Photo by Danielle Macinnes via Unsplash

Indiana is home to approximately 6.7 million people.

Furthermore, it’s also home to nearly 500,000 small businesses that employ more than 1.17 million of those 6.7 million people.

If you live in Indiana or are moving here and want to make your mark on the business landscape, there are a few things you need to know.

By taking the right steps early on, you’ll feel more confident as you grow your business and push toward both your short and long-term goals.

Below, we outline four important steps to take when starting a business in Indiana.

Choose a Business Structure

This is a critical step regardless of where you’re starting your business.

There are several options to consider, with these among the most common:

  • Corporation
  • General partnership
  • Limited liability company (LLC)
  • Sole proprietorship

There are pros and cons of each business structure, so carefully compare the finer details to ensure yourself of making an informed decision.

You can change your business structure in the future, but you’ll save time and money by making the right selection the first time.

Get Your Finances in Order

Starting a business is no simple task. Even if you’ve found the perfect business opportunity and have a plan for getting started with minimal cash outlay, you must still have a solid grasp of your financial circumstances.

Answer questions such as:

  • How much money do you need to start your business?
  • Will you hire employees or work with contractors?
  • Will you work with your team in an office or seek out the best remote talent you can find?
  • What’s your plan if you don’t start generating revenue as quickly as you would like?

Before you start a business, use a budget calculator to better understand your current income and expenses. This will help you decide what to do next.

For example, if your credit score is in the very poor, poor or fair range, take steps to improve it before you start your business. This will benefit you in many ways, such as when applying for a bank loan.

Register Your Business

In addition to obtaining an employer identification number (EIN) from the IRS, it’s imperative to register your business with the state of Indiana.

Doing so is important on many fronts, from paying an accurate amount of taxes to obtaining industry-specific licenses to purchasing workers’ compensation insurance.

Open a Business Bank Account

This sounds simple enough, but remember this: No two financial institutions are the same.

Compare your options, paying close attention to details such as customer service, available products and proximity to your home and/or office.

With a business bank account in place, you’ll have a relationship you can leverage to apply for a business loan, credit card and/or other financial products.

More so today than ever before, online banks are commonly used by small business owners. Some of the many benefits include:

  • Lower overhead typically means lower fees
  • Higher interest rates, when compared to traditional banks
  • Online bill payment

While there are many online financial institutions to consider, some of the best include:

  • BlueVine
  • BBVA
  • Azlo
  • Bank Novo

Final Thoughts on Starting a Business in Indiana

No two entrepreneurs take the exact same steps to start a business in Indiana. However, every entrepreneur should take the four steps detailed above, at a minimum.

When you do this, you’re better positioned to hit the ground running, manage setbacks as they arise, and stay the course on the way to the top of your industry.

Beau Peters is a freelance writer from the Pacific Northwest with a passion for purpose-driven business content.