How To Start a Business in Indiana: 8 Easy Steps (2026)

Starting a business in Indiana takes several steps: First, you’ll choose a legal structure, name your company, and register it through INBiz. Next, you’ll need to get an EIN, open a business bank account, and secure any licenses and tax registrations required. In 2025, 95,847 new businesses opened online in the Hoosier State, up from 91,423 in 2024.

This guide explains the full registration process and the state rules that apply after launch.

Steps for starting a business in Indiana

Follow these eight steps to start a business in Indiana:

• Choose a business idea
• Name your business
• Create a business plan
• Choose a business structure and get started
• Obtain business licenses and permits
• Explore insurance options in Indiana
• Understand financial considerations
• Market your business

1. Choose a business idea

Indiana has 591,671 small businesses. They account for 99.4% of businesses in the state and employ 1.2 million workers.

When choosing your business idea, identify a customer problem you can solve, then research demand, competitors, and startup costs. This guide to developing a good business idea can help you assess your options. Test the idea with potential customers before investing heavily.

2. Name your business

Select a name that reflects what you sell and is easy to remember. Before committing, check its availability in Indiana and confirm that you can secure a matching domain name.

Indiana corporations, LLCs, LPs, and LLPs need names that are distinguishable from businesses of the same type already registered with the state.

How to search existing Indiana business names

Use Indiana’s Business Search tool to check your proposed name. Follow these steps:

1. Enter the name in the Business Name field.
2. Search the full name and its main words.
3. Review exact and similar results.
4. Check the status and entity type.
5. Repeat the search with alternative names.

Search results provide only a preliminary availability check. Indiana makes the final decision when it processes your filing. If you’re not ready to form the business yet, you can reserve an available name for 120 days.

Using a DBA in Indiana

A DBA, or “doing business as” name, lets a company operate under a name other than its legal name. For example, Chesuncook Holdings LLC could trade as Bob’s Flower Store.

LLCs, corporations, LPs, and LLPs submit an Assumed Name Filing through INBiz. Sole proprietors and general partnerships file with the county recorder in every Indiana county where they operate. Registering a DBA doesn’t create a separate legal entity.

3. Create a business plan

A business plan explains how your company will operate and make money. It can also help you estimate costs, set goals, and present the business to lenders or investors.

A business plan contains:

• Executive summary
• Company description
• Market analysis
• Organization and management details
• Planned products or services
• Customer segments
• Marketing plan
• Operations plan
• Financial plan

Use a free business plan template to organize your research. Reviewing business plan examples can help you decide how much detail to include.

4. Choose a business structure and get started

Business structure determines how the company is owned, taxed, and managed. The biggest difference is personal liability. 

Sole proprietors and general partners can be personally responsible for business debts, but LLC and corporate owners generally receive liability protection. 

Sole proprietorship

A sole proprietorship has one owner and is not legally separate from that owner. You don’t file formation documents with the Indiana Secretary of State. 

Business income appears on your personal tax return, and you are personally responsible for debts and lawsuits. This structure has the lightest state filing burden but offers no liability protection.

Partnership

A partnership has two or more owners. There are different types:

• A general partnership has no state formation filing, and each partner can be personally liable for its obligations. 
• A limited partnership protects limited partners but leaves general partners exposed. 
• An LLP can protect partners from business debts, though partners are still liable for their own misconduct.

Profits usually pass through to the owners’ tax returns. A written agreement can document how the partners share decisions and profits. Learn more about general and limited partnerships.

Limited liability company (LLC)

An LLC generally protects members’ personal assets from company debts and lawsuits. Forming an Indiana LLC costs $96 online or $100 by mail when you file Articles of Organization.

Members can manage the company directly or appoint managers. A single-member LLC is taxed as a sole proprietorship by default, and a multimember LLC is taxed as a partnership. An LLC fits owners who want liability protection with less corporate governance.

Corporation

A corporation is a separate legal entity owned by shareholders and overseen by a board of directors. It can issue stock and bring in investors, but it carries more record keeping and governance work. 

A C corporation pays federal corporate tax and Indiana’s 4.9% corporate adjusted gross income tax. Dividends may also be taxable to shareholders.

Corporations and eligible LLCs can elect S corporation status for federal tax purposes. The election generally passes income and losses through to the owners’ personal returns. It changes the company’s tax classification, not its Indiana legal structure.

To qualify, the business has to:

• Be a domestic corporation or eligible LLC
• Have 100 or fewer shareholders
• Use only eligible shareholder types
• Have no nonresident alien shareholders
• Issue only one class of stock

To elect S corporation status, file Form 2553 (Election by a Small Business Corporation) with the IRS and obtain consent from every owner. File by two months and 15 days after the tax year begins or during the preceding tax year. An eligible LLC can file Form 2553 directly and generally does not file Form 8832 (Entity Classification Election) separately.

Getting a federal employer identification number (EIN)

An EIN is a federal tax ID for a business. Corporations, partnerships, and small businesses with employees use one. 

Sole proprietors and some single-member LLCs can use the owner’s Social Security number for federal tax purposes, but an EIN can still help with banking and account setup.

Applying for an EIN through the IRS is free. Form an LLC or corporation with Indiana before submitting the application. 

