Chapter 1 - Choosing a Structure - Informal Associations

There are several ways to structure and manage your business. Informal Associations  require no filing with the Indiana Secretary of State:

    • Sole Proprietorship: One person who conducts business for profit. The sole owner assumes complete responsibility for all liabilities and debts of the business.
      TAX: The income of the business is reported as part of the owner's personal income.
    • General Partnership: Two or more individuals as co-owners of a for-profit business. Partnerships should operate under a written Partnership Agreement to avoid future problems. All partners are responsible for the liabilities and debts of the partnership. TAX: Partnerships enjoy single taxation. Income is reported as part of each partner's personal income.

If these informal associations are selected Sole Proprietorships and General Partnerships need only file at the County Recorder  level. Example: John Doe operates a business as a Sole Proprietor; d.b.a. John's Plumbing Service.

 

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