How to start a business in Indiana: 2026 step-by-step guide

Your Indiana business launch checklist

The instructions for starting a business in Indiana are discussed throughout the balance of this guide. Before we delve into the details, take note of the following five most important things to do when launching your company:

• Decide what legal structure you want for your company, whether it’s an LLC, corporation, or partnership – and be sure you understand the pros and cons of that choice.
• Unless you’re going to run your business as a sole proprietorship, you need to select a business name that doesn’t cause conflict or confusion with other Indiana businesses. Use the INBiz Name Availability search tool to check whether the name you want is available.
• Unless you’re going to run your business as a sole proprietorship, use the official INBiz website to register your company and file any required fees.
• If your business will have employees or pay employment taxes, you need to obtain an Employer Identification Number (EIN) from the IRS.
• Check with state and local authorities to be clear on the other taxes your business will need to pay.

Choose the right legal structure for your company

Choosing a legal structure for your company is one of the very first decisions you’ll need to make when starting a new venture. As outlined below, there are four basic options, each with different implications for business owners.

• Sole proprietorship: This is the simplest option. As a sole proprietor, there is no distinction between you and your business. You file taxes for the business as part of your personal tax return.
• General Partnership: This structure allows two or more individuals to jointly operate a business together. As with the proprietorship model, there is no distinction between the individuals who own the business and the company itself. Each partner files taxes for their share of the business as part of their personal tax return.
• Limited Liability Company (LLC): A favorite for small business owners, the LLC is an attractive structure for entrepreneurs because it offers a combination of some of the benefits of a sole proprietorship (simple tax arrangements) with the asset protection afforded to a corporation (for example, as an owner, your personal assets are not under threat if the company goes bankrupt). Requirements can vary by state. One of the most significant Indiana-specific LLC requirements is having a registered agent for the company. This must be an individual or business resident in Indiana with an IN street address. For more on how to start an LLC in Indiana, visit INBiz.
• Corporation: The C Corporation (C Corp) is the basic legal structure for a corporation in the U.S. Under this model, the corporation pays taxes on its earnings, and its shareholders pay taxes on any dividends or income received from those earnings. This is regarded by some as double taxation, giving rise to the S Corporation — a tax status that allows corporations to pass through taxes to their owners (or shareholders), thereby functioning much like a sole proprietorship or LLC for tax purposes.

Each structure has its own benefits to consider. Proprietorships and partnerships are simple models to adopt, but there’s some risk, as the business and owner are legally the same entity. A corporation is a more useful model for raising large sums of capital in a risk-aware manner, but the administrative requirements for this type of entity can be cumbersome.

The LLC is a convenient midpoint for many entrepreneurs, as it can easily be scaled up to a corporation (just talk to the IRS about your tax status), offers some individual asset protection for owners, and has the relatively simple tax arrangements of a sole proprietorship.

Register your business through the Indiana Secretary of State

Whatever model you choose, you will need to register your business with the state of Indiana. Business registrations and associated services fall under the responsibility of the Indiana Secretary of State.

Fortunately for entrepreneurs doing business in Indiana, the state runs a highly efficient online registration portal: INBiz.

Business owners can register the details of a new business via INBiz, and use the site to access other important services. For example, Indiana requires that the name of your business does not cause conflict or confusion with other IN businesses — you can use the site’s Name Availability tool to check whether your desired name will be acceptable.

Filing fees vary according to the type of business you are registering. For example, it costs $95 to register an LLC online (or $100 by mail) in Indiana.

Apply for federal and state tax identifications

New businesses typically require an Employer Identification Number (EIN) from the IRS to govern federal tax affairs. The number is easily obtained via an application through the IRS website. If in doubt about the need for an EIN, consult with the IRS about the nature of the business you are opening.

Broadly, there’s no general state license for businesses in Indiana. However, there are licensing and tax requirements at the local county level and with regard to specific industries or activities. For example, if you plan to have employees, you’ll need to register with the Department of Workforce Development to pay state unemployment insurance premiums.

Once you have completed your registration with the Indiana Secretary of State, visit the Indiana Department of Revenue to file a Business Tax Application or consult about possible exemptions for your business.

While there’s no single general Indiana state business license, you’ll likely need specific local and industry-specific permits before you open your doors.

To ensure your company is compliant, be sure to take appropriate action across the three regulatory domains below.

• State-level tax registration: Plan to sell retail goods? You must register for a Registered Retail Merchant Certificate (RRMC) through the Indiana Department of Revenue (DOR) via the INBiz portal.
• Local county and city permits: Your local municipality governs zoning laws, building permits, and even environmental health clearances. Some home-based freelance businesses may require a local home occupation permit, depending on your city’s local ordinances.
• Professional licensing agency requirements: Regulated industries — including plumbing, cosmetology and barbering, and real estate — must secure specific credentials from the Professional Licensing Agency (PLA) before offering services.

Understand Indiana business taxes and employer obligations

Indiana levies a flat income tax at the state level: 2.95% in 2026 (scheduled to go down to 2.90% in 2027). The state corporation tax is also a flat rate: 4.90%. But each of the state’s 92 counties has independent authority to collect income and property taxes. The Department of Revenue keeps a record of the particular tax requirements for each county.

If you are running a business with employees, be aware that Indiana requires all employers to carry workers’ compensation insurance, obtained from a private carrier. There is also a state and federal obligation to report new hires to the Indiana New Hire Reporting Center.

You can read more about tax and payroll management issues in our payroll and tax compliance guide. Once you have registered your company and sized up your tax and employer obligations — congratulations, you’re in business