When you form your LLC in Indiana, you’ll have to pay certain costs to officially register your business with the state.
In addition to formation and ongoing costs, there will be business expenses like using a registered agent service, building a website, getting business insurance, and so on. So, how much does an LLC cost in Indiana?
In this guide, we break down the costs associated with forming your LLC, from the Indiana LLC filing fee to LLC upkeep prices and other business expenses.
Cost of Forming an LLC in Indiana
When forming your LLC, there are a few different costs that you may incur. These include the filing fee, LLC formation service cost, operating agreement draft, and registered agent costs.
Indiana LLC Filing Fee
To form your LLC in Indiana, you must file the Articles of Organization with the Indiana Secretary of State’s Business Services Division. The filing fee, sometimes referred to as the “state fee,” is $95 online and $100 by mail.
If you elect to have an LLC formation service file your paperwork for you, you will pay their service fee on top of the $95+ state fee. These service fees start around $29 and increase with each additional service you purchase.
Recommended ServiceMost people choose to use an LLC formation service to create their LLC. The cost is low and they guarantee that your filing is done correctly. Check out our #1 rated LLC service:
Northwest Registered Agent ($29 + state fees)
For more details on the formation process, check out our Indiana LLC Formation guide.
Indiana Registered Agent and Registered Office
When forming your Indiana LLC, the state will also require you to appoint a registered agent. Agents can be any individual or entity available to accept mail during normal business hours. Registered agents are important because they are responsible for receiving critical business documents including correspondence from the government, tax forms, and legal documents. You can elect to hire a registered agent service, which costs $130 or more annually.
Your registered agent can be:
- A registered agent service (most common)
- Yourself (not recommended)
- Another member of the LLC
- A business attorney
Indiana LLC Operating Agreement
An operating agreement is an important business document that defines the roles and responsibilities of your LLC’s members or managers. This transparency ensures everyone knows their role and can help prevent future disputes. While LLCs are not required to file this document with the Indiana Secretary of State’s Business Services Division, experts recommend keeping one on file.
Since there’s no state filing fee for this paperwork, the only potential expense you face is in the drafting of the document. Many single member and simple multi-member LLCs elect to create their own operating agreement.
To reduce costs, consider using a free operating agreement template or document builder. Doing so takes your total cost to $0.
Optional Indiana LLC Formation Costs
Along with the fees associated with forming an LLC, there are several optional LLC formation costs that you may encounter.
- Reserve a Name for Your LLC -Before you register the name of your new Indiana LLC, you will first need to confirm the name is unique and available by doing a business name search. The application fee is $10, and reservations are good for 120 days.
- Doing Business As (DBA) Name – If you plan to operate your business under a different name than your LLC’s, you will need to file DBA paperwork with the Secretary of State. In Indiana, DBAs are referred to as assumed names. The online filing fee is $20. Mail-in filing fees are $30.
- Certified Document Copies – To confirm that the paperwork on file with the state is accurate, you can request a certified copy of your business paperwork. In Indiana, this is called a Certificate of Fact. The fee for requesting a Certificate of Fact is $15.
- Certificate of Existence– A Certificate of Existence, sometimes known as a Certificate of Good Standing, serves as verification that an LLC is authorized to do business in Indiana. Many banks and lenders require this document. The fee for requesting a Certificate of Existence is $30.
Indiana LLC Cost and Fees Over Time
There are a few things you need to address to keep your LLC in good standing with the state year after year. Each of these comes with costs and fees.
Biennial LLC Fee Indiana
Unlike some states, Indiana does not require an annual report filing or assess an annual franchise tax. You will, however, be required to file a Business Entity Report with the Secretary of State every two years. The filing fee for this report is $32 for online filings and $50 for mail-in reports.
Business Entity Reports are due by the end of your LLC’s anniversary month and must be filed every two years.
Note:Indiana does not assess a penalty for late payments. However, failure to comply could result in the dissolution of your LLC.
Registered Agent Fee
If you use a professional registered agent service, you will pay their fee annually. Pricing will depend on the service provider that you use, but usually costs around $130/year. Using a registered agent service will save you time and the hassle of handling important legal documents and filings for the long term.
If you act as your own registered agent there are no maintenance fees. However, for privacy and compliance purposes, we don’t recommend being your own registered agent.
General Costs of Running a Business
Operating a business will obviously come with more than just LLC costs. These are a few of the expenses that you may run into.
Business Bank Account
An LLC separates your personal assets from your business assets. This separation is called the corporate veil. That corporate veil ensures that if your business is sued or incurs debts, your personal assets will be protected from any liabilities.
Commingling (mixing) your personal bank account with your business can pierce your LLC’s corporate veil, which means you are no longer protected by the separated entity of your LLC.
Using a separate bank account to accept payments and pay business expenses is the only way to prevent commingling funds and piercing the corporate veil.
Business Permits and Licenses
Depending on the type of business you operate, your business may need the proper permits and licenses to legally operate in Indiana.
Alongside the permits required, your business may require industry-specific licenses to operate legally. Examples include licenses like the Indiana real estate license, Indiana insurance license, Indiana adjuster license, and so on.
Every business needs a website. There’s no better way to get in front of your customers, build your brand, and grow your business.
Fortunately, the cost and difficulty of creating a business website have come down over the years. Websites are now simple to build and cheap to keep up.
Having the proper insurance coverage can potentially save your entire business if there is a loss, accident, or lawsuit.
A few of the most common business insurance policies include:
- General liability insurance – Protects against claims of personal injury, physical injury, property damage, and more. This is the most common of all business insurance policies. Learn more about general liability insurance.
- Professional Liability Insurance – Protects against claims of inaccurate or negligent work. It’s most common in the “professional” space where businesses offer services or advice to other businesses or consumers. Learn more about professional liability insurance.
- Commercial Workers’ Compensation Insurance – This type of insurance protects your employees from on-the-job injuries or illnesses. This coverage is required if you have one or more employees. Learn more about Workers’ Compensation insurance.
The cost of business insurance varies widely based on business type, size, location, and other factors. Getting a quote is the only way to understand the actual cost of insurance for your LLC.
LLC Cost in Indiana FAQ
Do you have to pay ongoing fees for an LLC every year?
Indiana requires LLCs to file a biennial Business Entity Report. The filing fees are $32 online and $50 by mail.
What’s the cheapest way to form an LLC?
The least expensive way to form an LLC is to file it yourself. The best LLC formation services start around $29. You’ll need to pay the state filing fee in either scenario. Check out our How to Start an LLC in Indiana guide to learn how to form on your own.
Can you start a Indiana LLC for free?
No. All applicants must pay the state filing fee to start an Indiana LLC. The filing fee is $95 online and $100 by mail.
How much does a registered agent cost?
Do I need to pay a franchise tax for my Indiana LLC?
No. The State of Indiana does not collect a franchise tax from businesses operating in the state.
How much does an LLC formation service provider cost?
It depends on the LLC formation company you choose. We recommend Northwest Registered Agent, which starts at $29, plus the $95+ state fee, and includes the first year of registered agent services for free.
Information on this page is not to be considered legal or tax advice. Data was gathered from a multitude of sources and most recently updated in September 2022.
Any Information on this site is not guaranteed or warranted to be correct, accurate, or up to date. StateRequirement and its members and affiliates are not responsible for any losses, monetary or otherwise. StateRequirement is not affiliated with any state, government, or licensing body. For more information, please contact your state's authority on insurance.
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