To start a business in Indiana, you pick a legal structure, file formation documents through the state’s INBiz portal for a $95 fee, get a federal EIN, register with the Department of Revenue for any taxes you’ll collect, handle any professional or local licensing your industry requires, and put the biennial Business Entity Report on your calendar. If your paperwork is in order, the formation filing itself can be done in a single sitting.
Pick an Entity Structure First
The structure you choose decides how much personal liability you carry, how you’re taxed, and how much paperwork follows you. Three options cover almost every new business in Indiana.
A Limited Liability Company is the default pick for small businesses. Governed by IC 23-18, an LLC separates your personal assets from the company’s debts and lawsuits and lets you split profits and run the company however you want.1Indiana General Assembly. Indiana Code 23-18-1-11 – Limited Liability Company or Domestic Limited Liability Company No board, no officers required. One person can form and run one.
A Business Corporation is built around shareholders, directors, and officers. Governed by IC 23-1, corporations issue stock and follow stricter governance rules, which fits businesses planning to raise outside capital or eventually go public.2Indiana General Assembly. Indiana Code 23-1-22-1 – Purpose of Corporation; Law Governing The extra formality is the price of being able to sell shares.
A Sole Proprietorship needs no filing with the state. You just start doing business. The downside is total: there’s no legal line between you and the business, so every debt and lawsuit reaches your personal accounts. Many sole proprietors eventually convert to an LLC once they take on real risk.
Name the Business and Lock It In
Your entity name must be distinguishable from every other entity on file with the Indiana Secretary of State.3Indiana General Assembly. Indiana Code 23-0.5-3-1 – Permitted Names Search existing names through INBiz before you commit to one. The name also has to carry a designator telling the public what kind of entity you are: LLCs need something like “LLC” or “L.L.C.,” corporations need “Corporation,” “Incorporated,” “Corp.,” or “Inc.” Forget the designator and the filing comes back rejected.
Operating under a name different from your registered name means filing an assumed business name (DBA). Entities registered with the Secretary of State file the DBA through INBiz.4IN.gov. How Do I File an Assumed Business Name (DBA)? Sole proprietors and general partnerships file instead with the County Recorder in each county where they operate.
Appoint a Registered Agent
Every entity filed with the Secretary of State has to name a registered agent in Indiana.5Indiana General Assembly. Indiana Code 23-0.5-4-1 This is the person or company that accepts lawsuits, subpoenas, and official state notices on your behalf. The agent needs a physical street address in Indiana; a P.O. box won’t work.6Indiana General Assembly. Indiana Code 23-0.5-4-3 – Designation of Registered Agent; Required Filings
You can be your own agent if you have an Indiana address and someone will be there during business hours. Otherwise commercial registered agent services typically run $50 to $300 per year.
Gather the Information You’ll Need to File
Before opening INBiz, pull together everything the form will ask for so you don’t stall halfway through.
Get an Employer Identification Number (EIN) from the IRS. It’s the federal tax ID you’ll need to open a business bank account, hire employees, or file returns. Apply online at IRS.gov and the nine-digit number comes back immediately. There’s no fee.7Internal Revenue Service. Employer Identification Number
For an LLC, the Articles of Organization require the company name, the street address of the registered office, and the registered agent’s name.8Indiana General Assembly. Indiana Code 23-18-2-4 – Formation; Articles of Organization You’ll also indicate whether the LLC is member-managed (owners run it) or manager-managed (designated managers run it).
For a corporation, the Articles of Incorporation require the corporate name, the number of authorized shares, the registered office address and agent, and the name and address of each incorporator.9Indiana General Assembly. Indiana Code 23-1-21-2 – Articles of Incorporation; Contents Decide on an authorized share count before you start. There’s no minimum, and small corporations often pick a round number like 1,000 or 10,000.
Indiana law allows a general purpose statement covering “any lawful business,” so you don’t have to draft a narrow description of what you’ll do.2Indiana General Assembly. Indiana Code 23-1-22-1 – Purpose of Corporation; Law Governing
File Through INBiz
INBiz is Indiana’s centralized business filing portal, run jointly by the Secretary of State, the Department of Revenue, and the Department of Workforce Development.10Indiana. INBiz – Indiana’s One Stop Source for Your Business Create an account, go to the new business filing section, enter your information, and pay.
The filing fee for most domestic entities is $95 online or $100 by paper. Online filings process significantly faster. Your Certificate of Organization (LLC) or Certificate of Incorporation (corporation) arrives by email once approved.
You can set a delayed effective date up to 90 days out if you don’t want the entity to exist the moment you file.11Indiana General Assembly. Indiana Code 23-0.5-2-3 – Effective Date and Time of Filing That’s useful when you’re timing the launch to a lease start or an incoming contract.
Sort Out Federal Tax Treatment Early
Your state entity type and your federal tax classification are separate decisions. By default, a single-member LLC is taxed as a sole proprietorship, a multi-member LLC as a partnership, and a corporation as a C-corporation (where the company pays tax on profits and shareholders pay again on dividends).
