LLC Cost in Indiana | How Much Does It Cost to Start an LLC


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Steve Bennett
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LLC Costs in Indiana

Forming a Limited Liability Company (LLC) in Indiana is a popular choice for entrepreneurs and small business owners who want to protect their personal assets and enjoy flexibility in their business operations. LLC formation costs vary from state to state, and it is essential to understand the costs involved in forming and maintaining an LLC in Indiana.

If you would like to know more about the Indiana LLC Cost, read the whole article until the end. Webinarcare Editorial Team will help you gain knowledge on how much an LLC Costs in Indiana. You must be guided by all the factors gathered in this article.

How to Start an LLC?

Before we dive into the LLC Cost in Indiana, you should know the step-by-step process of starting an LLC, including selecting a unique business name, appointing a Registered Agent, filing the necessary documents, and fulfilling any additional requirements, such as obtaining licenses or permits that are specific to your industry or location.

Here are the steps in starting an LLC in Indiana:

  • Step 1: Choose a Unique Business Name
    The first step in starting an LLC in Indiana is to select a unique business name for your company. The name should be distinguishable from any other registered businesses in the state. You can check the availability of your desired business name by searching the state’s business name database. Once you’ve found an available name, you may need to include “LLC” or “Limited Liability Company” at the end of the name to comply with state requirements.
  • Step 2: Appoint a Registered Agent
    A Registered Agent is someone who will receive official legal and tax documents on behalf of your LLC. The Registered Agent must have a physical address in Indiana and be available during normal business hours. You have the option to appoint yourself as the registered agent or hire a professional registered agent service.
  • Step 3: File the Articles of Organization
    To officially form your LLC, you need to file the Articles of Organization with the Indiana Secretary of State or the appropriate state agency. The Articles of Organization typically requires basic information about your LLC, such as its name, address, Registered Agent details, and the name and address of the LLC’s members or managers.
  • Step 4: Create an Operating Agreement
    Once your LLC is formed, it’s highly recommended to create an operating agreement in Indiana. Although not required by Indiana law, an operating agreement is a crucial internal document that outlines the ownership, management, and operating procedures of your LLC. It helps establish clear guidelines and expectations among members, and it can be especially useful in the event of disputes or disagreements in the future. The operating agreement can be customized to fit the specific needs and goals of your LLC.
  • Step 5: Obtain Required Licenses and Permits
    Depending on the nature of your business, you may need to obtain specific licenses or permits at the federal, state, or local level. Research the licensing requirements in Indiana and apply for business licenses in Indiana related to your industry or activities. Common examples include professional licenses, health or safety permits, and sales tax permits.
  • Step 6: File for an Employer Identification Number (EIN)
    An Employer Identification Number (EIN) is a unique nine-digit number issued by the Internal Revenue Service (IRS) that is used to identify your LLC for tax purposes. Even if you don’t have employees, obtaining an EIN is typically required if you plan to open a business bank account, hire contractors, or file certain tax forms. You can easily apply for an EIN in Indiana through the IRS website.
  • Step 7: Comply with Ongoing Requirements
    Once your LLC is established in Indiana, it’s important to stay in compliance with any ongoing requirements. This may include filing periodic reports, paying Biennial Report fees, and renewing licenses or permits. Familiarize yourself with the specific obligations for maintaining your LLC’s good standing in Indiana.

Remember, starting an LLC in Indiana involves some specific steps and requirements that may differ from other states. It’s advisable to hire an LLC Services in Indiana that specializes in business formation to ensure that you follow all the necessary procedures accurately and efficiently. We reviewed the Best LLC Services for you to check out.

LLC Cost in Indiana

It is crucial to consider the costs associated with the formation and maintenance of your business. The costs of establishing and operating an LLC in Indiana can vary based on several factors, including the initial formation fees, ongoing compliance requirements, and optional expenses.

Initial LLC Costs

When starting a limited liability company (LLC), knowing the initial costs associated with forming and registering your new business entity is essential. Understanding and preparing for these expenses can help you budget effectively and set your Indiana business on a path to success. Some common initial costs associated with forming an LLC include Articles of Organization filing fees, Registered Agent fees, and additional services, such as business name reservation fees.

