Too many Teacher Entrepreneurs risk their personal assets by not forming a business entity. A Limited Liability Company (LLC) is a great entity for most Teacher Owned Businesses and it takes only a few minutes and a little planning to form. The info below is needed to form an LLC in Indiana. I chose Indiana because it is my home state and I have been through the process several times. The process is similar in most other states. For more specific info on filing an LLC in your state, see your state’s Secretary of State Website.
In order to form an LLC in Indiana you need the following information:
- A business name – This name must be distinguishable from other businesses. The Secretary of State provides a searchable database of all existing business names so you can make sure that yours is unique.
- The principal office address – This is simply the mailing or physical address of the business.
- The name of the registered agent – The registered legal agent of the business. This is the person that is the legal representative of the business. It will most likely be you.
- Names and addresses of principals, such as officers, directors or partners, if applicable – For most Teacher Owned Businesses this is you and possibly a spouse or business partner.
- An Employee Identification Number from the IRS. When forming an LLC you will be required to obtain an EIN number. Don’t stress about this. It is a remarkably quick and simple process and can be done through the IRS website at http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Apply-for-an-Employer-Identification-Number-(EIN)-Online
An LLC or other business entity should never be formed without a full understanding of the implications of the entity on your personal and business life including legal and tax ramifications. Before you form an LLC you should check with your attorney and taxation professional. This information is only for illustrative purposes and is used to demonstrate that forming an LLC is not a difficult process.
If you need further info on forming an LLC or have questions please feel free to contact me at Craig@TeacherEntrepreneur.com or (260) 450-9115 I would be happy to help.