# SnS Network Solutions — Legal Structure & Formation Plan **State of formation:** Indiana (South Bend, St. Joseph County) **Chosen structure:** **Holding company** — a parent holding LLC that owns a separate operating LLC for each division. **Filing portal:** [INBiz](https://inbiz.in.gov) (Indiana Secretary of State) > **Disclaimer:** General educational information, **not legal or tax advice**. > Fees/rules current as of 2026 — verify on INBiz. Have an Indiana business > attorney and a CPA review the operating agreements and tax elections before you > rely on the liability shield. --- ## The Structure ``` SnS Network Solutions Holdings LLC ← parent; owns the brand + all subsidiaries, │ signs no client work, holds no operating liability ├── SNS Networking LLC ← Business #1 (ACTIVE) — physical networking, security, on-prem ├── SNS Digital LLC ← Business #2 (planned) — code, cloud, web, hosting, apps └── SNS Support LLC ← Business #3 (planned) — managed services, RMM, SLAs ``` **Why 3 instead of 7:** The original 7-division model over-segmented for a pre-revenue solo operation. Consolidation groups by delivery model (physical / digital / recurring), insurance pool, and skill set. Each division is one team, not fragments. **Launch order vs. liability tier — two different things:** - **Launch order** is the owner's choice, one business at a time. **Business #1 is SNS Networking** (active); Business #2 is chosen once #1 stands on its own. - **Liability tier** signals how urgently a division needs its own LLC *once launched* — it is **not** the launch sequence. **How it protects you:** each operating LLC's liability is walled off from the others and from the parent. The parent owns the subsidiaries (and the brand/IP) but does no client work, so a lawsuit against one division can't reach the assets of another division or the parent. ### Do NOT form all 3 subsidiaries on day one Indiana's per-entity fees are cheap, but each LLC still needs its own **bank account, bookkeeping, and tax prep** — that's the real cost. Form the **parent + your first operating subsidiary now**, then add one subsidiary each time a division begins doing real, billable work. --- ## Numbered Action Plan (do in order) Legend: 🌐 = fully online · 🏦 = may require phone/branch · 📄 = internal doc (not filed) ### 1. Pre-filing prep — 🌐 - Search your names on INBiz to confirm availability: **SnS Network Solutions Holdings LLC** and your first subsidiary, **SNS Networking LLC** (Business #1). - Decide registered agent: **yourself at your South Bend address = free**, or a service ($100–300/yr). One agent can cover all entities. - **Fee:** $0 · **Time:** ~1 hour ### 2. Form the parent — "SnS Network Solutions Holdings LLC" — 🌐 - File Articles of Organization on INBiz. - **Fee:** **$95** (online; ~$2–3 card fee) · **Time:** ~30 min to file, **~1 business day** to approve. ### 3. Get the parent's EIN — 🌐 - IRS online EIN Assistant (irs.gov). Free, issued immediately. - **Fee:** **$0** · **Time:** ~15 min ### 4. Form your first operating subsidiary — "SNS Networking LLC" (Business #1) — 🌐 - File Articles of Organization on INBiz. - **Ownership:** the member/owner is **SnS Network Solutions Holdings LLC** — this is what makes it a subsidiary. (Recorded in the operating agreement, Step 6.) - **Fee:** **$95** · **Time:** ~30 min + **~1 business day** ### 5. Get the subsidiary's EIN — 🌐 - Same IRS online tool, separate EIN per entity. - **Fee:** **$0** · **Time:** ~15 min ### 6. Operating agreements — 📄 - **Parent agreement:** you as the member/owner of Holdings. - **Subsidiary agreement:** **Holdings LLC as the sole member** — documents the parent-owns-subsidiary relationship the whole shield depends on. - DIY from templates, **or** attorney-drafted (recommended for a holding structure so the veil actually holds). - **Fee:** $0 DIY · **$500–1,500** attorney · **Time:** a few hours DIY / 1–2 weeks with attorney ### 7. (Optional) Assumed business name — 🌐 - If you want to publicly trade as the umbrella "SnS Network Solutions," or give a subsidiary a friendlier public name, file an Assumed Business Name on INBiz. - **Fee:** **$30 