Articles of Organization Filing Fee

The first step in forming an LLC in Indiana is to file the Indiana Articles of Organization with the Indiana Secretary of State. This document officially creates the LLC and includes essential information about the business, such as its name, address, and Registered Agent.

This document includes essential information about your LLC, such as:

  • The name of your LLC
  • The address of your LLC’s principal office
  • The name and address of your Registered Agent
  • The purpose of your LLC (optional in some states)

You can typically file the Articles of Organization online, by mail, or in person. A filing fee is associated with this process, which costs around $95. You can also file by mailing it to Indiana Secretary of State, which is located at Secretary of State Business Services Division, 302 West Washington Street, Room E018, Indianapolis, IN 46204.

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Registered Agent Fee

An LLC in Indiana must designate a Registered Agent who will be responsible for receiving legal and government documents on behalf of the business. You can act as your own Registered Agent or appoint someone you know. Professional Registered Agent in Indiana typically charge an annual fee ranging from $50 – $150.

In Indiana, your Registered Agent must:

  • Be a resident of Indiana or a business entity authorized to do business in the state.
  • Have a physical address in Indiana (P.O. boxes are not acceptable)

Choosing a reliable and responsible Registered Agent is essential, as failure to receive and respond to legal documents can seriously affect your business.

We reviewed some of the Best Registered Agent Services in Indiana and provided features as an add-on with their packages for you to check out.

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Business Name Reservation Fee

If you have a specific business name in mind and want to ensure it is available when you are ready to file your Articles of Organization, you can reserve the business name with the Indiana Secretary of State.

In Indiana, your LLC name must:

  • Include the words “Limited Liability Company,” “LLC,” or “L.L.C.
  • Not contain any words or phrases that are prohibited by state law
  • Be distinguishable from the names of other businesses registered in the state

However, if you do not wish to file your LLC right away but want to hold the name that you have decided on, then you can reserve your LLC name for 120 days. You must file a name reservation application in the Indiana Secretary of State to keep the name.

The online name reservation fee is $20, while the mail name reservation fee is $20. You can register your business under a different legal name if your preferred name isn’t available. Once you have chosen a name, you can submit an application for a DBA (doing business as). If you have decided to file for a DBA, you can file it in two methods, by mail and in person. However, before filing Indiana DBA, you should know that you need to renew your DBA, which cost $35.

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Ongoing LLC Costs

After you know the initial costs of forming an LLC in Indiana, you should also know the ongoing costs once you have filed for an LLC. Here are the involved costs that you need to know.

Biennial Report Filing Fee

To keep your LLC in good standing, you must file Biennial Report with the Indiana Secretary of State. The Biennial Report provides updated information about your LLC, such as changes in address, members, or Registered Agent.

In Indiana, the Biennial Report fee costs $0 because it is not mandatory which can be paid every 2 years.

Franchise Tax or Annual LLC Tax

Some states require LLCs to pay an annual franchise or LLC tax, separate from the Biennial Report filing fee. Franchise tax, or annual tax, is a fee imposed by Indiana on businesses, including LLCs and Indiana Corporations, for the privilege of operating within their jurisdiction. This tax is separate from income taxes and is usually based on factors such as the company’s net worth, assets, capital, or a fixed dollar amount, depending on the Indiana’s specific tax regulations.

Indiana LLC Taxes To Be Paid

The State of Indiana is one of those rarest states in the United States that does not levy any personal income tax on businesses. However, the business LLCs must file other taxes with the State authorities.

  • Sales Tax: A sales tax is a government-imposed tax on the sale of goods and services. It is generally added to the price of a product or service at the point of sale and paid by the consumer. The tax is collected by the retailer or service provider, who then remits the collected tax amount to the relevant government authority. In Indiana, the sales tax rate is 7.00%.
  • State Income Tax: Considering other taxes in Indiana, you should pay for the state income tax, with a rate of 4.90%.
  • LLC Federal Self-Employment Tax: Federal self-employment tax rates are the same across all states. Self-employment taxes are imposed on self-employed individuals or members of a Limited Liability Company (LLC) taxed as a sole proprietorship or partnership.
  • Property Tax: The property tax is fixed at 0.87% of industrial, commercial, residential, agricultural, and all other properties.

