LLC Cost in Indiana – How Much to Pay for an LLC


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Perhaps you are hoping to form an LLC in Indiana. People assume that starting an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in Indiana.

Indiana LLC Cost of Filing

Here are the costs involved in forming an LLC in Indiana.

Cost of Filing Formation Certificates

The Indiana Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the Indiana Secretary of State

Indiana Domestic LLC

  • Online filing costs $95
  • Biennial Report filing costs $31 (online).
  • Biennial Report filing costs $50 (By mail).
  • Name Reservation fee costs $10
  • By mail: Fill out the Application form PDF, and submit it to the following address: Secretary of State, Business Services Division, 302 West Washington Street, Room E018, Indianapolis, IN 46204, costs $100

Indiana Foreign LLC

  • Online filing costs $105
  • Biennial Report filing costs $31 (online).
  • Biennial Report filing costs $50 (By mail).
  • By mail: Fill out the Application form PDF, and submit it to the following address: Secretary of State, Business Services Division, 302 West Washington Street, Room E018, Indianapolis, IN 46204, costs $125.

Visit the Business Services Division Page on the Indiana Secretary of State website to learn more about the Entity filings and forms and fees.

Note that filing online is ideal, not only because you need to go to the Secretary of State office, but also it would be faster. You won’t have to wait in a queue in doing so.

Indiana LLC Formation Service or Registered Agent Fee

You need a registered agent to form an LLC in Indiana, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.

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Business Permits and Licenses 

The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the Indiana Department of Revenue for regulatory boards or agencies requiring licensing. 

Indiana LLC Taxes to be Paid

The business LLCs operating their business in Indiana are subject to different State and Federal tax filing obligations. Though the rates may vary from county to county.

Indiana State Income Tax

This is the State Tax levied on any income you pay to yourself. The standard tax rate is 3.3%. Salaried employees in Indiana are also obligated to pay personal State Income tax.

Indiana Sales Tax

The standard rate of sales tax levied in the State is 7.00%.

Indiana Federal Self-Employment Tax

Any profit that an Indiana LLC Business members draw out from the business is liable to pay self-employment tax. The standard tax rate is 15.3%.

Indiana Employer Payroll Withholding Tax

If you hire employees in Indiana, you must withhold payroll tax from their salaries. The standard rate of withholding is 7.65% of the taxable salary of the employees.

Cost Comparison Among States

Every state has different costs of filing for an LLC to their respective State Authorities. If you wish to gain a better understanding of the costs of opening an LLC in a different state in comparison to Indiana, read the table below:

StateFiling FeeAnnual Fee/Biennial FeeSales Tax
Indiana LLC$95 (Online)$100 (Mail) $31 (Online) (Biennial)$50 (By mail) (Biennial)7.00%
Michigan LLC$50 $25 (annual)6.00%
Ohio LLC$99None5.75%
Kentucky LLC$40$15 (annual)6.00%
Illinois LLC$150$75 (annual)6.25%

Indiana’s economy has outperformed other States in recent years. It is dominated by manufacturing and service industries. Other major industries include agriculture and mining.

Other Costs

How Much Does It Cost to Maintain an LLC in Indiana

To maintain an LLC in Indiana you will need to pay an annual fee of $31 (online) and $50 (via mail); along with sales tax at 7%, income tax at 3.3% and federal taxes.

Whether you are starting a new business or have an existing business, you need to ensure that you have the proper business licenses and are up-to-date on your Indiana business taxes. If you do not have the proper licenses, you can face fines or be denied access to the state’s services. Fortunately, the Indiana Secretary of State has a guide to more than 400 different types of licenses. In addition, the state has a website with a comprehensive list of business filing fees. These fees can range from one-time charges to ongoing charges.

First, you’ll need to register your business with the Indiana Secretary of State. You can do this online or by mail. The process can be confusing. In order to register your business, you will need to provide your business’ name, address, and rural route number. You’ll also need to fill out a business tax application. You’ll need to complete separate applications for each location you operate in. Depending on the type of business you are operating, you may need to pay taxes on a yearly basis or on an ad hoc basis.

Your LLC will also need to pay taxes to the state, the federal government, and the IRS. In addition to taxes, your LLC will also need to pay payroll and sales taxes. The state tax is 7%, while the federal tax is 3.3%. The IRS issues an Employer Identification Number, or EIN, to your LLC. This number is similar to a social security number, and you will need it for accepting payments.

Your LLC will also need to have a registered agent. The registered agent is the person who receives legal notices and state documents on behalf of the business. A registered agent must have a physical address in the state and be available during regular business hours. You can use a friend or family member as your registered agent, or you can hire a professional registered agent service provider. If you decide to use a professional registered agent service, you will need to pay around $100 per year for services.

In Indiana, you will also need to register your business with the Department of Workforce Development. The Department of Workforce Development will also notify you of any licenses you will need to register with the state. Whether you are filing online or by mail, you will need to provide your business’s name, address, and rural route number. In addition, you’ll need to open a bank account for your business.

If you’re a new business owner, you may be overwhelmed by the amount of paperwork you’ll need to complete. You’ll also need to determine how much you’ll need to pay in federal taxes. You can use a service like Nolo’s Online LLC to create an LLC operating agreement. This document will help you to protect your business and prevent conflicts among members. You’ll also want to create a business continuity plan.

Finally, your business will need to file its Business Entity Report with the Indiana Secretary of State every two years. You’ll need to pay a filing fee of $50 if you file online or $31 if you mail in your report. The report is due on the anniversary month of your LLC’s formation.

F.A.Qs

Can I start an LLC for free?

It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.

Is an LLC expensive?

It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.

Does an LLC need a bank account?

The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.

In Conclusion

The cost of Indiana is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the price of professional LLC services and choose the most affordable one.

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