How to Start a Short-Term Rental Business in Indianapolis: Permit, Taxes and Registration

Starting a short-term rental in Indianapolis means finishing three separate jobs: getting the city permit, registering for the county innkeeper's tax with the state, and setting up the business entity you will rent under. Each job has its own agency, fee and deadline. Many new hosts publish a listing first and sort out the paperwork later, and that order is a common reason for fines, forced delays and lapsed listings. This guide covers the steps in the order they should happen.

This article is informational content, not legal or tax advice. Ordinances, fees and tax rules change. The City of Indianapolis, the Indiana Department of Revenue and the Indiana Secretary of State are the final authorities on their own requirements. Before you sign a lease, buy a property or make a tax election, speak with a qualified Indiana attorney or certified public accountant (CPA).

What You Need Before You Start

Gather these items before you open any application:

• Proof of control over the property. A deed or a signed lease. If you rent the unit, get your landlord's written permission to host short stays. Your lease may prohibit short-term use even where the city allows it.
• An INBiz account at inbiz.in.gov. You will use it for LLC formation, assumed business names and the state tax registration.
• A business name checked against the Secretary of State's records in the Business Services Division search.
• An Indiana registered office and registered agent. The office must be a street address. A P.O. Box is not enough unless it includes a rural route reference.
• Budget for filing fees. Plan for $95 for Articles of Organization, $150 for the initial Indianapolis permit, and $32 for the first Business Entity Report due two years after formation. Add $10 if you want a 120-day name reservation, and $20 per assumed name if you operate under a brand name.
• The current permit application and fee schedule from the city (see Step 3).
• A calendar with your permit renewal date, LLC report due date and tax filing dates.

Step 1: Confirm the Property Can Be Rented Short-Term

Before you spend money on a permit, confirm the property is allowed to host short stays. The city permit does not override other rules that apply to the same address. Check three things:

• Zoning. Ask the city whether the address's zoning allows short-term lodging. Do not assume a residential zone allows it.
• Private restrictions. Review the HOA or condo association declaration, bylaws and rules. Many associations restrict rentals, and their rules are enforced separately from city law.
• Lease, mortgage and insurance terms. If you rent, your lease must allow subletting. Your lender may also need to know about short-term use, and your insurer should confirm whether your policy covers paying guests.

Indiana does not issue one comprehensive business license. The state's Business Owner's Guide notes that a business may still need local permits or zoning approval from the city or county, so this check is not optional.

Step 2: Form the Business Entity You Will Rent Under

Many hosts operate through a limited liability company (LLC). The city permit does not require one, so the choice is yours. Make it with an attorney or CPA who knows your full situation. If you form an LLC, the Indiana process looks like this:

1. Check and reserve the name. The name must include “Limited Liability Company” or an abbreviation of it, and it must be distinguishable from every name on the Secretary of State's records. INBiz states that entity identifiers such as Inc. or LLC, punctuation, capitalization and the articles “the,” “a” and “an” do not make a name distinguishable. In practice, “Monument Rentals LLC” and “Monument Rentals Inc.” conflict. You can reserve a name for 120 days for $10.
2. File the Articles of Organization. Use Articles of Organization, Domestic Limited Liability Company (State Form 49459). The filing fee is $95, and you complete and pay for it in one online INBiz session. The state does not publish a processing time for formations and offers no expedited option, so do not promise a launch date based on a guaranteed turnaround.
3. Appoint a registered agent. Every Indiana entity must continuously maintain a registered agent and registered office. The agent receives legal and tax papers. The agent can be an Indiana resident whose business office matches the registered office, or a business entity authorized to do business in Indiana. An entity cannot serve as its own registered agent. A registered agent service is the simplest route for many owners, but prices vary, so get quotes and confirm exactly what the service covers.
4. Calendar the Business Entity Report. The Business Entity Report costs $32 online and is due every other year, on the anniversary of the date the LLC was formed or registered (confirm the exact date on the entity's Business Details page). The first report is due two years after formation. Paper filing costs $50.

Indiana has no franchise tax. By default, an LLC's income passes through to its owners, who pay the individual adjusted gross income tax at 2.95% for 2026 plus their county local income tax. An LLC that elects corporate treatment pays the 4.9% corporate adjusted gross income tax instead. If you live in Marion County, the county income tax rate for 2026 is 2.02%. Ask your CPA how rental income flows onto your return.

If your listing uses a brand name that differs from the LLC's legal name, file a Certificate of Assumed Business Name (State Form 30353) with the Secretary of State. Online filing through INBiz costs $20 per name. A paper filing costs $30 per name for an LLC. Get the form from the Indiana forms site.

Step 3: Apply for Your Indianapolis Short-Term Rental Permit

The city's short-term rental rules are in Indianapolis Revised Code chapter 852, the Short-Term Rental Permit Program. The Department of Business and Neighborhood Services (BNS) runs the program. This is the step most people mean when they search for an indianapolis str permit, so treat it as a hard requirement with a calendar attached. Key points:

• One permit per rental unit. Each unit needs its own annual permit. A duplex with two separately rented units needs two permits.
• Permits expire. Under Sec. 852-106, a permit lapses one year after issuance unless it is renewed.
• Initial fee: $150. The code sets $150 for an initial permit and $150 for a new permit issued after a revocation.
• Renewal fee: confirm it with BNS. The section of the code reviewed for this guide does not state a separate renewal fee. Some vendor sites describe renewal as free, but that claim is not confirmed. Ask BNS for the renewal fee in writing before you budget for it.
• Check the current fee schedule. The city says license and permit fees were updated effective January 5, 2026. Craft permits were not changed. The current schedule is posted under License and Permit Fees on indy.gov. Check it on the day you apply.
• Where the money goes. Permit fees go to the consolidated county general fund under Sec. 852-107.

