How to Start an LLC in Indiana

Indiana offers an affordable and efficient LLC formation process, with a $95 online filing fee ($100 by mail) to submit your Articles of Organization through INBiz, the state’s online business portal. The state processes filings in 3-5 business days, and Indiana’s flat 3.15% income tax rate (for 2026) is among the lowest in the country. Indiana LLCs must file a biennial report every two years for just $31, making ongoing compliance costs minimal.

Follow these steps to start your Indiana LLC in 2026.

How to Start an LLC in Indiana (6 Steps)

Step 1: Name Your Indiana LLC

Your Indiana LLC name must be distinguishable from any other business entity on file with the Indiana Secretary of State. The name must include a designator such as “Limited Liability Company,” “LLC,” “L.L.C.,” or similar abbreviation. You can search for available names using the Indiana business entity search.

If you find an available name and aren’t ready to file immediately, you can reserve it for 120 days by filing a Name Reservation with the Secretary of State for $20. This prevents anyone else from registering the same name while you prepare your formation documents.

Before finalizing your name, check whether the matching domain name is available for your website and whether the name is available on social media platforms. You should also search the USPTO trademark database to make sure your desired name doesn’t infringe on an existing trademark.

Indiana naming rules:

• Must include “Limited Liability Company,” “LLC,” “L.L.C.,” or similar abbreviation
• Must be distinguishable from other business names on file with the Secretary of State
• Cannot include words that imply the LLC is a bank, insurance company, or government agency without proper licensing
• Cannot contain language suggesting a purpose the LLC is not authorized to pursue

Step 2: Choose a Registered Agent

Indiana requires every LLC to have a registered agent with a physical street address in Indiana. The registered agent receives legal documents — including lawsuits, subpoenas, and official state correspondence — on behalf of your LLC. This is a legal requirement, and your LLC cannot be formed without designating a registered agent.

You can serve as your own registered agent (if you have an Indiana address), appoint a trusted friend or family member, or hire a professional registered agent service. While acting as your own registered agent saves money, it means your personal address becomes public record and you must be available at that address during all normal business hours to accept documents.

Our top recommendation is Northwest Registered Agent ($39/year), which also handles LLC formation for $39 + the $95 state fee. Using a professional service provides privacy, ensures you never miss an important document, and frees you from having to be physically present at a fixed address during business hours.

Step 3: File Your Articles of Organization

To officially create your Indiana LLC, you need to file Articles of Organization with the Indiana Secretary of State. The fastest and cheapest way to file is online through INBiz, the state’s official business filing portal, for $95. You can also file by mail for $100, but online filing is recommended for faster processing and the $5 savings.

When completing the Articles of Organization, you’ll need to choose between a member-managed and manager-managed structure. In a member-managed LLC, all owners participate in running the business. In a manager-managed LLC, one or more designated managers handle day-to-day operations while other members are passive investors. Most small LLCs choose member-managed.

Filing details:

• Filing fee: $95 (online) / $100 (mail)
• Online filing: INBiz (recommended — faster and cheaper)
• Processing time: 3-5 business days (standard)

Information required:

• LLC name
• Registered agent name and address
• Principal office address
• Duration of the LLC (typically perpetual)
• Management structure (member-managed or manager-managed)
• Organizer name and address

Step 4: Create an Operating Agreement

Indiana does not legally require an operating agreement, but having one is strongly recommended for every LLC, whether single-member or multi-member. An operating agreement is an internal document that establishes the rules for how your LLC is run, including ownership percentages, profit and loss distribution, voting rights, and what happens if a member wants to leave or if the LLC is dissolved.

Without an operating agreement, your LLC will be governed by the default rules in the Indiana Business Flexibility Act, which may not align with your intentions. For example, the default rules assume profits are split equally among members regardless of their capital contributions. An operating agreement lets you customize these terms. Most banks and financial institutions also require a copy of your operating agreement before they will open a business bank account.

Step 5: Get an EIN

Apply for an Employer Identification Number (EIN) through the IRS website. It’s free and takes about 15 minutes online. An EIN is a nine-digit number assigned by the IRS that acts as your LLC’s tax identification number — think of it as a Social Security Number for your business. You need an EIN to open a business bank account, hire employees, file federal taxes, and apply for business permits. Even single-member LLCs with no employees should get an EIN, as it helps keep your personal Social Security Number off business documents.

Step 6: File Your Indiana Biennial Report

Indiana LLCs must file a Business Entity Report (biennial report) every two years with the Secretary of State. The filing fee is $31 when filed through INBiz. The report is due in the month that your LLC was formed, every other year. For example, if you formed your LLC in September 2026, your first biennial report would be due in September 2028.

File your biennial report through INBiz. This report updates the state on your LLC’s registered agent, principal office address, and other key information. Failure to file can result in administrative dissolution of your LLC. Indiana also requires LLCs to file state income tax returns, as the state imposes a flat 3.15% income tax (2026 rate). Note that Indiana’s income tax rate has been gradually declining and was 3.23% in recent prior years.

