Indiana LLC vs Corporation — Flexibility vs Structure
Both provide liability protection in Indiana, but differ in governance, taxation, and flexibility. Indiana charges identical fees ($95 formation, $32 biennial report) for both. The difference is operational. For LLC formation, see how to form an Indiana LLC.
Quick Comparison
| Factor | Indiana LLC | Indiana Corporation |
|---|---|---|
| Formation fee | $95 | $95 |
| Biennial fee | $32 | $32 |
| Default taxation | Pass-through | C-corp (double tax) |
| Indiana corporate tax | N/A (pass-through) | 4.9% entity level |
| Management | Flexible (operating agreement) | Board + officers required |
| Meetings required | None | Annual shareholder meeting |
| Profit distribution | Flexible | Pro rata by shares |
| Raising capital | Add members | Issue stock |
When LLC Wins
- Small business with fewer than 10 owners
- Flexible profit allocation needed
- Minimal compliance burden desired
- Service businesses, real estate, consulting
- No plans to go public
When Corporation Wins
Ready to get started?
Get Started- Seeking venture capital
- Planning IPO
- Multiple investor classes needed (preferred stock)
- Employee stock options (ISOs)
- Large number of owners
FAQ
Can an Indiana LLC convert to a corporation?
Yes. Indiana allows statutory conversion. File with the Secretary of State through INBiz.
Same fees?
Yes. Both $95 to form and $32 biennially.