How to Start an LLC in Indiana in 2026: INBiz Filing, Business Entity Report and First-Year Cost

Indiana is one of the cheapest states to run an LLC in. Forming one costs $95 online, and the only recurring state filing is a Business Entity Report every two years that costs $32 on INBiz. There is no franchise tax on LLCs, no publication requirement and a flat state income tax that is falling each year. The parts that catch new owners out are the two-year reporting cycle, which is easy to forget, the county income tax that sits on top of the state rate, and the separate registrations with the Department of Revenue. This guide takes a first-time founder through each step in order and ends with a worked first-year budget. Figures were checked against Secretary of State forms and Department of Revenue guidance in October 2026.

Quick answer

To start an LLC in Indiana, file articles of organization with the Indiana Secretary of State through INBiz for $95 (or $100 on paper State Form 49459). Name a registered agent at an Indiana street address. Then file a Business Entity Report every two years in your anniversary month: $32 online or $50 on paper.

• The name must include LLC, L.L.C. or limited liability company

• No franchise tax and no newspaper publication

• Owners pay 2.95% state income tax for 2026 plus county income tax

• Retailers pay a $25 fee for a Registered Retail Merchant Certificate

• Overdue reports lead to administrative dissolution after about five months

What an Indiana LLC is and who should form one

An Indiana limited liability company is formed under the Indiana Business Flexibility Act, Article 18 of Title 23 of the Indiana Code. It gives the protection an LLC gives anywhere: the company's debts and lawsuits stay with the company, so a supplier's claim or a customer's lawsuit does not reach your house or personal savings just because you own the business. That protection depends on running the LLC as a separate business, with its own bank account, contracts signed in its name and records of money moving in and out.

The Secretary of State's Business Services Division keeps Indiana's register, and almost everything happens through INBiz, the state's online business portal. You search names, form the LLC, file Business Entity Reports and order certificates there. INBiz also links to registration with the Department of Revenue, which makes it a practical one-stop start for most small businesses.

For federal tax, a one-member LLC is a disregarded entity and a multi-member LLC is a partnership unless you elect corporate treatment. Indiana follows that classification, so the profit lands on the owners' returns. Indiana LLCs suit contractors, trades, consultants, online sellers, salons, farm and food businesses, landlords and small shops. You do not need to live in Indiana or be a US citizen to form one, but you need a registered agent in the state. Licensed professionals such as doctors, dentists and accountants should check the professional licensing rules for their field before choosing an entity.

If your business operates mainly in Illinois, Ohio, Michigan or Kentucky, forming in Indiana does not avoid that state's rules. You would register there as a foreign LLC as well, so form where you actually work.

Indiana LLC at a glance (2026)

$95

Articles of organization online

$100 on paper

$32

Business Entity Report

every two years, on INBiz

2.95%

State income tax rate

2026; 2.9% in 2027

7%

Sales tax

no local sales tax

Step 1: Choose a name

Your LLC's name must include "limited liability company", "L.L.C." or "LLC", and it must be distinguishable from the names of other businesses already on the Secretary of State's records. Search INBiz's business search before you commit to a logo, domain or signs, and test variations with our LLC name checker. Names that suggest a bank, an insurer or a regulated profession may need approval from the relevant state agency first.

Small differences such as "the", punctuation, or singular versus plural rarely make a name distinguishable, so "Hoosier Roofing LLC" and "Hoosier Roofers LLC" may clash. If your first choice is taken, change a distinctive word rather than the ending.

If you want to trade under a name that is not your LLC's legal name, register an assumed business name with the Secretary of State. Our DBA guide explains how assumed names work and when you need one.

Step 2: Appoint a registered agent

Every Indiana LLC must keep a registered agent with a registered office in Indiana. The agent accepts lawsuits, subpoenas and official notices on the company's behalf, and their name and address go on the public record. The registered office must be an Indiana street address where someone can receive papers during business hours, not just a post office box.

You can act as your own agent if you live or work in Indiana and are reliably at that address. A friend, relative or employee in Indiana can do it with their agreement. A business entity can also serve. Owners who live out of state, travel, or do not want their home address on the public record usually pay a commercial registered agent, typically around $50 to $300 a year; that range is an estimate based on published price lists of national agent services, not an official figure.

