This step-by-step guide provides a full breakdown of all the financial obligations for a new Indiana LLC.
Company formation can be an exciting new step on your entrepreneurial journey.
But starting a new business also creates stress for many new small business owners who find themselves overwhelmed by the number of forms, state filing fees, and other requirements such as preparing an LLC operating agreement, figuring out your federal tax obligations with the IRS, or opening a business bank account.
The best way to stave that feeling is to learn and estimate all the LLC formation costs in advance.
Table of contents
- Indiana LLC formation cost: $90
- Extra Indiana LLC costs to account for
- Does Indiana have an annual LLC fee?
- What taxes do LLCs pay in Indiana?
- Conclusion: How much does an LLC cost in Indiana?
Indiana LLC formation cost: $90
To form an LLC in Indiana, you’ll need to file Articles of Organization with the Secretary of State Business Services Division. The Articles of Organization officially creates a new business entity, and you can file the form online, in person, or by mail or fax.
The filing fee for a domestic Indiana Limited Liability Company is $90.
For a foreign Limited Liability Company, whose incorporation is in another state but does business in Indiana, filing fees vary depending on the entity type.
- For-profit foreign LLC — $125 filing fee
- Nonprofit foreign LLC — $75 filing fee
- Master LLCs — $250 filing fee
Foreign LLCs must also submit a certificate of authority from the state where the LLC is registered to the State of Indiana within 60 days of document submissions.
It takes on average several weeks for Indiana to process Articles of Organization filings. However, online filings through the In.biz portal are usually processed faster.
You can file the formation documents on your own or hire a professional LLC formation service to assist with the matter.
Extra Indiana LLC costs to account for
Filing your Articles of Organization is a non-optional step to form your Indiana LLC. But you may also incur other optional or mandatory costs for establishing your business.
These include charges for reserving your name, choosing a registered agent, and paying for necessary licenses and permits.
Registered agent costs
Each Indiana LLC must appoint and maintain a registered agent with an office in Indiana. A registered agent’s role is to receive state and legal documents, including service of process, on behalf of your business.
You can change your registered agent at any time. While many other states charge extra fees for changing registered agent information, Indiana does not.
Your Indiana registered agent may be an individual or professional registered agent service provider. Some small business owners choose a close friend or family member to serve, while others prefer a commercial registered agent.
Hiring a registered agent service takes the inconvenience away from individuals who must be available every day during business hours if your business is summoned. As a registered agent, you must also disclose your address. If you operate from home, this affects your privacy.
You can expect to pay about $50-$120 per year or more for professional services.
Assumed name registration
The form is available at the IN.gov website. Or you can file online through the Indiana business portal.
Assumed name registration form requires you to provide your business contact information, the legal LLC’s name, and the assumed name – or name you wish to operate under plus pay a $30 filing fee.
Indiana LLC name reservation
Your Indiana LLC can have any name as long as it meets the following 3 criteria. Your intended business name must be:
- Available. Indiana has a Name Search Availability tool to help you determine if a business entity’s legal name may be available for use.
- Distinguishable from others. Indiana law requires that the name of an LLC be different from other businesses registered with the Indiana Secretary of State’s office.
- Include “Limited Liability Company” or any of its abbreviations like LLC or L.L.C.
If there’s a name you like that’s available, you can reserve it for 120 days for a $20 fee. Again, filings can be made online or by mail.
Certified document copies costs
You may need to provide official business documents to third parties to confirm your business is properly registered and in good standing with the state.
For instance, banks or suppliers may request your Articles of Organization or Certificate of Existence before doing business with you.
You can get copies of these documents online for free. If hard copies are required, you’ll have to pay a $15 fee plus $1.00 per page. The processing may take several business days.
Business permits and licenses
However, certain industries like daycares, construction, and financial services are subject to additional licensing or permitting requirements. State fees vary but expect to pay up to a couple of hundred dollars.
- Kennels, groomers, pet stores, and stables must pay a $200 annual fee
- Massage parlors are charged $177 for license registration
- Broker license in Indiana costs $57 + $10 fingerprint fee
To ensure you’re compliant with business license requirements, check with your county for any permits or licenses needed for your business structure.
If your business sells goods or tangible personal property, you’ll need to file a Business Tax Application with the Indiana Department of Revenue (DOR). You can legally open for business only after your application is approved and you’ve received a Registered Retail Merchant’s Certificate (RRMC).
If you operate multiple retail areas, you’ll need to have a certificate displayed in each location. The permit costs $25 and must be renewed every two years.
Indiana’s sales tax rate is 7%, so you’ll need to collect this amount from customers at the time of sale. Too often, business owners transitioning from sole proprietorship don’t realize they have to collect sales tax and pay the tax bill out of pocket for hundreds or thousands in unexpected costs.
Failure to pay tax due causes your RRMC to expire. Even if your Indiana business has no taxable activity, you must still file a $0 sales tax return.
Does Indiana have an annual report for LLCs?
Biennial report filing is a must for all businesses incorporated in Indiana. The Secretary of State mails the reminders, but it’s up to you and your company to complete the business entity report and pay the $50 renewal fee on time.
The report is due during the anniversary month of the Limited Liability Company’s formation date:
- Companies created in odd years must file every odd year.
- LLCs formed in even years must file every even year.
Indiana accepts online filings on the Secretary of State’s website.
What taxes do LLCs pay in Indiana?
So your LLC will not be subject to any corporate income taxes (unless you elect to report taxes as a c-corporation), which is an unlikely scenario for single-member LLCs or SMEs.
Still, you may be subject to the following types of state taxes:
- County Innkeeper’s Tax (CIT)
- Food and Beverage Tax (FAB)
- Local Income Tax (LIT)
The above will vary by county as some don’t collect CIT or FAB.
Moreover, you’d be subject to an aforementioned state-wide sales tax rate of 7% if you’re selling taxable goods or services.
Finally, if you plan to hire employees in your new Indiana LLC, you must register with the Department of Workforce Development.
As an employer, you’re required to register during the first quarter that you’re liable to pay unemployment premiums.
You can register online or by mailing State Form 2837 – Report to Determine Status to:
Department of Workforce Development
100 N. Senate Ave. Room SE005
Indianapolis, IN 46204
Also, you’re considered a withholding agent if you pay salaries and wages that are subject to Indiana state or county taxes. It means that you have to file Form BT-1 (which is free) with the Indiana Department of Revenue and withhold state and county taxes from all employees’ wages.
Each year you’ll have to file a withholding tax reconciliation on Form WH-3 by February 28th of the following year.
Conclusion: How much does an LLC cost in Indiana?
The good news is that in Indiana, you can start an LLC for just $90. It covers the cost of filing your Indiana Articles of Organization to create your LLC officially.
Afterward, you’ll have to pay $50 every two years to keep your information updated with the state.
However, as this guide shows, you’ll likely incur other company formation costs and ongoing maintenance fees.
Here’s an estimate of one-time and ongoing costs to factor into your budget for your Indiana LLC.
|One-time basic||One-time + extras||Annual/biannual costs|
Domestic LLC articles
Specialized industry license
Sales tax registration