Vigo County and Western Indiana Business License: Terre Haute Contractor Rules and Taxes

If you plan to do construction work inside Terre Haute, the city's requirements come on top of the state paperwork every Indiana business files. The Terre Haute Engineering Department requires a license or registration for construction activity inside city limits, and it sets bond, insurance, certification, and fee rules that you need to meet before you can work. This guide covers the state filings to make first, the city's contractor requirements and costs, and the tax picture for owners in Vigo County. Use it as a checklist for your first call to the department, not as a replacement for the department's own rules.

Start with the state: form the business before you apply locally

Every Indiana business begins with the Indiana Secretary of State, Business Services Division. A contractor who wants an LLC files Articles of Organization, Domestic Limited Liability Company (State Form 49459), for a $95 filing fee. You complete and pay in one online session through INBiz. The Secretary of State does not publish a processing time for formations, and INBiz lists no expedited option, so do not promise a start date to a client that depends on a fast turnaround.

A few details trip up first-time filers:

• Name: The name must include the words Limited Liability Company or an abbreviation of them. It must also be distinguishable from names already in the Secretary of State's records. Adding Inc., LLC, or LLP, changing capitalization, or swapping the word "and" for an ampersand does not make a name distinguishable.
• Name reservation: You can reserve a name for 120 days for $10 through INBiz.
• Registered agent: Every entity must continuously maintain a registered agent and registered office in Indiana. The office must be a street address, since a P.O. Box is not enough unless it comes with a rural route reference. You cannot serve as your own registered agent.
• Business Entity Report: The Business Entity Report costs $32 online and is due every other year in the anniversary month of the date the LLC was formed. The first report is due two years after formation. A paper filing costs $50.

If you work under a trade name, the rules depend on how you organized. An LLC or corporation files a Certificate of Assumed Business Name (State Form 30353) with the Secretary of State for $20 per name online. A sole proprietor or general partnership records the assumed name with the recorder of the county where the business is located, and each of Indiana's 92 counties sets its own recorder fee. Confirm the Vigo County recorder's fee before you file.

Terre Haute Engineering Department: what the city requires

Contractor licensing for construction inside city limits runs through the Terre Haute Engineering Department, located at 17 Harding Avenue, Room 200. You can reach the office at 812-244-4903. Applications are submitted through the city's online Cityworks system. Ask the department for the current Cityworks access point when you call, since the city's own pages are the authority on how to get into the system.

Before you apply, have these items ready: your bond, your insurance certificate, your workers' compensation proof, any trade certifications for employees, and your payment. Missing any one of them will hold up the application.

Bonds and insurance

The city's bond requirements are specific about the form:

• General contractor bond: $10,000, written on the city's own bond form. The city does not accept any other bond form, so do not send a surety's standard template.
• Right-of-way bond: $25,000 for work in the public right-of-way.

Insurance must appear on an ACORD certificate that names the city as certificate holder and additional insured. The required limits are:

Coverage	Required limit
Combined bodily injury and property damage	$500,000
Per occurrence, bodily injury or death	$500,000
Per occurrence, property damage	$100,000
General liability for right-of-way and fire protection work	$1,000,000

You also need either workers' compensation coverage or a WCE-1 exemption certificate. Give your insurance agent the exact wording above before the certificate is issued. An ACORD certificate that leaves out the city as certificate holder or additional insured will not satisfy the requirement.

License fees and the license year

The license year runs from January 1 to December 31. The city's published fees are:

Item	Fee
Original registration	$350
Annual renewal	$175
Original registration bought in July (prorated example)	$438
Original registration bought in December (prorated example)	$365

Mid-year purchases are prorated. The July and December figures are the city's own examples, and we do not have amounts for the other months. Ask the Engineering Department for the exact figure for your start month before you pay, and put the renewal on your calendar well before December 31.

Trade-specific rules: mechanical, electrical, and plumbing

Beyond the general contractor license, the city sets rules for specific trades. Confirm each one with the department, because the requirements affect who you must hire, not only what you pay.

