Indiana Business Guide
How to Start a Business in Indiana
Everything you need to form your Indiana LLC, corporation, or sole proprietorship, with exact fees, timelines, and step-by-step instructions.
An LLC costs $95 to form in Indiana and can be filed online through INBiz. The state has no franchise tax. Business owners pay a flat individual income tax of 2.95% in 2026, scheduled to drop to 2.90% in 2027; corporate entities pay 4.9%.
This guide covers every step from choosing your business structure to obtaining the licenses and permits required to operate in Indiana.
Choosing Your Indiana Business Structure
This is the first decision and it affects everything: taxes, liability, paperwork. If you are unsure, an LLC is the right default for most Indiana small businesses.
| Entity Type | Liability Protection | Taxation | Indiana Filing Fee | Annual Cost | Best For |
|---|---|---|---|---|---|
| LLC | Yes | Pass-through | $95 | $32 Business Entity Report | Most small businesses |
| Corporation | Yes | Double (C-Corp) or pass-through (S-Corp) | $95 | $32 Business Entity Report | Raising investment, stock options |
| Sole Proprietorship | No | Pass-through | $0 | $0 | Freelancers, side hustles |
| Partnership | No | Pass-through | $0 | $0 | 2+ owners (consider an LLC instead) |
8 Steps to Start Your Indiana Business
- 1
Choose your business structure
LLC, corporation, or sole proprietorship. Each has different costs, tax treatment, and liability protection.
- 2
Pick and reserve your business name
Search the Indiana Secretary of State, Business Services Division database. Reserve for $10 (120 days).
- 3
Appoint a registered agent
Must have a physical Indiana street address. Can be yourself (free) or a service ($100 to $300 per year).
- 4
File your formation documents
Articles of Organization, Domestic Limited Liability Company (State Form 49459) ($95) or Articles of Incorporation, Domestic Corporation (State Form 4159) ($95) with the Indiana Secretary of State, Business Services Division.
- 5
Get your EIN from the IRS
Free, online, takes about 5 minutes. Do not pay anyone for this.
- 6
Register for a sales tax permit if you sell goods
Through the Indiana Department of Revenue. State sales tax rate: 7%.
- 7
Get required licenses and permits
The state's Business Owner's Guide states that Indiana does not have any one single, comprehensive business license.
- 8
Register for Indiana taxes
Personal income tax: 2.95% flat individual adjusted gross income tax for 2026, scheduled to fall to 2.90% in 2027, plus a county local income tax that varies...
How Much Does It Cost to Start a Business in Indiana?
| Item | Cost | Notes |
|---|---|---|
| LLC filing fee (Indiana Secretary of State, Business Services Division) Required | $95 | Not published. The Secretary of State and INBiz do not post a processing-time standard for formations on their current... |
| Corporation filing fee Required | $95 | If forming a corporation instead |
| Business Entity Report Required | $32 | Every other year, by the end of the month in which the business was formed or registered. |
| Name reservation | $10 | 120 days |
| Registered agent service | $0 to $300/yr | Free if you serve as your own |
| EIN (IRS) Required | $0 | Always free |
| Business license | Varies | The state's Business Owner's Guide states that Indiana does not have any one single, comprehensive business license. |
| Operating agreement | $0 to $500+ | Free template or attorney-drafted |
| Realistic LLC total (year 1) | $95 to $427 |
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Indiana Business Guides
Formation & Entity Types
- How to Start an LLC in Indiana
- How to Start a Corporation in Indiana
- Sole Proprietorship in Indiana
- How to Start an S Corp in Indiana (and When an LLC Should Elect)
- Indiana Foreign LLC Registration
- How to Start a Nonprofit in Indiana
- How to Dissolve an LLC in Indiana
- Indiana LLC Operating Agreement
- Indiana Virtual Office and Business Address
- How to Use INBiz
- Indiana UCC Search and Filing
Licenses, Permits & Registrations
- Indiana Business License
- Indiana Business Entity Report
- Indiana Contractor License Requirements by City
- Indiana DBA