Indiana LLC Costs

Total first-year cost: $95-$395. This range covers the required state filing fee ($95 online) and an optional registered agent service. Because the biennial report isn’t due until two years after formation, your first-year costs are lower than many other states. See our complete guide to LLC costs by state.

Indiana LLC Taxes

Indiana has a flat 3.15% state income tax rate for 2026, which applies to LLC profits passed through to members. Indiana has been gradually reducing its income tax rate over the past several years (it was 3.23% in 2023), making it one of the most tax-friendly states for LLC owners. LLCs are treated as pass-through entities for tax purposes, meaning the LLC itself does not pay state income tax — instead, profits flow through to the members’ personal tax returns.

Indiana does not impose a separate franchise tax or gross receipts tax on LLCs. However, some Indiana counties impose a local income tax (called a “county option income tax”) that ranges from approximately 0.5% to 2.96% depending on the county. This local tax is in addition to the state’s 3.15% rate, so your total state and local income tax rate can range from roughly 3.65% to 6.11%.

Indiana has a state sales tax rate of 7% with no additional local sales taxes. If your LLC sells taxable goods or services, you’ll need to collect and remit sales tax. You can register for a sales tax permit through the Indiana Department of Revenue.

Remember that all LLC members still owe federal income tax and self-employment tax (15.3%) on their share of LLC profits, regardless of the state’s tax treatment.

Indiana LLC Annual Requirements

Indiana LLCs must file a biennial report (Business Entity Report) with the Secretary of State every two years. The report costs $31 and is due in the month your LLC was formed, every other year. File online through INBiz for the fastest processing. This report keeps the state updated on your LLC’s registered agent, principal office address, and management information.

In addition to the biennial report, you should keep your registered agent information current with the Secretary of State and file an amendment if your LLC’s name, registered agent, or other key information changes. Maintain accurate internal records, including your operating agreement, meeting minutes, and financial statements. Indiana LLCs must also file state income tax returns with the Department of Revenue.

If you want to confirm that your LLC is in good standing, you can request a Certificate of Existence from the Secretary of State for $10. This document is sometimes needed when applying for business loans, opening bank accounts in other states, or registering your LLC as a foreign entity in another state.

Best LLC Formation Services for Indiana

Start an LLC in Another State

Frequently Asked Questions

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

The state filing fee for an Indiana LLC is $95 when filed online through INBiz ($100 by mail). Additional costs may include a registered agent service ($39-$299/year) and a name reservation ($20, optional). Most people spend between $95 and $395 in their first year. Indiana’s biennial report ($31) isn’t due until two years after formation.

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

Standard processing through INBiz takes 3-5 business days when filed online. Expedited processing is available for an additional fee. Filing by mail takes longer, often 2-3 weeks.

Do I need a registered agent in Indiana?

Yes, every Indiana LLC is required by law to have a registered agent with a physical street address in Indiana. The registered agent accepts legal documents, including lawsuits and official state mail, on behalf of your LLC during normal business hours. A P.O. box cannot be used as a registered agent address.

Does Indiana require an operating agreement?

No, Indiana does not legally require an operating agreement. However, creating one is strongly recommended because it defines member roles, profit sharing, voting procedures, and decision-making processes. Without one, your LLC is governed by the default rules in the Indiana Business Flexibility Act, which may not reflect your actual business arrangement.

How are LLCs taxed in Indiana?

Indiana has a flat 3.15% state income tax rate (2026 rate). LLC profits pass through to members’ personal tax returns and are taxed at this rate. Indiana counties also impose local income taxes ranging from approximately 0.5% to 2.96%. Members still owe federal income tax and self-employment tax (15.3%) on their share of profits.

Can I be my own registered agent in Indiana?

Yes, you can serve as your own registered agent in Indiana as long as you have a physical street address in the state (not a P.O. box) and are available at that address during normal business hours to accept legal documents. Your address will become part of the public record. Many LLC owners prefer using a professional registered agent service for privacy and convenience.

When is the Indiana LLC biennial report due?

Indiana LLCs must file a biennial report (Business Entity Report) every two years. The report costs $31 and is due in the month your LLC was formed, every other year. File online through INBiz. Failure to file can result in administrative dissolution of your LLC.

Does my Indiana LLC need a business license?

Indiana does not have a general state business license. However, depending on your industry and location, you may need specific permits or licenses at the state, county, or city level. You can check requirements through INBiz or contact your local government to determine what applies to your business.

Can a non-resident form an LLC in Indiana?

Yes, you do not need to be an Indiana resident or a U.S. citizen to form an LLC in Indiana. However, you will need a registered agent with a physical address in Indiana. Many non-residents use a professional registered agent service for this purpose. If you conduct business in another state where you live, you may also need to register your Indiana LLC as a foreign LLC in that state.