Cost and Process of Registering a Business
Indiana offers competitive costs for registering a business, which can include affordable expenses for real estate, utilities, and labor. To create a Limited Liability Company (LLC) or an Incorporated Company (Inc.), you’ll encounter the following costs:
- Filing Articles of Organization for an Indiana LLC online: $95.
- Registering a foreign LLC online: $105.
- Annual register agent fees: $50 to over $300.
Optional services for LLC formation and registered agents may incur additional fees.
General Business License Requirements
Indiana Business Licenses
To legally operate in Indiana, businesses may require specific licenses, such as:
- Sales tax license: $25.
- Liquor license: can cost over $2,000. Issued in 10-12 weeks.
Most licenses are issued within days or a week.
If you’re selling tangible goods subject to sales tax, you must obtain a Registered Retail Merchant Certificate. Additional licenses might be necessary depending on your industry.
For businesses looking to expand into Indiana as a foreign LLC, the online registration cost is $105, or $125 by mail.
Why Business Licenses are Necessary
Local governments often require a business license to operate. While Indiana doesn’t have a state-wide general business license, the Registered Retail Merchant Certificate is key for tax collection. The filing fee for this certificate is $25.
Businesses must comply with various regulatory requirements from multiple state agencies, which may involve obtaining specific licenses or permits for operation.
Local Licensing and Registration
Licensing at Local Level
Municipalities may require their own business licenses. The requirements for business registration vary by location and business type.
Some Indiana cities, like Indianapolis, impose licensing mandates for specific types of businesses, such as alarm or massage companies. Marion County also requires licenses for small companies.
When registering a business:
- Verify license requirements. Not all companies require licenses, but some do for health and safety.
- Understand local license mandates can differ, so check with the relevant licensing agency.
Licensing Costs and Processing
License application fees can range from $50-$250, with licenses typically needing annual or biennial renewal.
Applications take approximately 10-30 days to process, depending on the business type and jurisdiction. It’s important to note that a business license grants the permission to operate, while permits provide regulatory approval for specific activities such as health, liquor, zoning, or building regulations.