Sole proprietorship is the simplest business format in America, but that doesn`t mean there aren`t rules and regulations you need to follow when operating one. In addition, there are certain limitations to the functionality of a sole proprietorship. To start a business in Indiana, you`ll need different licenses and permits depending on the type of business you operate. Find out what licenses your business needs by searching for an enterprise license or using the following resources: In addition, the nature of your business determines the taxes that apply to you as a sole proprietor. Indiana does not require sole proprietors to purchase a general business license, but depending on the nature of your business, you may need other licenses and/or permits to operate in a compliant manner. Because there is no difference between the owner and the business itself, sole proprietors do not have to file business tax returns – they simply claim all the profits or losses of the business on their personal tax returns. Your sole proprietorship must register with the Indiana Department of Revenue if you meet the requirements listed below. Each request contains a link to the right information needed by your business. That said, sole proprietors can sign up for a business bank account with their DBA name, which is another step that goes a long way in making customers feel more comfortable doing business with you. In addition, you need to check if your business needs licenses or permits at the local level. To register your business with the Indiana Department of Revenue, you must complete a corporate tax application. To complete this application, you must provide your tax identification number, legal name, physical location of the business, company name, type of organization, and business contact information, including phone number and mailing address. You`ll also need to specify the types of taxes your business may owe and your company`s North American Industry Classification System code, which you can find on the Indiana Department of Revenue website.

If you want to register your business for withholding tax, you will also need to provide a federal identification number. If you do not have a federal identification number, you can request one from the Internal Revenue Service. If your sole proprietorship meets any of these requirements, you will need to file a business tax application that you can file on INBiz. This way, the Treasury can set up all the right accounts for your business. Unlike a corporation or limited liability company (LLC), the sole proprietorship is not a legal entity. A sole proprietorship is a one-person business that is not considered a separate entity from the person who owns it, and is often operated under the owner`s personal name. While all other Indiana businesses are generally required to register with the Indiana Secretary of State and the Department of Revenue, sole proprietorships and partnerships are exempt from this requirement. Here`s a look at the steps you need to take to get started as a sole proprietor in Indiana. You should also read the general section for information that applies to each state.

In this guide, we`ll walk you through the steps to properly set up a sole proprietorship and help you determine if a sole proprietorship is a good choice for your business. Just because it`s so easy to get started doesn`t mean there aren`t any additional steps you should take along the way. While these parts of the process are not strictly necessary, many sole proprietors feel they are in their best interest. If you`re stuck along the way, contact a business resource near you for help. In Indiana, businesses with one or more employees, with the exception of business owners, are required by law to purchase workers` compensation insurance. The other big difference between sole proprietorships and more formal business structures is the fact that sole proprietors are allowed to mix business and personal assets as much as they want. For LLCs and corporations, ownership is required to keep their assets separate from those of the corporation. The downside of this aspect for sole proprietors is that when your business is sued, creditors are free to track your personal assets such as your home, car, personal bank accounts, etc. For businesses and LLCs, creditors are limited to your company`s assets. Sole proprietors without employees usually don`t need to purchase a Federal Tax Identification Number (EIN), because as a one-person business, you can usually only use your own Social Security number for most things that use an EIN. However, if you don`t want to use your SSN for privacy purposes, it`s a good idea to get an EIN anyway.

To apply for a DBA in Indiana, simply file a certificate of presumed business name with the county recorder where your sole proprietorship is located. This can be done either by filling out the form as a PDF file and mailing it to the Indiana Secretary of State, or by submitting it online using INBiz. .