How to Form an LLC in Indiana 2026: Complete Guide

Indiana offers a business-friendly environment with affordable LLC formation costs ($95), no franchise tax, low flat income tax rate, central location for logistics, and strong manufacturing base. Forming an LLC in Indiana provides liability protection while benefiting from the state's pro-business climate. This guide covers everything from filing with the Secretary of State to understanding Indiana's biennial report and tax requirements.

Why Form an LLC in Indiana?

• Affordable Formation: $95 online filing fee (very competitive)
• No Franchise Tax: Indiana has no annual franchise tax or privilege tax
• Biennial Reports: Only required every 2 years (not annually) - $30 fee
• Limited Liability Protection: Personal assets protected from business debts
• Pass-Through Federal Taxation: LLC profits taxed once at member level
• Low Corporate Tax: 3.05% flat rate (if taxed as corporation)
• Central Location: Strategic Midwest location, excellent logistics infrastructure
• Manufacturing Hub: Strong automotive, pharmaceutical, medical device industries
• Low Cost of Living: Affordable business operations
• Business-Friendly: Pro-business policies, efficient regulatory environment

Step-by-Step Formation Process

Step 1: Choose Your LLC Name

Your Indiana LLC name must comply with IC 23-18-2-3:

• Be distinguishable from existing Indiana business names
• Include "Limited Liability Company," "LLC," or "L.L.C."
• Not contain restricted words ("bank," "trust," "insurance") without proper licensing
• Cannot suggest government affiliation
• Cannot include "Corporation," "Incorporated," or "Corp." (those are for corporations)

Name Search: Check INBiz Business Search

Name Reservation (Optional):

• Reserve name for 120 days
• File through INBiz
• Fee: $20
• Cannot be renewed

Step 2: Appoint a Registered Agent

Every Indiana LLC must have a registered agent (IC 23-18-2-15):

• Has physical Indiana street address (no P.O. boxes)
• Available during normal business hours
• Can be an individual Indiana resident OR business entity authorized in Indiana
• Receives legal documents, state correspondence, and service of process

Options:

• Self-serve: You can be your own registered agent if Indiana resident
• Another Member: Designate another member with Indiana address
• Professional Service: Hire registered agent company ($100-$300/year)
• INBiz Registered Agent Service: State-run service ($20/year) - most affordable option
• Benefits of professional: Privacy, reliability, compliance reminders

Step 3: File Articles of Organization

Submit Articles of Organization to Indiana Secretary of State:

Filing Options:

• Online: INBiz (2-5 business days) - $95
• By Mail: Send to Indianapolis office (7-14 business days) - $100
• Processing Time: Online 2-5 business days, mail 7-14 business days

Mailing Address:

Indiana Secretary of State
Business Services Division
302 W. Washington Street, Room E018
Indianapolis, IN 46204

Required Information:

• LLC name
• Principal office address
• Registered agent name and Indiana street address
• Purpose of LLC (optional - defaults to "any lawful business")
• Management structure (member-managed or manager-managed)
• Duration (perpetual or specific end date)
• Organizer name and signature

Step 4: Create an Operating Agreement

Not required by Indiana law, but strongly recommended:

• Defines ownership percentages and capital contributions
• Outlines management structure and decision-making authority
• Profit and loss distribution rules
• Voting rights and procedures
• Buy-sell provisions and transfer restrictions
• Dissolution and winding up procedures
• Helps establish LLC as separate legal entity for liability protection
• Required by banks for business accounts
• Prevents disputes among members

Step 5: Obtain an EIN

Get free Employer Identification Number from IRS:

• Online: IRS.gov (immediate) - recommended
• By Fax: Form SS-4 (4 business days)
• By Mail: Form SS-4 (4-6 weeks)

When Required:

• Multi-member LLCs (always required)
• Opening business bank account
• Hiring employees
• Filing federal tax returns

Step 6: Register for Indiana State Taxes

Register with Indiana Department of Revenue:

• Register through INTIME (Indiana Taxpayer Information Management Engine)
• Register for Withholding Tax (if hiring employees)
• Register for sales tax if selling goods or taxable services
• No fee to register

Complete Cost Breakdown

Ongoing Requirements

Biennial Report (Required Every 2 Years)

Indiana requires biennial (every 2 years) report filing (IC 23-18-11-2):

• Fee: $30 (plus $20 if using INBiz registered agent service = $50 total)
• Due Date: During the month of your LLC's anniversary (formation month)
• Frequency: Every 2 years (odd years if formed in odd year, even years if formed in even year)
• Example: LLC formed January 2025 → first report due January 2027 (2 years later)
• How to File: Online through INBiz
• Information Required:
  • LLC name and ID number
  • Principal office address
  • Registered agent name and address
  • Names and addresses of members or managers
• Late Filing: Additional fees if filed late, potential administrative dissolution
• Reminder: Secretary of State sends email/mail reminder before due date

Update Changes

If your registered agent or principal office changes between biennial reports:

• File Statement of Change through INBiz
• Fee: $30
• Update within reasonable time of change

Indiana Tax Requirements

Indiana Income Tax

Indiana has simple tax structure:

• Individual Income Tax: Flat 3.05% rate (2026)
• Corporate Income Tax: Flat 3.05% rate (if LLC taxed as corporation)
• Pass-Through LLCs: No entity-level tax - income passes to members
• Members Pay: Indiana income tax on LLC profits on personal returns
• No Franchise Tax: Indiana has NO franchise tax or privilege tax
• No Gross Receipts Tax: Indiana does not tax gross receipts

Sales and Use Tax

If selling goods or taxable services:

• State rate: 7% (uniform statewide rate)
• No local sales tax: Indiana has no additional local sales taxes
• Simple system: Single 7% rate applies everywhere in Indiana
• Registration: Free through Indiana Department of Revenue (INTIME)
• Filing: Monthly, quarterly, or annually based on volume
• Food & Drug Exemption: Groceries and prescription drugs exempt

Employer Taxes (If You Have Employees)

• Indiana unemployment insurance (SUTA)
• Indiana income tax withholding (3.05% flat rate plus county tax)
• County income tax withholding (varies by county, 0.50% - 3.38%)
• Workers' compensation insurance

County Income Tax

• Indiana counties impose local income tax
• Rates vary by county (0.50% - 3.38%)
• Based on employee work location
• Withheld by employers along with state tax

Business Licenses and Permits

State Business License

• No general state business license required
• Industry-specific licenses may be needed
• Check Indiana Professional Licensing Agency

Local Business Licenses

• City/County license: Some Indiana cities/counties require local license
• Cost: Varies by locality ($25-$100 annually)
• Not universal: Not all Indiana localities require business license
• Contact: Local city/county clerk for requirements

Professional Licenses

• Contractors: Indiana Professional Licensing Agency
• Healthcare providers: Indiana State Board of Health, Medical Licensing Board
• Real estate: Indiana Real Estate Commission
• Food service: Local health department permits

Professional LLCs

Indiana allows certain licensed professionals to form PLLCs (IC 23-18-13):

Who Can Form Professional LLC

• Attorneys
• Physicians and healthcare providers
• Dentists
• Veterinarians
• Architects
• Engineers
• Accountants
• Psychologists
• Other licensed professionals

Additional Requirements

• All members must be licensed in same profession
• May require certificate from licensing board
• Does not shield from professional malpractice liability
• Same filing fee ($95) and biennial report ($30)

Operating an Out-of-State LLC in Indiana

If formed in another state but doing business in Indiana, must register as foreign LLC:

When Required

• Maintaining an office in Indiana
• Regularly conducting business in Indiana
• Owning or leasing real property in Indiana
• Hiring employees in Indiana

Foreign LLC Registration

• File Application for Certificate of Authority through INBiz
• Fee: $125
• Designate Indiana registered agent
• Submit Certificate of Good Standing from home state (within 90 days)
• Biennial report: $30 every 2 years (same as domestic LLCs)

Dissolving an Indiana LLC

To officially close your Indiana LLC:

1. Vote to Dissolve: Members approve per operating agreement or statute
2. Wind Up Business: Pay debts, settle obligations, distribute assets
3. File Articles of Dissolution: Through INBiz
4. Fee: $30
5. File Final Tax Returns:
   • Federal (Form 1065 or Schedule C)
   • Indiana income tax returns (mark "final return")
   • Sales tax final return (if applicable)
6. Close INTIME Account: With Department of Revenue
7. Cancel Business Licenses: State and local
8. Close Bank Accounts: After all obligations settled

Frequently Asked Questions

How much does it cost to form an LLC in Indiana?

The filing fee is $95 online ($100 by mail). Indiana requires a biennial (every 2 years) report costing $30, so your first two years total approximately $125. Average ongoing cost is only $15/year. If you use the state-run INBiz registered agent service, add $20/year (total $35 biennial). Indiana has no franchise tax, making it very affordable.

Does Indiana require an annual report for LLCs?

No, Indiana requires a BIENNIAL report (every 2 years), not annually. This saves money and administrative work. The report is due during the month of your LLC's anniversary. If you formed in 2025, your first report is due in 2027, then 2029, 2031, etc. The fee is $30 every 2 years ($15/year average).

What is the INBiz registered agent service?

INBiz is Indiana's state-run registered agent service, costing only $20/year (billed as $20 every 2 years with your biennial report). This is the most affordable registered agent option - private companies charge $100-$300/year. However, using the state service means your business address is public. Private services offer better privacy.

Does Indiana have income tax for LLCs?

Indiana has a flat 3.05% income tax. Pass-through LLCs don't pay entity-level tax - LLC members pay Indiana income tax on their profits on personal returns at 3.05% plus county income tax (0.50%-3.38%). Indiana has NO franchise tax or gross receipts tax, making it very business-friendly.

How long does it take to form an LLC in Indiana?

Online filings through INBiz typically process within 2-5 business days. Mail filings take 7-14 business days. Indiana does not offer expedited processing. Processing times can be longer during busy periods. Online filing is strongly recommended for faster approval.

Do I need an Indiana address to form an Indiana LLC?

Yes, you need an Indiana registered agent with a physical Indiana street address. However, your principal office can be anywhere. If you're out of state, you can use Indiana's $20/year INBiz registered agent service or hire a private registered agent ($100-$300/year).

Can one person form an LLC in Indiana?

Yes. Indiana allows single-member LLCs. The process is identical to multi-member LLCs, and you still receive full liability protection. Single-member LLCs are taxed as disregarded entities (sole proprietorships) for federal tax purposes unless you elect corporate taxation.