Quick answer

Quick Answer

To start an Indiana LLC, you must file Articles of Organization with the Indiana Secretary of State and pay a $95 online filing fee. You are legally required to appoint a registered agent with a physical Indiana address. Once formed, you must file a Business Entity Report every two years (biennially) which costs $32 online. Indiana does not charge a franchise tax, but pass-through LLC profits are subject to a flat 3.05% state income tax, plus varying local county income taxes.

Indiana LLC filing fee

The state fee to file your Articles of Organization is $95 if you file online via the INBiz portal. If you file by mail, the fee increases to $100. Online filings are generally processed much faster, often within 2 to 5 business days.

Step 1: Choose a name

Your business name must be entirely unique and distinguishable from other businesses registered in Indiana. Furthermore, it must include an appropriate LLC identifier such as "Limited Liability Company" or "LLC" or "L.L.C." You can search the Indiana INBiz database to verify name availability.

Step 2: Appoint a registered agent

Indiana requires all LLCs to maintain a registered agent within the state. The registered agent is responsible for receiving service of process, lawsuits, and official government correspondence. The agent must have a physical street address in Indiana (P.O. Boxes are invalid) and must be available during normal business hours. You may serve as your own registered agent if you reside in Indiana.

Step 3: File formation documents

Your LLC is officially created when you file the Articles of Organization with the Indiana Secretary of State. You must provide the LLC's name, principal office address, the registered agent's details, and indicate whether the LLC will be managed by its members or by appointed managers. Filing this document online costs $95.

Step 4: Create an operating agreement

While Indiana law does not mandate an operating agreement, drafting an operating agreement is highly recommended. This internal document governs the LLC's management structure, profit distribution, and voting rights. Additionally, nearly all banks will require a copy of your operating agreement to open a business bank account.

Step 5: Get an EIN

An Employer Identification Number (EIN) is a free 9-digit tax ID assigned by the IRS. It serves as a social security number for your business. You will need an EIN to hire employees, file federal taxes, and open a business bank account. You can apply for an EIN online via the IRS website.

Step 6: Register for state taxes if needed

If your LLC sells physical goods, you must register with the Indiana Department of Revenue via INBiz to collect the state's flat 7% sales tax. Additionally, LLC profits pass through to your personal tax return and are subject to Indiana's flat 3.05% personal income tax rate, as well as local county income taxes that range from roughly 1% to 3%.

Step 7: File annual reports and stay compliant

Indiana requires LLCs to file a Business Entity Report every two years (biennially) instead of annually. The report is due by the end of your LLC's anniversary month. For example, if you formed your LLC in August, the report is due by August 31 every two years. The fee is $32 if filed online. Failing to file this report will result in the administrative dissolution of your LLC.

Indiana LLC Cost

Fee Type Amount
Formation fee $95 (Online)
Registered agent estimate $39 - $150 / year
Biennial report fee $32 (Every 2 years)
Franchise tax $0 (None)
Publication fee if applicable $0 (None)
WHEN THIS MAY NOT APPLY

If you do not live in Indiana, do not operate from Indiana, and do not have a specific Indiana-related reason for forming there, a Indiana LLC may not be the best default choice. You may still need to register the LLC as a foreign LLC in the state where you actually operate, which can create duplicate filing fees, registered agent costs, and annual compliance requirements.

Indiana currently charges $95 to form a domestic LLC. Annual reports are currently $32 biennially. For many purely online businesses, it is usually worth comparing your home state with commonly used business-friendly states such as Wyoming, which charges $100 to form an LLC and has a $60 minimum annual license tax, before choosing Indiana.

Should you form your LLC in Indiana?

A Indiana LLC usually makes sense if you live in Indiana, operate your business from Indiana, or have a clear legal or tax reason to use Indiana. If you live and operate somewhere else, forming in Indiana may create extra registered agent costs, foreign qualification requirements, and duplicate compliance obligations. Indiana may appeal to some owners, but compare it with Wyoming, Delaware, Nevada, and your home state in our guide to the best state for an online business LLC. For a comprehensive overview of starting a business, visit our LLC formation hub.

Situation Is a Indiana LLC usually a good fit?
You live in Indiana Usually yes
Your business operates in Indiana Usually yes
You want privacy Depends on state rules
You live in another state Usually only if you have a specific reason
You are a non-US resident Depends on banking, taxes, and compliance needs

Indiana LLC vs Wyoming LLC

Comparing Indiana to Wyoming, Wyoming wins on privacy and taxes, but Indiana is cheaper to maintain. A Wyoming LLC has a $100 setup fee and a $60 minimum annual fee, whereas Indiana has a $95 setup fee and a $32 biennial fee. However, Wyoming has absolutely no state income tax, while Indiana imposes a 3.05% state income tax plus local county taxes. Wyoming also offers complete anonymity for LLC owners, which Indiana does not. For out-of-state holding companies, Wyoming is superior. For businesses operating locally in Indiana, an Indiana LLC is required.