Business Licenses and Permits

Depending on the nature of your Indiana business and the location of your operations, you may need to obtain permits and business licenses in Indiana. The costs of these licenses and permits will vary based on your specific business and location. In Indiana, the business license ranges from $50 – $300. However, research the requirements for your LLC in Indiana and budget for these expenses accordingly.

Optional LLC Costs

Here are the optional costs you must consider if you will form an operating agreement or hire a professional service.

Operating Agreement

Although not required by law, it is highly recommended that LLCs create an operating agreement in Indiana. This document outlines the LLC’s ownership structure, management, and operating procedures. Hiring a business attorney to draft an operating agreement can cost anywhere from $500 to $2,000, or you can use online resources and templates to create one yourself.

Professional Services

You may hire professionals such as attorneys, accountants, or business consultants to help you establish and run your Indiana LLC. These services can provide valuable expertise and guidance but come at an additional cost. Consider the potential benefits and weigh them against the costs when hiring professional assistance.

You may check out the Best Business Attorney Services in Indiana that offer their professional services to form your business.

Can I Set Up an LLC For Free?

It’s impossible to set up an LLC entirely for free, as state filing fees and other costs are associated with establishing an LLC. However, you can save money by handling the formation process instead of hiring a professional service. Here are some steps to help you minimize the cost of setting up an LLC:

  • Choose your LLC’s name and check for availability in your state. This can generally be done through the Secretary of State’s website.
  • Prepare and file the Articles of Organization yourself. Indiana offer an online filing option or downloadable forms on their websites. By completing this process independently, you can avoid paying additional fees for a professional service.
  • Act as your own Registered Agent if permitted within Indiana. It allows the business owner to serve as the Registered Agent, saving you the cost of hiring a professional registered agent service.
  • Create your own Operating Agreement using online resources and templates. Although not required in every state, an Operating Agreement is highly recommended to outline your LLC’s ownership structure and management. By drafting this document yourself, you can save on legal fees.
  • Research and apply for any required licenses and permits on your own. Depending on your business type and location, you may need specific permits or licenses. These costs can vary, but handling the application process yourself can save you the expense of hiring a professional service.

While you can’t set up an LLC for free, taking a do-it-yourself approach and minimizing the use of professional services can help you save money during the formation process. However, handling these tasks requires time and effort, and there may be additional legal or financial risks if mistakes occur.

