How to Form an LLC in Indiana (2026)

1. 1Choose a name for your LLC and verify availability by searching the Indiana Secretary of State INBiz database. Your name must include "Limited Liability Company," "LLC," or "L.L.C."
2. 2Appoint a registered agent with a physical street address in Indiana.
3. 3File Articles of Organization with the Indiana Secretary of State through the INBiz portal. The filing fee is $95. Processing takes 3-5 business days online.
4. 4Obtain an EIN (Employer Identification Number) from the IRS at no cost.
5. 5Create an operating agreement. Not legally required in Indiana but strongly recommended.
6. 6Open a business bank account with your Articles of Organization, EIN, and operating agreement.
7. 7Obtain any required business licenses and permits through the INBiz portal.
8. 8File your first biennial Business Entity Report within 2 years. The fee is $32 online or $50 by mail.

• ✓Obtain an EIN from the IRS (free, apply online at irs.gov)
• ✓Open a dedicated business bank account
• ✓Register for Indiana state taxes with the Department of Revenue
• ✓Get business insurance (general liability at minimum)
• ✓Set up an accounting system to track income and expenses
• ✓Apply for any required business licenses through INBiz
• ✓File your first biennial report ($32 online) within 2 years of formation

Your Indiana LLC name must contain "Limited Liability Company," "LLC," or "L.L.C." Restricted words like "Bank," "Insurance," or "Trust" require additional licensing. The name must be distinguishable from existing business entities registered in Indiana.

Indiana LLCs are pass-through entities by default. Members pay Indiana individual income tax at a flat rate of 3.05% on their share of profits — one of the lowest state income tax rates in the country. Indiana does not impose a franchise tax on LLCs. The biennial report costs just $32 online.

LLC vs. other structures in Indiana

Indiana is an affordable state for LLCs: $95 to file and just $32 every 2 years for the biennial report. The 3.05% flat income tax rate is one of the lowest in the nation. Indiana's INBiz portal makes managing your LLC easy and centralized.

• •File a biennial Business Entity Report every 2 years — $32 online or $50 by mail
• •Maintain a registered agent with a physical address in Indiana at all times
• •Keep your operating agreement current and update it when membership changes
• •File Indiana state income tax returns for all members receiving pass-through income
• •Renew any local business licenses or permits as required

Indiana offers a reasonable cost structure for LLCs. The $95 filing fee is competitive, and ongoing costs are manageable. If you operate in Indiana, forming your LLC here makes the most sense.

In general, you should form your LLC in the state where you physically live and conduct business. Forming in a "tax-friendly" state like Wyoming, Delaware, or Nevada sounds appealing, but if you operate in Indiana, you will still need to register as a foreign LLC there — paying fees in both states.

An LLC is almost always a better choice than operating as a sole proprietorship because of the personal liability protection it provides. However, if your LLC is highly profitable, you should talk to a CPA about electing S-Corp tax treatment to potentially reduce your self-employment tax burden.

What Indiana LLC Owners Need to Know

• •Indiana's biennial report is one of the cheapest in the country at $32 online
• •Filed through the INBiz portal, which handles all business filings
• •Indiana has no franchise tax, keeping ongoing costs low

Official Indiana Resources

• Indiana Secretary of State — Business Services
• INBiz Online Filing Portal