How Much Does It Cost to Start a Business in Indiana?
Last updated: May 2026
Indiana Business Overview
LLC Filing Fee
$95
Sales Tax Rate
7.0%
Minimum Wage
$7.25/hr
Cost of Living Index
90.6
Workers Comp
Required
Annual Report Fee
$32
Starting a Business in Indiana
Indiana businesses register with the Secretary of State. A registered agent is required. Local municipalities may require business licenses.
Indiana has a flat 3.05% individual income tax rate—one of the lowest in the nation. The corporate income tax rate is 4.9%.
Indiana's manufacturing heritage provides strong demand for skilled trades businesses. The state's low income tax and affordable commercial real estate make it attractive for startups.
For official formation documents, visit the Indiana Secretary of State.
Startup Costs for 100 Business Types in Indiana
The table below shows estimated startup costs for every major business type, adjusted for Indiana’s cost of living index of 90.6. Click any column header to sort. Click a business name to see full cost breakdowns, calculator, and licensing requirements.
| Accounting Firm | Professional Services | $6,020 | $17,200 | $39,560 |
| Airbnb & Vacation Rental Business | Real Estate | $9,460 | $25,800 | $77,400 |
| Ambulance Service | Transportation & Logistics | $68,800 | $172,000 | $430,000 |
| App Development Company | Tech & Online | $8,600 | $25,800 | $68,800 |
| Architecture Firm | Professional Services | $17,200 | $47,300 | $111,800 |
| Auto Detailing Business | Automotive | $4,300 | $25,800 | $86,000 |
| Auto Repair Shop | Automotive | $64,500 | $172,000 | $430,000 |
| Bakery | Food & Beverage | $17,200 | $81,700 | $258,000 |
| Bar & Nightclub | Food & Beverage | $86,000 | $301,000 | $731,000 |
| Barbershop | Beauty & Personal Care | $12,900 | $55,900 | $150,500 |
| Beauty Supply Store | Beauty & Personal Care | $25,800 | $86,000 | $258,000 |
| Bookstore | Retail | $21,500 | $86,000 | $258,000 |
| Brewery / Microbrewery | Food & Beverage | $215,000 | $344,000 | $1,290,000 |
| Cannabis Dispensary | Specialty & Regulated | $107,070 | $285,520 | $1,070,700 |
| Car Wash | Automotive | $107,070 | $467,840 | $1,336,440 |
| Carpentry & Woodworking Shop | Construction & Trades | $9,030 | $24,080 | $60,200 |
| Catering Business | Food & Beverage | $10,320 | $45,580 | $111,800 |
| Chiropractic Office | Health & Wellness | $86,000 | $103,200 | $258,000 |
| Cleaning Business | Home Services | $1,290 | $9,460 | $31,820 |
| Clothing Boutique | Retail | $25,800 | $86,000 | $258,000 |
| Coffee Shop | Food & Beverage | $51,600 | $103,200 | $301,000 |
| Concrete Business | Construction & Trades | $21,500 | $55,900 | $129,000 |
| Consulting Business | Professional Services | $1,720 | $7,740 | $22,360 |
| Convenience Store | Retail | $43,000 | $240,800 | $645,000 |
| Courier & Delivery Service | Transportation & Logistics | $6,880 | $18,920 | $47,300 |
| Cybersecurity Firm | Tech & Online | $17,200 | $47,300 | $129,000 |
| Dance Studio | Childcare & Education | $17,200 | $68,800 | $215,000 |
| Daycare Center | Childcare & Education | $51,600 | $154,800 | $430,000 |
| Demolition Company | Construction & Trades | $25,800 | $68,800 | $172,000 |
| Dental Practice | Health & Wellness | $301,000 | $430,000 | $860,000 |
| Digital Marketing Agency | Tech & Online | $3,440 | $10,320 | $27,520 |
| E-Commerce Store | Tech & Online | $4,300 | $12,900 | $43,000 |
| Electrical Business | Home Services | $12,900 | $47,300 | $137,600 |
| Esthetics & Skincare Business | Beauty & Personal Care | $6,880 | $34,400 | $103,200 |
| Excavation Company | Construction & Trades | $43,000 | $111,800 | $301,000 |
| Financial Planning Practice | Professional Services | $17,200 | $47,300 | $111,800 |
| Flower Shop | Retail | $17,200 | $64,500 | $172,000 |
| Food Delivery Service | Food & Beverage | $8,600 | $44,720 | $111,800 |
| Food Processing Business | Food & Beverage | $172,000 | $215,000 | $645,000 |
| Food Truck | Food & Beverage | $38,700 | $103,200 | $172,000 |
| Freight Brokerage | Transportation & Logistics | $13,760 | $30,960 | $68,800 |
| Furniture Store | Retail | $43,000 | $172,000 | $516,000 |
| General Contracting Business | Construction & Trades | $17,200 | $47,300 | $111,800 |
| Ghost Kitchen | Food & Beverage | $17,200 | $51,600 | $129,000 |
| Gift Shop | Retail | $17,200 | $60,200 | $172,000 |
| Gym & Fitness Center | Health & Wellness | $43,000 | $215,000 | $860,000 |
| Hair Salon | Beauty & Personal Care | $12,900 | $64,500 | $215,000 |
| Handyman Business | Home Services | $1,720 | $8,600 | $28,380 |
| Home Health Care Agency | Health & Wellness | $34,400 | $111,800 | $258,000 |
| HVAC Business | Home Services | $17,200 | $60,200 | $172,000 |
| Ice Cream Shop | Food & Beverage | $17,200 | $64,500 | $172,000 |
| Insurance Agency | Professional Services | $12,900 | $34,400 | $77,400 |
| IT Services Business | Tech & Online | $12,900 | $34,400 | $86,000 |
| Juice Bar & Smoothie Shop | Food & Beverage | $21,500 | $77,400 | $215,000 |
| Landscaping Business | Home Services | $8,600 | $34,400 | $103,200 |
| Laundromat | Real Estate | $86,000 | $215,000 | $516,000 |
| Law Firm | Professional Services | $10,320 | $29,240 | $69,660 |
| Limousine & Car Service | Transportation & Logistics | $34,400 | $77,400 | $189,200 |
| Liquor Store | Retail | $43,000 | $154,800 | $430,000 |
| Marketing Agency | Professional Services | $4,300 | $15,480 | $43,000 |
| Martial Arts Studio | Childcare & Education | $17,200 | $60,200 | $172,000 |
| Meal Prep Business | Food & Beverage | $17,200 | $55,900 | $172,000 |
| Med Spa | Health & Wellness | $86,000 | $301,000 | $860,000 |
| Medical Practice | Health & Wellness | $129,000 | $344,000 | $860,000 |
| Mental Health Practice | Health & Wellness | $12,900 | $43,000 | $129,000 |
| Moving Company | Home Services | $25,800 | $86,000 | $258,000 |
| Music School | Childcare & Education | $8,600 | $43,000 | $129,000 |
| Nail Salon | Beauty & Personal Care | $17,200 | $77,400 | $215,000 |
| Painting Business | Home Services | $4,300 | $21,500 | $68,800 |
| Personal Training Business | Health & Wellness | $4,300 | $21,500 | $86,000 |
| Pest Control Business | Home Services | $8,600 | $34,400 | $103,200 |
| Pet Store | Retail | $25,800 | $86,000 | $258,000 |
| Pharmacy | Health & Wellness | $215,000 | $344,000 | $860,000 |
| Physical Therapy Clinic | Health & Wellness | $51,600 | $154,800 | $387,000 |
| Pizza Shop | Food & Beverage | $64,500 | $150,500 | $344,000 |
| Plumbing Business | Home Services | $12,900 | $43,000 | $129,000 |
| Podcast Production Company | Tech & Online | $1,720 | $5,160 | $15,480 |
| Preschool | Childcare & Education | $43,000 | $129,000 | $344,000 |
| Property Management Company | Real Estate | $9,030 | $20,640 | $47,300 |
| Real Estate Agency | Professional Services | $8,600 | $24,080 | $60,200 |
| Real Estate Investing & Rental Business | Real Estate | $21,500 | $64,500 | $215,000 |
| Restaurant | Food & Beverage | $150,500 | $322,500 | $645,000 |
| Roofing Company | Home Services | $12,900 | $51,600 | $154,800 |
| SaaS Company | Tech & Online | $17,200 | $51,600 | $172,000 |
| Spa & Massage Therapy | Health & Wellness | $8,600 | $60,200 | $215,000 |
| Staffing Agency | Professional Services | $17,200 | $47,300 | $129,000 |
| Storage Unit Facility | Real Estate | $172,000 | $516,000 | $1,720,000 |
| Tattoo Shop | Beauty & Personal Care | $17,200 | $50,740 | $172,000 |
| Tax Preparation Business | Professional Services | $3,010 | $8,600 | $23,220 |
| Thrift Store | Retail | $17,200 | $64,500 | $172,000 |
| Tire Shop | Automotive | $43,000 | $129,000 | $344,000 |
| Towing Company | Automotive | $43,000 | $129,000 | $344,000 |
| Trucking Company | Transportation & Logistics | $25,800 | $68,800 | $172,000 |
| Tutoring Business | Childcare & Education | $1,720 | $20,640 | $86,000 |
| Used Car Dealership | Automotive | $43,000 | $172,000 | $516,000 |
| Vape Shop | Retail | $21,500 | $64,500 | $172,000 |
| Web Development Agency | Tech & Online | $3,010 | $10,320 | $28,380 |
| Welding Business | Construction & Trades | $12,900 | $34,400 | $86,000 |
| Winery | Food & Beverage | $430,000 | $655,320 | $2,580,000 |
| Yoga Studio | Health & Wellness | $12,900 | $68,800 | $172,000 |
Most Popular Business Types in Indiana
Licenses & Permits in Indiana
General Business License
Indiana does not have a statewide general business license. Businesses must register their entity with the Indiana Secretary of State and register with the Indiana Department of Revenue for sales tax and withholding tax purposes. Many professions in Indiana require licenses through the Indiana Professional Licensing Agency (IPLA). Individual cities and counties may require local business licenses, particularly for food service, alcohol sales, and certain retail businesses.
Industry-Specific Licenses
- Food Establishment Permit — Indiana State Department of Health or Local Health DepartmentCost: Varies — contact agency • Renewal: Annual
- Home Improvement Supplier Registration — Indiana Attorney General's OfficeCost: Varies — contact agency • Renewal: Annual
- Cosmetology Shop License — Indiana Professional Licensing Agency — State Board of Cosmetology and Barber ExaminersCost: Varies — contact agency • Renewal: Biennial
- Real Estate Broker License — Indiana Professional Licensing Agency — Real Estate CommissionCost: Varies — contact agency • Renewal: Every 3 years
- Child Care Center License — Indiana Family and Social Services Administration — Division of Child ServicesCost: Varies — contact agency • Renewal: Annual
- Retail Liquor License — Indiana Alcohol and Tobacco CommissionCost: Varies — contact agency • Renewal: Annual
- Motor Carrier Registration — Indiana Department of Revenue — Motor Carrier ServicesCost: Varies — contact agency • Renewal: Annual
- Plumbing Contractor License — Indiana Fire Prevention and Building Safety CommissionCost: Varies — contact agency • Renewal: Annual
Home-Based Business Rules
Home-based businesses in Indiana are regulated by local zoning ordinances. Indiana municipalities typically allow home occupations as an accessory use in residential zones with restrictions on the proportion of home space used, signage, and customer visits. Rural areas outside incorporated municipalities generally have minimal restrictions on home-based businesses. Indiana's cottage food law supports home-based food production.
Indiana Business Resources
SBA District Office
Indiana SBA District Office — Indianapolis
Secretary of State
https://bsd.sos.in.govZoning Information
Indiana municipalities control zoning. Indianapolis and its surrounding counties have unified zoning through the Metropolitan Development Commission.
Health Department Notes
Food establishments require permits from the Indiana State Department of Health or local county health departments. Indiana has a food handler certification requirement.
Workers Compensation
Required for most employers. Farm employees working for an employer with fewer than 25 employees are exempt.