LLC Fees In Indiana: What Costs To Expect

Forming a limited liability company (LLC) in Indiana comes with many advantages.

Not only will it protect your personal assets from liability against the company’s debts and obligations, but it will also allow you to opt for pass-through taxation. Because of those, many new business owners choose this type of entity structure. However, you should also keep in mind that being a business owner comes with responsibilities. You will have to ensure compliance with state requirements. Some of them have corresponding fees. Knowing what LLC fees to expect can help you plan your budget.

Starting An LLC

Forming an LLC in Indiana requires you to register with the state, so you will have to follow a process and submit formal paperwork.

  •   Reservation Fee For Your Company Name

The state requires all LLCs to have distinguishable names. You have to make sure that no other business entity uses the name that you want. You can reserve your name with the state. Reservation is optional, so you can skip this step if you want. However, if you are worried that another entity might take your company name while you are still preparing your formation documents, it will be better to gain exclusive rights to it. For $10, the state will reserve the name of your choice for 120 days.

  • Filing Fee For The Articles Of Organization

The submission of the Articles of Organization is mandatory. It will legalize the existence and operations of your company in Indiana. You can either file it online or go for paper submission. If you do the former, you will have to pay $98. Meanwhile, paper submissions cost $100.

  • Business Licenses And Permits

Depending on your business activities, you may need to obtain certain business licenses and permits. The costs will vary based on the type. You may need to check with your city, municipal, and county governments as well as state agencies to see if you need to secure any. Among the most common licenses and permits  in Indiana are for the following:

  • City business
  • Tax
  • Building
  • Health
  • Occupational
  • Signage
  • Alarm
  • Zoning
  • Alcohol and tobacco
  • Liquor
  • Sales and use tax
  • Seller or reseller
  • Ongoing Compliance

LLC fees do not end once you complete the registration process. Indiana LLCs have to file biennial reports. You have to file one every other year. The deadline will be at the end of the same month when you formed your company. You can also file online or in paper form. The online option costs $32, while the paper form requires you to pay $50.

  • Taxes

Generally, the federal government applies pass-through taxation to LLCs, so the members have to file their profits on their individual tax returns. Meanwhile, unlike other states, Indiana does not have franchise and privilege taxes. However, there may be some circumstances when a company needs to pay business-related taxes.

Check with the Department of Revenue if any of these apply to your LLC because you may have to register for Business Tax Application:

  • Sales tax
  • Withholding tax
  • Food and beverage tax
  • Innkeeper’s tax
  • Motor vehicle rental tax
  • Prepaid fuel tax
  • Tire fee
  • Heavy equipment rental tax
  • Safety fee
  • 911 fee
  •       Registered Agent

All Indiana LLCs need to appoint a registered agent. Failure to do so can lead to penalties or legal issues. It may also cause your company to lose its good standing status with the state. Depending on who you choose, you may need to include payment for a registered agent in your budget.

Here are the requirements for a registered agent in Indiana:

  • If you choose an individual, they have to be at least 18 years old with a physical street address in Indiana.
  • If you appoint a third-party organization, it has to be authorized to transact in Indiana.
  • Your registered agent should also be available during normal business hours.

Generally, the registered agent is the state’s point of contact for any communications related to your LLC. They receive legal documents on behalf of your company. Those include services of process or any documents related to lawsuits, tax documents, and compliance files.

While appointing a member or a friend as a registered agent can help you save money, it may be better to hire an experienced third-party organization like DoMyLLC. This way, you can be sure that your registered agent is knowledgeable about the compliance requirements in the state, thereby reducing the chances of losing your good standing status.

Consequences Of Not Paying The Required LLC Fees

While there are optional expenses, you will have to make sure that your company pays all the required LLC fees in Indiana. Missing any of these necessary fees and taxes can put your LLC in delinquent status. Being in that position long enough can lead to administrative dissolution.

When that happens, your company will not be able to get a Certificate of Existence or Good Standing. You may also not be able to continue transacting business in Indiana. You will have to undergo another process to bring back the good standing status of your company with the state and pay all of your obligations. 

Formation, Filing, And Business Compliance Services

As a business owner, you may be overwhelmed by the number of responsibilities that you have. The formation and filing processes in Indiana can be time-consuming and a bit complicated. If you want hassle-free transactions, it may be best to get the services of a third-party organization like DoMyLLC.

Our team of experts can assist you with everything from formation to ongoing compliance. We have years of experience in handling business filings in all the 50 states in the country, so you do not have to worry about doing research and preparing documents. We can do all that for you. Additionally, we offer personalized solutions. We can customize our service to make sure it fits your company’s needs and circumstances. Contact the DoMyLLC team to learn more about our services and how your Indiana LLC can benefit from them.

Thinking about starting your business

Starting at $99 plus state fees