- Indiana Business Name Search
- How to Get an EIN in Indiana
- How to Get a Resale Certificate in Indiana
- Indiana Home-Based Business Laws
- Indiana Food Truck License
- Indiana Certificate of Existence (Good Standing)
- Indiana MBE and WBE Certification
- Indiana Liquor License and Alcohol Permits
- Indiana Business Entity Search
- Indiana Short-Term Rental Laws
- Indiana License Lookup
- Indiana Home-Based Vendor Law
Taxes & Compliance
- Indiana Business Taxes Explained for New Owners
- Indiana Workers' Compensation
- Indiana Registered Retail Merchant Certificate
- Indiana Employer Registration
- Indiana Minimum Wage 2026 and Employer Wage Rules
- Indiana Pass-Through Entity Tax
- Indiana Income Tax for Business Owners
- Indiana Business Personal Property Tax
- Indiana County Income Tax Rates for 2026
- Indiana INTIME
- Indiana Sales Tax Exemption Certificate (Form ST-105)
- Indiana Food and Beverage Tax and Innkeeper's Tax
- Indiana Sales Tax
Costs, Money & Services
- How Much Does It Cost to Start a Business in Indiana
- Best LLC Services in Indiana
- Best Registered Agent Services in Indiana Compared
- Indiana Registered Agent
- Indiana Business Insurance
- Indiana Small Business Grants, Loans and Funding Programs
- Indiana LLC Cost in 2026
- Indiana Tax Abatements, Enterprise Zones and Opportunity Zones
County Business Licensing
- Clark and Floyd County Business License
- Elkhart County Business License
- Hamilton County Business License
- Johnson, Hendricks, Boone, Hancock and Bartholomew County Business Licenses
- Lake and Porter County Business License
- Monroe County Business License
- Tippecanoe, Delaware, Madison and Howard County Business Licenses
- Vigo County and Western Indiana Business License
Why Start a Business in Indiana?
- Forming an LLC or a corporation costs $95 filed online through INBiz, or $100 by paper.
- There is no annual report. Indiana requires a Business Entity Report only every two years, at $32 online.
- Indiana's individual adjusted gross income tax is a flat 2.95% for 2026 and is scheduled to drop to 2.90% in 2027.
- The corporate adjusted gross income tax is a flat 4.9%, unchanged since July 1, 2021.
- Indiana produced $545.2 billion of current-dollar GDP in 2025, ranking 19th among the 50 states, with manufacturing alone accounting for $131.1 billion, or 24.0% of state GDP.
- Indiana had 6,924,275 residents as of July 1, 2024, and does not require any single comprehensive state business license.
Indiana Business Resources
Indiana Secretary of State, Business Services DivisionEntity filing, name search, online filingwww.in.gov →Indiana Department of RevenueSales tax permits, business tax registrationwww.in.gov →Indiana Small Business Development Center (Indiana SBDC)Free business counseling and trainingisbdc.org →SBA Indiana District OfficeFederal loans, programs, and mentoringwww.sba.gov →
Frequently Asked Questions
- How long does it take to form an LLC in Indiana?
- The Indiana Secretary of State does not publish a standard processing time. The Articles of Organization are completed and paid for in a single online session through INBiz.
- What does it cost to form an LLC and operate it in the first year?
- The LLC filing fee is $95. If you're selling taxable goods, you'll need a Registered Retail Merchant Certificate for $25. The Business Entity Report ($32) isn't due until two years after formation.
- Can a non-resident form an LLC in Indiana?
- The available sources do not specify a residency requirement for forming an LLC. Formation can be completed entirely online through INBiz without traveling to Indiana.
- What is the cheapest way to start a business in Indiana?
- The least expensive way to start a business in Indiana is to form an LLC or corporation for $95, with no annual report due in year one. Indiana requires no comprehensive state business license, making this filing your primary startup cost.
- Is an operating agreement required for an Indiana LLC?
- The available sources from the Indiana Secretary of State do not specify operating agreement requirements. Consult a business attorney to determine what documentation and governance procedures your LLC should have.