How to Start an LLC in Indiana
How to Start an LLC in Indiana
Forming an Indiana LLC is a paperwork task, not a mystery. You pick a compliant name, name a registered agent, file one form with the Indiana Secretary of State through the INBiz portal, and pay a $95 fee. The whole thing is designed to be completed in a single online session. This guide walks through Indiana LLC formation step by step, with the exact costs, forms, and deadlines you'll actually run into.
What You'll Need Before You File
Gather these before you sit down at INBiz, since the online session doesn't save your place indefinitely:
- A compliant LLC name. It must include "Limited Liability Company" or an abbreviation (LLC, L.L.C.) and be distinguishable from every other name on file with the Secretary of State.
- A registered agent with an Indiana street address. A P.O. Box alone doesn't qualify.
- Your business's principal office address and the names of its members or managers.
- A payment method for the $95 online filing fee (credit card or e-check through INBiz).
- An EIN application ready to go for after formation, if you plan to open a business bank account or hire employees.
How to Form an LLC in Indiana: Step-by-Step
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Step 1: Choose and check your LLC name. Your name needs to be distinguishable on the Secretary of State's records, meaning it can't differ from an existing name only by punctuation, capitalization, plurals, an entity identifier like "Inc." or "LLC," or swapping "and" for an ampersand. Search existing names at the Indiana business search before you get attached to anything. If you're not ready to file yet but want to lock in the name, you can reserve it for $10 for 120 days.
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Step 2: Reserve the name (optional). If there's a gap between picking your name and filing your Articles of Organization, reserving it prevents someone else from taking it in the meantime. This step is optional. Most people who are ready to file the same day skip it and go straight to formation.
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Step 3: Appoint a registered agent. Every Indiana LLC must continuously maintain a registered agent and registered office in the state. The agent can be an Indiana resident whose business office matches the registered office, or a company authorized to do business in Indiana. Your LLC cannot serve as its own agent, and you can only name one. The registered office needs a physical street address; a P.O. Box only works if it's paired with a rural route reference.
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Step 4: File your Articles of Organization. This is the core filing that creates your Indiana LLC. Domestic LLCs file the Articles of Organization, Domestic Limited Liability Company (State Form 49459), through the INBiz portal. The filing fee is $95, paid in the same online session as the filing itself. There's no expedited or rush option, so build the base timeline into your plans rather than counting on a faster path.
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Step 5: Draft an operating agreement. Indiana doesn't require you to file an operating agreement with the state, but you should still write one. It spells out ownership percentages, how profits are split, what happens if a member leaves, and who has authority to sign contracts. Without one, disputes between members default to Indiana's LLC statute, which may not match what you and your partners actually intended.
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Step 6: Get an EIN from the IRS. An Employer Identification Number is free directly from the IRS and is required to open a business bank account, hire employees, or file federal taxes as a multi-member LLC. Apply online after your Articles of Organization are approved.
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Step 7: Register for Indiana taxes, if applicable. If you'll sell taxable goods or services, you need a Registered Retail Merchant Certificate from the Indiana Department of Revenue ($25), obtained through the Department of Revenue's business registration page. Indiana's state sales tax rate is 7%. If you have employees, you'll also need to register for withholding tax.
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Step 8: Check for local and professional licensing. Indiana doesn't issue one comprehensive statewide business license. Depending on your industry, you may still need a profession-specific license from the Indiana Professional Licensing Agency, plus local permits or zoning approval from your city or county. Don't assume that filing your Articles of Organization means you're fully licensed to operate.
Indiana LLC Costs at a Glance
| Item | Cost |
|---|---|
| Articles of Organization (online, INBiz) | $95 |
| Name reservation (optional, 120 days) | $10 |
| Business Entity Report (biennial, online) | $32 |
| Business Entity Report (biennial, paper) | $50 |
| Certificate of Assumed Business Name / DBA (online, per name) | $20 |
| Registered Retail Merchant Certificate (if selling taxable goods) | $25 |
If a fee you need isn't listed here, confirm it directly on the relevant agency page before you budget around it, since fee schedules change.
