How to start an LLC in Indiana in 2024

To start an LLC in Indiana, first choose a business name and registered agent. Then, file your formation paperwork with the Indiana Secretary of State. Finally, complete the steps needed to set up financial accounts, officially open your business and keep your business in good standing, such as obtaining required licenses or permits, getting a federal employer identification number (EIN), applying for an Indiana tax ID number and filing your biennial report.

There are 10 steps to start an LLC in Indiana: 

• Sign up for Indiana’s INBiz portal. 
• Name your LLC.
• Select a registered agent. 
• File your LLC’s articles of organization. 
• Draft an operating agreement. 
• Apply for an employer identification number (EIN). 
• Register with the Indiana Department of Revenue. 
• Apply for business licenses and permits. 
• File biennial business entity reports. 
• Pay annual property taxes with your county assessor.

10 steps to start an LLC in Indiana

1. Sign up for Indiana’s INBiz portal

To complete the business formation process in Indiana, you must sign up for Indiana’s INBiz portal. INBiz is a partnership portal shared between Indiana’s Secretary of State, Department of Workforce Development and Department of Revenue. It’s made for Indiana business owners as a one-stop shop for setting up and managing your business. 

For example, using your INBiz portal, you can: 

• File your LLC formation paperwork.
• Register for a state tax ID number.
• File your LLC’s annual report.
• Request certified copies of business documents. 
• Register trademarks.
• Access Indiana Secretary of State business forms.
• Manage your LLC’s unemployment insurance. 

To sign up for an INbiz portal, you must use the Access Indiana sign up process. Follow the prompts to enter your personal information and set up your account. Once you have signed up for an Access Indiana account, you will be able to use the INBiz system to set up your LLC using the login information you created in this step. 

2. Name your LLC

To be accepted by the Indiana Secretary of State, you need to name your business. Your business name needs to be distinguishable from all other registered names in the state. So, first, brainstorm a few names for your LLC. As you do, remember to follow Indiana’s naming guidelines. 

Once you have a few names, check to see which of those names are available using Indiana’s business name search tool accessible by logging into your INBiz account. It is also a good idea to check the United States Patent and Trademark Office’s trademark electronic search system (TESS) to ensure your chosen name is not protected from national infringement. If your chosen names appear in the results lists of these search tools, you cannot use them. 

However, if you find that the name you really want for your LLC is already in use, you still have options. Return to Indiana’s naming guidelines to learn how you can and cannot change a name to make it unique. 

Once you’ve landed on a unique name, you can designate your business name when you file your articles of organization to officially form your LLC (see step three). If you’re not ready to file, you can reserve your business name for up to 120 days using your INBiz account. Reserving a business name comes with a $10 filing fee in Indiana. 

3. Select a registered agent

When you submit your articles of organization to legally form your LLC, you are required to name and maintain a registered agent. A registered agent’s job is to be available during all regular business hours throughout the year at the listed registered agent address to receive legal and other official correspondence on your LLC’s behalf. For example, if your LLC is sued, the notification will be delivered to your registered agent. 

Indiana law does not allow a business to serve as its own registered agent. So, you must designate an individual or a third-party entity. Agent options include appointing an individual to serve as your agent, hiring a local lawyer or hiring a registered agent service or another qualified business. 

To learn more about what registered agents do, your legal registered agent requirements, if you should serve as your own registered agent or hire one and how to choose one, read Do I need a registered agent? 

Hiring a registered agent service costs between $0 and $300 per year and offers numerous benefits, including schedule flexibility, assistance with protecting your LLC’s reputation and access to legal consultations and additional compliance tools. To choose a registered agent service that best meets your business needs, read our best registered agent services guide. 

4. File your LLC’s articles of organization

Now that you’ve selected a name and registered agent, it’s time to make your LLC official with the state of Indiana. That means filing articles of organization using your INBiz account and paying a filing fee. Indiana’s online filing fee for LLC articles of organization is $95, but there will also be a payment processing fee that varies depending on your method of payment. This fee will be a minimum of $1, but no more than 2.15% of your fee total.

To learn more about how to file your articles of organization, read: What are LLC articles of organization?

New LLC reporting requirement alert 

The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has implemented a new reporting requirement for all non-exempt LLCs starting on January 1, 2024. 

The requirement is called the Beneficial Ownership Information (BOI) report and it is estimated to only take about 20 minutes to complete. 

Here’s what you need to know:

• LLCs formed before January 1, 2024 have until January 1, 2025 to file.
• LLCs formed between January 1, 2024 and January 1, 2025 have 90 days to file from the confirmed date of the businesses’ registration.
• New LLCs formed after January 1, 2025 will have 30 days to file from the confirmed date of formation.

For all details, FAQs and to file, visit FinCEN’s BOI website. 

5. Draft an operating agreement

Indiana does not require an operating agreement, but we strongly recommend one for all LLCs. An operating agreement outlines the operating procedures, duties, responsibilities and financial considerations of your LLC’s members. In doing so, it offers operational clarity to set your business up for success, enhanced liability protection for your members, the ability to fully take advantage of key financial opportunities for your LLC and control over how your LLC runs (despite state laws that may be contrary to your LLC’s and its members’ interests). 

To draft your agreement, you can lean on an operating agreement template like those provided by LLC formation firms such as Rocket Lawyer or Northwest Registered Agent. However, these templates are generic and may not reflect the unique needs of your LLC. 

So, before your members sign the legally-binding agreement, we recommend you consult with a business lawyer to finalize your document to your needs. LLC formation companies such as LegalZoom and Rocket Lawyer offer such legal assistance for a fee. Once your members have signed your agreement, file this document with your other important LLC paperwork for future reference and use. 

To learn more about operating agreement benefits and what you should include in one, read What is an LLC operating agreement?

