When to use an Indiana corporation vs an LLC

Corporations shine when you need stock, venture capital, or rigid governance. LLCs win when tax flexibility and simple governance dominate. Use this matrix to choose.

Comparison table

Scenario planner

C-corporation workflow

Even if you intend to S-elect later, you form as a C-corporation. Follow these steps for a clean paper trail.

1. Name & reservation. Must include “Corporation,” “Incorporated,” “Company,” or abbreviations. Reserve if closing deals before filing.
2. Articles of Incorporation. INBiz form collects name, authorized shares, registered agent, incorporators, optional provisions (director liability limits, pre-emptive rights). Pay $95 online / $100 paper.
3. Obtain EIN and tax accounts. IRS Form SS-4 (online). Register with INTax and Uplink for payroll/unemployment.
4. Organizational meeting. Adopt bylaws, appoint directors, authorize share issuance, approve fiscal year, choose bank.
5. Issue shares. Document consideration (cash, property, IP, services). Update stock ledger, deliver certificates/e-certificates, consider 83(b) elections.
6. Bank & accounting setup. Provide Articles, bylaws, EIN, resolutions. Implement accounting and payroll systems.
7. Licenses & permits. Local business licenses, zoning, industry-specific approvals.
8. Document everything. Minutes, consents, IP assignments, indemnification agreements.

Detailed step table

First 90 days timeline

Tax implications

C-corps pay 21% federal + 4.9% Indiana state (scheduled to decline further). Dividends face personal tax. Use this when reinvesting profits, building QSBS, or planning a public exit.

Appendix A: C-corp document inventory

S-corporation election

An S-election is a tax status layered on top of a corporation (or LLC). It reduces self-employment taxes but demands payroll discipline.

Election steps

1. Form the corporation (C by default).
2. File IRS Form 2553 within 75 days (or use late election relief).
3. Ensure eligibility: ≤100 shareholders, all individuals/qualifying trusts, one class of stock.
4. Indiana automatically respects the federal election—file IT-20S.
5. Pay owner-employees a reasonable salary; treat remainder as distributions.

S-corp modeling example

PTET overlay for S-corps

• Elect PTET via INTax to pay Indiana income tax at the entity level.
• Owners receive credit on personal returns, preserving federal SALT deductions.
• Coordinate with CPA to avoid double payment.

Appendix B: S-corp readiness checklist

• Payroll provider engaged and registered with DOR/DWD.
• Officer compensation policy in board minutes.
• PTET election calendarized.
• Shareholder agreements updated to reflect single-class stock requirements.
• Shareholder-employees briefed on reasonable salary expectations.

Professional corporations (PC)

Indiana’s Professional Corporation Act (IC 23-1.5) governs law, medicine, architecture, engineering, and other licensed fields.

Key rules

• Shareholders/officers must hold Indiana licenses in the profession.
• Articles must state the professional service and compliance with IC 23-1.5.
• Practice limited to the specified profession + ancillary services.
• Liability protection does not cover personal malpractice—carry insurance.

PC vs PLLC

Appendix C: PC filing checklist

1. Confirm professional licensing board permits PCs.
2. Draft Articles with PC language and license references.
3. Collect license numbers for all shareholders/directors/officers.
4. Adopt bylaws addressing professional requirements.
5. Notify professional liability insurer of entity change.

Nonprofit & public-benefit corporations

Indiana nonprofits operate under IC 23-17. You can form public-benefit (charitable) or mutual-benefit entities, plus elect 501(c)(3) status federally.

Formation steps

1. File Articles of Incorporation (nonprofit) with purpose clause and dissolution language.
2. Adopt bylaws covering board composition, membership (if any), meetings, conflicts.
3. Apply for EIN, then IRS Form 1023/1023-EZ for tax exemption.
4. Register with Indiana AG for charitable solicitation (if fundraising).
5. Maintain board minutes, file Form 990 series annually.

Public-benefit vs mutual-benefit

Benefit corporations (for-profit)

Indiana allows benefit corporations (IC 23-1-21) that pursue general public benefit. Articles must state benefit status and, optionally, specific public benefits. Directors consider stakeholders beyond shareholders.

