How to Start a Courier and Delivery Business in Indiana

How to Start a Courier and Delivery Business in Indiana

How to Start a Courier and Delivery Business in Indiana

Starting a courier and delivery business in Indiana requires planning, compliance, and the right tools. Unlike some service businesses, delivery is capital-intensive: you need a vehicle, insurance, fuel, and registration costs before you land your first client. This guide walks you through each step of how to start a courier and delivery business in Indiana, from entity formation to getting your first dispatch.

What You'll Need Before You Start

Before filing paperwork, gather these essentials:

  • A reliable vehicle: sedan, van, or truck that passes inspection and can handle your service area. Many couriers start with a fuel-efficient sedan for local runs.
  • Proof of Indiana residency or business address: a physical street address (not a P.O. box) for your registered office.
  • Social Security Number or Employer Identification Number (EIN): needed for tax registration and business accounts.
  • Vehicle title and registration documents: proof of ownership if you own the vehicle outright, or lease agreement if financed.
  • Driver's license: a valid driver's license.
  • Proof of vehicle insurance: commercial general liability and vehicle coverage quotes.
  • Business plan or service pricing sheet: clarity on what you'll charge before filing paperwork.
  • Filing fees: $95 for an LLC filed online through INBiz and $20 per assumed name filed online, plus any local permit fees.

9 Steps to Start Your Courier and Delivery Business in Indiana

Step 1: Choose Your Business Entity

Your first decision is whether to operate as a sole proprietorship, LLC, or corporation. An LLC is the most common choice for delivery businesses because it provides liability protection without the complexity of a corporation. Sole proprietorships are simpler but offer no legal shield if a client sues. A corporation is overkill unless you plan rapid expansion.

If you form an LLC, file the Articles of Organization with the Indiana Secretary of State. The filing fee is $95 online through INBiz at https://inbiz.in.gov/. Processing time is not published by the state, so ask the Secretary of State for a current estimate. You can search existing business names for free at https://bsd.sos.in.gov/publicbusinesssearch to confirm your chosen name is available.

If you're operating as a sole proprietor, skip this step.

Step 2: Register Your Business Name

If your delivery business operates under a name different from your legal name (e.g., "Midwest Express Delivery" instead of "John Smith"), file a Certificate of Assumed Business Name (also called a DBA) with the Secretary of State. The fee is $20 online through INBiz. It is a public record of the name you trade under, but it does not by itself give you exclusive rights to that name.

Note: sole proprietors and general partnerships file their DBA with the county recorder in the county where the business operates, not the Secretary of State. The fee varies by county.

Step 3: Obtain a Federal Employer Identification Number (EIN)

An EIN is a nine-digit number that identifies your business to the IRS, even if you're a sole proprietor. You need one to open a business bank account, hire employees, and file taxes. Apply for free at the IRS website: https://www.irs.gov/ein. The process takes about 15 minutes, and you receive your EIN immediately online.

If you're a sole proprietor with no employees, you can use your SSN instead, but an EIN keeps your personal and business finances separate.

Step 4: Register for Indiana Sales Tax and Obtain a Merchant Certificate

Whether your delivery charges are taxable depends on what you deliver and how you bill, so confirm with the Department of Revenue. However, if your business also involves selling any taxable goods (e.g., packages you assemble, retail items), you need to register for sales tax. You apply through INBiz and the Indiana Department of Revenue at https://www.in.gov/dor/.

If required, a Registered Retail Merchant Certificate costs $25 per location. This is worth confirming with the Department of Revenue if your service model is unclear.

Step 5: Register Your Vehicle for Commercial Use

Check with the Indiana Bureau of Motor Vehicles whether your vehicle needs a different registration for business delivery use. Registration rules and fees depend on the vehicle's weight and use, so bring your title, proof of insurance, and a valid ID and ask the BMV for the current fee.

A note: if your vehicle's GVWR (Gross Vehicle Weight Rating) exceeds 26,000 pounds, you may need a commercial driver's license (CDL) and different insurance. Most delivery vans and sedans fall below this threshold.

This page covers small-vehicle courier and delivery work. If you plan to haul larger freight, or need USDOT, IRP or IFTA registration, see how to start a trucking company in Indiana. Household goods moves are a separate regulated business; see how to start a moving company in Indiana, since intrastate household goods movers get operating authority from the Department of Revenue.

