How Much Does an LLC Cost in Indiana (Fees Breakdown)
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.
As a Mergers and Acquisitions specialist and degree holder in tax law, I assisted multiple businesses and individuals with LLC formation and creation of joint organizations.
Together with our business experts in the state, 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.
When planning to start an LLC, consider employing a professional Indiana LLC service to help avoid errors that could prolong the LLC formation process.
- An LLC in Indiana costs $98 to file the Articles of Organization online and $100 by mail.
- Upon approval of the business, additional expenses you may incur include licenses and permits, registered agent service, biennial report, and other documents.
- According to the Indiana Department of Revenue, businesses must register to collect a 7% sales tax on goods and tangible personal property.
- Through my experience operating a business, I learned that compared to other states, Indiana has consistently increasing GDP over the last 5 years at an annualized rate of 0.5%.
Cost to Start an LLC in Indiana
Before a business can legally operate in the state, there are mandatory filing fees and optional expenses you have to shoulder.
1. LLC Formation Filing Fee ($98/Online-$100/Mail - Mandatory)
An LLC in Indiana costs $98 to file the Articles of Organization online and $100 if done by mail or in person at the Secretary of State's office.
The state does not offer expedited service, however, I was relieved to learn that the online processing only took a few hours to 1 business day. If you want a quicker approval period, file your applications on the InBiz website.
2. Registered Agent Service Fee ($80-$300 Annually – Optional)
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 $80-$300 per year.
3. Name Reservation Fee ($11 - Optional)
An online company name reservation in Indiana will set you back $11 to secure it for 120 days. Once you reserve the business name, it's unavailable for other business entities in Indiana to claim it.
Before applying for a name reservation, I ensure that my clients' preferred business names are available and follow state regulations.
Expenses Following the Approval of Your LLC
Apart from the basic filing fees, we’ve compiled a list of other costs of forming and running an LLC in Indiana.
1. Business License (Depending on the Line of Business - Mandatory)
Although Indiana does not require a general business license, entities in the state may require specific licenses and permits depending on the type of industry.
A client of mine was required to pay a $25 Registered Retail Merchant Certificate for selling products or tangible assets . The Indiana Department of Revenue mandates that businesses selling goods or tangible personal property register to collect a 7% sales tax.
2. Business Entity Reports ($30/Mail-$22/Online - Mandatory)
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.
According to the Indiana SOS, the biennial report must be submitted during the month when the entity was incorporated.
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.
"Your report is due biennially by the end of the anniversary month of your LLC's initial registration, and it's wise to remember this expense even though immediate payment isn't required."
- Jon Morgan, CEO, Co-Founder & Editor-in-Chief of Venture Smarter
3. Tax Clearance Certificate ($25 - Mandatory)
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.
4. Operating Agreement ($100 - $200 - Optional, but Recommended)
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-$200 for an operating agreement.
I always advise clients to draft an operating agreement since in the absence of one, state laws automatically applies.
5. Doing Business As (DBA) Name ($21/Online-$30/Mail - Optional)
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 . According to the Indiana Secretary of State, this process has led to over 10,000 DBA registrations annually, demonstrating the popularity and utility of using assumed names for business operations in the state.
6. Certificate of Existence ($15-$30 + $27 Request Form - Optional, but Recommended)
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.
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.
Whenever clients form LLCs, I inform them of the advantages of obtaining the document. It is necessary for pursuing investors and applying for financial assistance.
7. Certified Document Copies ($16/Online-$15/Mail - Optional)
The Indiana State Business Services Division offers certified duplicates of company documents, which are genuine and accurate copies.
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.
8. Employer Identification Number ($0 - Optional, but Recommended)
An EIN is required for your company to pay federal LLC taxes in Indiana.
The IRS issues Employer Identification Numbers (EINs) to LLCs free of charge. But if you hire a professional to register an EIN on your behalf, expect to pay anything from $50-$100.
When clients ask the importance of obtaining an EIN, I inform them that it is required for creating a business bank account and obtaining business insurance coverage.
What Are the Penalties For Late LLC Payments in Indiana?
The penalties for late LLC payments in Indiana include higher interest charges (10%) or an administrative dissolution of the LLC.
What Payment Methods Can I Use To Pay Indiana's State Fees For Filing My LLC?
The payment methods you can use to pay Indiana's state fees for filing your LLC include checks, money order, credit, or debit cards.