Appendix D: Nonprofit document inventory

• Articles with charitable clauses.
• Bylaws + board policies (conflict, whistleblower).
• IRS determination letter.
• Charitable registration confirmations.
• Minutes and financial statements retained 7+ years.

Ongoing compliance & formalities

Corporations live and die by their records. Courts pierce veils when boards skip minutes.

Biennial report

• Due every two years in anniversary month.
• $32 online / $50 paper.
• Update officers, directors, principal office, registered agent.

Annual maintenance checklist

Document retention schedule

Appendix E: Compliance calendar

1. Q1 – Annual meeting prep, 1099/W-2 review, insurance renewals.
2. Q2 – File personal property returns, update licenses, review contracts.
3. Q3 – Mid-year financial review, board strategy session.
4. Q4 – Budget approvals, distribution planning, compliance audit.

CTA / BOI & foreign corporations

Domestic Indiana corporations are exempt from BOI reporting under FinCEN’s March 26, 2025 interim final rule. Foreign corporations registered here may still be “reporting companies.”

Foreign registration basics

• File Foreign Registration Statement in INBiz ($95 online / $125 paper).
• Provide certificate of existence from home jurisdiction.
• Maintain Indiana registered agent, file biennial reports.

CTA considerations

When to get help

I’m Sergei Tokmakov, Esq., and I run these engagements personally. Packages below cover incorporations, conversions, professional entities, and cleanup work.

Email owner@terms.law or use Calendly for a paid strategy session. I don’t run free discovery calls.

Appendix F: Engagement workflow

1. Scope call → engagement letter + invoice.
2. Information gathering (owners, share classes, addresses, licenses).
3. Drafting (Articles, bylaws, board/shareholder actions, calendars).
4. Review session + revisions.
5. INBiz filing + tax registrations.
6. Post-filing support (banking packets, data room templates).
7. 60-day check-in for compliance and tax readiness.

Appendix G: Due diligence prep

• Maintain updated stock ledger and option grants (Carta/Pulley recommended).
• Keep board/shareholder minutes digitized with clear metadata.
• Create a secure data room (SharePoint, Box) for contracts, IP, financials.
• Track regulatory filings (SEC, FDA, etc.) if applicable.

Appendix H: Resource library

• IBCL annotated guide (Indiana State Bar).
• “Indiana Professional Corporations Handbook.”
• DOR PTET bulletins.
• Indiana Nonprofit Legal Library (IN Philanthropy Alliance).

Extended appendices & references

Use this section as a research vault: statutes, contacts, timelines, risk logs, and intake tools.

Appendix I: Statute lookup table

Appendix J: County permit snapshot (sample)

Appendix K: Due diligence Q&A

Appendix L: Annual timeline

1. January – finalize prior-year minutes, issue 1099/W-2.
2. February – confirm insurance renewals, plan annual meeting.
3. March – file corporate returns/extensions.
4. April – board strategy session, update risk register.
5. May – review compensation plans, adjust option pool.
6. June – mid-year financial review.
7. July – compliance audit (licenses, permits).
8. August – plan Q4 distributions/dividends.
9. September – finalize budget, board approvals.
10. October – confirm CTA/BOI posture, update RA info.
11. November – tax projections, PTET adjustments.
12. December – year-end minutes, data room updates.

Appendix M: Intake questionnaire

1. Describe your business model and revenue streams.
2. List founders/shareholders, ownership percentages, and contributions.
3. Will you issue preferred stock or SAFEs?
4. Do you need an option plan at launch?
5. Any existing investor agreements or term sheets?
6. What licenses or registrations apply (SEC, FDA, FINRA, PLA)?
7. Do you plan to elect S-corp or PTET status?
8. Will you operate in multiple states or countries?
9. List key contracts/leases that must be assigned.
10. Identify litigation, liens, or encumbrances to disclose.

Appendix N: Risk register

• Regulatory risk – track agency filings; assign owner.
• Financial risk – maintain reserves, monitor covenants.
• Operational risk – key person insurance, succession plan.
• Cyber risk – incident response plan, backups.
• Legal risk – update contracts, indemnities, IP ownership.

Appendix O: Tool stack

• Cap table: Carta, Pulley, or Shareworks.
• Board management: Diligent, OnBoard, or Boardable.
• Minute books: NetDocuments, iManage, or SharePoint.
• Compliance: Asana/ClickUp with recurring tasks.
• Security: 1Password, Okta, Microsoft Entra.