FAQs

What is the cost of filing an LLC in Indiana?
The cost to file an LLC in Indiana is $100.
How long does it take to form an LLC in Indiana?
The processing time for LLC formation in Indiana is typically 5-7 business days.
Can I file my LLC formation paperwork online in Indiana?
Yes, the Indiana Secretary of State allows online filing of LLC formation documents.
Do I need to hire a lawyer to form my LLC in Indiana?
No, Indiana law does not require that you hire a lawyer to form an LLC. However, consulting with a lawyer may be helpful.
What is the Annual Report fee for an LLC in Indiana?
The Annual Report fee for an LLC in Indiana is $31.
How often do I need to submit an Annual Report for my Indiana LLC?
LLCs in Indiana need to submit an annual report every year by April 15th.
What is the cost to amend my LLC’s Articles of Organization in Indiana?
The cost to amend your LLC’s Articles of Organization in Indiana is $30.
Can I change the name of my LLC after I’ve formed it in Indiana?
Yes, you can change the name of your LLC in Indiana by filing an Amendment of Articles of Organization.
Is there a publication requirement when forming an LLC in Indiana?
No, there is no publication requirement when forming an LLC in Indiana.
How long do Indiana LLCs last?
Indiana LLCs do not have a predetermined life span and can operate indefinitely or until dissolved.
Do I need to file a DBA if I’m using a different name than my LLC’s name in Indiana?
No, DBAs are not required in Indiana.
What is the cost to obtain an Employer Identification Number (EIN) for my Indiana LLC?
There is no cost to obtain an EIN for your Indiana LLC.
Can I use a registered agent service for my Indiana LLC?
Yes, you can use a registered agent service for your Indiana LLC.
What is the cost to change my Indiana LLC’s registered agent?
The cost to change your Indiana LLC’s registered agent is $30.
Can I be my own registered agent for my Indiana LLC?
Yes, you can act as your own registered agent in Indiana.
What is the cost of dissolving my Indiana LLC?
The cost of dissolving your Indiana LLC is $10.
Can I reinstate my Indiana LLC after it has been administratively dissolved?
Yes, you can file for reinstatement for up to five years after dissolution by filing the appropriate forms and fees.
Can I form a multi-member LLC in Indiana?
Yes, Indiana allows for the formation of both single-member and multi-member LLCs.
Is there a minimum membership requirement for forming an LLC in Indiana?
No, there is no minimum membership requirement for forming an LLC in Indiana.
Can a non-resident form an LLC in Indiana?
Yes, non-residents can form LLCs in Indiana as long as they file the necessary paperwork and fees.
Can an LLC be taxed as an S corporation in Indiana?
Yes, an LLC may elect to be taxed as an S corporation in Indiana.
What is the cost to convert my Indiana LLC into a Corporation?
The cost to convert your Indiana LLC into a Corporation is $100.
Is a business license required to form an LLC in Indiana?
No, a business license is not required to form an LLC in Indiana.
Do Indiana LLCs have to file for an Indiana state tax ID number?
Indiana LLCs do not have to file for a state tax ID number unless they have employees or owe state taxes.
What is the filing fee for a foreign LLC to operate in Indiana?
The filing fee for a foreign LLC to operate in Indiana is $150.
What is the cost to register my LLC’s name as a trademark in Indiana?
The cost to register your LLC’s name as a trademark in Indiana is $50.
Is an operating agreement required for Indiana LLCs?
No, an operating agreement is not required for Indiana LLCs, but it is recommended to have one.
Can I register my Indiana LLC to do business in other states?
Yes, you can register your Indiana LLC to do business in other states by filing a foreign registration in that state.
Is there a deadline to file my Indiana LLC’s Annual Report?
Yes, Indiana LLCs must file their Annual Report by April 15th each year.
What are the LLC costs in Indiana?
LLC formation in Indiana costs $95.
What is the process to form an LLC in Indiana?
To form an LLC in Indiana, you have to file the Articles of Organization with Indiana’s secretary of state.
What will I need to file to start an LLC in Indiana?
Before you can form an LLC in Indiana, you need to file the Articles of Organization form.
How much does it cost to file the Articles of Organization form for an LLC in Indiana?
Filing the Articles of Organization form costs $95 in Indiana.
Can I use my own name for my LLC in Indiana?
In Indiana, you must include some form of “LLC” or “limited liability company” in your company’s name.
What are the annual fees associated with an LLC in Indiana?
The State of Indiana has an annual report fee of $30 for all LLCs in the state.
Do I need to file an annual report for my LLC in Indiana?
Yes, all LLCs registered in Indiana are required to file an annual report with the Secretary of State.
What is the minimum number of members required to start an LLC in Indiana?
Indiana LLCs can be formed with only one member.
Do I need a Registered Agent when forming an LLC in Indiana?
Yes, all Indiana LLCs need a Registered Agent—one who can receive legal documents on behalf of the LLC.
Can an LLC be dissolved in Indiana?
Yes, LLCs can be dissolved in Indiana by filing Articles of Dissolution with their records office.
What’s the minimum age required to form an LLC in Indiana?
Any entity, regardless of its owner’s age, can form an LLC in Indiana.
What is the filing fee for reinstating an LLC in Indiana?
The reinstatement fee for an LLC in Indiana is $95 in addition to any outstanding annual report and business entity report fees.
What is the Indiana Business License Fee?
Indiana does not have a general trade or business license. Certain Indiana industries require licensure, but that is independent of the LLC formation process.
Can I form an LLC online in Indiana?
Yes, formations in Indiana one can be done online via the Secretary of State’s website.
Is there an expedited process for forming an LLC in Indiana?
Yes, the Secretary of State offers a same-day expedited processing time for an additional fee of $25.
Is Indiana an attractive state for forming an LLC?
Yes, Indiana is great state for business formation thanks to the simplicity of its procedures and affordable costs.
Are there any additional taxes on LLCs in Indiana?
Certain LLCs in specialized industries—in scientific research, for example—are subject subject to certain state taxes and fees.
What is a Certificate of Good Standing in Indiana?
A Certificate of Good standing is issued by Indiana Secretary of State that confirms the business is licensed to conduct business within the State.
How do I get a Certificate of Good Standing for my LLC in Indiana?
You can obtain a Certificate of Good Standing via email or mail to the Secretary of State’s office.
Is there a late delivery or penalty charge for missing Indiana’s annual report filing?
A $30 penalty is incurred for missing the Indiana annual report deadline, and the LLC no longer is considered to be in Good Standing.
What happens to an Indiana LLC that is not in Good Standing?
LLCs risk having their company dissolved by the State if they do not present their missing annual report(s) within 216 calendar days from their individual June 30th yearly due dates.
Can I change the name of my LLC in Indiana after it’s registered?
Yes, LLCs can modify their name in Indiana by revising their registration via the Secretary of State’s office.
How do I change the name of my LLC in Indiana?
To modify an LLC’s company name name in Indiana, a form must be filed via the Secretary of State’s office outlining the name change.
How to verify if the company name we’re going to form an LLC with in Indiana is already not taken?
Indiana provides a free online Entity Search Tool that allows you to verify if your proposed company name is accessible.
How is my Indiana LLC taxed by the state?
The State of Indiana does not offer LLC-level taxes; instead, Indiana LLCs’ income is subject to the standard state and federal income taxes.
Are LLCs formed outside Indiana permitted to carry out businesses in Indiana?
Yes, list as an out-of-state business entity permitted to make choices with many states.
How is an LLC member taxed in Indiana?
If an LLC selects corporate treatment, from an income tax point technically, the entity is the Indiana taxpayer should cover corporate income versus individual income tax rates.
Is it necessary to register my out-of-state LLC in Indiana to do business in Indiana?
A foreign LLC capable of carrying out activities in Indiana is required to verify themselves to authorize business registration with Indiana’s Secretary of State to operate within the state of Indiana.