• Mechanical (HVAC): The contractor must employ at least one full-time employee who holds a heating and cooling certification. Accepted certifications include NATE, HVAC Excellence, RSES, Experior Assessment, Indianapolis HVAC Class A, or an equivalent. Present a copy of the certificate with your application. The city's page does not cite a code section for this rule, so ask the department to point you to the exact requirement if you need it in writing.
• Electrical: The contractor must have a full-time individual who has passed the Experior Assessment or an equivalent exam.
• Plumbing: Plumbing work must match Indiana Plumbing Commission licensing. Ask the Engineering Department what documentation it wants to see at application to show that match.

If you plan to subcontract these trades instead of employing the certified people yourself, confirm with the department how it treats subcontractors before you bid. The answer changes whether your application can be filed as planned.

Terre Haute permits: how the pieces fit together

People searching for Terre Haute permits often expect one document that covers everything. It does not work that way. The contractor license, bond, and insurance are the entry requirements for construction activity inside city limits. Whether a specific job also needs a project-level permit, inspection, or zoning approval is a separate question for the Engineering Department. Ask it before you sign a contract, not after work starts.

Indiana does not have one comprehensive state business license. Depending on your trade and location, you may need a profession-specific license from the Indiana Professional Licensing Agency, plus local permits or zoning approval from the city or county. Build that check into your planning for every job, not just the first one.

Taxes for Terre Haute and Vigo County owners

The tax picture depends on how the business is organized and where its owners live. These are the figures to plan around:

• No franchise tax: Indiana does not levy a franchise tax on LLCs or corporations.
• LLC income: An LLC's income passes through to its owners. Owners pay the individual adjusted gross income tax of 2.95% for 2026, which is scheduled to fall to 2.90% in 2027, plus their county local income tax.
• Corporate election: An LLC that elects corporate treatment, and any corporation, pays the 4.9% corporate adjusted gross income tax.
• Vigo County income tax: The county rate is 2.00% for 2026, according to Departmental Notice 1 (2026). Local income tax follows the owner's county of residence, so this rate matters most for owners who live in Vigo County. Confirm how it applies to your situation with the Department of Revenue.
• Sales tax: The state sales tax rate is 7%. If you sell taxable goods, you need a Registered Retail Merchant Certificate, which costs $25. Register through the Department of Revenue business registration page.
• Vigo County food and beverage tax: Vigo County has a 1% food and beverage tax effective September 1, 2018, authorized by SB 35 of 2018. It matters if you sell prepared food or beverages in the county. Confirm with the Indiana Department of Revenue which sales it covers.

Regulated businesses: the Terre Haute Casino

Gaming in Terre Haute is regulated at the state level. The Terre Haute Casino is overseen by the Indiana Gaming Commission, not through a local business license. If your company supplies gaming operations or works in that sector, contact the commission directly to learn what it requires. Do not assume that a city registration covers gaming-related work.

Checklist: the order most Terre Haute contractors follow

1. Choose your entity and check the name. Reserve it for $10 if you need time (120 days).
2. File Articles of Organization ($95) through INBiz and name a registered agent with a Indiana street address.
3. Obtain the $10,000 general contractor bond on the city's form. Add the $25,000 right-of-way bond if you will work in the public right-of-way.
4. Get the ACORD insurance certificate with the city named as certificate holder and additional insured, at the limits listed above.
5. Obtain workers' compensation coverage or a WCE-1 exemption certificate.
6. Confirm your full-time certified employees for mechanical, electrical, or plumbing work.
7. Apply in Cityworks and pay the $350 original registration, or the prorated amount for a mid-year start.
8. Calendar the $175 renewal before December 31, and the Business Entity Report ($32 every other year).
9. If you sell taxable goods, obtain the $25 Registered Retail Merchant Certificate.

When to get professional help

Entity choice, contract terms, and personal liability questions call for an Indiana attorney. Decisions about LLC tax treatment, including whether to elect corporate taxation, call for a CPA who works with Indiana owners. For free or low-cost startup counseling, the Indiana Small Business Development Center can help you work through the steps above before you commit money.

Informational notice: This guide explains general requirements and is not legal, tax, or licensing advice. Fees, bond amounts, insurance limits, and tax rates change. Confirm each figure with the named agency before you file or pay: the Terre Haute Engineering Department at 812-244-4903, the Indiana Secretary of State at in.gov/sos/business, and the Indiana Department of Revenue at in.gov/dor. For decisions about your specific business, consult a qualified Indiana attorney or CPA.