US payment providers also use this information for verification. For example, Shopify Payments checks an EIN and registered business name for LLCs, partnerships, and corporations.

Incorporating in Indiana

If you’re researching how to register a business in Indiana, LLCs and corporations complete their formation through the Secretary of State. Complete these steps:

1. Confirm the business name. Search Indiana’s business records to check availability. File an assumed name separately if the company will use a DBA.
2. Appoint a registered agent. A registered agent is a person or company authorized to receive legal notices for the business. The agent needs an Indiana street address and must consent to the appointment.
3. File the formation document. LLCs file articles of organization, and corporations file articles of incorporation. Use the state’s business forms page for paper filings or submit the document through INBiz.
4. File biennial reports. The first Business Entity Report is due two years after formation. File every other year by the end of the company’s anniversary month. A for-profit business pays $32 online or $50 by paper. 

Failure to file reports every two years results in administrative dissolution or revocation. The business cannot conduct normal operations until reinstated, and the required tax clearance can take four to six weeks.

5. Obtain business licenses and permits

Indiana doesn’t issue a general statewide business license. Your profession, location, and sales activity determine which licenses or permits apply:

• State professional licenses. The Indiana Professional Licensing Agency licenses regulated occupations and facilities. Check the requirements for your profession before providing or advertising services.
• Local and county permits. Cities and counties set their own permit rules. Contact the local clerk or planning department where the business operates. Zoning and signage rules are local, and a home-based business may need home-occupation approval.
• Seller’s permit. Indiana calls its seller’s permit a Registered Retail Merchant Certificate (RRMC). Businesses selling goods or tangible personal property register to collect the state’s 7% sales tax and display an RRMC at every retail location.

Submit the BT-1 Business Tax Application through INBiz. The application can register the business for sales tax, withholding tax, and other applicable state tax accounts. The Indiana Department of Revenue issues the RRMC after approving the sales tax registration.

After adding the Indiana sales tax ID to Shopify, Shopify Tax can automatically calculate and collect sales tax at checkout. The business is responsible for filing returns and sending the collected tax to Indiana unless it enrolls in automated filing.

6. Explore insurance options in Indiana

Indiana mandates some insurance coverage, but many policies are optional. The Indiana Department of Insurance recommends reviewing these types:

• Workers’ compensation insurance. Most employers with employees need workers’ compensation coverage or approved self-insurance. Statutory exemptions apply.
• Unemployment insurance. Covered employers register with the Indiana Department of Workforce Development and pay unemployment insurance premiums.
• Commercial general liability insurance. This optional coverage can pay claims involving bodily injury, property damage, or advertising injury.
• Commercial automobile insurance. Business vehicles need liability coverage that meets Indiana’s minimum insurance limits. A personal auto policy may exclude business use.

Hiring also involves a separate reporting duty. Indiana employers need to report every newly hired or rehired employee electronically within 20 days through the Indiana New Hire Reporting Center.

7. Understand financial considerations

Open a dedicated business bank account before accepting payments. Keeping business and personal transactions separate simplifies bookkeeping and tax preparation. You can also add a business credit card and a payment provider for customer transactions.

Funding is another consideration. Many owners finance growth from several sources. According to the Shopify Survey of Store Owners (Business Strategy and Planning Survey), Q4 2025, 79% of merchants use profits to self-fund growth. Another 62% use outside funding in addition to self-funding.

The Indiana Economic Development Corporation has several funding programs:

• State Small Business Credit Initiative. For venture and debt capital.
• Capital Access Program. For loans issued by participating lenders.
• SBIR/STTR Grant Matching. For matching funds for qualifying federal awards.
• Manufacturing Readiness Grants. For funding for smart manufacturing technology.

The Indiana Small Business Development Center offers no-cost, confidential advising through 10 regional offices across the state. Its advisers help owners plan, finance, and grow their companies. The US Small Business Administration also offers loan, investment capital, disaster assistance, and grant information.

8. Market your business

Marketing and customer acquisition are major first-year hurdles. In Shopify’s Q4 2025 survey, marketing led the Year 1 challenges at 37%, with finding customers close behind at 36%.

An online store gives an Indiana business access to customers across the country. In the broader US retail market, ecommerce sales reached $340.2 billion in the second quarter of 2026. That was a 12.2% increase from the same quarter in 2025 and represented 17.1% of total retail sales.

Before you start marketing, create a recognizable brand identity, then launch an online store with detailed product pages, mobile-friendly checkout, and accessible shipping and return policies. 

Build your marketing plan around three jobs:

• Get found. Optimize product pages and educational content for search.
• Build demand. Publish relevant content on the social platforms your customers use.
• Retain customers. Collect permission-based email subscriptions and send targeted campaigns.

Paid search and social ads can supplement these channels. Start with a limited budget, then track conversion rate and customer acquisition cost before increasing spending.

This post is for information only. You are responsible for reviewing and using this information appropriately. This content doesn’t contain and isn’t meant to provide legal, tax, or business advice. 

Requirements are updated frequently and you should make sure to do your own research and reach out to professional legal, tax, and business advisers, as needed. Businesses outside of Indiana will have different steps and requirements. 

To sell products using the Shopify platform, you must comply with the laws of the jurisdiction of your business and your customers, the Shopify Terms of Service, the Shopify Acceptable Use Policy, and any other applicable policies.