LLC Biennial Report and Tax Filing Requirements in Indiana

If you want to start a limited liability company (LLC), you need to make sure you follow the state's LLC requirements. If you'd like to start and run an Indiana LLC, you'll need to prepare and file various documents with the state, including a biennial report and business taxes. This article covers the most important ongoing reporting and state tax filing requirements for Indiana LLCs.

Indiana LLC Biennial Report

In Indiana, you must file a biennial report for your LLC with the Indiana Secretary of State. You can file your report either:

• online through INBiz, or
• by mail using a Business Entity Report (State Form 48725).

The report is due every other year on the anniversary date of your LLC's formation. You have until the end of that month before your report is considered late. For example, if your LLC was formed on July 15 of an odd-numbered year, then your report would be due in July of each subsequent odd-numbered year.

As of 2023, the filing fee for the biennial report is $32 for online filings and $50 for paper filings.

State Business Taxes in Indiana

For income tax purposes, most LLCs are considered "pass-through tax entities." In other words, if you're an owner of a pass-through entity, the responsibility for paying federal income taxes passes through the LLC itself and falls on you and the other owners. By default, LLCs themselves don't pay income taxes, only their members do. So, as an LLC owner, you report your share of the LLC's income on your personal tax return.

You can register to pay business taxes through INBiz.

No franchise tax. Sometimes, a state will impose a separate tax or fee on LLCs and other business entities for the privilege of doing business in the state. This particular tax is often called a "franchise tax." Indiana doesn't impose such a tax.

Electing corporate tax status. Typically, LLCs are taxed as partnerships by default. But LLC members can choose to have their LLC taxed as a corporation for federal tax purposes. LLC owners simply file IRS Form 2553 with the IRS to make the election. If you elect federal corporate tax status, your LLC will also be taxed as a corporation in Indiana. As a result, your LLC will be responsible for paying Indiana's corporate income tax to the Indiana Department of Revenue (DOR). As of 2023, Indiana's corporate tax is a flat 4.9%. You'll likely be required to make quarterly estimated payments through the Indiana Taxpayer Information Management Engine (INTIME).

Indiana Employer Taxes

If your LLC does or will have employees, you must pay employer taxes to the federal government and Indiana. You'll need to first apply for a federal employer identification number (EIN) from the IRS to report and pay these taxes as an employer.

Withholding employee wages. Indiana employers must withhold and pay employee income taxes to the DOR. You can again use INBiz to register for withholding taxes if you haven't done so already. You'll need to file withholding taxes periodically (for example, annually, monthly, or early filer) using Form WH-1. You'll also need to use Form WH-3 each year to reconcile your LLC's tax withholding. You can file and pay withholding taxes using INTIME. Check the withholding income tax section of the DOR website for more information.

Unemployment insurance (UI) tax. In addition to withholding taxes for employees, your LLC will probably need to register to pay state UI taxes to the Indiana Department of Workforce Development (DWD). You can register as a new employer using the DWD Uplink Employer Self-Service (ESS). Use ESS to file quarterly wage and unemployment reports. Review the unemployment for employers section of the DWD website for more information and resources, including an employer handbook and frequently asked questions page.

Indiana Sales and Use Tax

If your LLC will sell goods or tangible personal property to customers in Indiana, you must collect and pay sales tax to the DOR. You can register your business for sales tax through INBiz. As of 2023, you must submit a $25 fee with your application. After you've registered, you'll be sent a Registered Retail Merchant Certificate (RRMC).

Periodically, you must make sales tax payments and submit sales tax returns to the DOR for goods sold. You can make payments and submit your returns through INTIME.

For more information, visit the sales tax section of the DOR website.

LLC Registration in Other States

If you'll be doing business in states other than Indiana, you might need to register your LLC in some or all of those states where you have business activities. Typically, you'll need to register as an out-of-state LLC if your business has a physical presence in a state, hires employees in the state, or advertises directly to residents of the state. But you should check the state's laws around qualifying as a foreign business because each state has different rules and standards.

You can review individual state requirements in our state guide to qualifying to do business outside your state.

More Information About Indiana LLCs

The DOR has a business tax FAQ page on its website with answers to common questions. You can find information on this page about many topics, including:

• business tax registration
• sales tax
• withholding tax
• LLCs and other business structures
• tax clearance, and
• letters of good standing.

If you'd like general guidance about how to manage and run your LLC, check out the articles in the LLC section of our website. If you have legal questions specific to your LLC, you can talk to an Indiana business attorney.

If you need information about other states' LLC requirements, you can review our article on LLC tax and filing requirements.