per name** · **Time:** ~20 min ### 8. Business bank accounts — one per entity — 🏦 - A **separate account for the parent and for each subsidiary** is mandatory to keep the liability shield intact (commingling funds is how the veil gets pierced). - Bring: EIN + stamped Articles + operating agreement. - Many banks open online; some South Bend banks/credit unions want a branch visit. - **Fee:** $0–25 · **Time:** ~1 day per account ### 9. Insurance — 🏦 - **SNS Networking:** General liability + cyber E&O + workers' comp (field/low-voltage). - **SNS Digital:** Professional E&O. - **SNS Support:** E&O + general liability (SLA contractual coverage). - Requires quotes (not instant/online). - **Fee:** varies (~$500–2,000+/yr per policy) · **Time:** a few days to quote/bind ### 10. Tax & local registration — 🌐 / 🏦 - If collecting sales tax, hiring, or withholding: file **BT-1** on INBiz (**~$25** for a Registered Retail Merchant Certificate). - Check **City of South Bend** and **St. Joseph County** for any local business registration and **low-voltage/alarm licensing** before SNS Networking does physical security work. - **Fee:** ~$25 (BT-1 if needed) + local · **Time:** varies --- ## Cost & Time Summary — launch (parent + 1 subsidiary) | Item | Fee | Online? | |------|-----|---------| | Parent LLC (Holdings) | $95 | 🌐 Yes | | First subsidiary LLC | $95 | 🌐 Yes | | EINs (×2) | $0 | 🌐 Yes | | Operating agreements (DIY) | $0 | 📄 Not filed | | Assumed name (optional) | $30 | 🌐 Yes | | Bank accounts (×2) | $0–50 | 🏦 Usually | | **Mandatory state filings total** | **~$190** | 🌐 **All online** | | Attorney-drafted agreements (recommended) | +$500–1,500 | 🏦 | | Insurance (per operating sub) | ~$500–2,000+/yr | 🏦 | **Realistic timeline:** state filings can be completed in **2–3 business days**; **~1–2 weeks** end-to-end including bank accounts and operating agreements (longer if you have an attorney draft the agreements). --- ## Ongoing Compliance (per entity) - **Business Entity Report:** every **2 years**, **$32 online** (~$16/yr) — 🌐. First one is due in your formation anniversary month, two years out. - **No Indiana franchise tax.** - **Bookkeeping + tax prep** per entity — the main recurring cost of the multi-entity structure. Budget for a CPA. - **Registered agent:** free if you remain your own; keep the address current. - **Adding a division later** = repeat Steps 4–8 for that subsidiary (~$95 + EIN + account + agreement). --- ## Launch Order & Liability Tiers **Launch order (owner's choice — one business at a time):** 1. **SNS Networking — Business #1 (ACTIVE).** Physical networking, security, on-prem; see [`../businesses/01-networking/`](../businesses/01-networking/). 2. **Business #2+ — TBD.** Chosen once Business #1 stands on its own. **Liability tiers:** - **High:** *SNS Networking* (physical install + cyber E&O + workers' comp). - **Medium–High:** *SNS Support* (SLA contracts + recurring revenue worth ring-fencing). - **Medium:** *SNS Digital* (professional E&O only, all remote work). When picking Business #2, Support is the natural front-runner — it's the recurring-revenue engine that makes the business durable. --- ## Confirm With Your Advisors (Indiana specifics) - **S-corp election** — once any subsidiary's profit is meaningful, electing S-corp taxation can cut self-employment tax (CPA question). - **Contractor licensing is local, not statewide** — no Indiana general contractor license; check City of South Bend & St. Joseph County for low-voltage/cabling/construction rules (Networking). - **Alarm/security licensing — verify.** Sources conflict; recent (2026) guidance indicates Indiana now requires a **state license to sell/install/monitor burglar, fire, and electronic security systems, access control, and CCTV**. Confirm before SNS Networking does physical security work. - **FinCEN BOI:** domestic US LLCs are **currently exempt** (interim rule since March 2025). No BOI filing needed now — but the rule has changed before, so re-check at formation. - **"SNS" collision** — also = AWS Simple Notification Service; keep technical proposals unambiguous since you recommend AWS.