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Indianapolis and Marion County Business License: Contractor Licenses, Permits and Local Taxes

Indianapolis and Marion County Business License: Contractor Licenses, Permits and Local Taxes

If you plan to do business in Indianapolis or anywhere else in Marion County, the first office you need is the Indianapolis Department of Business and Neighborhood Services (BNS). It licenses several contractor trades, including the Indianapolis general contractor license, and sets fees for a list of other local licenses. Permits, zoning and local taxes come from other offices, so most owners work through four or five agencies before they can open. This guide puts those steps in order.

This is informational content, not legal or tax advice. Rules and fees change. Confirm every figure with the agency named here before you spend money or sign a contract, and talk to a qualified attorney or CPA about your entity choice, how you will be taxed, and any complex project.

One note up front: we could not confirm a single general business license for Indianapolis or Marion County. That does not mean none applies to you. Ask BNS whether any license covers your type of business before you assume you are exempt.

What You Need Before You Start

  • Entity paperwork. If you formed an LLC, you need the Articles of Organization (Domestic Limited Liability Company, State Form 49459). The filing fee is $95. The name must include "Limited Liability Company" or an abbreviation of it.
  • A registered agent. Every business entity must continuously maintain a registered agent and registered office in Indiana. A business cannot serve as its own registered agent, and a P.O. Box is not sufficient unless it comes with a rural route reference.
  • Certificates of insurance. BNS takes these by email. Ask your insurer for certificates that name the license you are applying for, and confirm the required coverage amounts with BNS.
  • Authorized agents. Each company gets five authorized agents at no charge. Each additional agent costs $63.
  • The current fee schedule. Download the Fee Schedule (as of January 5, 2026) from indy.gov. Many BNS fees changed on that date. We could not confirm the individual amounts, so do not budget from memory or from a vendor's price list.
  • A payment method. BNS staff add the fees to your application and send you a payment link.

Step-by-Step: Getting Licensed and Permitted in Marion County

Step 1: Confirm your entity is registered with the state

Local offices check state records, so start with the Indiana Secretary of State, Business Services Division. Search your name on the public business search. A name is distinguishable when it differs in letters, numerals or words from names already on file. Entity identifiers such as Inc. or LLC, punctuation and capitalization do not count, so "Acme LLC" will not clear against "Acme Inc." If you need time to organize, you can reserve a name for 120 days for $10 through INBiz. If you operate under a different trade name, file a Certificate of Assumed Business Name for $20 per name through INBiz.

Step 2: Identify the license your trade needs

BNS licenses general, electrical, HVAC, wrecking and plumbing contractors. Its licensing pages also cover vendor and food cart, hotel, towing and pawnbroker licenses. Find your category on the Contractor Licenses page on indy.gov. If your work fits none of these, call or email BNS and describe the work. Some trades also need profession-specific licenses from the Indiana Professional Licensing Agency.

Step 3: Check whether your city is excluded

Lawrence, Beech Grove, Speedway and Southport are excluded cities. Each runs its own program, so BNS may not be the right office for work inside them. Contact each city directly to confirm. Do not assume an Indianapolis application covers a job site in one of these cities.

Step 4: Submit your application and insurance by email

Applications and insurance certificates go by email to the BNS contractor desk. Staff add the fees and send you a payment link. Pay through that link to complete the application. Keep a copy of everything you sent, with the date and the name of the staff member you dealt with. Ask the desk for its current turnaround time before you bid on work with a fixed start date. We could not confirm a published timeline.

Step 5: Name your authorized agents

Decide who will act for the company before you apply. The first five agents are free, and each extra agent is $63. List the people who will sign and pull work now so you are not paying for additions later.

Step 6: Plan your building permits and zoning approval

Many construction, renovation and build-out projects need a building permit before work starts. Zoning answers a different question: whether your use is allowed at a specific address. Check zoning before you sign a lease or buy property, because a use that is not permitted can stop a project after you have committed money. Indianapolis is a consolidated city-county government, so the Indianapolis City-County Council passes ordinances that set many local rules. Those rules can change, so review recent council actions that touch your trade or industry. We could not confirm current permit fees, review times or the office handling each permit type. Confirm them with City of Indianapolis permitting and zoning staff before you commit.

Step 7: Register for state and local taxes

Start with the Indiana Department of Revenue. These rules apply to most owners:

  • Sales tax. The state sales tax rate is 7%. If you sell taxable goods, register for a sales tax permit and a Registered Retail Merchant Certificate, which costs $25. Register through the Department of Revenue business registration page.
  • Pass-through owners. An LLC's income passes to its owners, who pay the individual adjusted gross income tax of 2.95% for 2026. That rate is scheduled to fall to 2.90% in 2027. Owners also pay a county local income tax based on their county of residence.
  • Marion County income tax. The county rate is 2.02%, effective January 1, 2026, according to Department of Revenue Departmental Notice #1. It applies to owners who live in Marion County. Owners who live elsewhere pay their own county's rate, not Marion County's.
  • Corporate tax. An LLC that elects corporate treatment pays the 4.9% corporate adjusted gross income tax instead.
  • No franchise tax. Indiana has no franchise tax.

The Department of Revenue table also lists a 2% food and beverage tax rate for Marion County. Marion County is the only county on that table with a 2% rate. The Orange County historic hotel and Shipshewana also carry 2%, but only for those specific places. If you sell prepared food or lodging, confirm with the Department of Revenue whether this applies to you.

Step 8: Get the industry permits that apply to you

If you prepare or serve food, check the Marion County Public Health food permit page, which has its own process. Short-term rental operators should review the short-term rental permit page, which is also separate. Vendors, food carts, hotels, towing operators and pawnbrokers need the BNS license for their category. Ask for the exact requirements before you buy equipment or sign a lease.

Common Mistakes to Avoid

  • Assuming no license applies. The lack of a general license page does not mean you are exempt. Ask BNS.
  • Budgeting from vendor price lists. Some vendor sites quote package prices and bonds for Indianapolis licenses. Do not rely on those figures. Use the Fee Schedule (as of January 5, 2026), and confirm any bond requirement with BNS.
  • Sending an incomplete packet. Missing insurance certificates or agent names slow the process. Assemble everything before you email the desk.
  • Using a P.O. Box as the registered office. Indiana requires a street address for the registered office.
  • Overlooking excluded cities. A job in Lawrence, Beech Grove, Speedway or Southport may fall under that city's program, not BNS.
  • Applying the wrong county tax rate. The 2.02% Marion County rate follows your county of residence, not your business address.
  • Starting work before a permit clears. Work done without a required permit can be stopped, and the work may need to be redone.

Tips for a Faster Application

  • Call the BNS contractor desk before you send anything. Ask which license category fits your work and which documents they need.
  • Save a dated copy of the fee schedule, since amounts can change.
  • Have your insurance agent send certificates directly to you so you hold the originals.
  • If you want help checking requirements before you apply, the Indiana Small Business Development Center and the SBA's Indiana district office both offer business guidance.

Expected Results

Complete applications sent to the right office are the ones most likely to move forward. Applicants who send current insurance certificates and a full list of authorized agents may reasonably expect to receive a payment link after staff review, and to move through the local process from there. Results depend on your trade, your location and the agency's current workload. Treat any timeline you hear as an estimate until BNS confirms it, and expect the fee to match the current schedule rather than a figure from a vendor site.

Where to Confirm Every Figure

Use this guide as a checklist, not a substitute for the agency's current answer. When a licensing or tax question affects your pricing, bonding or entity choice, bring the agency's written answer to a qualified attorney or CPA before you act.

Keep exploring: related Indiana guides