Step 6: Obtain Commercial Vehicle and Liability Insurance

This is non-negotiable. You need two types of insurance before accepting your first delivery:

  • Commercial auto liability insurance: covers bodily injury and property damage you cause while delivering. Ask an insurance agent which limits and policy type fit courier work, since cost depends on your driving record, vehicle and coverage.
  • General liability insurance: covers claims if a client's property is damaged while in your care (e.g., a package is lost or a client is injured on your property). Often bundled with auto insurance in a "commercial package" policy.

Talk to an insurance agent who handles commercial delivery businesses. Costs are higher than personal coverage but essential to protect your business.

Step 7: Apply for Local Business Permits

Indiana does not issue a statewide business license, but your city or county may require a local permit or registration. Contact your city or county clerk for specifics. Fees, filing methods and processing times vary by location, so ask the office.

Step 8: Open a Business Bank Account

Separate your personal and business finances by opening a business checking account. Bring your EIN letter, ID, and business documentation (such as your LLC Articles of Organization or DBA certificate) to a local bank. Fees vary by bank, so compare monthly maintenance fees before you choose. Using a business account makes tax time easier and looks more professional when clients pay you.

Step 9: Set Up Bookkeeping and Tax Compliance

Establish a system to track income and expenses from day one. Use simple spreadsheet software, a free service like Wave, or hire a bookkeeper. Indiana's individual income tax rate is 2.95% for 2026 (scheduled to drop to 2.90% in 2027), plus your county's local income tax, which varies. If you formed an LLC, you have the flexibility to be taxed as a sole proprietor (single-member LLC) or as a corporation (4.9% corporate rate). Discuss this with a CPA to determine which is cheaper for your income level.

Ask the Indiana Department of Revenue or a CPA whether you must make quarterly estimated payments and what the due dates are, since underpaying can lead to penalties.

Tips and Common Mistakes to Avoid

  • Don't skimp on insurance. A single accident or lost package can wipe out your startup capital. Insurance is the cheapest risk management you can buy.
  • Confirm your vehicle is road-legal before taking deliveries. Confirm your registration and insurance are current before you take your first delivery.
  • Use a street address for the registered office. An LLC must list a street address (not a P.O. box) for its registered office. Your home address works if it is a street address.
  • Register your name immediately after forming your entity. If you plan to trade under a different name, file the assumed name certificate before you advertise or sign contracts so your paperwork matches your branding.
  • Track all vehicle and fuel expenses. These are deductible, and missing documentation during an IRS audit is costly. Save receipts or use a mileage log.
  • Verify that clients aren't requiring bond or surety insurance. Some corporate clients and freight brokers require delivery partners to carry additional coverage. Ask before signing contracts.
  • Don't operate without a registered agent if you formed an LLC. Indiana law requires every LLC to maintain a registered agent and a registered office address in the state. This can be you, but it must be listed in your Articles of Organization.

Expected Timeline and Costs

Timing depends on the agencies and insurers you work with:

  • LLC formation: $95 online filing fee; processing time is not published
  • DBA registration: $20 per name online; confirm timing with the Secretary of State
  • EIN: 15 minutes (online application, free)
  • Vehicle registration: confirm timing and fees with the BMV
  • Insurance quotes and underwriting: ask your agent for timing and premiums
  • Local permit approval: varies by city or county

Total startup costs: the fixed state fees are $95 for an LLC and $20 per assumed name filed online. Vehicle registration, insurance and local permits vary, so get quotes before you budget.

Getting Your First Delivery

Once you're registered, insured, and approved locally, start acquiring clients. Options include:

  • Registering with delivery aggregators like DoorDash, Instacart, or Amazon Flex (though these take a commission).
  • Contacting local businesses, law firms, and e-commerce shops to pitch direct delivery services.
  • Advertising on Google My Business, Yelp, and local community boards.
  • Joining industry networks like the Indiana Trucking Association to find freight brokers.

Resources and Next Steps

This is informational content, not legal or tax advice. Delivery business operations vary widely depending on payload, distance, and client type. Consult a qualified attorney and CPA before signing client contracts or establishing pricing. A lawyer can review liability clauses and insurance requirements; a CPA can confirm your tax structure is optimal.

Key state resources:

Starting a courier and delivery business in Indiana is achievable if you handle the legal and insurance groundwork first. The state's straightforward LLC formation, affordable filing fees, and lack of a state business license make Indiana a practical choice. Your real investment is in the vehicle and insurance, not red tape. Start there, and your paperwork will follow quickly.

Keep exploring: related Indiana guides