Business Overview
Indiana has a strong manufacturing sector, particularly in automotive, steel, and life sciences industries. The state offers a favorable business climate with competitive tax rates, strategic location, and infrastructure investments that support logistics and supply chain operations.
Key Facts & Figures
| Category | Details |
| Capital | Indianapolis |
| Major Cities | Indianapolis, Fort Wayne, Evansville, South Bend, Carmel |
| State Sales Tax Rate | 7% |
| Local Sales Tax Rate | No local sales tax |
| Corporate Income Tax | 9.5% (including 2.5% replacement tax) |
| Physical Nexus Threshold | Physical presence through employees, offices, inventory, or independent contractors |
| Economic Nexus Threshold | $100,000 in annual sales or 200 transactions |
Did you know?
Indiana is home to more manufacturing jobs per capita than any other state, with automotive manufacturing playing a crucial role in its economy.
Setup & Compliance
Indiana offers business-friendly formation processes with moderate regulatory requirements.
Indiana Business Setup Process:
- Choose Your Business Structure: Consider tax advantages and liability protection needs.
- Register Your Business: File formation documents with the Indiana Secretary of State.
- Register for Tax Accounts: Register with the Department of Revenue for sales tax and withholding.
- Obtain Required Licenses: Research and secure necessary state and local business licenses.
- Register as an Employer: Register with Workforce Development if hiring employees.
Ongoing Compliance Requirements:
- Business Entity Reports: Most entities must file biennial business entity reports.
- Sales Tax Collection: Collect and remit 7% state sales tax on taxable transactions.
- Corporate Income Tax: C-corporations pay 4.9% corporate income tax.
- Employment Taxes: Employers must register for unemployment insurance and workers’ compensation.
- Local Requirements: Counties and municipalities may impose additional licensing and regulatory requirements.
Hiring & Payroll
Indiana provides a balanced approach to employment regulations with some business-friendly policies.
Indiana Payroll Requirements:
- Unemployment Insurance: Rates from 0.5% to 7.4% on first $9,500 of wages.
- State Income Tax Withholding: Flat 3.23% plus county taxes.
- Workers’ Compensation: Required for all employers.
Indiana Employment Laws:
- Minimum Wage: Follows federal minimum wage ($7.25/hour).
- Overtime: Follows federal regulations.
- Teen Work Hour Restrictions: More stringent than federal regulations.
- Final Paychecks: Due on next regular payday.
- Indiana is an at-will employment state with right-to-work laws.
State Incentives
Indiana provides strategic economic incentives to attract and retain businesses.
Key Business Incentives:
- Economic Development for a Growing Economy (EDGE) Tax Credit.
- Venture Capital Investment Tax Credit: Encourages investment in Indiana businesses.
- Industrial Recovery Tax Credit: Support for businesses in economically challenged areas.
Small Business & Startup Support:
- Indiana Small Business Development Center: Comprehensive business resources.
- Next Level Ventures: Support for technology and innovation-driven businesses.
- Rural Business Development Grants.
Regulatory Considerations
Indiana provides a business-friendly regulatory framework with clear guidelines.
Key Business Regulations:
- Data Privacy: Laws protecting consumer and business information.
- Environmental Compliance: Regulations supporting industrial and agricultural sectors.
- Professional Licensing: Required for various service-based professions.
Additional Regulatory Areas:
- Manufacturing Compliance.
- Small Business Reporting Requirements.
Business Overview
Indiana has a strong manufacturing sector, particularly in automotive, steel, and life sciences industries. The state offers a favorable business climate with competitive tax rates, strategic location, and infrastructure investments that support logistics and supply chain operations.
Key Facts & Figures
| Category | Details |
| Capital | Indianapolis |
| Major Cities | Indianapolis, Fort Wayne, Evansville, South Bend, Carmel |
| State Sales Tax Rate | 7% |
| Local Sales Tax Rate | No local sales tax |
| Corporate Income Tax | 9.5% (including 2.5% replacement tax) |
| Physical Nexus Threshold | Physical presence through employees, offices, inventory, or independent contractors |
| Economic Nexus Threshold | $100,000 in annual sales or 200 transactions |
Did you know?
Indiana is home to more manufacturing jobs per capita than any other state, with automotive manufacturing playing a crucial role in its economy.
Setup & Compliance
Indiana offers business-friendly formation processes with moderate regulatory requirements.
Indiana Business Setup Process:
- Choose Your Business Structure: Consider tax advantages and liability protection needs.
- Register Your Business: File formation documents with the Indiana Secretary of State.
- Register for Tax Accounts: Register with the Department of Revenue for sales tax and withholding.
- Obtain Required Licenses: Research and secure necessary state and local business licenses.
- Register as an Employer: Register with Workforce Development if hiring employees.
Ongoing Compliance Requirements:
- Business Entity Reports: Most entities must file biennial business entity reports.
- Sales Tax Collection: Collect and remit 7% state sales tax on taxable transactions.
- Corporate Income Tax: C-corporations pay 4.9% corporate income tax.
- Employment Taxes: Employers must register for unemployment insurance and workers’ compensation.
- Local Requirements: Counties and municipalities may impose additional licensing and regulatory requirements.
Hiring & Payroll
Indiana provides a balanced approach to employment regulations with some business-friendly policies.
Indiana Payroll Requirements:
- Unemployment Insurance: Rates from 0.5% to 7.4% on first $9,500 of wages.
- State Income Tax Withholding: Flat 3.23% plus county taxes.
- Workers’ Compensation: Required for all employers.
Indiana Employment Laws:
- Minimum Wage: Follows federal minimum wage ($7.25/hour).
- Overtime: Follows federal regulations.
- Teen Work Hour Restrictions: More stringent than federal regulations.
- Final Paychecks: Due on next regular payday.
- Indiana is an at-will employment state with right-to-work laws.
State Incentives
Indiana provides strategic economic incentives to attract and retain businesses.
Key Business Incentives:
- Economic Development for a Growing Economy (EDGE) