- Determine your business entity
STEP 2
- Register with the appropriate government branch
STEP 3
- Apply for a City of East Chicago Business License
One of the first decisions you will have to make as a business owner is how the business will be structured. You must select a business entity that is right for your business.
This guide will help you through that process by giving you a brief overview of each business entity. It will also provide you with important registration information and walk you through the business license application process.
STEP 1 · Determine your Business Entity
Entity Type · Description:
Most small businesses start out as sole proprietorships because this is the simplest type of business organization to establish for an individual starting a business. Under this structure you simply need to comply with any applicable licensing requirements and obtain a “Doing Business As” certificate if you plan to operate under an assumed name (a name that is not your own). There is nothing else you need to do. This is a good structure if risked and liabilities of you of your business are low.
Partnership
In a Partnership, two or more people share ownership of a single business. Like proprietorships, the law does not distinguish between the business and its owners. While the partnership agreement is not necessary, it is strongly advised to clearly set out each partner’s contributions/involvement in the business and what will happen in the event of liquidation.
Limited Liability Company (LLC)
The LLC is a relatively new type of hybrid business structure that is now permissible in most states. It is designed to provide the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership. The owners are members, and the duration of the LLC is usually determined when the organization papers are filed.
“C” Corporation
A corporation, chartered by the state in which it is headquartered, is considered by law to be a unique entity, separate and apart from those who own it. A corporation can be taxed; it can be sued; it can enter into contractual agreements. The owners of a corporation are its shareholders.
The shareholders elect a board of directors to oversee the major policies and decisions. The corporation has a life of its own and does not dissolve when ownership changes. The primary advantage of a corporation is that it provides its shareholders with a right to participate in the profits without any personal liability.
“S” Corporation
Owners who want the limited liability of a corporation and the “pass-through” tax-treatment of a partnership or a sole proprietorship will often make the S-Corporation election.
Each business entity has its own legal and tax considerations, you can find out more about them under “Business” at www.irs.gov or visit the “Small Business Planner” at www.sba.gov.
STEP 2 · Register with the appropriate Government Branch
INDIANA SECRETARY OF STATE
Register a new Corporation, LLC or Partnership
If you plan to do business as a legal entity in Indiana, the first thing you should do is form a corporation, limited liability company (LLC) or partnership by registering with the Indiana Secretary of State. You can file a new corporation, LLC or partnership online, by mail, or in person. If you currently have a corporation, LLC, or partnership in another state you must register with the Indiana Secretary of State as a Foreign Corporation to conduct business in Indiana.
INTERNAL REVENUE SERVICE
Obtain an Employer Identification Number (EIN)
An Employer Identification Number (EIN) is also known as a Federal Tax Identification Number, and is used to identify a business entity. Generally, businesses need an EIN. If you operate your business as a “C” corporation or an LLC, you are required to obtain an EIN to file and pay any federal tax obligation. You may register for an EIN with the United States Internal Revenue Service (IRS) online, by mail or in person.
www.irs.gov, 219-736-4378
233 E. 84th Drive
Merrillville, IN 46410
STEP 3 · Applying for a City of East Chicago Business License
How To Apply
Applying for a business license is easy. Applications are accepted in person only. See cover for business hours. You are encouraged to schedule an appointment ahead of time. You may make an appointment by calling 219-391-8205.
Request a Business License Application
The first step in applying for a Business License is to complete a Business Inquiry Sheet (BIS) at the Department of Economic & Business Development at 4444 Railroad Ave., E.C., IN 46312. After completing a Business Inquiry Sheet, you must then request/complete a Business License Application at the Controller’s Office at 4525 Indianapolis Blvd., E.C., IN 46312
Be Prepared to Provide the Following License Requirements
- A detailed description of your business activity
- The exact business address
- Name of your business entity and ownership information
- Identification – A valid drivers license, state I.D. card or another official photo identification
- Federal Employers Identification Number (EIN)
Additional documents may be required depending on the type(s) of license(s) required for your business. Refer to www.eastchicago.com for additional information. Every business location requires a separate business license.
Planning Approval
Part of the Business License application process requires zoning approval. The Department of Planning is required to review and approve each license application. Being approved by Planning ensures that your business activity is permitted in the zoning district in which you are located. You can also check the zoning classification of your business location ahead of time by calling the Planning Department at 219-391-8205.
License Application Filing Fee
Once your application for a business license is complete, including approval from the Department of Planning, you may pay your license fees. The fees will vary based on the type of license(s) you are applying for. The Controller’s Office will let you know your fees once you receive an application.
Any outstanding debts to the City, by the business owner or any officer of the corporation, must be paid before a license can be issued. These debts may include outstanding parking tickets, building violation fees, business license fees from a previously held license, or Indiana State Sales Tax owed.
