How to Get an Indiana Business License

Do you need a business license in Indiana?

Most likely, you do. There's no single general business license that every business entity needs to operate in Indiana. However, there are several different licenses and permits that you may need depending on your industry, business structure, and location.

Keep in mind that licenses and permits can exist on the federal, state, and local level, so it's important to check all licensing requirements for your industry.

Indiana state licenses 

Rather than one general business license, Indiana has over 400 different licenses, permits, and other permissions needed to engage in certain activities. These include tax permits, professional licenses, environmental protections, and zoning permits. 

Local (county, city, or township) licenses 

In addition to a state license, you'll need a local license if your county, city, or township regulates activities that your business engages in. Regulations vary by location, but some examples of Indianapolis business licenses are for commercial parking facilities, day care/child centers, and hotels/motels.

Federal licenses 

Beyond state and local licenses, if your business performs activities regulated by a federal agency, you also need a federal business license to operate. This applies to businesses in fields such as agriculture, commercial fishing, firearms, and more. 

How to get a business license in Indiana in 5 steps

Before you can start applying for business licenses, you need to register your business with the IN Secretary of State (SOS) and obtain an employer identification number (EIN) from the International Revenue Service (IRS). If you've already accomplished both of those things, skip the first two steps.

Step 1: Register your business with the SOS

Before you can register a new business, you first need to compile the required information. This includes your business structure, name, registered agent, address, and more. Keep in mind that choosing a business name isn't as simple as coming up with a name you love. To safeguard every business in the state's integrity and avoid confusion in the market, Indiana has strict regulations around registering a business name.

Once you've determined those factors, you can officially register your IN business. Typically, you can do this by filing formation articles with the SOS and paying a filing fee. That said, the fees and forms vary by business structure. If your business is a corporation, limited liability company, limited partnership, or limited liability partnership, file online through INBiz or streamline the business registration process with LegalZoom.

Step 2: Obtain an EIN from the IRS

An EIN is a nine-digit employer identification number that allows the IRS to identify your business for tax purposes. Having this pin also allows you to open a business bank account, hire employees, and more. You can obtain your EIN from the IRS through their website or by mail. LegalZoom also offers an EIN application service that helps ensure your application is filled out correctly and sends you your EIN and official documentation once approved. 

Step 3: Apply for state licenses

Where you apply for state business licenses depends on the nature of your business. That said, there are a few helpful resources to guide you along the way. The Indiana Professional Licensing Agency is a great resource for small business owners. Their website offers a list of professions that they provide industry-specific licenses for, as well as a variety of online services for applying, renewing, and more.

However, they don't cover every industry. IN.gov's Business Owner's Guide also has a helpful page on the other business licenses under the "Specific Licensing and Permitting Issues" section on the right-hand sidebar.

For tax permits—such as a sales tax license—the process is a bit more straightforward. The Indiana Department of Revenue uses just one form (BT-1) to register for Sales Tax, Withholding Tax, Food & Beverage Tax, County Innkeeper Tax, Motor Vehicle Rental Excise Tax, and Gasoline Use Tax (GUT). You can fill out the form manually or apply through INBiz.

Lastly, a note about business tangible personal property: Indiana requires all businesses to file a business tangible personal property form annually. Essentially, tangible personal property is the value of all property that your business uses to operate, excluding real estate. 

Step 4: Apply for local permits

Applying for local licenses or permits can be more challenging as each area has its own rules and regulations. Fortunately, the Indiana Small Business Development Center (ISBDC) has offices all over the state that you can contact for questions on local licenses, fees, forms, and requirements.

You can also inquire with your city hall or county clerk about local license requirements based on your business operations. Indianapolis' Indy.gov site has a helpful page on Indy business licenses. It's important to note that if you have a location in more than one municipality, you'll likely need separate permits for each area. 

No matter your industry, you may have to apply for an assumed business name—commonly called a "doing business as"—under certain circumstances. If your business is a sole proprietorship or general partnership operating under a name that's different from your legal name(s), you must file an application with your local county recorder.

