Choosing the form your business will take can be exciting - and daunting. While INBiz is happy to offer general information, we cannot offer legal advice. Consulting an attorney is important if your business is more complicated than a lemonade stand. However, here is some information to get you thinking about the entity type your business might take. Show
After a business entity has formed or been granted authority to do business in the state of Indiana, it has an ongoing responsibility to file regular business entity reports. These reports must be filed every year by nonprofit organizations and every two years by for-profit businesses. TYPES OF BUSINESS ENTITIESBelow is a brief description of the various forms in which a business may organize under Indiana law. Informal associations These business associations DO NOT require filing with the Indiana Secretary of State:
Formal associations These business associations require the filing of organizational documents with the Business Services Division of the Secretary of State:
REGISTERED AGENTEach business entity must continuously maintain a registered agent and a registered office in Indiana. An entity's registered agent is responsible for receiving important legal and tax documents on behalf of incorporated companies, including service of process, notice or demand required or permitted by law. The registered agent and/or office may be an individual who resides in Indiana and whose business office is identical with the registered office. It may also be:
Important points to note: The registered office address must be a street address. A P.O. Box number is not sufficient unless accompanied by a rural route reference.
Which of the following is not an advantage of a limited liability corporation or partnership?The correct option is (d).
Limited taxation is not an advantage of forming a corporation. Corporations are subjected to double taxation which is in itself a disadvantage of forming a corporation. Corporations are required to pay tax on the earnings and then its shareholders must pay tax on the received dividends.
Which of the following is not an advantage of a corporation?Advantages of a corporation include personal liability protection, business security and continuity, and easier access to capital. Disadvantages of a corporation include it being time-consuming and subject to double taxation, as well as having rigid formalities and protocols to follow.
Which of the following is a disadvantage of a partnership when compared to a corporation?Disadvantages of a partnership include that: the liability of the partners for the debts of the business is unlimited. each partner is 'jointly and severally' liable for the partnership's debts; that is, each partner is liable for their share of the partnership debts as well as being liable for all the debts.
Which of the following is an advantage of the corporate form?A major advantage of the corporate form of organization is: reduction of double taxation.
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