License Inspections
Certain types of businesses require that the establishment undergo and pass an inspection from one or more City departments. Common inspections include the departments of Buildings, Fire Prevention and Food Protection. You should be prepared for any inspection when you file your written application. You may check the status of an inspection by contacting the Department of Economic & Business Development.
In the event that the business did not pass any or all of the inspections, it is imperative that all violations are corrected. The business owner should contact the inspecting department(s) to arrange a re-inspection.
License Approval
After inspections are completed and approved, licenses may be picked up at the Controller’s Office at 4525 Indianapolis Blvd. Business license(s) must be posted in a conspicuous location within the business establishment.
Renewing Your Business License
At the end of your business license term, you will receive a renewal reminder notice in the mail. You may renew in person at the Controller’s Office. Any outstanding debt to the City must be paid at the time of renewal. Be sure to renew before the expiration of your business license to avoid a 25% late fee.
Operating a Business Without a License
The City of East Chicago Municipal Code mandates that no business activity may take place without first obtaining the required license(s). A pending license application does not allow you to operate. Failure to comply can result in enforcement action. Many businesses operating as a Not-for-Profit Corporation require a City of East Chicago business license.
Small Business Resource Guide Business Assistance Available Across the Region
National Association of Women Business Owners
Provides a forum for women business owners to share information and resources, as well as professional networking opportunities. The chapter based in Chicago draws from throughout the metropolitan area. info@nawbochicago.org; www.nawbo.org
NWI Small Business Development Center
A partnership with Purdue Calumet and ISBDC, dedicated to helping small businesses in Northwest Indiana achieve growth, expansion, innovation, increased productivity and success. New or existing business owners are offered no cost consulting services with various business issues along with providing workshops and other services. Main NWI Office, 9800 Connecticut Drive, Crown Point, 219/644-3513, www.nwisbdc.org
National Minority Supplier Development Council (NMSDC)
The primary mission of the Indiana Regional office of the MNSDC is to promote and cultivate successful minority enterprises within the Indiana business community. They serve as an advocate for the economic well-being and growth of minority business enterprises as certified by the Indiana Regional Minority Supplier Development Council. 317/921-2110, www.nmsdconline.com
Indiana Minority Enterprise Center
To foster the creation, growth and expansion of minority and women owned businesses in the State of Indiana. 219/886-9572, www.indianamec.com
Partners In Contracting Corporation (PICC)
A not-for-profit organization that provides technical assistance, workshop training and marketing opportunities throughout the state of Indiana to small, disadvantaged, minority and women owned businesses. PICC exists to help Indiana businesses market their products and services to the federal, state and local governments. 219/762-8644, www.piccorp.org
Women Owned Small Business (WOSB)
Small or publicly owned businesses of which at least 51 percent is owned by one or more women and also whose management and daily business operations are controlled by one or more women are encouraged to apply for self-certification as a Women Owned Small Business. Self-certification can be applied for via Pro-Net at www.pro-net.sba.gov, through the Women’s Business Enterprise National Council, 202/872-5515, www.wbenc.org or the National Women’s Business Owners Corp., 561/881-7364, www.nwboc.org
Workforce Development Services (WDS)
A nonprofit agency that works in conjunction with the Indiana Department of Workforce Development to assist in meeting the training and employment needs of workers and businesses. 219/882-0033; www.workonenw.com
ECONOMIC DEVELOPMENT
Indiana Economic Development Corp.
The IEDC is focused exclusively on economic development and has incorporated all state entities with economic development responsibilities into its organizational structure. The state’s lead economic development agency was formed to replace the Department of Commerce. The IEDC is run like a business and organized as a public-private partnership with a variety of resources available to help businesses, including the Small Business Development Center Network and Small Business Innovation Research Program and SmallBizU, an online university. The IEDC also has created the Regional Economic Development Partnership Program to encourage local communities to work together on workforce development and entrepreneurship issues. 800/463-8081, www.in.gov/iedc Northwest Regional Office: 219/644-3694
NIPSCO Economic Development Team
The NIPSCO team’s services include detailed site information about available land and building through its site Center, as well as other business opportunities in the area. The NIPSCO team’s resources include information about business opportunities in the area. Operated by Northern Indiana Public Service Co., the gas and electric utility. 800/262-6477, http://ni-econdev.com
Business Empowerment Center
The Center, a partnership between the Gary, East Chicago and Hammond Empowerment Zone and the Small Business Administration, offers financial assistance and development training. 219-881-4997, www.gechezone.com
Northwest Indiana Regional Development Co.
The RDC administers the 504-loan program in Lake, Porter, LaPorte, Jasper, Newton, Pulaski and Starke counties. The 504-loans are designed for existing businesses, with terms that are designed to preserve working capital and offer rates below prime. Several local banks work with the RDC to make the loans. Tom Galovic, president/executive director; 5997 Carlson Ave., Suite B, Portage, 46368, 219-764-2700; www.rdc504.com