to use their brand, patent, or trademark.
What is a written agreement among all owners?A partnership agreement is a written agreement between the owners of a company. If the company is a limited liability company, the agreement is an Operating Agreement. For a corporation, the agreement is a Shareholder Agreement.
Is a written legal document that defines ownership and operating procedures?An operating agreement (bylaws) is an internal document that defines how the business owners professionally relate to one another. The articles of incorporation (certificate of formation) is a public document that legally establishes a business as a corporation.
|