Keep the agent's details current. If the agent moves or resigns, update the record through INBiz straight away, because notices from the Secretary of State, including Business Entity Report reminders, go to the business and agent email addresses on file. A company that loses track of its agent can miss a lawsuit and end up with a default judgment it never knew about.

Step 3: File the articles of organization

The articles of organization bring the LLC into existence. Indiana lets you file in two ways:

• Online through INBiz, for $95 plus a card processing fee. This is the faster route and the one the Secretary of State encourages.
• On paper, using State Form 49459, for $100. You mail or deliver the original form with a check or money order payable to the Secretary of State to the Business Services Division at 302 West Washington Street, Room E-018, Indianapolis.

The articles are short. They ask for the LLC's name, the registered agent and registered office, the principal office address, whether the LLC is managed by its members or by managers, the effective date if you want a later one, and the organizer's signature. You do not list a business purpose in detail or file an operating agreement.

Forming an Indiana LLC on INBiz

1. 1

   Create an INBiz account

   Register on INBiz. You use the same login later for Business Entity Reports and changes.

2. 2

   Search the name

   Use INBiz business search to check that the name is distinguishable and includes an LLC ending.

3. 3

   Enter the registered agent

   Give the agent's name and Indiana street address and confirm they have agreed to act.

4. 4

   Choose member-managed or manager-managed

   Member-managed suits most owner-run businesses. Choose manager-managed if some owners will be passive investors.

5. 5

   Pay and download

   Pay $95 plus the card fee, then download the filed articles.

   Tip: INBiz can take you on to Department of Revenue registration, so keep your EIN ready if you have one.

Why filings get rejected. The usual problems are a name that is too close to an existing one or lacks an LLC ending, a registered office outside Indiana or given only as a P.O. box, a missing signature, and on paper filings the wrong fee or a check made out to the wrong payee. Fix the item named in the rejection and resubmit; the LLC does not exist until the articles are accepted, so hold off on signing a lease or opening a bank account in its name.

Indiana also allows series LLCs, which it files as master LLCs with their own articles form. They let one company hold separate series, each with its own assets and liabilities, and are used mostly by property investors. For one business or one rental, a standard LLC is simpler.

Step 4: EIN, operating agreement and bank account

EIN. Apply for an employer identification number from the IRS once the articles are accepted. It costs Free ($0), and the online application gives you the number at the end of the session. You need it to open a bank account, hire staff and register for state taxes. Our EIN application guide walks through each screen.

Operating agreement. Indiana does not ask you to file one, but you should sign one. It sets how profit is shared, who can sign for the company, how a member leaves and what happens on death or divorce. Without one, the Act's default rules apply, and they may not match what the owners agreed. A single-member LLC should still have a short agreement, because banks ask for it and courts look at it when deciding whether the LLC is genuinely separate from you.

Bank account. Open a business account in the LLC's name using the filed articles, the EIN letter and the operating agreement. Pay business costs only from it and pay yourself by transfer; our guide on how to pay yourself from an LLC explains draws versus salary.

Beneficial ownership reporting. Since FinCEN's March 2025 interim final rule, companies formed in the United States do not file beneficial ownership information reports, so a new Indiana LLC has no BOI filing (current position: Not required for US-formed companies).

The Business Entity Report: Indiana's two-year cycle

Indiana does not have an annual report for for-profit LLCs. Instead, every LLC files a Business Entity Report every two years, due in the anniversary month of its formation. An LLC formed in May 2026 files its first report in May two years later, then every other May after that. Business search on INBiz shows each company's exact due date on its business details page.

An Indiana LLC's reporting cycle

Formation month

Articles accepted on INBiz ($95)

90 days before the due month

Earliest date to file; reminder email sent

30 days before

Second reminder email

Anniversary month, two years on

Business Entity Report due ($32 online, $50 paper)

About five months overdue

Administrative dissolution

The report confirms the registered agent, principal office and the people who manage the company. You can file it up to 90 days before the due month, and you have until the end of the due month before it counts as late. Reminders go by email at 90 and 30 days before the due date, to both the business and the registered agent, so keep those addresses current.

If the report is not filed, the LLC becomes delinquent. The Secretary of State sends at least four reminders before taking action, and an LLC whose report is about five months overdue is administratively dissolved. A dissolved LLC can only wind up its affairs, and banks and landlords check standing before they lend or lease. You can reinstate within five years of dissolution by filing the missing reports and an application for reinstatement on INBiz. After five years, the LLC cannot be revived, and you would have to form a new one. If a lender asks for proof the LLC is active, order a certificate of existence; our certificate of good standing guide explains how these certificates work.

