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

The cost to maintain an LLC in Indiana can be high depending on several factors. There are some companies that do not charge a fee to file the Business Entity Report, while others do. In any case, if you don’t file the report, you could face significant penalties and expenses. The fees to file the report will vary from company to company, but you can expect to pay at least $32 in the first year and $50 in the second.

Once your LLC is formed, you’ll need to pay a one-time fee of $95 for the Articles of Organization (the document that forms the legal basis of your business). The State of Indiana will charge an annual fee of about $100 for the LLC’s business license, which is required for foreign qualification. You’ll also need to pay for a professional license renewal in the state. Keeping track of these fees will save you a lot of time and money. Many of these fees are one-time payments.

There are also recurring costs to keep your LLC registered. The Indiana Secretary of State’s Business Services Division requires that you file a Business Entity Report every two years. Filing the Business Entity Report online costs $32, and filing a paper copy costs $50. It is a good idea to budget for the cost of filing these documents at least every two years. If you plan to expand your business to other states, this will be a big expense.

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.

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