Many small business owners elect S-corporation status on IRS Form 2553, which lets profits pass through to personal returns and avoids the double tax. The window is tight: the election must be filed no more than two months and 15 days after the beginning of the tax year you want it to apply to.12Internal Revenue Service. Instructions for Form 2553 For a new entity, that clock starts on the earliest date the company had owners, had assets, or began doing business. Miss it and you’re stuck with default treatment for the whole tax year.
Indiana charges a flat 4.9% corporate income tax on C-corporations. Pass-through entities don’t pay at the entity level, but the owners owe Indiana individual income tax on their share of profits.
Register for State Taxes
Once your entity exists, register with the Indiana Department of Revenue by filing a Business Tax Application (Form BT-1) through INBiz if you’ll collect sales tax, withhold employee income tax, or owe other state taxes.13Indiana Department of Revenue. Sales Tax
Any business selling goods or tangible personal property has to collect Indiana’s 7% sales tax and get a Registered Retail Merchant Certificate. The certificate costs $25 per location and must be displayed at each retail site.14Indiana Department of Revenue. Fines, Fees and Penalties
You must file a return every reporting period, even one where you collect no tax. Late returns carry a penalty of up to 20%, with a $5 minimum.15Indiana Department of Revenue. DOR: Business or Corporation Set calendar reminders from the start.
Hiring Employees Triggers More Registrations
Your first employee brings additional obligations beyond basic tax withholding.
Workers’ compensation insurance is required as soon as you have one employee. Indiana sets no minimum headcount. Sole proprietors, partners, and LLC members or managers aren’t required to cover themselves but can elect to. Independent contractors don’t count as employees for workers’ comp.16Worker’s Compensation Board of Indiana. Who Is Eligible
Unemployment insurance registration goes through the Department of Workforce Development’s UPLINK system. If you’ve paid $1 or more to a worker performing covered services in Indiana, you need to register. Have your EIN, legal business name, NAICS code, Indiana work location address, and the date of your first payroll payment ready.17Indiana Department of Workforce Development. Unemployment for Employers: ESS Enhancement FAQ
Check for Industry and Local Licenses
Your industry may require a license before you can legally open the doors. The Indiana Professional Licensing Agency oversees more than 200 license types across 40 regulated professions, from real estate and accounting to health care and cosmetology.18IN.gov. About the Indiana Professional Licensing Agency Each profession has its own application, qualification standards, and fees. Check with IPLA early. Some licenses take weeks or months.
Local requirements vary by city and county. Call the clerk’s office where you’ll operate to find out whether you need zoning approval, a signage permit, a local business license, or a home occupation permit if you’re running the business from a residence. These rules differ sharply between jurisdictions and are easy to miss until code enforcement knocks.
Draft Your Internal Governance Documents
The documents you file with the state are the minimum. The real operating rules live in internal governance documents you draft privately.
For a corporation, Indiana law requires the incorporators or the initial board to adopt bylaws.19Indiana General Assembly. Indiana Code 23-1-21-6 – Bylaws Bylaws cover meeting procedures, voting rights, officer roles, and how decisions get made. You don’t file them with the state, but you need them from day one.
For an LLC, Indiana doesn’t legally require a written operating agreement.20Indiana. INBiz – Business Entity Skipping one is still a mistake. Without an operating agreement setting out profit distribution, decision-making authority, and what happens if a member leaves, you default to the state’s statutory rules, which rarely match what the owners actually intended. Multi-member LLCs should treat an operating agreement as non-negotiable.
Keep the Entity Alive: The Biennial Report
Indiana doesn’t require annual reports. It does require a Business Entity Report every two years, due during the anniversary month of your entity’s formation.21INBiz. Business Filings The Secretary of State sends a courtesy reminder, but missing the deadline is your problem.
The fee is $32 online or $50 by paper for for-profit entities; nonprofits pay $22 online or $20 by paper.22INBiz. Business Entity Reports Fail to file and the state administratively dissolves your entity. Reinstating requires a Certificate of Clearance from the Department of Revenue, a reinstatement application, and extra fees.23IN.gov. Reinstatement The biennial filing is small. Ignoring it creates an outsized problem.
If Your Business Is Already Formed in Another State
Businesses formed elsewhere that want to operate in Indiana don’t form a new entity. Instead, apply for a Certificate of Authority as a foreign entity through INBiz. The application requires a certificate of existence from your home state along with the standard Indiana registered agent information. From there, the same ongoing obligations apply: biennial reports, tax registration, and any applicable licensing.
What About Federal BOI Reporting?
If you’ve seen references to Beneficial Ownership Information (BOI) reports under the federal Corporate Transparency Act, FinCEN issued an interim final rule in March 2025 exempting all domestic entities from the requirement.24FinCEN.gov. Beneficial Ownership Information Reporting Only foreign companies registered to do business in the U.S. still need to file. For an Indiana domestic entity, BOI reporting doesn’t apply.