Tippecanoe, Delaware, Madison and Howard County Business Licenses: Lafayette, Muncie, Anderson and Kokomo
Tippecanoe, Delaware, Madison and Howard County Business Licenses: Lafayette, Muncie, Anderson and Kokomo
If you are starting a business in Lafayette, West Lafayette, Muncie, Anderson or Kokomo, you will deal with two layers of rules. The first is state formation, which works the same way everywhere in Indiana. The second is local, and that is where the surprises usually are. Indiana has no single comprehensive business license, so the license you need depends on what you do and which city or county you do it in.
This guide covers both layers. It gives the fees we could verify, the contractor and HVAC rules for the cities where we found official requirements, and a clear list of what you still need to confirm with a local office.
Informational content only: this guide is not legal or tax advice. Confirm anything that affects your filing with the agency named, and talk with a qualified attorney or CPA before you sign contracts or choose a tax structure.
Start with the state layer (the same in every city)
Every business formed in these cities files with the Indiana Secretary of State, Business Services Division. For an LLC, the formation document is Articles of Organization, Domestic Limited Liability Company (State Form 49459). You file it online through INBiz at inbiz.in.gov. The filing fee is $95.
Follow these steps in order:
- Search the name. Use the public business search. The name must include the words Limited Liability Company or an abbreviation of them, and it must be distinguishable from names already on record. Adding Inc., LLC, "the" or punctuation does not make a name distinguishable.
- Reserve the name if you need time. A name reservation costs $10 and holds the name for 120 days.
- File the Articles online for $95. INBiz does not publish a processing time for formations, and no expedited option is offered for a domestic LLC. Do not promise a launch date based on a rush.
- Appoint a registered agent. Each entity must continuously maintain an Indiana registered agent and registered office. The registered office must be a street address, since a P.O. Box is not sufficient unless it comes with a rural route reference. A business cannot serve as its own registered agent, and an entity may have only one agent. The agent can be an Indiana resident whose business office is the registered office, or an entity authorized to do business in Indiana.
- Calendar the Business Entity Report. The first report is due two years after formation, and then every other year by the end of the month in which you formed. It costs $32 online or $50 on paper.
If you operate under a name other than your LLC's registered name, you file a Certificate of Assumed Business Name (State Form 30353). It costs $20 per name online through INBiz. Sole proprietors and general partnerships record the assumed name with the county recorder instead, and recorder fees are set by each county, so check with yours.
Taxes that follow you to these cities
Indiana has no franchise tax. An LLC's income passes through to its owners, who pay the individual adjusted gross income tax of 2.95% for 2026 (scheduled to fall to 2.90% in 2027) plus the county local income tax. An LLC that elects corporate treatment pays the 4.9% corporate adjusted gross income tax instead.
The county local income tax is based on where the owner lives, not where the business operates. These are the 2026 rates for the counties covered here, from Departmental Notice #1 effective January 1, 2026:
| County | Cities covered in this guide | 2026 county income tax rate |
|---|---|---|
| Tippecanoe | Lafayette, West Lafayette | 1.28% |
| Delaware | Muncie | 1.50% |
| Madison | Anderson | 2.25% |
| Howard | Kokomo | 2.35% (changed for 2026) |
If you sell taxable goods, you need a sales tax registration. The state sales tax rate is 7%, and the Registered Retail Merchant Certificate from the Indiana Department of Revenue costs $25. Register through the Department of Revenue's business registration page.
How to start a business in Lafayette, Indiana
Lafayette and West Lafayette sit in Tippecanoe County, and both use the same state formation steps described above. The local work starts after the entity exists. Indiana does not issue one catch-all license, so ask the city what applies to your trade.
In practice, most Lafayette founders run into three local questions:
- Trade licensing. Plumbing needs an Indiana plumbing license on file in West Lafayette, and electrical work in Lafayette needs a city license. Other trades may need profession-specific state licenses from the Indiana Professional Licensing Agency. Confirm which one applies to you with that agency.
- Permits and zoning. Local permits and zoning approval come from the city or county where the business operates. A home-based or storefront business may need zoning approval before you sign a lease.
- Bonds and insurance. Contractors often need bonds and liability insurance before a permit issues. The next two sections cover the requirements we could verify.
West Lafayette building permit: bonds and licenses come first
The West Lafayette Building Department requires contractor bonds to be on file before a permit issues. Line this up before you apply, because the permit will not move without it.
- General contractor: $25,000 bond.
- Subcontractors: $5,000 bond for each trade named on the bond.
- Obligee: the City of West Lafayette is named as obligee on the bond.
- Plumbing: an Indiana plumbing license must be on file with the department.
Ask the West Lafayette Building Department for its current permit application and fee schedule. We did not verify permit fees for this guide, so we do not list them here.
Lafayette Indiana contractor license requirements
Lafayette runs its own system, separate from West Lafayette. The City of Lafayette licenses electrical work under its Electrical Licenses rules. You can qualify by experience or by exam, and the city requires at least $250,000 in general liability insurance.
| License type | Initial fee | Renewal fee |
|---|---|---|
| Commercial/industrial electrical contractor | $200 | $100 |
| Residential electrical contractor | $150 | $75 |
| Commercial/industrial electrician | $50 | $20 |
| Residential electrician | $25 | $15 |
A late renewal costs $25 on top of the renewal fee. The city also lists a $5,000 general contractor bond. That figure comes from a secondary source rather than the city's license page, so confirm it with the City of Lafayette before you post a bond.
How to start a business in Muncie
Muncie is the county seat of Delaware County, which carries a 2026 county income tax rate of 1.50%. The state formation steps are the same as in Lafayette. The difference is the local trade licensing, and the best-documented example is HVAC.
Muncie HVAC work requires a license through the city's HVAC Review Board. Before you start a Muncie HVAC business, check these requirements:
- Board meeting: the HVAC Review Board meets on the first Monday of each month at 2 p.m.
- Surety bond: $5,000, naming the city.
- Liability insurance: $500,000.
- License fee: $150 per year.
- Expiration: all licenses expire December 31.
The city's forms give December 31 as the expiration date, but the forms' date is unclear. Confirm the renewal date with the Muncie Building Commissioner before you set a calendar reminder or quote a customer on a multi-year contract.
Muncie HVAC license: what to prepare
A practical order of operations for a Muncie HVAC license looks like this. Confirm each step with the city before you spend money on it.
- Form the entity and get your Indiana registered agent in place, using the state steps above.
- Get your surety bond quoted with the City of Muncie named as the bond's beneficiary.
- Get liability insurance at or above $500,000.
- Check the HVAC Review Board's meeting schedule and application requirements with the city.
- Calendar the license fee and the December 31 expiration, once the Building Commissioner confirms the date.
Anderson and Kokomo: confirm with the city
We did not find an official contractor licensing page for Kokomo or Anderson. Anderson is the county seat of Madison County, with a 2026 county income tax rate of 2.25%. Kokomo is the county seat of Howard County, with a 2026 rate of 2.35%. Those county rates are verified, but any city-level license, bond or insurance figure for either city is unverified.
Contact each city's building department directly and ask three questions:
- Is a contractor or trade license required for my work, and who issues it?
- What bond and insurance amounts apply, and who must be named on the bond?
- Must the license or bond be on file before a permit issues?
Get the answers in writing. A third-party website that lists fees for these cities is not a substitute for the city's own answer.
Who to contact for what
| Question | Agency | Where to start |
|---|---|---|
| Forming an LLC or corporation, name reservation, assumed names | Indiana Secretary of State, Business Services Division | inbiz.in.gov, in.gov/sos/business |
| Name availability | Indiana Secretary of State | public business search |
| Sales tax, county income tax, retail merchant certificate | Indiana Department of Revenue | in.gov/dor |
| Profession-specific state licenses | Indiana Professional Licensing Agency | Confirm the license type with the agency |
| West Lafayette permits and contractor bonds | West Lafayette Building Department | Call before you apply |
| Lafayette electrical licenses | City of Lafayette | City Electrical Licenses page |
| Muncie HVAC license | HVAC Review Board and Muncie Building Commissioner | Confirm meeting dates and expiration |
| Anderson and Kokomo contractor rules | Each city's building department | Confirm in writing |
| Free business planning help | Indiana Small Business Development Center | isbdc.org |
| Federal small business resources for Indiana | U.S. Small Business Administration, Indiana district | sba.gov/district/indiana |
Next steps
Start with the state filing, because the Articles of Organization are completed and paid for in one online INBiz session. Then sort out your trade license and bond before you bid on work. Greater Lafayette's two rule sets and Muncie's HVAC requirements are the items most likely to delay a first job, so resolve them early.
If your business involves a regulated trade, a contract with a public body, or a multi-county operation, consult a qualified attorney and a CPA before you commit. A short consultation costs far less than rebuilding a bond or a license application after a permit is refused.
Disclaimer: This Resource Guide is informational and is not legal, tax or licensing advice. Fees, rates and requirements are based on the sources cited and may change. Verify every figure with the named agency before you file, bond, insure or pay, and consult a qualified attorney or CPA for your specific situation.