Having an idea is the first phase in starting a business, and before opening your doors, there’s some paperwork to tackle. Unsure which forms to file or which agencies to contact? You’re not alone. Registering your business in Indiana involves several steps, and many entrepreneurs find themselves lost.
To help you get through this stage, our guide breaks down the Indiana business registration process into manageable steps so you can focus on bringing your business vision to life.
Related: Starting A Business In Indiana Checklist
Step 1: Choose a Business Structure
Selecting a business structure is your first decision when registering a business in Indiana. This choice shapes your company’s legal organization, affecting everything from personal liability to tax obligations. Let’s explore the four common types of business entities in Indiana:
Related: Comparison of Business Structures
Sole Proprietorship
- Definition: A business owned by one person, with no legal separation between the owner and their business.
- Pros: Simple to start, low cost, full control as it isn’t registered with the state (with the possible exception of the name).
- Cons: Personal liability for business debts and legal issues.
How to Start a Sole Proprietorship in Indiana
General Partnership
- Definition: Similar to a sole proprietorship, but has two or more individuals sharing management, profits, and liabilities.
- Pros: Easy to form, shared responsibilities.
- Cons: Each partner bears personal liability for the business.
Corporation
- Definition: A separate legal entity owned by shareholders.
- Pros: Limited liability protection and ability to issue stocks.
- Cons: More complex formation and ongoing compliance requirements.
- Key Features: Requires a board of directors, annual meetings, and more administrative tasks that all of the other types.
How to Form an Indiana Corporation
Limited Liability Company (LLC)
- Definition: A hybrid entity combining elements of corporations and partnerships/sole proprietorships.
- Pros: Limited liability protection, tax flexibility, fewer formalities than corporations.
- Cons: More complex than sole proprietorships or partnerships.
Each structure has its own registration requirements. While sole proprietorships and partnerships don’t need formal registration to start, corporations and LLCs must file with the Indiana Secretary of State.
Step 2: Assumed Business Name Registration
After choosing your business structure, the next step for sole proprietorships and partnerships is often registering a business name. If a sole proprietor or partnership wants to use a business name that’s not the full legal name of the owner(s), they’ll need to register for an Indiana Assumed Business Name (ABN) (also commonly known as a Doing Business As (DBA), Trade Name, or Fictitious Business Name) with the County Recorder’s Office in the county where your business is located.
Assumed names can’t be the same as other business names in the state. To check and see if your name is available, you can do an Indiana business name search on the Indiana Secretary of State website.
Step 3: Federal Employer Identification Number (FEIN)
A Federal Employer Identification Number (EIN) is a unique nine-digit number that the Internal Revenue Service (IRS) uses to identify a business.
Do you need an EIN? You do if:
- You have employees
- Your business is a corporation, partnership, or multi-member LLC
A sole proprietorship or single-member LLC with no employees will use the owner’s social security number by default but can register for a FEIN if they want to.
Getting an EIN is free and easy to get. You can apply online at the IRS website. It only takes a few minutes. You can also apply by mail or fax using Form SS-4, but this takes longer.
Step 4: Occupational Licensing
In Indiana, some businesses need special licenses or permits to operate legally. In fact, there are over 400 different professions and business types that are required to have licensing through the Indiana Professional Licensing Agency. A few common types of businesses that are licensed include:
- Home inspectors
- Interior designers
- Manicurists
- Plumbers
- Accountants
- Real estate agents
- Nurses
- Teachers
- And many more
In addition to the professions licensed by the Indiana Professional Licensing Agency, there are professions and businesses that are required to be licensed as well. Some examples include:
- Food establishments (restaurants, food trucks, bakeries)
- Childcare facilities
- Salvage recyclers
- Pharmacies
- Alcohol retailers
- Construction companies
How to Determine if You Need a License
- Check with the Indiana Professional Licensing Agency (IPLA): This is your main resource for most professional licenses.
- Research your specific industry: Some licenses are handled by other state agencies.
- Consult local authorities: Some licenses or permits may be required at the county or city level.
Step 5: Indiana Registered Retail Merchant Certificate
If you’re planning to sell products or offer certain services in Indiana, you’ll likely need to obtain a Registered Retail Merchant Certificate (also commonly known as a sales tax permit). Businesses that need to register include those that:
- Sell physical products (in-store or online)
- Offer certain services that are subject to sales tax
- Operate as a wholesaler
- Make regular sales at trade shows or similar events in Indiana
To apply, complete the Business Tax Application (BT-1). This form can be filed online through the Indiana Department of Revenue’s INBiz portal.
How to Apply for an Indiana Retail Merchant Certificate
Step 6: Resale Certificate
After obtaining the Registered Retail Merchant Certificate, the next step for many businesses is to acquire an Indiana Sales Tax Exemption Certificate. This certificate lets your business purchase inventory or materials without paying sales tax. It’s based on the principle that the end consumer should be the one paying sales tax, not intermediary businesses.
Who Needs It?
- Retailers purchasing inventory for resale
- Wholesalers
- Manufacturers buying raw materials or components
- Service providers who incorporate products into their services
Step 7: Local Business Licenses
While Indiana doesn’t have a general state-wide business license, many cities and counties have their own licensing requirements. These local regulations can vary significantly depending on your location and the nature of your business. Here are some examples:
Indianapolis: The Department of Business and Neighborhood Services requires licenses for alarm companies, businesses with five or more coin-operated machines, pet groomers, massage businesses, and others.
Fort Wayne: Licenses are required for kennels, home-based businesses, alcohol sellers, and more. Check with the City of Fort Wayne’s Planning & Policy department for details.
Evansville: The Evansville City Clerk’s office handles most business licenses, such as for street vendors, precious metal dealers, and certain other businesses.
South Bend: Registration is required for pet shops, alarm installers, and restaurants. Contact the City of South Bend’s Department of Community Investment for more information.
Bloomington: The City of Bloomington’s Housing and Neighborhood Development department oversees many business licenses, such as childcare providers, pawnshops, taxis, etc.
In some areas, home-based businesses are required to be licensed as well. Be sure to contact your local city or county government offices to learn whether your business needs to be licensed.
Step 8: Local Building & Zoning Permits
In addition to business licenses, you may need building and zoning permits. These ensure your business complies with local land use regulations and building codes.
Building Permits:
- Required for new construction, renovations, or significant changes to an existing structure.
- Typically, it involves submitting plans for review and inspections during and after construction.
Zoning Permits:
- Ensure your business activity is allowed in your chosen location.
- It may involve a review process, especially if you’re changing the use of a property.
Certificate of Occupancy:
- Often required before you can open for business in a new or renovated space.
- Certifies that your building is safe and complies with all relevant codes.
These requirements vary by location, so contact your local city or county government offices to learn about specific requirements for your area and type of business. Also, if you are considering operating out of a commercial facility, plan ahead because building and zoning permits can take time to obtain. Factor this into your business launch timeline.
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