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New Law May Simplify Small, Big Business Formation

Beginning January 18, 2018, entrepreneurs should have an easier time forming entities to begin their next business venture. On April 21, Governor Holcomb signed Senate Enrolled Act No. 443, which state legislators passed to simplify the process of forming a business entity in Indiana. Indiana Secretary of State Connie Lawson has deemed this “the most far-reaching revision of Indiana business laws in more than two decades.”

The different types of business entities in Indiana include Corporations, Limited Liability Companies, Limited Partnerships, Limited Liability Partnerships, and Nonprofit Corporations. Forming any type of business entity requires filing certain documents with the Indiana Secretary of State’s office.

Currently, the process and requirements vary depending on what type of entity is being formed. According to the Indiana Secretary of State’s office, when S.E.A. 443 comes into effect, the administrative process should be nearly the same no matter which type of entity is being formed. Instead of different rules for filings, registered agents, and dissolution, the new law will provide for a uniform administrative process. The bill also solidifies rules for business transactions such as mergers or conversions from one type of entity to another.