If you're forming a limited liability company (LLC) in Indiana, it is essential to be familiar with the expenses and costs of filing proper documentation with the Secretary of State.
Together with our legal team, we’ve performed in-depth research and developed this guide to help you understand how much an LLC in Indiana costs and navigate your funds more easily.
Let's get started.
Quick Summary
- The filing fee for an Indiana LLC is $98, which covers your Articles of Organization.
- All Indiana LLCs must file a business entity report every two years since incorporation on the anniversary month.
- Businesses that sell tangible products to consumers in Indiana must obtain a retail merchant certificate costing $25.
How Much Does an LLC Cost in Indiana?
An LLC in Indiana costs $98 to file the Articles of Organization. Additionally, there are other costs you will incur, such as filing a business entity report and obtaining a state business license fee.
Indiana LLC Filing Fee
The Indiana LLC filing fee is $98 to file the Articles of Organization online and $100 if done by mail or in person at the Secretary of State's office.
When beginning an Indiana LLC, you must submit your Articles of Organization to the Secretary of State.
This document must contain the following information:
- Name of the company ending with "limited liability company" or LLC
- Name and physical address of the registered agent
- Name and address of owners and members
- Number of stock shares the Indiana LLC has
- Official signature from the incorporators [1].
Once you pay the one-time fee and your Indiana LLC is approved by the Secretary of State, you can conduct transactions in Indiana.
Note the standard processing time for your Articles of Organization is 2-3 weeks. But if you want expedited filing, you can pay an extra $50 to reduce the lead time to 4-6 days.
There's also a rush filing option with 1-2 business day processing which costs an additional $100.
Indiana Registered Agent Service Fee
When you register a business and submit the necessary paperwork to the Secretary of State, you must appoint an Indiana registered agent, as it is a legal requirement for companies and LLCs to have one.
Registered agents are responsible for collecting tax documents, receiving state notifications, and handling court sermons on your LLC’s behalf.
You can act as your own registered agent for $0 or hire a professional company to be your registered agent service for anything between $59-$300 per year.
The Indiana registered agent must have a physical location in Indiana where legal papers may be delivered on time during regular business hours.
And once the documents have been approved, the agent must promptly mail them to you, the business owner.
Indiana State Business License Fee
A $25 Registered Retail Merchant Certificate is required if your Indiana LLC sells products or tangible assets [2].
If you don't still owe the state outstanding sales tax, Indiana state business services division will renew your license for free 30 days before it expires.
Applying for your certificate is accessible via Indiana's INBiz site or mail.
Other LLC Filing Costs
Apart from the basic filing fees, we’ve compiled a list of other costs of forming and running an LLC in Indiana.
1. Business Name Reservation
An online company name reservation in Indiana will set you back $11 to secure it for 120 days.
The first thing to do before name reservation is to check if your LLC name is available in Indiana.
Once you reserve the business name, it's unavailable for other business entities in Indiana to claim it.
Online name reservations can be made on the INBiz website.
If the 120 days expire and you discover that you require extra time, you may extend your name reservation for an additional $11.
2. Doing Business As (DBA) Name
A DBA, or assumed name in Indiana, is another name your business operates under other than the legal name.
To register a DBA per Indiana law, you must submit a Certificate of Assumed Business Name to your county recorder's office, which will cost $21 for online submissions and $30 by mail [3].
The name you choose for your company will help potential clients understand what you do and what you sell. Your audience can learn who you are by looking at your assumed business name on your cards.
A DBA in Indiana also creates a veil of protection when opening a business bank account or registering a foreign LLC because you'll use your assumed name rather than your name.
3. Indiana Business Entity Reports
All business entities in Indiana must submit biennial reports along with a $30.00 filing fee by mail or a $22.44 filing fee for online filing.
As a courtesy, the Secretary of State issues a notification to each corporation, but it is up to the company to submit the report.
