Indiana is one of the more affordable and straightforward states for small businesses, with a strong manufacturing and logistics base, growing metro areas around Indianapolis, and a reputation for business-friendly government. Forming an LLC costs $95 online through INBiz, the state’s business portal, and the only recurring state filing is a business entity report every two years. The Indiana detail to plan for is tax: on top of the state’s flat income tax, every county levies its own income tax.
What an Indiana LLC costs
Table of Contents
| Item | Cost | When |
|---|---|---|
| Articles of Organization | $95 online; $100 by mail | At formation |
| Business entity report | $31 online (more by mail) | Every two years, by the end of your anniversary month |
| Assumed business name (if using a DBA) | State fee | When registering |
| Registered retail merchant certificate (if selling taxable goods) | Small fee | Before your first taxable sale |
Step 1: Choose your LLC name
The name must include "limited liability company", "LLC" or "L.L.C." and be distinguishable from other names on file with the Secretary of State. Search INBiz, then check federal trademarks, domains and social handles using our business name checklist.
To operate under a different name, file a certificate of assumed business name with the Secretary of State.
Step 2: Appoint a registered agent
Every Indiana LLC needs a registered agent with a physical Indiana address, available during business hours. You can serve yourself, name another adult or use a commercial agent.
Step 3: File Articles of Organization on INBiz
File Articles of Organization online through INBiz and pay $95, or file by mail for $100. You’ll include the LLC’s name, registered agent, principal office address, and whether it’s member-managed or manager-managed. Online filings are usually processed quickly.
Step 4: Create an operating agreement
Indiana doesn’t require you to file an operating agreement, but every LLC should have one, setting out ownership, management, profit sharing and what happens when members join or leave.
Step 5: Get an EIN and open a bank account
Apply for a free EIN from the IRS online, then open a business bank account using your filed Articles and EIN. See choosing a business bank account.
Step 6: Register for state taxes
Register with the Indiana Department of Revenue through its online tax system for:
- Sales tax, by obtaining a registered retail merchant certificate if you sell taxable goods. Indiana’s sales tax rate is 7%.
- Employer withholding, if you hire, which includes both state and county income tax.
Employers also register with the Department of Workforce Development for unemployment insurance.
Step 7: Understand county income taxes
Indiana’s personal income tax is a flat rate, which the state has been lowering gradually. On top of it, every Indiana county levies a local income tax, at rates that vary by county. LLC owners pay county tax on their share of profits based on where they live or work, and employers withhold county tax from employees’ pay. Payroll software that handles Indiana county taxes saves errors.
Step 8: File your business entity report every two years
Indiana LLCs file a business entity report every two years, by the end of the anniversary month of formation. Filing online through INBiz costs $31. LLCs that don’t file can be administratively dissolved. Because the report comes around only every other year, it’s easy to forget; set a two-year reminder.
How an Indiana LLC is taxed
By default, LLC profits pass through to the owners, who pay federal income tax, self-employment tax, Indiana’s flat personal income tax and county income tax. Multi-member LLCs taxed as partnerships file an Indiana partnership return. LLCs electing C corporation status pay Indiana corporate income tax. Indiana also lets eligible pass-through entities elect to pay tax at the entity level. Ask a tax professional what suits you.
Hiring your first employee in Indiana
On top of the federal steps in our first employee guide, Indiana employers generally:
- Register for withholding with the Department of Revenue, including county tax withholding.
- Register for unemployment insurance with the Department of Workforce Development.
- Carry workers’ compensation insurance, which Indiana requires for employers with employees.
- Report new hires to the state.
Your Indiana LLC compliance calendar
| Deadline | Filing | Paid to |
|---|---|---|
| Every two years, by the end of your anniversary month | Business entity report ($31 online) | Secretary of State |
| Monthly, quarterly or yearly | Sales tax returns | Department of Revenue |
| As assigned | State and county withholding, if you have employees | Department of Revenue |
| Quarterly | Unemployment insurance reports, if you have employees | Department of Workforce Development |
| April 15 (generally) | Partnership return, if multi-member | Department of Revenue |
Example: state costs for your first two years
For a single-member LLC filing online and acting as its own registered agent:
| Year 1 | Year 2 | |
|---|---|---|
| Articles of Organization | $95 | — |
| Business entity report | — | $31 (if due in your second year) |
| State total | $95 | Up to $31 |
Because the report is biennial, average yearly state filing costs are very low. Add a retail merchant certificate, licenses and permits as needed. Use our startup cost calculator for the rest.
Indiana rules for common types of business
Contractors. Indiana doesn’t have a general statewide contractor license; many cities and counties, including Indianapolis, license contractors locally. Plumbers are licensed by the state. See our home services industry profile.
Food businesses. Restaurants and food trucks are permitted by local health departments. Indiana’s home-based vendor rules let some home cooks sell certain non-perishable foods directly to consumers. See our cottage food business guide.
Childcare. Child care centers and homes are licensed by the state’s family and social services agency. See our home daycare guide.
Indiana compared with its neighbors
| State | Filing fee | Recurring state report |
|---|---|---|
| Indiana | $95 online | $31 every two years |
| Ohio | $99 | None |
| Michigan | $50 | $25 yearly |
| Illinois | $150 | $75 yearly |
| Kentucky | Low filing fee | Low yearly report |
Indiana is one of the most affordable states in the region, but as everywhere, form where you actually operate. See our Ohio, Michigan and Illinois guides for cross-border businesses.
Keeping your Indiana LLC in good standing
With a filing only every two years, good standing is easy to lose without noticing. A lapsed LLC can’t get a certificate of existence, which banks, lenders, landlords and government agencies often ask for, and an administratively dissolved LLC must be reinstated before it can operate normally.
To stay current:
- Create an INBiz account and link your LLC, so you can see filing due dates and receive notices.
- Keep your registered agent and principal office current. Update them through INBiz whenever they change, without waiting for the next report.
- Set a recurring two-year reminder for the month before your report is due.
- Check your status before big moments, such as applying for a loan, signing a lease or bidding on a contract.
If your LLC has been dissolved, Indiana generally allows reinstatement by filing the missing reports and paying fees. It costs more time and money than filing on schedule.
Mistakes to avoid
- Forgetting the biennial report because it isn’t yearly.
- Overlooking county income tax in your budget and payroll.
- Selling taxable goods without a retail merchant certificate.
- Using an unregistered assumed name.
- Mixing personal and business finances.
- Missing county tax when hiring employees who live in different counties.
Frequently asked questions
How long does it take to form an Indiana LLC? Online filings through INBiz are often processed within a day or two.
When is my first business entity report due? Two years after formation, by the end of your anniversary month. INBiz shows your due date.
Do Indiana LLCs pay a franchise tax? No. Indiana doesn’t charge LLCs a franchise tax. The main ongoing state costs are the biennial report and any sales and payroll taxes your business owes.
Can I be my own registered agent? Yes, with a physical Indiana address where you’re available during business hours.
Do I need a general state business license? No. Indiana doesn’t issue a general business license; requirements depend on your industry, city and county.
Is my information public? Your LLC’s name, registered agent and principal office are public on INBiz.
Next steps
Read the Start a Business A–Z guide, see how to price your product or service, and plan with the break-even calculator.
This guide is general information, not legal or tax advice. Fees and rules change; check INBiz and the Indiana Department of Revenue before you file.
Sources
- Inc Authority, LLC cost by state (2026)
- LLC University, LLC filing fees by state (2026)
- Indiana Secretary of State, INBiz
- Indiana Department of Revenue
Last reviewed October 18, 2026. Startup costs are estimates; check local prices, licensing and tax rules before you commit money.
Leave a Reply