The city's Accela portal handles online permit activity, but it has a limit you should plan around. If your permit expires, you cannot renew it online. Send a written request to BNS by mail or email instead. Get the current mailing address and email from indy.gov before you send anything, and start renewal well before the one-year mark.

Step 4: Register for the Marion County Innkeeper's Tax

Short-term stays in Marion County carry a 10% innkeeper's tax. The Department of Revenue (DOR) collects it under its county innkeeper's tax table, effective 09/01/09. The tax applies to stays under 30 days and is charged on top of the 7% state sales tax. Short-term rentals of houses, condos and apartments have been taxable since July 1, 2019.

Register for the tax through INBiz before your first guest checks in. The DOR's business registration page explains the tax types and registration steps. The law includes a limited exemption for owner-occupants who rent their home fewer than 15 days. Confirm the conditions with DOR before you rely on it, because the exemption is narrow and misreading it is an expensive mistake.

Step 5: Understand Marketplace Tax Collection

Marketplace facilitators such as Airbnb must collect and remit the tax on bookings made through their platform. That does not end your responsibilities. Confirm with DOR which taxes the platform handles for your listing, whether you still need to file returns, and which records you must keep. Save your permit, your tax registration and every payout or tax report the platform gives you.

Indianapolis Airbnb Rules You Need to Know

Readers searching for indianapolis airbnb rules usually want a quick checklist. Here it is. The ordinance text and the agency's current guidance control.

• Each rental unit needs its own annual city permit under chapter 852.
• A permit lapses one year after issuance unless renewed. An expired permit requires a written renewal request.
• The 10% Marion County innkeeper's tax applies to stays under 30 days, on top of the 7% state sales tax.
• Chapter 851 creates the Indianapolis Landlord Registration Program. It is a separate program from the short-term rental permit, and this guide has not confirmed its fee. Ask BNS whether it applies to your property.
• Zoning, HOA rules and your lease still apply. A city permit does not override them.

Tips for a Smoother Launch

• Apply for the permit and register for the tax before you publish a listing.
• Put every permit renewal, LLC report and tax deadline on one shared calendar with two reminders each.
• Save every confirmation number and every written reply from BNS and DOR. A written answer is far easier to rely on later than a phone call.
• Ask BNS and DOR for their current forms and fee confirmations in writing. Vendor blogs are often out of date.
• For business planning help beyond filing, the Indiana Small Business Development Center is a good starting point.

Common Mistakes to Avoid

• Assuming one permit covers the whole property. Each rental unit needs its own permit. Count your units before you apply.
• Trusting vendor fee claims. Some third-party sites list fees and start dates the city and state have not confirmed. Use the agency page as the source.
• Letting a permit lapse. The permit ends one year after issuance. A missed renewal means a written request, not a quick online renewal.
• Treating platform collection as full compliance. Marketplace collection does not replace your duty to register and understand which taxes apply to you.
• Choosing a name that conflicts. Adding “Inc.” or “LLC” to an existing name does not make it distinguishable.
• Skipping the HOA and lease review. A city permit will not protect you from a private restriction.

What Results to Expect

Once your entity, permit and tax registration are in place, the paperwork is often the simpler part. Results depend on the property, location, pricing, guest reviews and how quickly you respond to inquiries. Nothing in this guide promises bookings, occupancy or income. Build your budget around your actual permit, filing and tax obligations first, then test pricing with the cash flow that remains. Many owners find the renewal and tax calendar needs steady attention, so plan time for it from the start.

Fee and Deadline Reference

Item	Cost	Agency	Timing and notes
LLC Articles of Organization (State Form 49459)	$95	Indiana Secretary of State via INBiz	One online session; no published processing time
Name reservation	$10	Indiana Secretary of State via INBiz	Holds the name for 120 days
Business Entity Report	$32 online, $50 paper	Indiana Secretary of State	Every other year; first due two years after formation
Certificate of Assumed Business Name (State Form 30353)	$20 online per name, $30 paper per name for an LLC	Indiana Secretary of State	Needed only if you operate under a name other than the LLC's legal name
Indianapolis short-term rental permit (initial)	$150	Department of Business and Neighborhood Services	Annual, per rental unit; lapses one year after issuance unless renewed (Sec. 852-106)
Indianapolis short-term rental permit (renewal)	Confirm with BNS	Department of Business and Neighborhood Services	Renewal fee not stated in the code section reviewed
Marion County innkeeper's tax	10% of the stay	Indiana Department of Revenue	Stays under 30 days; charged on top of 7% state sales tax
Chapter 851 Landlord Registration	Confirm with BNS	Department of Business and Neighborhood Services	Separate program from the short-term rental permit

Next Steps

Start with the zoning and HOA check, then form your entity if you want one, then apply for the city permit and register for the innkeeper's tax before your first booking. Use the Indiana Secretary of State Business Services page for entity questions and the Indiana Department of Revenue for tax questions. For anything involving your property rights, lease, insurance, income taxes or liability, consult a qualified Indiana attorney or CPA before you launch. This article is informational, not legal or tax advice.