When formed in an even year, the report is submitted every even year; when incorporated in an odd year, the report is submitted every odd year.
According to the Indiana SOS, the biennial report must be submitted during the month when the entity was incorporated.
If you want to file the report online, you can use the Secretary of State's website.
Failure to submit a biennial entity report does not incur late fines in the state of Indiana; nevertheless, if the report is not submitted within 60 days of the deadline, your enterprise may be administratively dissolved or revoked.
4. LLC Operating Agreement
A legally enforceable document between shareholders, known as an operating agreement in Indiana, sets down the policies and operations for your LLC.
Your LLC's operating agreement specifies how important processes like election, participation interest transfers, profit, and loss distribution, and firm dissolution will be handled.
An LLC operating agreement won't need to be submitted to the Indiana Secretary of State because it is an internal document. As such, you can manually draft it by yourself for $0.
If you hire an attorney or a professional LLC formation service, expect to pay anything from $100-$300 for an operating agreement.
5. Certificate of Existence
A certificate of existence or a certificate of good standing is issued to Indiana LLCs that are current on their tax payment and are authorized to trade in Indiana.
The cost of obtaining a certificate of existence ranges between $15 and $30, depending on the document type you request.
Online submissions on the SOS website cost $15 per short-form document, while long-form copies cost $30.
Here you'll need to submit an information request form to the Indiana Secretary of State.
Using the InBiz website to request your certificate of good standing will cost you $27.
6. Certified Document Copies
The Indiana State Business Services Division offers certified duplicates of company documents, which are genuine and accurate copies.
Certified copies include Articles of Organization, annual reports, or certificates of good standing.
Buying a certified copy through InBiz online will cost you $16, while ordering from the SOS through the mail with an Information Request Form will cost you a fixed $15.
7. Employer Identification Number
Tax payment is a significant component of the legal compliance of any Indiana business.
The IRS issues Employer Identification Numbers (EINs) to LLCs with multiple members, workers, or LLCs that do business similarly to a corporation. An EIN is required for your company to pay federal taxes.
Your EIN may be used in place of your social security number on company tax forms. Your company will also require an EIN to create a business bank account and obtain business insurance coverage.
You must submit papers to the IRS to get an EIN for your LLC. This service is free and can be completed in a few minutes.
But if you hire a professional to register an EIN on your behalf, expect to pay anything from $50-$100.
8. Indiana Tax Clearance Certificate
Before the state renews any operating permits, some enterprises must demonstrate that their state taxes are current.
A tax clearance in Indiana is a declaration in writing by the Indiana Department of Revenue (DOR) that a company or person does not owe any sales tax. A certificate must be filed for $25.
Indiana Foreign LLC Registration
To incorporate your foreign LLC in Indiana, you must pay $125 ($107 online) for a foreign registration statement.
Registering a series LLC is $250 ($245 online).
Registering as a foreign LLC in Indiana is legally necessary if your LLC was established in another country but you are expanding your operations to Indiana.
FAQs
How Long Does It Take To Form an LLC in Indiana?
It takes 2-3 weeks to form an LLC in Indiana. However, you can pay an extra $100 for rush filing and have your LLC approved in less than 2 business days.
What Are the Penalties For Late LLC Payments in Indiana?
The penalties for late LLC payments in Indiana include higher interest charges or an administrative dissolution of the LLC.
Do You Need Professional Help with Your Indiana LLC?
For an entrepreneur in Indiana, starting an LLC can be a heavy, time, and money-consuming process. This is why hiring professional Indiana LLC services might be essential to help you navigate the legal process.
These services will make your LLC formation process enjoyable and easy. In addition to their professional customer service, you'll get comprehensive service features that guarantee worry-free compliance for your LLC.
 References:
- https://www.in.gov/sos/business/guide_print.html
- https://www.in.gov/dor/business-tax/sales-tax/
- https://www.indy.gov/activity/record-to-do-business-as-dba