Appendix P: Contact URLs

• INBiz – inbiz.in.gov
• DOR – in.gov/dor
• DWD – in.gov/dwd
• PLA – in.gov/pla
• FinCEN BOI – fincen.gov/boi

Appendix Q: Update cadence

I update this guide after legislative sessions or major Fed/FinCEN changes. Bookmark it, revisit quarterly, and email owner@terms.law with suggestions.

Appendix R: County compliance matrix (expanded)

Appendix S: Governance FAQ

Appendix T: Document template list

• Articles of Incorporation (customized).
• Bylaws with indemnification and emergency bylaws.
• Initial director consent.
• Shareholder consent/meeting minutes.
• Stock subscription agreements.
• Option/RSU grant agreements.
• Shareholder agreement / buy-sell.
• Benefit corporation mission statement (if applicable).
• PC shareholder compliance certificates.

Appendix U: Risk mitigation strategies

• Regulatory: Assign compliance owners and maintain a master calendar.
• Financial: Build reserves and monitor debt covenants monthly.
• Operational: Implement SOPs for key processes, cross-train staff.
• Cyber: Enforce MFA, incident response drills, and vendor reviews.
• Legal: Conduct annual contract and IP audits.

Appendix V: Annual board agenda prompts

1. Financial review and auditor reports.
2. Officer elections and compensation committee reports.
3. Strategy session (M&A, expansion, capital raises).
4. Risk management update (insurance, compliance).
5. Governance review (committee charters, policies).
6. Public-benefit or mission report (if applicable).

Appendix W: Board calendar (monthly)

Appendix X: Intake questionnaire (extended)

1. Outline product/service roadmap for next 24 months.
2. List existing investor agreements (SAFE, convertible notes, loan covenants).
3. Identify regulated data (PHI, PII, PCI) and compliance regimes (HIPAA, SOC 2).
4. Describe governance expectations (board seats, observer rights).
5. Provide org chart with roles/responsibilities.
6. List major vendors and termination provisions.
7. Summarize litigation history or threatened claims.
8. Detail IP portfolio (patents, trademarks, copyrights).
9. Indicate crossover entities (subsidiaries, affiliates).
10. Provide timeline for closings, investor deadlines, or regulatory filings.

Appendix Y: Tool stack recommendations

• Cap table: Carta, Pulley, Shareworks.
• Board portal: Diligent, OnBoard, Boardable.
• GRC/compliance: Hyperproof, Drata, Secureframe.
• Document management: NetDocuments, iManage.
• Communication: Teams/Slack with governance channels.

Appendix Z: Quick contact URLs

• INBiz – inbiz.in.gov
• DOR – in.gov/dor
• DWD – in.gov/dwd
• INDOT permits – in.gov/indot
• FinCEN BOI – fincen.gov/boi

Appendix AA: Update cadence

I log version history whenever Indiana amends the IBCL, adjusts PTET rules, or FinCEN alters CTA guidance. Updates typically occur quarterly; subscribe to my newsletter for release notes.

Appendix AB: Additional county notes

Appendix AC: Document retention detail

Appendix AD: Board resolution library

• Adopting/amending bylaws.
• Electing officers and authorizing compensation.
• Issuing stock or option grants.
• Approving mergers, acquisitions, or asset sales.
• Entering major contracts, credit facilities, or leases.
• Declaring dividends or share repurchases.
• Approving benefit corporation reports.
• Authorizing litigation settlements.
• Adopting equity incentive plans.
• Approving PTET or S-elections.

Appendix AE: Data room checklist

• Corporate documents (Articles, bylaws, amendments, minutes).
• Cap table, option schedules, shareholder agreements.
• Financial statements, budgets, forecasts.
• Tax returns, PTET filings, payroll reports.
• Material contracts (customer, vendor, partnership).
• Real estate leases, deeds, environmental reports.
• IP portfolio (patents, trademarks, copyrights, licenses).
• Litigation and regulatory correspondence.
• HR policies, offer letters, benefit plans.
• Insurance policies and claim history.
• Compliance certificates for incentives/grants.
• IT policies, cybersecurity audits.

Appendix AF: Finance-focused intake

1. Cash flow forecast for next 12 months.
2. Existing debt instruments and covenants.
3. Working capital needs and bank relationships.
4. Capital expenditure plans.
5. Hedging strategies or FX exposure.
6. Revenue concentration (top customers percentages).
7. Cost drivers and sensitivity analyses.
8. Audit requirements (PCAOB, GAAP, IFRS).
9. Internal control frameworks (SOX-lite, COSO).

Appendix AG: Governance risk table

Appendix AH: Tool stack (expanded)

• Finance: NetSuite, Intacct, or QuickBooks Enterprise.
• Equity: Carta, Shareworks, Forge.
• Document automation: Litera Create, HotDocs.
• Compliance: OneTrust, LogicGate.
• Board communications: Diligent Boards, Nasdaq Boardvantage.

Appendix AI: Communication cadence

• Weekly: project updates during formation or transactions.
• Monthly: compliance reminder digest (licenses, tax deadlines).
• Quarterly: board/management check-ins.
• Annually: strategic planning retreat.

Appendix AJ: Aftercare tips

• Archive signed PDFs plus DocuSign certificates.
• Enable MFA on INBiz, INTax, DWD, cap table, and board portals.
• Set reminders for biennial reports, PTET elections, benefit reports.
• Conduct annual legal/financial health checks.

Appendix AK: Quick references

• Indiana Secretary of State – Business Services: inbiz.in.gov.
• Indiana Department of Revenue – Corporate Tax: in.gov/dor.
• Department of Workforce Development – Employer Services: in.gov/dwd.
• Indiana Economic Development Corporation: iedc.in.gov.
• FinCEN CTA portal: fincen.gov/boi.

Appendix AL: County incentive contacts

Appendix AM: Corporate document library

Appendix AN: Monthly compliance checklist

Appendix AO: Legal intake prompts

1. List outside counsel relationships and ongoing matters.
2. Describe regulatory filings (SEC, FDA, FINRA) currently pending.
3. Identify IP ownership gaps (consultant work, joint ventures).
4. Provide copies of indemnity agreements and hold harmless clauses.
5. List foreign jurisdictions where the corporation operates.

Appendix AP: Reading list

• IBCL annotations (Indiana State Bar).
• “Corporate Governance and the Law” (ABA).
• Indiana Economic Development annual report.
• FinCEN CTA FAQs.
• Indiana Nonprofit Resource Library.

Appendix AQ: Aftercare tips

• Store signed PDFs/sharepoint copies with metadata.
• Enable MFA for all state portals and board tools.
• Set legal/CPA check-ins annually.

Appendix AR: Quick contacts

• INBiz – inbiz.in.gov
• DOR – in.gov/dor
• DWD – in.gov/dwd
• IEDC – iedc.in.gov
• FinCEN – fincen.gov/boi

Appendix AS: City licensing & permit snapshot

Appendix AT: Board policy checklist

• Conflict of interest policy.
• Insider trading policy.
• Whistleblower policy.
• Document retention policy.
• Data privacy and security policy.
• ESG/benefit reporting policy (if applicable).
• Code of ethics for directors/officers.
• Regulatory compliance policy (HIPAA, ITAR, etc.).
• Travel and expense policy.
• Communications and disclosure policy.

Appendix AU: Data privacy checklist

• Inventory personal data collected/stored.
• Map data flows across systems and vendors.
• Establish retention/destruction schedules.
• Implement incident response plan with board notifications.
• Train employees on security policies and phishing awareness.

Appendix AV: Post-engagement checklist

1. Upload final signed documents to secure repositories.
2. Distribute compliance calendar to legal, finance, and operations.
3. Confirm RA contact info and emergency escalation path.
4. Schedule annual legal/CPA reviews.
5. Review board portal access for new members.

Appendix AW: Statute quick list (extended)

Appendix AX: Board meeting template

1. Call to order and quorum confirmation.
2. Approval of prior minutes.
3. CEO report (operations, KPIs).
4. CFO report (financials, forecasts).
5. Committee reports (audit, compensation, governance).
6. Strategic items (M&A, financing, product).
7. Compliance updates (licenses, litigation, CTA).
8. Action items/resolutions.
9. Executive session (if needed).
10. Adjournment and task recap.

Appendix AY: Financial ratio checklist

• Current ratio (liquidity).
• Quick ratio (acid test).
• Debt-to-equity.
• Gross margin percentage.
• EBITDA margin.
• Days sales outstanding.
• Inventory turnover.
• Return on equity.

Appendix AZ: Governance timeline

1. Formation (0–30 days) – Articles, bylaws, stock issuance.
2. First quarter – adopt policies, board calendar.
3. Mid-year – strategy retreat, risk review.
4. Year-end – budget approval, compliance audit.
5. Conversion/exit triggers – plan board/shareholder approvals ahead of transactions.

Appendix BA: Insurance checklist

• General liability and property coverage.
• D&O (directors & officers) insurance.
• EPLI (employment practices liability).
• Cyber liability coverage with breach response.
• Professional liability (for PC/nonprofit services).
• Workers’ compensation and disability.

Appendix BB: Nonprofit compliance reminders

Appendix BC: Professional corporation reminders

• Maintain roster of licensed shareholders/officers with license numbers and renewals.
• Update Articles when ownership changes; notify licensing board.
• Carry malpractice insurance and evidence in board minutes.

Appendix BD: S-corp election timeline

1. Day 0–30: Form corporation, issue stock, set payroll.
2. Day 30–75: File Form 2553; confirm acceptance.
3. Quarterly: Run payroll, make PTET payments if elected.
4. Year-end: File Form 1120-S/IT-20S, distribute K-1s.

Appendix BE: Data room index (supplemental)

• Section 1 – Corporate (Articles, bylaws, minutes, policies).
• Section 2 – Equity (cap table, option plan, grants).
• Section 3 – Financial (statements, forecasts, KPIs).
• Section 4 – Legal (litigation, regulatory, IP).
• Section 5 – Commercial (contracts, customer pipeline).
• Section 6 – HR (org chart, key agreements).
• Section 7 – Compliance (licenses, grants, CTA status).

Appendix BF: Funding readiness matrix

Appendix BG: Compliance log sample

Appendix BH: Foreign registration steps (recap)

1. Obtain certificate of existence from home state (within 60 days).
2. File Foreign Registration Statement via INBiz; pay $95 online.
3. Appoint Indiana registered agent.
4. Maintain biennial reports and update RA information.

Appendix BI: CTA FAQ (post-IFR)

Appendix BJ: Resource websites

• INBiz filings – inbiz.in.gov.
• INTax portal – intax.in.gov.
• DWD Uplink – uplink.in.gov.
• IEDC incentives – iedc.in.gov.
• FinCEN CTA – fincen.gov/boi.
• Indiana AG charity portal – in.gov/attorneygeneral.

Appendix BK: Meeting cadence table

Appendix BL: Risk register supplement

• Human capital: Succession plans, key employee retention.
• Supply chain: Dual sourcing, vendor risk monitoring.
• Market: Pricing pressures, competitor landscape.
• Technology: Legacy systems, modernization plans.
• Reputation: Media monitoring, crisis communications.

Appendix BM: Key vendor checklist

• Contracts include termination rights and SLAs.
• Vendors undergo security and compliance reviews.
• Insurance and indemnity clauses match risk profile.
• Successors identified for critical vendors.

Appendix BN: Update note

This appendix section evolves with each major statutory or regulatory change. Subscribe to my updates to receive version history and redlines.

Appendix BO: Agency contact table

Appendix BP: Final reminders

• Sync this guide with your internal SOPs so every team knows their role.
• Document each decision in minutes—even emergencies.
• Keep your board engaged with regular updates, not just annual meetings.
• Audit your compliance calendar annually to capture new obligations.
• Contact me at owner@terms.law when you outgrow this checklist and need tailored counsel.

Appendix BQ: CTA readiness checklist

• Maintain current ownership ledger with names, addresses, ID numbers.
• Document control persons (executives with substantial control).
• Capture creation/registration dates for any foreign entities.
• Store scanned IDs safely for potential filing needs.

Appendix BR: Document audit table

Appendix BS: Future updates

I push updates through my newsletter and Git repository whenever Indiana modifies corporate, PTET, or CTA requirements. Staying subscribed ensures you always have the latest template.