Taxes and state registrations after you form

Income tax. A single-member LLC owned by a person is ignored for Indiana income tax. The owner reports the profit on the federal Schedule C and Indiana Form IT-40, and pays the flat state rate of 2.95% for 2026, falling to 2.9% from 2027. A multi-member LLC files the Indiana partnership return, Form IT-65, and the members pay tax on their shares. Indiana does not charge LLCs a franchise tax.

County income tax. Indiana counties levy their own local income tax on residents, at rates set by each county and published by the Department of Revenue. Budget for it on top of the state rate. Each county's rate appears in the Department of Revenue's Departmental Notice 1, which is updated when counties change their rates, so look up the county where you live on 1 January of the tax year.

Self-employment tax. Federal self-employment tax applies to the profit of members who work in the business. Once profits are steady, an S corporation election can reduce it, at the cost of running payroll. Read LLC vs S corp before you elect.

Sales tax. If you sell taxable goods, register with the Department of Revenue through INBiz for a Registered Retail Merchant Certificate, which costs $25 per location. Indiana's sales tax is a flat 7% with no local add-on, and restaurants in most counties also collect a food and beverage tax of 1% or more. Our Indiana sales tax guide covers filing in INTIME and the collection allowance.

Employees. Hiring staff means registering for withholding with the Department of Revenue, for unemployment insurance with the Department of Workforce Development, and buying workers' compensation insurance. Our guide to hiring your first employee covers the federal steps.

Local and trade licences. Indiana has no general state business licence. Some trades need state licences from the Professional Licensing Agency, and some cities and counties license particular activities such as food service, contractors or mobile vendors. Check with your city clerk and county health department before you open.

What it costs: a worked first-year budget

The table shows three Indiana LLCs. State fees are official figures. The registered agent line is a market estimate.

What the table leaves out. Insurance, an accountant, trade licences and local permits sit on top, and card processing fees add a few dollars to online filings. A food business pays for county health department permits and inspections before opening.

Five-year view. A standard Indiana LLC filed online costs $95 to form plus two Business Entity Reports in its first five years, so about $159 in state fees. That is far below most neighbours: an Illinois LLC pays a $75 report every year, and a Tennessee LLC pays at least $300 a year for its report.

Worked examples

A Fort Wayne handyman. Luis forms "Summit City Home Repair LLC" on INBiz on April 14, 2026 and pays $95. He names himself as registered agent at his home workshop. He gets an EIN the same afternoon and opens a business account the next day. He sells labour, not goods, so he does not need a retail merchant certificate unless he starts selling materials separately. His first Business Entity Report is due in April two years from now; he sets a calendar reminder for January of that year, when the 90-day filing window opens.

A Bloomington gift shop owned by two partners. Jen and Ade form their LLC on INBiz and register for sales tax through INBiz the same week, paying $25 for the shop's certificate. They charge 7% on taxable sales. Because they are a two-member LLC, the company files Form IT-65 each year, and each partner pays 2.95% state tax plus Monroe County's local income tax on their share of the profit.

An Ohio owner buying a rental in Indiana. Grace lives in Cincinnati and buys a duplex in Lawrenceburg. She prints State Form 49459, pays $100 by check and hires a commercial registered agent in Indiana because she has no address there. As a non-resident, she files an Indiana non-resident return for the rental profit as well as her Ohio return. Every second year she pays $50 if she files the report on paper, or $32 if she switches to INBiz.

Indiana LLC launch checklist

0/8

• INBiz account created and name searched
• Registered agent agreed, with an Indiana street address
• Articles of organization filed and saved
• EIN issued and operating agreement signed
• Business bank account opened in the LLC's name
• Registered Retail Merchant Certificate if you sell taxable goods
• Local permits and any state trade licence in place
• Business Entity Report month in your calendar for two years out

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Common mistakes and how to fix them

Forgetting a report due every two years. Because nothing is due in year one, owners forget the cycle altogether. Note the month the day you form, keep your INBiz email current, and file as soon as the 90-day window opens.