Common Mistakes to Avoid
- Picking a name that isn't actually distinguishable. Adding "LLC," changing capitalization, or swapping "and" for "&" doesn't make your name different in the state's eyes. Search first.
- Using a P.O. Box as your registered office. INBiz will reject this unless it's paired with a rural route reference. Use a real street address.
- Skipping the operating agreement because it's not required. "Not required" isn't the same as "not needed." Member disputes without one default to state law, which rarely matches what a small business actually wants.
- Forgetting the biennial Business Entity Report. Indiana LLCs file this report every other year, not annually, and it's easy to lose track of an every-other-year deadline. Missing it can put your LLC out of good standing.
- Assuming Indiana has a franchise tax. It doesn't. Don't budget for one, and don't let a service provider upsell you on "franchise tax compliance" that doesn't apply here.
- Expecting a rush filing option. INBiz and the Secretary of State don't publish an expedited service for domestic LLC formation. If you need faster turnaround for a closing or contract deadline, plan well ahead rather than counting on a rush fee to bail you out.
Tips for a Smooth Indiana LLC Formation
- File and pay in one sitting. INBiz is built as a single online session for completing and paying for your Articles of Organization, so have your registered agent info and member details ready before you start.
- Mark your Business Entity Report date now. The first report is due two years after formation, by the end of the month you formed in. Put a reminder on your calendar the day you file, not two years from now.
- Keep your registered agent information current. If your agent moves or resigns, update it promptly. Indiana requires continuous maintenance of a registered agent and office, not an as-needed one.
- If you're operating under a different name than your legal LLC name, file a Certificate of Assumed Business Name (State Form 30353) with the Secretary of State for $20 online, rather than assuming your Articles of Organization cover it.
- Talk to a CPA about tax treatment early. Indiana LLC income normally passes through to owners, who pay the individual adjusted gross income tax (2.95% for 2026) plus their county's local income tax. An LLC can instead elect corporate tax treatment, which is taxed at the flat 4.9% corporate rate. This decision affects your bottom line and is worth a professional's input before you file.
What to Expect After You File
Once your Articles of Organization are accepted, your Indiana LLC generally may be considered legally formed, and you should be able to obtain your EIN and open a business bank account shortly after. Indiana doesn't publish a standard processing-time estimate for LLC formations, so treat "same day or next few business days" as a reasonable expectation rather than a guarantee, and confirm your filing status through the Secretary of State's business search if you need certainty for a deadline-sensitive step like a lease signing or loan closing.
Ongoing Compliance: The Business Entity Report
Indiana LLCs don't file an annual report; they file a Business Entity Report every other year. It's due by the end of the month in which your LLC was formed, with the first report due two years after formation. Filing online costs $32; paper filing costs $50. Missing this deadline can jeopardize your LLC's good standing with the state, so treat it as a recurring fixed cost of staying in business, not an optional formality.
Frequently Asked Questions
How much does it cost to form an LLC in Indiana? The Articles of Organization filing fee is $95 online through INBiz. Add $10 if you reserve your name in advance, and budget for the $32 biennial Business Entity Report going forward.
Do I need a lawyer to start an LLC in Indiana? No, the filing itself is designed for a business owner to complete directly through INBiz. That said, an attorney or CPA is worth consulting for anything beyond a simple single-member structure, such as multi-member ownership splits, outside investment, or tax election decisions.
Does Indiana have a franchise tax for LLCs? No. Indiana doesn't impose a franchise tax. LLC income normally passes through to the individual adjusted gross income tax unless the LLC elects corporate tax treatment.
This article is for general informational purposes only and does not constitute legal or tax advice. Business formation requirements, fees, and tax rates can change, and individual circumstances vary. Consult a licensed Indiana attorney and a CPA before making formation or tax elections for your business, and verify current fees and requirements directly with the Indiana Secretary of State and the Indiana Department of Revenue before filing.