How to Start an LLC in Indiana
To start an LLC in Indiana, you must file Articles of Organization with the Indiana Business Services Division, pay a $100 filing fee, and get an EIN from the IRS. The complete steps to forming an Indiana LLC are as follows:
- File Indiana LLC Articles of Organization
- Pay the Business Services Division $100 ($98 online)
- Wait to receive your Certificate of Organization
- Get a Federal EIN tax ID for the LLC
- Create an Indiana LLC Operating Agreement
- Take these documents to the bank and get an Indiana LLC bank account
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Indiana Articles of Organization free download. When you're done filling out the form, submit it to your state.
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1 Day Indiana LLC For $323 Total
How to File Indiana LLC Articles of OrganizationTo form a Indiana LLC, you file the LLC Articles of Organization in the following steps:
What is the Cost of an Indiana LLC?
If you file online, it’ll cost you $98 (the filing fee is $95, plus a roughly $3 processing fee). Mailed filings are just slightly more expensive at $100.
When you hire Northwest, your total, out-the-door cost is $323, including state filing fees and a year of registered agent service.
How much does an LLC in Indiana cost each year?
Indiana LLCs file a Business Entity Report every other year and pay a filing fee of $50 ($32 if they file online).
What is an Indiana LLC Business Entity Report?
Your Indiana Business Entity Report is how the state keeps tabs on you. You file this report every two years to update your ownership and contact information. That’s just infrequently enough for many businesses to forget to file. You won’t get a late fee—but the state can dissolve your LLC if you’re more than 120 days late. Worried you’ll forget? When you hire Northwest, we include report reminders. You can even hire us to file your reports for you.
What are the Indiana LLC taxes?
Indiana’s personal net income tax has a flat rate of 3.3%. Sales tax is also a flat 7% (one of the few states where cities and counties don’t tack on local sales tax as well).
Is an Indiana LLC Registered Agent Required?
Yep—Indiana LLCs have to have an Indiana registered agent. You can either choose a noncommercial or commercial registered agent. So what’s the difference?
A noncommercial registered agent can be pretty much anyone, as long as they’re an adult resident of Indiana. You could even appoint yourself. You’d have to include the address where you’d be available, and then actually be available during business hours—a requirement that can be pretty restrictive when not all business takes place in the office. The state of Indiana also collect emails in a move towards electronic service of process. What this means for you is that you’ll need to provide an email address in your Articles of Organization as well. Your Articles are part of the permanent public record, so in addition to the junk in your mailbox, you’ll get spam in your inbox.
How can you avoid all this? With a commercial registered agent (like Northwest). Commercial registered agents are businesses on record with the Indiana Secretary of State as providing registered agent service. With a commercial registered agent, you list the agent’s information—not yours. And, best of all, you’re not stuck in the office waiting for service of process.
Indiana LLC Versus Indiana Corporation:
Costs are pretty much the same for starting and maintaining either an LLC or a corporation in Indiana. It’s $100 to form either business type ($98 online). Biennial reports for both are $50 ($32 online). Both business types can make different tax elections as well. LLCs and corporations can both be taxed as S corporations, for example. Regarding costs, there’s not a significant difference.
Unless you need a corporation (maybe you have plans for stock options or want to become a publicly-traded corporation), it’s often easier to operate an LLC. LLCs don’t have all the requirements for annual meetings, directors or officers. LLCs can manage themselves, so it’s often faster and simpler to make changes and decisions. Think you may need a corporation instead? Here’s information on Indiana incorporation.
Do I Need a Tax ID Number (FEIN) for an Indiana LLC?
Most likely. You’re required to have a federal tax ID if you’re hiring employees or filing federal excise taxes like Alcohol/Tobacco/Firearms returns. Your bank will almost certainly ask for your FEIN when you go to open a business account. You can get a FEIN for free by filling out an application with the IRS (or, hire Northwest to apply on your behalf). Even if you don’t need a FEIN right away, it’s good to have one ready. You may need one in situations you don’t anticipate, like when you’re establishing credit with a vendor or filling out local tax forms.
Does an Indiana LLC Need a Business License?
Possibly—while Indiana doesn’t have a state-level business license, some cities and counties require licenses of their own. The City of Gary, for example, requires a $150 general business license while Indianapolis only licenses specific business activities.
Indiana LLC Articles of Organization Requirements:
You must include “Limited Liability Company” or an abbreviation like “LLC.”
Your principal office must be a street address (no PO Boxes). When you hire Northwest, you can use our address here and avoid having to remember and update multiple addresses in the future.
You can list either an individual person or a commercial registered agent like Northwest.
Registered Agent Address
The Secretary of State already has our address because we’re a commercial registered agent, so if you hire us, you can skip this section. Have a noncommercial registered agent? You must include a street address in Indiana (again, no PO Boxes).
Registered Agent Email
You’ll also need to list an email if you choose a noncommercial registered agent. Choose Northwest and skip this part too.
Most LLCs are perpetual, meaning they continue to exist unless they’re dissolved. Want a self-destruct timer on your business? List the date you want your LLC to end.
If your LLC is managed by managers, you’ll tick “yes” in this section. If your LLC is managed by its members, tick “no.” Most LLCs are managed by members, but if you don’t plan to run the day-to-day operations, you can appoint or hire a manager and be “manager-managed.”
Indiana LLC Organizer
This is the person who completes and signs your Articles of Organization. The organizer doesn’t need to be a member or manager. When you hire Northwest, we’ll be your organizer.