If your business is a corporation, limited liability company, limited partnership, or limited liability partnership operating under a name that's different from the name you registered with the Indiana Secretary of State, you can apply through INBiz. 

Step 5: Apply for federal licenses 

Lastly, if your business falls under one of the categories listed below, refer to the U.S. Small Business Administration's (SBA) page on licenses and permits. They'll direct you to the proper agency with which to apply for federal licenses.

• Agriculture
• Alcohol
• Aviation
• Broadcasting
• Firearms or explosives
• Investment consultant
• Mining/drilling
• Nuclear energy
• Wildlife, including fish
• Transportation 

This isn't an exhaustive list, however. Conduct an online search if you think you may need a federal license or permit to legally operate your business. 

Next steps after getting your Indiana business license

Once the agencies you applied with accept your application and you receive your licenses, you're officially authorized to operate those business activities for a designated period of time. For some professional licenses, you may be able to receive a decorative wall certificate, which you can order from the Indiana Professional Licensing Agency if they provide your license.

Keep in mind that many licenses require renewal. How frequently you need to renew depends on the license and agency, so make a point to ask about renewal dates when you apply and note them in your calendar. It's also wise to set up early reminders to ensure you meet deadlines.

You may also have to update business information with those licensing agencies in the event of changes to your business structure or location. Different licenses will have their own regulations, so thoroughly read up on those when applying. Staying compliant will help your business to avoid penalty fees and maintain a good reputation with local, state, and federal agencies, which in turn adds to your business' credibility. 

How to get a business license in Indiana the easy way

Applying for business licenses anywhere is a complex process, but Indiana can be particularly challenging, with over 400 different licenses and no single database to search for them all. To simplify the process, LegalZoom has a business license service that handles the complex work for you. It does this by identifying the federal, state, and local licenses and permits that your business needs and delivering a personalized report.

The service also helps you stay compliant by sending you notifications about changes to your license, report requirements, and reminders about upcoming renewal deadlines to help you stay compliant.

FAQs

What should I do before getting a business license? 

Before getting a business license, you first need to register your business with the local Secretary of State where it’s located. Then, obtain an employer identification number from the International Revenue Service. 

While the business registration process varies by state, typically, you will always need to do the following:

• Decide on a business structure 
• Choose a business name
• Appoint a registered agent
• Gather location, ownership, and/or management information
• Pay a filing fee

How much does an Indiana business license cost?

The cost of a business license varies significantly by the type of license and where you acquire it from. Because of this, it's impossible to predict how much business licenses in Indiana will cost for you. For example, the fee for a tobacco sales certificate costs $200 but lasts for 3 years, while the fee for an initial pawnbroking license is $1,000 annually. In contrast, the Registered Retail Merchant Certificate (RRMC) only costs $25 with no additional renewal change. 

How long does it take to get a business license in Indiana?

How long it takes to get a business license in Indiana also varies based on which license you apply for and the agency you request it from. That said, working with LegalZoom to find which licenses your business needs will save you ample time on researching and help get the application process rolling. 

Are business licenses required in Indiana?

Indiana doesn't have one, single general business license. Instead, it has over 400 industry-specific licenses, permits, and certifications that your business may need to carry out certain activities. That said, most businesses will need a license to operate in the state of Indiana. For example, if your business buys and sells goods, you'll need to apply for a seller's permit with the Indiana Department of Revenue. 

What license is best for a small business in Indiana?

While there is no one license that's best for small businesses in Indiana, below is a list of some of the most common licenses and permits requested in the state:

1. Seller's permit (Department of Revenue)
2. Building construction and renovation permit (Department of Homeland Security, Division of Fire and Building Safety/Department of Environmental Management)
3. Alcohol or liquor license (Alcohol Tobacco Commission)
4. Food handler's certification (Indiana Department of Health)
5. Day-care operational license (Indiana Family and Social Services Administration, Division of Family Resources, Bureau of Childcare)

For specifically regulated professions, check the Indiana Professional Licensing Agency's website for licenses for your field.