Calling it an annual report. Paying a filing service for an "annual report" every year wastes money. The Indiana Business Entity Report is biennial for LLCs, and it costs only $32 if you file it yourself on INBiz.

Ignoring county income tax. The state rate is low, but county income tax applies too. Set aside enough for both when you plan estimated payments.

Filing on paper by default. Paper costs more for both the articles and the report and takes longer. Use INBiz unless you have a reason not to.

Forming in Indiana for a business run elsewhere. If you live and work in Illinois or Kentucky, an Indiana LLC still has to register in your home state. You pay two sets of fees for no benefit.

Official links

• INBiz — start a businessForm an LLC online ($95)
• INBiz — Business Entity Reports$32 online, every two years
• State Form 49459 — Articles of Organization (PDF)$100 paper filing
• Secretary of State — Business Entity ReportsReminders, dissolution and reinstatement
• Department of Revenue — Rates, Fees & PenaltiesIncome tax rate
• IRS — Apply for an EINFree

What to do next

Check your name with our LLC name checker, then form the LLC on INBiz and get your EIN the same day. If you sell goods, register for the retail merchant certificate before your first sale, and price your first year with the startup cost calculator. If you are still comparing states or structures, our LLC registration guide and LLC vs sole proprietorship explainer cover the wider choices.

This is general information, not legal or tax advice — confirm on the official source or with a professional.

Frequently asked questions

How much does it cost to start an LLC in Indiana?

Filing articles of organization costs $95 online through INBiz, plus a small card processing fee, or $100 on the paper State Form 49459. After that, the only recurring state fee is the Business Entity Report every two years: $32 online or $50 on paper. The EIN is free. A retailer adds the $25 Registered Retail Merchant Certificate fee.

Does an Indiana LLC have to file an annual report?

Not every year. Indiana LLCs file a Business Entity Report every two years, due in the anniversary month of formation. It costs $32 on INBiz or $50 on paper, and you can file up to 90 days early. The Secretary of State emails reminders, and an LLC whose report stays overdue is administratively dissolved.

How long does it take to form an LLC in Indiana?

Online INBiz filings are usually processed far faster than paper filings, which have to be mailed to the Business Services Division in Indianapolis and keyed in by staff. The Secretary of State does not publish a guaranteed turnaround, so file online if timing matters. Once the LLC exists you can get a free EIN online the same day.

Can I be my own registered agent in Indiana?

Yes. The registered agent can be an Indiana resident, including you as the owner, or a business entity authorised to act as agent, as long as the registered office is a street address in Indiana where legal papers can be delivered during business hours. Owners who live in another state usually hire a commercial agent.

What taxes does an Indiana LLC pay?

The LLC usually pays no Indiana income tax itself. Owners pay the state's flat individual rate of 2.95% for 2026, falling to 2.9% in 2027, plus their county's local income tax. Retailers collect 7% sales tax, and restaurants in many counties add a food and beverage tax of 1% or more.

What happens if I miss the Indiana Business Entity Report?

The LLC first becomes delinquent. The Secretary of State sends at least four reminders before dissolution, and if the report is still unfiled after about five months the LLC is administratively dissolved. You can reinstate within five years by filing the missing reports and an application for reinstatement; after five years the LLC cannot be revived.

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 9 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify

1. 1.State Form 49459 — Articles of Organization, Domestic Limited Liability Company (R12 / 01-26) — Indiana Secretary of State · accessed 9 October 2026
2. 2.INBiz — Business Registration — Indiana Secretary of State (INBiz) · accessed 9 October 2026
3. 3.INBiz — Business Entity Reports — Indiana Secretary of State (INBiz) · accessed 9 October 2026
4. 4.State Form 48725 — Indiana Business Entity Report (R18 / 01-26) — Indiana Secretary of State · accessed 9 October 2026
5. 5.Business Division: Business Entity Reports — Indiana Secretary of State · accessed 9 October 2026
6. 6.Rates, Fees & Penalties — Indiana Department of Revenue · accessed 9 October 2026
7. 7.Indiana Tax Descriptions — Indiana Department of Revenue · accessed 9 October 2026
8. 8.Sales Tax — Indiana Department of Revenue — Indiana Department of Revenue · accessed 9 October 2026
9. 9.Get an employer identification number — IRS · accessed 9 October 2026
10. 10.Beneficial Ownership Information — FinCEN · accessed 9 October 2026