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Indiana LLC · Complete Guide · Verified June 2026

How to Start an LLC in Indiana (2026)

Indiana is one of the fastest and cheapest states to form an LLC in — a $95 filing fee, next-day approval, and a Business Entity Report you only file every other year. Here's the full 8-step process, with a cost calculator and the details other guides skip.

Ahmad Adil Written & verified by Ahmad Adil, LLC School·Updated June 2026
Quick Answer

It costs $95 to file Indiana's Articles of Organization online, with approval typically within 1 business day — one of the fastest states in the country. The required Business Entity Report costs $32 and is filed only every other year (not annually), due sometime during your LLC's anniversary month. Indiana has no franchise tax, and its flat 2.95% state income tax is among the lowest in the Midwest — though every county adds its own local income tax on top.

Indiana LLC — Fast Facts
Filing fee
$95
Processing
~1 business day
Business Entity Report
$32/2yrs
Report frequency
Biennial
State income tax
Flat 2.95%
County income tax
0.5%–3.38%
Formation doc
Articles of Org.

Why Form an LLC in Indiana?

Indiana consistently ranks among the cheapest and fastest states to form an LLC in:

  • One of the fastest approvals in the country — online filings are typically processed within 1 business day, no expedite fee needed.
  • Report every other year, not annually — the $32 Business Entity Report is only due once every two years, half the paperwork of most states.
  • No franchise tax on LLCs — your only ongoing state fee is the biennial report.
  • Low, flat 2.95% state income tax — one of the lowest flat rates in the Midwest, dropping to 2.90% in 2027.
  • No general statewide business license — fewer licensing hoops than many states, with only industry- and location-specific permits to check.

Indiana LLC Cost Calculator

Toggle the options to see your total first-year cost:

Indiana LLC Cost Calculator
First-year formation + recurring cost
Articles of Organization Required$95 filed online with the Indiana Secretary of State (INBiz)$95
Registered agent serviceOptional — free if you act as your own Indiana agent$125/yr
Name reservation (optional)Locks in your name for 120 days before you're ready to file$20
First-year total
$95
formation only, typically
Every 2 years
$0
Business Entity Report + selections

Estimates only. Registered agent pricing varies by provider. Your Business Entity Report ($32) isn't due until 2 years after formation, so most LLCs' actual first-year cash outlay is just the $95 filing fee. Not legal or tax advice.

Indiana LLC formation paperwork on a desk with an Indianapolis skyline visible through the window

The 8 Steps to Start Your Indiana LLC

Here's the full path from name to taxes. Each step has its own detailed guide with a tool to make it easier — the filing that legally creates your company is Step 3: Articles of Organization:

1Name Your LLCPick a compliant, available name and check it with the state.Step 1 → 2Registered AgentAppoint an Indiana agent to receive legal documents.Step 2 → 3Articles of OrganizationFile the $95 document that legally creates your LLC.Step 3 → 4Operating AgreementSet ownership and management rules (recommended).Step 4 → 5Get an EINYour free federal tax ID from the IRS.Step 5 → 6Business Entity ReportFile the $32 report every other year, not annually.Step 6 → 7Business LicensesLocal permits and any industry-specific state licensing.Step 7 → 8LLC TaxesPass-through federal + Indiana's flat 2.95% state tax + county tax.Step 8 →

Indiana's Flat State Tax & County Tax Layer

Indiana uses a flat 2.95% individual income tax rate for 2026 — no brackets, and set to drop further to 2.90% in 2027. As a default pass-through LLC, your share of profits flows to your personal return, taxed federally and then at Indiana's flat state rate. The detail many guides miss: every one of Indiana's 92 counties also levies its own income tax, ranging from about 0.5% to over 3% depending on where you live — so your true state-level tax burden depends heavily on your county of residence. We break the full picture down, with an estimator, in Step 8: Indiana LLC Taxes.

Indiana's Annual Report is actually biennialUnlike most states, Indiana's LLC compliance filing — called the Business Entity Report — is only due every other year, not annually. It's due sometime during your LLC's anniversary month, in even or odd years depending on your formation year. See Step 6 for the full breakdown.

Ahmad Adil's Take: Indiana is genuinely one of the most business-friendly states we've reviewed — fast approval, a low filing fee, no franchise tax, and a report you only think about every other year. The one thing to plan around is the county income tax: it's a real cost that varies significantly depending on exactly where in Indiana you live, so don't budget using the state rate alone.
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Frequently Asked Questions

Indiana LLC — FAQ

How much does it cost to start an LLC in Indiana?
It costs $95 to file the Articles of Organization online ($100 by mail). After that, the required Business Entity Report is $32 every other year.
Does Indiana have a franchise tax on LLCs?
No — Indiana does not impose a franchise tax on LLCs. Your main ongoing state cost is the biennial Business Entity Report.
How long does it take to form an Indiana LLC?
Typically about 1 business day for online filings — one of the fastest turnarounds in the country. Mail filings take longer, around 5–7 business days.
How often does Indiana require an Annual Report?
Indiana's compliance filing — called the Business Entity Report — is due every other year (biennially), not annually, during your LLC's anniversary month.
What is Indiana's state income tax rate?
A flat 2.95% for 2026, one of the lowest flat rates in the Midwest. All 92 counties also levy their own additional income tax, ranging from about 0.5% to over 3%.
Can a non-resident form an Indiana LLC?
Yes — there's no residency requirement for members. You'll still need a registered agent with a physical Indiana street address.
Does Indiana require a general business license?
No — Indiana has no statewide general business license requirement, though certain industries and municipalities have their own local licensing rules.
Ahmad Adil, founder of LLC School
About the Author
Ahmad Adil

Ahmad Adil is the founder and CEO of LLC School. The figures here — the $95 Articles of Organization fee, the $32 biennial Business Entity Report, and Indiana's flat 2.95% state income tax plus county taxes — reflect current Indiana Secretary of State and Department of Revenue guidance. This is educational content, not legal or tax advice.

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