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How to Set Up an Indiana LLC on Your Own

Technically speaking, you don’t have to use an LLC formation service like ZenBusiness or LegalZoom. These services are incredibly helpful, but you can save money by completing the process yourself.

You can read our complete guide to DIY an LLC setup in Indiana, but here’s a quick look at the process: 

Choose a business name

Every LLC in Indiana needs a name that’s memorable and gives potential clients a good idea of what goods or services are available. The name also needs to be unique — both for legal reasons and so your business stands out from the competition.

Appoint an IN registered agent

As we’ve mentioned in this guide, every LLC needs an agent who can accept service of process on your behalf. In all states, you can act as your own registered agent as long as you have a physical address in the state. That said, we generally recommend that you appoint someone else (like an online service) to act as your agent.

File the Articles of Organization

This document, once filled out and filed, officially forms your business in the state of Indiana. You’ll need to provide some important information, including your contact information, your business address, signatures for your LLC’s members, and more. Indiana has a $100 filing fee.

Setting up the LLC is as easy as 1-2-3; it’s the maintenance requirements that are a bit more complicated:

Register for and pay taxes

If you have employees, you’ll need to get an Employer Identification Number from the IRS. Then there are state-specific taxes, too. Indiana’s current tax rate for corporations is 5.25% (and it’s set to reduce by 0.25% every 6 months until 2021). The individual rate falls between 3.23%. There’s also the state sales tax to account for (7%). You can learn more about this and other miscellaneous taxes at the Indiana Department of Revenue.

Get licenses and permits

There’s no general state business license in Indiana, but that doesn’t mean you won’t need to get professional licenses, such as those listed on Indiana’s Business Licenses page and the Indiana Professional Licensing Agency.

Create an operating agreement

Even single-member LLCs should create a “master document” that sets out how the business will operate, both now and in the future.

File your business entity report

Each year, your LLC will need to file an annual report to update the state about the standing of your business. It’s due every other year by the end of your LLC’s anniversary month. There’s a different filing fee for each method: $32 for online filings and $50 for mail-in filings.

Obtain business insurance

Every business with employees needs to maintain workers’ compensation insurance and a commercial vehicle policy for company-owned vehicles. You may also want to get a general business liability policy, too.

Get a business bank account

You should sign up for a business bank account so you can write checks and make purchases in the name of the business instead of pulling from your personal accounts (a legal no-no).

This is just the tip of the iceberg, though. For more detailed guidance, we recommend contacting an attorney or checking out the full Indiana LLC Formation Guide.

What Is an Indiana LLC?

LLCs are formal legal entities that are typically taxed similarly to sole proprietorships and general partnerships, in that the owners include any company profits or losses into their personal returns — the LLC itself does not owe income taxes. For more a more in-depth description see: What is an LLC?

The Total Cost of Forming and Maintaining an LLC in Indiana

In addition to the costs of a business formation service or hiring an attorney (which are optional, as we’ve discussed), there are quite a few other required and optional expenses when forming and maintaining an Indiana business. You cannot form an LLC in Indiana without first filing the Articles of Organization, which is the document that officially registers your business within the state. Indiana requires a modest $100 fee for this filing ($95 if you file online).

But no matter what business type you form, you will need to file the Business Entity Report. Most states require this type of filing every year, but Indiana saves you money by only requiring it every other year. If you file online, the fee is just $32; mail-order filings cost a bit more at $50. Read more about Indiana costs – Indiana LLC costs.