Indiana LLC: the whole thing in twenty minutes on INBiz
Indiana is one of the least demanding states in the country to form an LLC in: $95 on INBiz, usually approved within a day or two, then $32 every two years and nothing else. Five years of an Indiana LLC costs $159. This page is short because the state is — but there is one Indiana tax that surprises people from anywhere else, and it is at the bottom.
The whole state fee schedule for a small Indiana LLC fits in four lines. There is no franchise tax, no entity tax, no publication requirement, no initial report, no state business licence and no annual report — the recurring filing comes round every second year and costs $32.
| What | Cost | When |
|---|---|---|
| Articles of Organization | $95 | Once, online on INBiz ($100 by post) |
| Business Entity Report | $32 | End of the anniversary month, every two years ($50 by post) |
| Registered agent | $0 | If you are your own; $50–$300 a year for a service |
| EIN | $0 | Free from the IRS, issued in minutes |
| Five years, all in | $159 | 16th cheapest of the fifty states |
The six formation steps are the same here as everywhere — they are on the hub page with all fifty states' fees. What follows is only what is different about doing them in Indiana.
One portal does four things
The genuine Indiana advantage is not the fee, it is INBiz. In most states forming a company means visiting the Secretary of State to file, then the revenue department to register for sales tax, then the labour department if you hire, then somewhere else for a licence — four accounts, four logins, four sets of details typed in from scratch. Indiana runs all of it through one portal at inbiz.in.gov.
So in a single session you file the Articles of Organization, name the registered agent, complete the BT-1 business tax application — retail merchant certificate for sales tax, withholding registration if you will have staff — and are told which licences your line of work needs. Online filings are usually approved in one to two business days, and the entity report you will file in two years' time lands in the same account.
One practical note: the retail merchant certificate costs $25 if you sell goods, which is the only Indiana fee not in the table above, and it renews automatically as long as you file your sales tax returns. If you are selling services only, you do not need it.
The tax nobody outside Indiana expects
Indiana's state income tax is a flat 2.95% in 2026, falling to 2.90% in 2027 — one of the lowest flat rates in the country, and it applies to your LLC's profit as personal income. That is the number every comparison table shows, and it is not the number you pay.
All 92 Indiana counties levy their own income tax on top, and the rates are not small. The lowest is Porter at 0.5%; the highest is Randolph at 3.0%, which is more than the state rate itself. Marion County, which is Indianapolis, is 2.02% — so an Indianapolis founder's real marginal rate is 4.97%, not 2.95%.
| County | County rate | With the 2.95% state rate |
|---|---|---|
| Porter (lowest in the state) | 0.50% | 3.45% |
| Marion (Indianapolis) | 2.02% | 4.97% |
| Randolph (highest in the state) | 3.00% | 5.95% |
The one deadline, and why two years is the dangerous part
The Business Entity Report is $32 online, takes a few minutes, and confirms your address, your registered agent and who manages the LLC. It is due by the end of your anniversary month, every second year — so an LLC formed in April 2026 files by 30 April 2028, then 30 April 2030.
Which is the problem. An annual deadline becomes a habit; a biennial one never does. Indiana sends a reminder to the address on file, so a stale address means no reminder, and if the report goes unfiled the Secretary of State administratively dissolves the LLC. The entity stops existing, the name is released, and the liability protection you formed it for stops covering anything you do afterwards. Reinstatement is possible and costs more than the report would have.
The fix takes thirty seconds and is worth doing the day you file: a calendar entry for the first day of your anniversary month, two years out, repeating every two years, saying "Indiana Business Entity Report — INBiz — $32".
Common questions
How much does an Indiana LLC cost?
$95 to file the Articles of Organization online, or $100 by post. After that, $32 every two years for the Business Entity Report ($50 by post). There is no franchise tax, no entity tax and no annual report, so five years of an Indiana LLC costs $159 in state fees if you act as your own registered agent.
How long does INBiz take to approve an LLC?
Online filings are typically processed within one to two business days, and often the same day. Paper filings take considerably longer. There is no expedite fee to pay because the online route is already fast.
Is the Business Entity Report annual or every two years?
Every two years for an LLC, due by the end of the anniversary month of formation. Indiana corporations file annually; LLCs do not. That is the single most common mistake — people either file twice as often as they need to, or assume it is annual, don't see a bill in year one, and forget entirely.
Do I have to pay a county income tax as well as the state rate?
Yes. Every one of Indiana's 92 counties levies its own income tax on top of the 2.95% state rate, from 0.5% in Porter County to 3.0% in Randolph. It is based on the county you were a resident of on 1 January, not where the business is registered, so it applies to your LLC's profit as it passes to your personal return.
Do I need a retail merchant certificate?
Only if you sell tangible goods at retail in Indiana. It costs $25 through the BT-1 application on INBiz, is registered in the same session as the formation, and renews automatically while you keep filing sales tax returns. Service-only businesses do not need one.
Can I be my own registered agent in Indiana?
Yes, if you have an Indiana street address (not a PO box) where you can receive documents in business hours. It is free, and the address becomes part of the public record. A commercial agent costs $50 to $300 a year and is the usual choice for founders working from home who would rather not publish the address.
Twenty minutes on INBiz, then the actual business.
Describe your business and Velofound lays out Indiana's short list — the filing, the tax registration, the EIN, the report in two years — beside a website that's already live and taking payments. Free to start.
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