If you’re a small business owner in the state of Indiana, you know it takes a lot of planning, work, and ongoing effort to succeed in the “Crossroads of America” state.
In this article, we’ll review the Indiana license requirements, examples of how much the license may cost, and the steps to apply for one.
Do You Need an Indiana License?
Whether or not you need an Indiana license depends on:
- Where you live and do business
- What your trade or profession is
Indiana typically requires specific businesses to get licensed, like certain types of contractors, people who work in financial services, and more. You can learn if your profession requires a business license by visiting the Professions We License1 section of the Indiana Professional Licensing Agency website.
If you don’t see your profession listed on that page, you also can check at Indy.gov. Keep in mind that some of the professions listed require you to deliver your application in person, as some Indiana professional licensing requires fingerprinting.
So what if you don’t see your profession listed on either of the above-mentioned pages?
You may not be in the clear yet. While Indiana doesn’t require a general business license, many municipalities require Indiana business licenses and permits at the county or city level. You can check with the local government where you’re running your business to see if a license or permit is required. These requirements may change periodically, so checking with your state website is best.
Even if an Indiana license is not required by the state or in your local area, we still suggest getting a business license. Securing a license for your business can:
- Help you earn the trust of potential customers
- Fulfill obligations set by landlords or vendors
- Allow you to open additional locations
- Help assist in getting approved for grants or other financial assistance
- And more!
How to Get an Indiana License
1. Register for a state of Indiana EIN.
First, you must get your Employee Identification Number, or EIN. To apply for it, head over to the IRS website3. You’ll need an EIN if you have an Indiana LLC, a partnership, or another business entity. This is also required for those filing taxes as a sole proprietor unless you don’t have employees.
If you think you might bring on employees for your small business one day, we suggest getting your state of Indiana EIN.
2. Register and apply with your state or your county.
The state doesn’t require that all occupations be licensed, but it requires you to register a business in Indiana. If your business is an Indiana LLC, Corporation, or LLP, you must register with the Secretary of State. Visit the Indiana Secretary of State business website2 to learn more.
Sole proprietorships or general partnerships must register a business in Indiana with their County Recorder. Registering may be done online, by mail, by fax, or in person in most counties, but some counties require you to apply in person.
3. Check with the local county unless you’re an Indiana LLC or Corporation.
While Indiana doesn’t have a general business license, some counties require Indiana business licenses and permits. Regardless of your business entity type, we suggest following up with your local county to see if you need an Indiana business license or permits after registering your business.
Before applying with a specific city or county, be prepared by having all relevant information on hand if needed, such as your EIN, business name and address, driver’s license number, Certificate of Liability Insurance form, etc.
Keep in mind that each city or county may require you to have a business license, depending on your profession or trade. They also may require you to have a professional license, which is a different license altogether. You can learn more about Indiana’s professional licensing requirements by visiting the Indiana Professional Licensing Agency website2.
If your business sells goods/products, you’ll need an Indiana Retail Merchant Certificate to purchase goods at wholesale prices and collect sales tax on what you sell. This can be accessed at INbiz.com and typically costs $25; it remains valid as long as you own the business and your state of Indiana EIN stays the same.
4. Pay for your license and wait for processing.
Most cities/counties will have different prices for Indiana business licenses, depending on your trade or profession. Make sure you know the cost beforehand (we’ll get to that in the next section).
Once your application is complete, you’ll wait for it to be processed. The wait time varies, depending on your city or county, but be prepared to wait at least two weeks.
How To Start an LLC in Indiana
To form an LLC in Indiana, you must file the Articles of Organization with the Indiana Secretary of State Business Services Division. It’s a legal document that officially creates your Indiana LLC. It costs $95 if you file online and $100 by mail. The process is fairly straightforward. Just follow the steps here4.
Or, if you first want to learn more about the benefits of starting an LLC in Indiana, we have them all neatly wrapped and arranged for you here.
How Much Do Indiana Business Licenses Cost?
The fees for Indiana business licenses will vary, depending on where you’re applying and your profession.
Fees can start as low as $5 and go up from there, but the license fee is an annual cost. If your trade requires a higher license fee, be sure to build in the cost to your cash flow leading up to renewal. Additionally, these prices may change, so it’s best to assess the fee requirements for your business periodically independently.
Make sure to note the date your Indiana license was registered and whether or not you’ll need to renew the following year.
What You Need to Know About Business Insurance
Depending on your trade or profession, you may be required to have Indiana business insurance to get your Indiana license. For example, suppose you’re a contractor in Indiana. In that case, you may be required to have general liability coverage and a workers compensation policy (if you have employees) to get your license.
Don’t know where to begin with insurance? Simply Business can help. We’re one of the fastest-growing online providers of liability insurance for small business owners. That means thousands of customers trust us to keep their growing businesses protected.
We make finding affordable insurance fast and easy. You can start viewing policy options from the nation’s top insurers right now. Use our free quote comparison tool to determine which policy works best for you.
Not sure what you need? Don’t worry. Our licensed insurance agents are available to discuss coverage options with you over the phone. They’re here to help you from Monday to Friday, 8 a.m. to 8 p.m. (ET). Just give us a call at 844-654-7272.
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Get an affordable and customized policy in just minutes. So you can get back to what matters: Your business.
Support When You Need It
Securing your Indiana license makes your new business official. The days ahead can be hectic, so we make it easy to keep you focused on your goals. Our Resource Center is packed with articles, free tools and templates, and information to keep your business thriving. Check out these articles for helpful insights and resources.
- How to Start a Small Business: Our Easy-to-Use Guide
- How to Start a Small Business Without Money
- 10 Resources to Help Launch Your Small Business
References:
(1) Learn more at inbiz.in.gov/BOS/Home/Index
(2) Learn more at in.gov/pla/
(3) Learn more at irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online
(4) Learn more at llcformations.com/indiana-llc/