Indiana LLC State Tax Obligations After Formation

Once formed, your Indiana LLC has ongoing tax obligations with the Indiana Department of Revenue (DOR). This page covers what you owe beyond the $32 biennial Business Entity Report. For the full tax breakdown, see our Indiana LLC tax guide. For all compliance, see our after-formation guide.

Your Tax Obligations

1. State Income Tax (2.95%)

Pass-through income taxed on members' Indiana returns (Form IT-40). Multi-member LLCs also file IT-65.

2. County Income Tax (1%-3.38%)

Based on member's county of residence. Paid as part of your IT-40 filing. Not optional.

3. Sales Tax (7%) — If Applicable

Register for Retail Merchant Certificate at intime.dor.in.gov. Collect 7% on taxable sales.

4. Withholding — If You Have Employees

Withhold state + county income tax from employee paychecks. Register at intime.dor.in.gov.

5. Unemployment Insurance — If You Have Employees

Register with Indiana DWD (Department of Workforce Development).

What Indiana Does NOT Charge

• No franchise tax
• No gross receipts tax
• No privilege tax
• No minimum entity-level tax

FAQ

Do I register with the DOR even without employees?

Only if you sell taxable goods (need Retail Merchant Certificate) or plan to make withholding payments. Otherwise, you report LLC income on your personal IT-40 without separate DOR registration.