LLC Taxes & FeesIN

Indiana LLC Costs 2026: $95 to Form + $32 Every 2 Years

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7 min read1,900 words
DR
Daniel Reyes, CPA
CPA · Small Business Compliance Specialist

Quick Answer

Indiana is one of the most affordable states for LLC formation and maintenance. The formation fee is only $95, and the biennial report costs just $32 every two years. Indiana has no franchise tax on LLCs, and pass-through taxation means your LLC typically won't pay state income tax directly.

Key Takeaways

  • $95 LLC formation fee - one of the lowest in the country
  • $32 biennial report (every 2 years) - not annual
  • No state franchise tax on Indiana LLCs
  • Pass-through taxation: income flows to members' personal returns
  • 2.95% flat state individual income tax rate for 2026 (dropping to 2.90% in 2027)
  • Fast 1-2 business day online processing
ItemCost/DetailsNotes
LLC Formation Filing Fee$95One-time, online via INBiz ($100 by mail)
Biennial Report Fee$32Every 2 years, online ($50 by mail)
Foreign LLC Registration$125For out-of-state LLCs (by mail)
Certificate of Existence$20Proof of good standing
Name Reservation$20Valid for 120 days
Registered Agent Change$30If updating registered agent
Articles of Amendment$30To change LLC details
Expedited Processing$50Same-day processing

Indiana LLC Formation Costs

Indiana offers one of the lowest LLC formation fees in the United States at just $95. This makes it an attractive option for entrepreneurs who want to minimize startup costs.

State Filing Fee

The $95 fee covers filing your Articles of Organization online through INBiz with the Indiana Secretary of State. Filing the same paper form by mail costs $100. Either way, it's a one-time fee paid when you initially form your LLC. If you're moving an existing out-of-state company into Indiana instead, see Indiana foreign LLC registration.

Processing Time

  • Online filing: 1-2 business days (standard)
  • Expedited online: Same-day processing (+$50)
  • Mail filing: 5-7 business days

Total First-Year Costs

Here's what a typical Indiana LLC costs in year one:

ItemCost
Articles of Organization$95
Registered Agent (if using yourself)$0
EIN from IRS$0
Minimum Year 1 Total$95

Cost Comparison: Indiana's $95 formation fee compares favorably to California ($70 + $800 franchise tax), New York ($200 + $500-$2,000 publication), and Texas ($300).

Biennial Report Requirements

One of Indiana's best features is the biennial report—you only file every two years, not annually. This halves your ongoing compliance burden.

Biennial Report Details

  • Fee: $32 filed online through INBiz ($50 if filed by mail)
  • Frequency: Every 2 years
  • Due date: Before the last day of your LLC's anniversary month
  • Filing method: Online through the INBiz portal

For a step-by-step walkthrough of this filing, see our Indiana biennial report guide.

What the Report Includes

The biennial report updates the state on your LLC's:

  • Principal office address
  • Registered agent information
  • Members/managers (if applicable)
  • Nature of business

Late Filing Consequences

If you miss your biennial report deadline:

  • Your LLC becomes "Delinquent" after 60 days
  • There's no additional late fee (unlike many states)
  • Continued non-filing may lead to administrative dissolution

Tip: Indiana doesn't charge late fees for overdue biennial reports, but your LLC status will show as "Delinquent" in public records, which can affect business relationships and banking.

Indiana State Taxes for LLCs

No Franchise Tax

Indiana does not impose a franchise tax on LLCs. This is a significant advantage compared to states like:

  • California: $800 minimum annual franchise tax
  • Texas: Franchise tax based on revenue
  • Tennessee: Franchise and excise taxes
  • Indiana: $0 franchise tax

Pass-Through Taxation

By default, Indiana LLCs are treated as pass-through entities:

  • The LLC itself doesn't pay Indiana income tax
  • Profits "pass through" to members' personal returns
  • Members pay Indiana's flat 2.95% individual income tax on their share for 2026 (the rate drops to 2.90% in 2027 under the state's phase-down)
  • Indiana counties also levy their own income tax, which varies by county and is set each year by the Department of Revenue

Note that the 4.9% rate is Indiana's corporate income tax, not the individual rate. It applies only if your LLC elects to be taxed as a C corporation. A default pass-through LLC is taxed at the individual rate above. For the deeper compliance picture, see our Indiana LLC compliance hub.

Sales Tax

If your LLC sells taxable goods or services in Indiana:

  • Indiana sales tax rate: 7% (statewide)
  • Must register for sales tax permit
  • File and remit sales tax regularly (monthly, quarterly, or annually based on volume)

Employment Taxes

If your LLC has employees in Indiana:

  • Withhold state income tax from wages
  • Pay unemployment insurance (UI) tax
  • Workers' compensation insurance may be required

Federal Tax Obligations

Your Indiana LLC also has federal tax requirements based on how it's classified:

Single-Member LLC

  • Treated as "disregarded entity" by IRS
  • Report income on Schedule C (Form 1040)
  • Pay self-employment tax (15.3%)
  • Make quarterly estimated tax payments

Multi-Member LLC

  • Treated as partnership by IRS
  • File Form 1065 annually
  • Issue Schedule K-1 to each member
  • Members report their share on personal returns

Corporate Tax Election

LLCs can elect S-corp or C-corp taxation. S-corp election can reduce self-employment taxes for profitable LLCs paying members reasonable salaries.

Total Annual Cost Comparison

Here's how Indiana compares to other states for ongoing LLC costs:

StateAnnual ReportFranchise TaxAnnual Total
Indiana$16/year*$0$16/year
North Carolina$200/year$0$200/year
California$20/2 years$800 min$810/year
New York$9/2 years$25-$4,500$30-$4,500+/year

*Indiana's $32 biennial report divided by 2 years = $16/year effective cost

Bottom Line: An Indiana LLC can cost as little as $16 per year in state fees (averaged), making it one of the cheapest states to maintain an LLC.

Cost-Saving Tips for Indiana LLCs

1. Be Your Own Registered Agent

If you have an Indiana address and are available during business hours, act as your own registered agent to save $50-$300/year. See Indiana registered agent requirements for the rules on who qualifies.

2. File Online

Online filing through INBiz is faster and ensures accurate processing. Avoid paper filing delays.

3. Get Your EIN Free from IRS

Never pay a service for an EIN. Get one free at irs.gov in minutes.

4. Set Biennial Report Reminders

Since reports are every two years, it's easy to forget. Set calendar reminders for 30, 14, and 7 days before your anniversary month.

5. Skip Expedited Processing

Standard online processing (1-2 days) is usually fast enough. Save the $50 expedited fee unless you have an urgent deadline.

Frequently Asked Questions

Does Indiana have a franchise tax for LLCs?

No, Indiana does not impose a franchise tax on LLCs. This is one of the reasons Indiana is considered one of the most affordable states for LLC formation. Your only recurring state fee is the $32 biennial report every two years.

How often do Indiana LLCs need to file reports?

Indiana LLCs file biennial (every two years) reports, not annual reports. The report is due during the anniversary month of your LLC's formation. This means you only pay $32 every two years instead of $200+ annually like in many other states.

What is the total cost to form an LLC in Indiana?

The total state cost to form an Indiana LLC is $95 for the Articles of Organization filing. If you act as your own registered agent and file online yourself, this is your only required expense. Additional optional costs include registered agent services ($50-$300/year) and expedited processing ($50).

When is the Indiana biennial report due?

The biennial report is due during your LLC's anniversary month, every two years. For example, if your LLC was formed in March 2024, your first biennial report would be due in March 2026, then March 2028, and so on.

How are Indiana LLCs taxed?

Indiana LLCs are taxed as pass-through entities by default. The LLC doesn't pay state income tax directly. Instead, profits pass through to members who pay Indiana's flat individual income tax (2.95% for 2026, scheduled to fall to 2.90% in 2027) on their share, plus any applicable county income tax. LLCs can elect C-corp or S-corp taxation if preferred; an LLC taxed as a C-corp pays the 4.9% Indiana corporate income tax instead.

Is Indiana a good state to form an LLC?

Yes, Indiana is excellent for LLC formation due to its low costs ($95 formation, $32 biennial report), no franchise tax, fast processing (1-2 days online), and straightforward compliance requirements. It's particularly attractive compared to high-cost states like California or New York.

Official Source

For the most up-to-date information, always verify requirements with the official Indiana Secretary of State website:

https://www.in.gov/sos/business

Important Disclaimer

This article is for informational purposes only and does not constitute legal advice. LLC requirements, fees, and deadlines change frequently. Always verify current requirements with your state's Secretary of State office before making business decisions.

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