Cost to Form and Maintain an Indiana LLC (2026)
This is the complete cost breakdown for forming and maintaining an LLC in Indiana. Indiana is one of the most affordable states for LLC maintenance thanks to biennial (every-2-year) reporting and no franchise tax. All fees current as of 2026.
Formation Costs (One-Time)
| Expense | Amount | Paid To | Notes |
|---|---|---|---|
| Articles of Organization (online) | $95 | IN Secretary of State | Through INBiz at inbiz.in.gov |
| Articles of Organization (mail) | $100 | IN Secretary of State | Paper filing to SOS office |
| Expedited processing (optional) | $50 | IN Secretary of State | 24-hour turnaround |
| Name reservation (optional) | $20 | IN Secretary of State | Holds name 120 days |
| EIN | Free | IRS | Apply at irs.gov |
| Assumed Business Name/DBA (optional) | $20 per county | County Recorder | If operating under different name |
| Our formation service (optional) | our service fee | Us | Includes state fee + RA + operating agreement |
Minimum to form: $95 (online filing, DIY, self as registered agent)
Ongoing Costs
| Expense | Amount | Frequency | Notes |
|---|---|---|---|
| Business Entity Report | $32 (online) / $60 (mail) | Every 2 years | Due in birth month (registration anniversary) |
| Registered agent (our service) | $99 | Annual | Billed annually, separate from formation |
| State income tax | 2.95% of income | Annual | Plus county income tax (1%-3.38%) |
| Indiana sales tax | 7% | Ongoing | If selling taxable goods |
| Business insurance | $500-$3,000+ | Annual | Varies by industry |
Minimum biennial maintenance: $32 (just the Business Entity Report every 2 years, or $16/year effective)
Indiana's Cost Advantage: Biennial Reporting
Ready to get started?
Get StartedIndiana files Business Entity Reports every 2 years instead of annually. This means:
- Year 1: No report due (too early)
- Year 2: $32 report due
- Year 3: No report due
- Year 4: $32 report due
- Effective annual cost: $16/year (vs. $25/year in Colorado, $300/year in Delaware, etc.)
How Indiana Compares
| State | Formation Fee | Annual/Biennial Fee | Franchise/Entity Tax | Effective Annual Cost |
|---|---|---|---|---|
| Indiana | $95 | $32/2 years | None | $16/year |
| Colorado | $50 | $25/year | None | $25/year |
| Ohio | $99 | $0 | CAT (gross receipts) | Variable |
| Illinois | $150 | $75/year | None (repealed 2024) | $75/year |
| Michigan | $50 | $25/year | None | $25/year |
| California | $70 | $20/year | $800 franchise tax | $820/year |
| Tennessee | $300 min | $300/year | $100 min F&E tax | $400/year |
Total Cost Projections
5-year cost comparison (LLC with moderate income, single state):
| Indiana | California | Tennessee | Ohio | |
|---|---|---|---|---|
| Formation | $95 | $70 | $300 | $99 |
| Annual/biennial fees (5 years) | $64 (2 reports) | $100 | $1,500 | $0 |
| Franchise/entity tax (5 years) | $0 | $4,000 | $1,500 min | Variable |
| Total 5-year state cost | $159 | $4,170 | $3,300 | $99+ |
Indiana's total 5-year state costs of $159 (formation + two biennial reports) are among the lowest nationally.
Hidden Costs to Watch
Ready to get started?
Get Started- County income taxes (1%-3.38%) — Not optional. Your county rate adds to the 2.95% state rate. Marion County (Indianapolis) is 2.02%; Hamilton County is 1.62%; Lake County is 1.5%.
- DBA/Assumed Business Name fees — Filed at the county level ($20 per county), not with the SOS
- City business licenses — Indianapolis, Fort Wayne, Evansville may require separate licensing
- Late report fees — Filing your Business Entity Report late triggers penalties and eventual dissolution
- Sales tax compliance — Indiana's 7% rate is straightforward (unlike Colorado's complex system), but you must register if selling taxable goods
FAQ
What's the cheapest way to form an Indiana LLC?
File online through INBiz (inbiz.in.gov) for $95. Handle the paperwork yourself and serve as your own registered agent. Total minimum: $95.
Why is the mail filing fee higher than online?
Indiana charges $100 for mail filings vs. $95 for online to encourage electronic filing through the INBiz portal. The $5 difference also reflects the administrative cost of processing paper.
Is the Business Entity Report tax-deductible?
Yes. The $32 biennial report fee is a deductible business expense on your federal return.
When is my first Business Entity Report due?
Two years from your formation date, during your registration anniversary month. Example: formed March 2025, first report due March 2027.
How much should I budget for the first year?
Simple single-member LLC: $95 (formation) + $99 (registered agent, or free with our service). No report due in year 1. Total: approximately $95-our service fee depending on service choice.