If you’re starting an LLC in Indiana, the business entity formation process is one of the first and most important hurdles. This step can beterrib ...
How to Get a Business License in Indiana
Written by: Carolyn Young
Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.
Edited by: David Lepeska
David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.
Published on July 11, 2022
Updated on May 2, 2023
One of the most important elements of starting a business in Indiana is making sure you have all the requisite licenses and permits. The requirements vary by state, some of which have as many as 300 different licenses and permits.
This article is too short to list them all, but it’s crucial that you’re aware of which ones your business needs and that you follow the steps for application and put your business on the road to success.
In Indiana, businesses need certain licenses and permits to legally operate as a business. The regulatory hurdles required vary depending on the type of business, its location, and the products and services offered.
To help you launch your new business, this article lays out the most commonly needed permits and licenses in Indiana — and details the steps required to acquire them.
Why are business licenses required in Indiana?
Business licenses and permits are issued to certify that a business and its products and services are safe for the public. This explains why food businesses, for instance, require more licenses than most other business types.
Which agency issues business licenses in Indiana?
In Indiana, the Department of Revenue issues the vast majority of licenses and permits, though some are issued by the Indiana Department of Environmental Management and the Department of Health. For instance, the state Department of Environmental Management issues licenses and permits related to construction, but the health department issues food handler certifications.
Some licenses and permits are issued by cities or counties. For example, if you live in South Bend, you need to check with that city to see if licenses or permits are required for your business by the city.
Before you apply, it’s important to know which state or local agency issues the license you need. Check the state’s guidelines here to learn more.
You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package. They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.
Steps to Get an Indiana Business License
In Indiana, the steps for acquiring specific licenses and permits vary widely, so it’s important to be aware of what you need, and how to get it.
Determine the Types of Licenses That You Need
The types of licenses and permits that you need vary based on your type of business. You may need fire and safety permits, food handler’s certificates, environmental permits, or specific licenses for certain professions. If you sell tangible goods or certain services, you’ll need a sales tax license.
You can call the State Information Center at 317-233-0800, 800-45-STATE to discuss the most current requirements for any individual business.
Submit Your Business License Application
Various agencies and departments issue licenses and permits so you’ll need to apply with the relevant offices which you can usually do online. For example, you’ll apply for your sales tax license with the Department of Revenue.
How much does an Indiana business license cost?
Fees for licenses and permits vary and can range from $25 for a sales tax license, to a liquor license which, depending on the type, can cost $2,000 or more.
In Indiana and most US states, jumping through all the hoops to acquire the necessary licenses and permits can be exhausting. But if you want to operate your business, you’ll have to wade through all the red tape. So get started on these regulatory hurdles as early as possible and clear the way for your entrepreneurial journey to success.
How fast can I get a business license in Indiana?
Most business licenses and permits are issued within a few days to a week, including your sales tax license. A liquor license, on the other hand, can take 10 to 12 weeks.
Renew Your Licences When Needed
Most licenses and permits must be renewed annually. Nominal fees are generally required.
Types of Business Licenses
Your business may need local, state, and/or federal licenses and permits, depending on your type of business. Fees for these vary, but most costs are minimal.
Federal regulations associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific permits.
The most common permits and licenses include:
- Business operating licenses may be required by the city and the state to allow you to operate.
- Industry-specific licenses may be required, depending on your type of business. Businesses involved in construction, childcare, plumbing, electrical, food and liquor, insurance, finance, landscaping, and architecture all require licensing, for example. In some highly regulated industries, you may require licensing from a federal agency, such as the FDA or Department of Transportation.
- Zoning permits are issued by municipalities to ensure you’re operating in an area in which you’re allowed to operate.
- Building permits verify that the building you’re operating in is up to code. Home occupation permits, which some areas require, allow you to operate a business from your home.
- DBA permits allow you to do business under a name that is different from your legally registered business name.
- Sales tax permits allow you to sell products and collect sales tax.
- An employer identification number (EIN) is required if you plan to have employees, no matter what your business entity type.
- Health licenses and permits are required for certain businesses based on industry, and you will be required to maintain health and safety standards. Environmental permits are also required for certain industries in some locations.
- Fire permits certify that your business is up to fire safety codes. Depending on your location, this may be required for all businesses, while in other areas it’s required only if you work with flammable materials.
- Sign permits may be required for your location or other signage if there are rules about sign size and location.
Check with state and local government offices for specific requirements for your location and industry.
How to Get a Business License in Indiana
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