Also Read

How to Save Money While Starting Your Business LLC in Indiana

One of the first steps in saving money while starting your LLC in Indiana is to do thorough research and explore all available resources. There are numerous online guides and resources that can provide valuable information on how to navigate the process of forming an LLC in Indiana. Educating yourself on the requirements and costs involved can help you make informed decisions that will ultimately save you money.

Another key aspect of saving money when starting your Indiana LLC is to avoid unnecessary expenses. Before making any purchases or commitments, it is essential to carefully evaluate whether each expense is crucial to the success of your business. It can be tempting to invest in fancy office spaces or expensive equipment, but it is important to prioritize your spending and focus on the essentials that will help your business grow.

Networking and building relationships with other business owners can also be a valuable way to save money while starting your Indiana LLC. By connecting with fellow entrepreneurs and seeking advice from those who have been through the process before, you can gain insights on cost-saving strategies and learn from their experiences. Additionally, networking can not only open doors to potential partnerships and collaborations but also provide access to valuable resources and services at discounted rates.

Taking advantage of online tools and resources can also help you save money when starting your LLC in Indiana. From accounting software to marketing platforms, there are numerous digital tools available that can streamline processes, automate tasks, and reduce the need for expensive services. By utilizing these online resources, you can save both time and money while efficiently managing your business operations.

Furthermore, it is crucial to continuously monitor your expenses and look for areas where you can cut costs. By regularly reviewing your financial statements and budget, you can identify unnecessary expenditures and make adjustments to ensure that your business remains financially sustainable. Additionally, negotiating with suppliers, vendors, and service providers can help you secure better deals and reduce operating costs.

In conclusion, starting a business LLC in Indiana can be a challenging and costly endeavor, but there are plenty of ways to save money and effectively manage your finances. By conducting thorough research, avoiding unnecessary expenses, networking, utilizing online tools, and monitoring your expenses, you can set your business up for long-term success. With careful planning and a frugal mindset, you can navigate the financial challenges of starting your Indiana LLC and pave the way for a bright and prosperous future.

Conclusion

Forming and maintaining an LLC in Indiana involves various costs, including initial filing fees, ongoing annual report fees, and taxes. Understanding and planning for these costs is essential when establishing your LLC. Additionally, consider any optional expenses, such as hiring professional services or drafting an operating agreement, to ensure the success and longevity of your LLC in Indiana.

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