1. Indiana LLC Overview
If you operate a business in Indiana, forming a local LLC offers some of the lowest long-term maintenance costs in the Midwest.
- Low compliance burden — Reports are filed every 2 years instead of annually
- Low fees — Just $32 (online) every 2 years
- Flat state income tax — 3.05% flat rate on personal income
- County taxes — Be aware that Indiana counties impose additional local income taxes
2. Indiana LLC Requirements
- Name must contain "Limited Liability Company," "LLC," or "L.L.C."
- Appoint a registered agent with an Indiana physical address
- File Articles of Organization online via INBiz ($95)
- File a Business Entity Report every two years ($32 online)
3. Indiana LLC Costs and Fees (2026)
| Cost Item | Amount | Notes |
|---|---|---|
| Articles of Organization | $95 | Online fee ($100 by mail) |
| Business Entity Report | $32 | Due every 2 years (online fee) |
| Registered Agent | $50–$150/year | Required IN physical address |
| EIN | Free | Apply at IRS.gov |
| Operating Agreement | $0–$1,000 | Recommended, not legally required |
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4. How to Start an Indiana LLC (Step by Step)
- 1 Choose your LLC name (must include "Limited Liability Company," "LLC," or "L.L.C.")
- 2 Appoint a registered agent with an Indiana physical address
- 3 File Articles of Organization online with the IN Secretary of State ($95)
- 4 Obtain an EIN from the IRS (free at IRS.gov)
- 5 Draft an Operating Agreement (not filed, but legally binding)
- 6 File the Business Entity Report every 2 years ($32 online)
- 7 Open a business bank account
5. Indiana Biennial Report
Indiana refers to its periodic filing as the "Business Entity Report."
- Frequency: Biennial (every 2 years).
- Due Date: The last day of the LLC's anniversary month.
- Fee: $32 if filed online via INBiz ($50 if filed by mail).
Online Filing is Cheaper
Indiana actively encourages online filings by discounting them. Formation is $95 online vs. $100 by mail. The biennial report is $32 online vs. $50 by mail. Always use the INBiz portal.
6. Indiana LLC Taxes (2026)
- State income tax — 3.05% flat rate on pass-through profits
- County income tax — Varies by county, typically 1% to 3%, paid on top of the state rate
- Federal income tax — Pass-through to personal return
- Self-employment tax — 15.3% on net earnings
- Sales tax — 7% state rate (Indiana does not allow local jurisdictions to add local sales tax, so it is a flat 7% everywhere in the state)
7. Best For / Not Best For
Best For
- Entrepreneurs living and operating in Indiana
- Founders wanting low, biennial compliance costs ($32 every 2 years)
- Businesses seeking a low, flat state income tax rate (3.05%)
Not Best For
- Out-of-state owners without Indiana nexus
- Businesses operating in high local-tax counties in IN