Legal Question in Business Law in Indiana

I am starting an llc with my wife , and i am having trouble determining how to file the company. I live in Indiana so I believe that our state will not let us file as a sole proprietor, but i am trying to find out what the best way to go as far as a partnership, and/or filing as a corporation or even if a Qualified Joint Venture Election would be best. I am trying to figure out what will be the best for tax purposes. Also what would be the best way for us to tax employees , is a 1099 the best way?


Asked on 3/28/11, 9:28 am

1 Answer from Attorneys
Burton Padove Indiana and Illinois Lawyer, Burton A. Padove

I suggest that the first thing that you do is go to the Indiana Secretary of State's website and download their pamphlet on starting a business. After that, you need to contact an attorney. With all due respect, you are mixing up the various entities. An LLC is a seperate entity from a sole proprietorship, although one person can own all of the membership of an LLC. Indiana does allow for a sole proprietorship, you just do not have to file anything with the Secretary of State. Additionally, you do not tax employees, the federal,state and in most of Indiana the county government does and you must withhold taxes for your employees. A 1099 is usually used for bonuses of employees

In order to answer what is best for your situation, you really need to see an attorney as there are many facts about what you desire to do that are not posted here and are way too involved for a Lawguru submision, anyway.

Good luck.

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Answered on 3/29/11, 4:02 am


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