6. Apply for an employer identification number (EIN)

An employer identification number (EIN) identifies an entity much like a Social Security number identifies a person for tax administration and other financial purposes. As a business owner, you can use your LLC’s EIN to open a business bank account, apply for required business licenses and permits, hire employees, access business funding and file your taxes. 

The IRS issues EINs. You can apply for one online in 10 to 15 minutes using the IRS’s apply for an employer identification number (EIN) online page. You must complete the form in one session but will not be asked to pay a filing fee. Once you have filled out and submitted the form, you will immediately receive a confirmation page with your EIN. Print this page and keep it for your LLC records. 

7. Register with the Indiana Department of Revenue

To maintain your LLC’s good standing, you must pay applicable taxes. You can do so by registering your business with the Indiana Department of Revenue. For example, most businesses must register for sales tax (applicable for businesses that sell or transfer tangible personal property). When you register for sales tax, you get an Indiana tax ID number. 

You may also be required to pay other taxes. The good news is, one form can help you sign up for most common business taxes, including: 

• Sales tax. 
• Use tax. 
• Withholding tax. 
• Food and beverage tax. 
• Innkeeper tax. 
• Motor vehicle rental excise tax. 
• Prepaid sales tax on gasoline. 

You can register for your Indiana tax ID number (which registers you to pay taxes) using your INBiz account. There is no fee to get a tax ID number. Once you’ve filled out the form, you will receive an Indiana tax identification number. 

To learn more, read How to get a state tax ID number.  

8. Apply for business licenses or permits

You don’t need a general business license to operate your LLC in Indiana, but depending on your industry, you may need to pursue specific professional licenses or permits. All licensing must be registered with the Indiana Professional Licensing Agency (PLA), but the board overseeing each profession and the associated fees vary.

For example, genetic counselors are regulated by the Medical Licensing Board of Indiana and have to pay a $40 license application fee. Meanwhile, interior designers register directly with the PLA affirming they hold either a current National Council of Interior Design Qualifications certificate or an Indiana Architecture license. The associated fee for interior designers is $100. 

You can find a full list of businesses required to seek a license from the state on the PLA’s website. Click on your LLC’s industry or your profession to learn more about licensing requirements and filing fees and to access applications. 

You may be subject to additional licensing requirements by local law. You can ensure you’re meeting these requirements by contacting your local small business development center. 

9. File biennial business entity reports

To keep your LLC in good standing with the state, you need to file a biennial business entity report. The report is due during the month your business was formed. So, if you registered your LLC in August of 2023, your first business entity report would be due between August 1 and August 31 of 2025.

As you fill out the report, you’ll either affirm or update basic information about your LLC, including:

• Your LLC’s name and email address.
• Your name, address, email address and phone number.
• Your LLC’s formation date and jurisdiction.
• Your registered agent’s name and address.
• Your name and signature. 

There is a $50 fee for filing, which you can pay online using your INBiz account if you’re paying with a credit card. If you want to pay with a paper check or money order, you can file paper form 48725.

10. Pay annual property taxes with your county assessor

In Indiana, there’s a tax on personal property — even for businesses. If your LLC has $80,000 or more in personal property, it will have to pay personal property taxes to the appropriate county assessor each year. The exact date can vary from year to year, but it is usually in mid-May. Here are some examples of what counts as personal property of your business: 

• Equipment used in the course of business.
• Equipment held as a business investment.
• Foundations for any such equipment.
• Billboards.
• Most other non-real estate tangible assets.

Items that explicitly don’t qualify as the LLC’s personal property include:

• The real estate the LLC uses to conduct business.
• Computer software.
• Inventory.
• Vehicles that were subject to excise taxes by Indiana’s DMV at the time of purchase. 

If you don’t have $80,000 in assets, you can file for an exemption, but you still need to file. Whether you owe or not, you can file online using the Indiana personal property online portal (PPOP). It services all Indiana counties. 

Find the best LLC services for Indiana: Best LLC services of 2024.

Frequently asked questions (FAQs)

Can I set up an LLC for free in Indiana?

No, you cannot set up an LLC for free in Indiana. While some LLC formation companies offer packages that provide assistance for filing your paperwork for no profit, you’ll always need to pay the state filing fee, which can range from $96.50 and $100, depending on how you file. Other fees that may apply include name reservation, licensing, tax registration and biennial report fees. For more information, read our cost to start an LLC guide.

Do Indiana LLCs pay taxes?

No, in almost all instances, Indiana LLCs do not pay an additional corporate tax. Taxes are generally paid on members’ personal income tax returns based on their percentages of ownership and earned revenue. Even if you opt into an S-corp election for federal tax purposes, the state of Indiana still taxes your LLC as a pass-through entity. One of the only exceptions is if your S-corp has passive income or built-in gains. These profits will be taxed at Indiana’s corporate tax rate of 4.9%. 

All businesses are required to pay property taxes regardless of business structure. While this does include LLCs, you can file for an exemption if your business’s property value is under $80,000.

Do I need a registered agent in Indiana?

Yes, you need a registered agent in Indiana, and the LLC cannot serve as its own registered agent. 

Do Indiana LLCs need to file an annual report?

Indiana LLCs are required to file biennial reports, which means that they’re due every other year. The filing fee is $50, and the report can be completed and submitted using your INBiz account. 

How do I dissolve an LLC in Indiana?

To dissolve an LLC in Indiana, first consult your operating agreement and follow the dissolution procedures within it. Then, use your INBiz account to file articles of dissolution. You could also opt to file using paper form 56270. When filing, you will be asked for the LLC’s name, address, date of formation and date of dissolution. The filing fee is $30. Follow up by filing notices of voluntary dissolutions with the Indiana Department of Revenue and Department of Workforce Development as applicable to your LLC.