LLC Statement-of-Authority and Third-Party Reliance Requirements in Indiana
At a glance
| Governing law, public authority device, and scope | Indiana Business Flexibility Act, IC 23-18; ordinary domestic LLC. No general authority-statement device. Articles manager election plus agency: § 23-18-3-1 for LLC existing by June 30, 1999 unless written agreement says otherwise; § 23-18-3-1.1 for later LLCs (§§ 23-18-2-4, -2-7) |
|---|---|
| Eligible filer, public filing office, and form | N/A No authority-statement filer, Secretary of State record, or form. Organizer files ordinary articles; those state whether managers are provided but need not name them. Other authority remains in articles/operating agreement and company records (§§ 23-18-2-4 to -7; 23-18-4-1, -5) |
| Person or position, grant or limit, and transaction scope | N/A No public specific-person/position grant or limit. Statutory agency attaches to members unless articles provide managers, then to managers; written agreement may establish officers/delegation. Post-1999 articles may restrict/enlarge member agency, but no statement reliance formula applies (§§ 23-18-3-1 to -2.5) |
| Company identity, addresses, caption, and required contents | N/A No statement identity, address, caption, named-person, authority-language, affected-record, duration, or realty description fields. Articles require LLC name, Indiana registered office/agent, duration, and manager-management statement if used; may add lawful agreement matters (§ 23-18-2-4) |
| Signer, delivery, effective time, fee, and acceptance | N/A No authority-statement signer, delivery, effective-time, acceptance, declaration, or fee rule. Ordinary articles/amendments follow Secretary of State and IC 23-0.5 mechanics; those filings do not acquire missing authority-statement effects |
| Non-realty reliance, knowledge, and outsider effect | No filed-grant conclusiveness or limitation-notice rule. Usual-business member or manager act/instrument binds unless actor lacks authority and counterparty knows. Nonusual act needs written-agreement authorization or unanimous members. Written-agreement officers have manager-equivalent usual-business binding scope (§§ 23-18-3-1 to -2.5) |
| Realty certified copy, recording, and constructive notice | No LLC-statement certified-copy recording, conclusive realty grant, or deemed-knowledge limitation rule. General agency sections include execution of any instrument in LLC name; realty deed form, acknowledgment, delivery, county recording, title, notice, value, and priority remain separate |
| Amendment, denial, cancellation, expiration, and dissolution | N/A No statement amendment, denial, cancellation, fixed expiration, renewal, dissolution cancellation, or postdissolution authority statement. Articles may be amended under ordinary rules; later management, agreement, officer, agency, and dissolution changes require their own records (§ 23-18-2-5) |
| No-device states, agency alternatives, and title boundaries | Use current articles for manager election/required-fact notice, written operating agreement for private authority and officers, and applicable formation-date agency section. None certifies actual/apparent authority, deed validity, title, priority, value, good faith, fraud, knowledge, or protected reliance in a particular transaction |
Requirements one by one
Indiana uses required-articles notice and agency, not a statement
The complete current IC 23-18-3 outsider-relations chapter has no standalone authority statement, denial, certified-copy realty effect, or expiration rule. Under Ind. Code §§ 23-18-2-4 to 23-18-2-7, the public articles state the LLC name, registered office and agent, duration, and whether managers are provided. They may include other lawful agreement matters.
Filing gives statutory notice of organization and the facts § 23-18-2-4 requires and the articles actually state. It does not turn optional authority language into a uniform grant-or-limit statement or create a value-giving reliance formula.
The agency section depends on formation date
Under § 23-18-3-1, an LLC existing by June 30, 1999 uses the legacy agency section unless a written operating agreement provides otherwise. Section 23-18-3-1.1 governs an LLC formed later. Both ordinarily make members agents; when the articles provide managers, members acting only as members are not agents and managers carry the ordinary-business agency rule.
The later-company section additionally lets the articles displace the member- agency default even outside the manager-management branch. That distinction is why the company's formation date and current articles both matter.
Usual-business instruments turn on authority and knowledge
In either formation-date track, a usual-business member or manager act, including execution of an instrument in the LLC name, binds unless the actor lacks authority in the matter and the counterparty knows that fact. An act outside the usual way binds only if a written operating agreement or unanimous members authorize it.
Under §§ 23-18-3-2 to 23-18-3-2.5, knowledge and notice can be imputed to the LLC through the acting member or manager, subject to the fraud exception. A written operating agreement may create officers, and an officer acting within apparent authority has the manager-equivalent usual-business binding effect.
Realty remains outside a separate public overlay
The agency provisions apply to execution of an instrument generally but do not create a certified authority-statement copy, land-record grant, deemed- knowledge limitation, or special realty conclusiveness rule. Deed form, acknowledgment, delivery, recording, title, notice, priority, value, good faith, and fraud require their own law and facts.
No statement lifecycle exists
Indiana permits ordinary articles amendments under § 23-18-2-5, but the Act has no named-grantee authority denial, restrictive statement amendment, standalone cancellation, fixed expiration, renewal, dissolution cancellation, or labeled postdissolution statement.
Later articles, operating-agreement, officer, manager, authorization, and dissolution changes must be evaluated through their own provisions rather than through a nonexistent statement lifecycle.
What trips people up
- Required facts and optional terms receive different treatment. Section 23-18-2-7 gives statutory notice only to required articles facts that are actually stated.
- The formation date selects the agency section. The public rule is not perfectly identical across the June 1999 line.
- Managers must appear in the articles as a management model. The articles need not name the individual managers.
- Officers can have agency without manager status. Their authority comes through the written operating agreement or a consistent delegation.
- An instrument reference does not answer title questions. Indiana adds no separate LLC authority-statement recording layer.
Common questions
Can an Indiana LLC file the uniform statement of authority?
No. The current Act uses public management-form notice and statutory agency instead of a standalone authority statement.
Do articles naming manager management notify outsiders?
Yes. Manager management is a required articles fact, and § 23-18-2-7 makes required facts stated in the filed articles notice.
Can an officer bind the LLC?
A written operating agreement may create officers, and an officer acting within apparent authority receives the manager-equivalent usual-business rule.
Does Indiana require a certified authority statement for LLC realty?
The LLC Act creates no such statement or recording effect. Separate deed and recording law still applies.
Statutes and sources
- Ind. Code §§ 23-18-2-4 through -7 — articles contents, amendments, and statutory notice of required public facts.
- Ind. Code §§ 23-18-3-1 through -2.5 — formation-date agency, manager management, instruments, counterparty knowledge, imputed notice, and officers.
All quotations are from the current official 2026 Indiana Code chapter PDFs, accessed August 30, 2026.
Source links
Every statute quoted above, linked, with the date we checked it.
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