Considering how Indiana ranked as the best business-friendly state in the Midwest, it’s not surprising why entrepreneurs are eager to register their company under its jurisdiction. While its tax environment could be enticing, tracking mandatory expenses is a tough challenge. Lucky for you, our trade experts will discuss all Indiana LLC fees to keep you well-informed and updated.
Formation Costs for an Indiana LLC
Business Name Reservation
Although not a required procedure, business name reservation is helpful for instances that you’re not yet ready to file your articles of organization right away. This application could only be requested online, and you’ll have to pay $20 to gain exclusive rights on the said LLC name.
Technically, your chosen trade label could be claimed upon submitting the LLC formation documents, given that it’s not similar to other entities. So if you don’t have prior engagements hindering your registration, our business enthusiasts suggest skipping this step and proceed to official submission.
Articles of Organization
One of the major filings and costly Indiana LLC fees you have to pin in your business budget is the submission of your articles of organization to the Secretary of State. Your company would not exist as a legal entity until these formation documents have been processed successfully.
You can file your articles of organization online via the SOS website [1] or send the hard copy through their mailing address. Either way, you have to settle a $100 one-time filing fee.
Operating Agreement
Upon the formation of your LLC, we can assure you that any business specialist would agree to the fact that you need to craft an operating agreement. This internal document consisting of regulations and ownership rights could help greatly in managing the company.
Typically, you can customize operating agreements according to your terms for free. However, with its legal influence on the entire business structure, we highly recommend seeking professional assistance.
EIN Registration
Besides processing your formation documents, another step to legalize your business is applying for an Employer Identification Number (EIN) from the IRS. This nine-digit code is more often than not required in bank transactions and tax filings. Luckily, you can request it online without any charges.
Registered Agent
As a role solely dedicated to managing your state documents, electing yourself as a registered agent could pose non-compliance risks if the obligations aren’t handled professionally. You have the option to hire commercialized registered agent services, and their prices could range from $0 – $300.
Business License/s
The licenses and permits your business may need to commence operation widely vary depending on the nature of the transactions your company engages in. Keep in mind that there are different requirements and standards set by the locale, state, and federal governments, so it’s best to check with the licensing sources first.
Other Taxes
Like most states, Indiana considers LLCs as pass-through entities. This taxation classification meant that you wouldn’t be imposed with corporate income taxes. Instead, your profits and losses will be reported on your members’ returns. Other taxes like sales and withholding tax depends on your business activities.
Foreign LLC Registration
Unlike domestic LLCs, foreign businesses wanting to operate in Indiana must submit a “Foreign Registration Statement” and settle a qualification fee of $105 for online processing and $125 for paper applications.
(If you prefer online providers, we also have prepared a list of top online incorporation service here)
LLC Formation Services (Optional)
With many requirements to fulfill along with all business planning, it’s pretty understandable why many owners opt to hire outstanding LLC formation services. These providers will do all the legwork for you accurately and swiftly, but you have to allocate a budget amounting to $0 – $300 monthly or annually.
Indiana Annual LLC State Fees
Biennial Report
While many other states require companies to submit annual reports, Indiana imposes this requirement every two years. This submission must be made on or before your LLC’s anniversary date. Each filing costs $50 for hard copy application and $32 for online payment.
Overall Costs
Excluding the expenses on business-specific requirements like licenses, permits, and taxes, the overall estimated cost of forming and maintaining an LLC in Indiana ranges around $132 to $150 for domestic entities and $137 to $175 for foreign businesses.
FAQ
How much does an LLC cost in Indiana?
An LLC in Indiana costs around $132 to $150 for domestic companies and $137 to $175 for foreign entities. This expenditure calculation will increase depending on the required licenses and permits your business needs and specific taxation classifications. Signing up for professional services also adds up to your overall costs too.
Conclusion
Reviewing all Indiana LLC fees may get you overwhelmed at first with the specific procedures and expenditures. Still, our trade specialists assure you that careful consideration of this guide could ease your new venture. Now that you’re well-informed, the next thing to do is to proceed with your registration process. Best of luck!
For more options, these cities also offer reasonable LLC costs and annual fees for your business, too:
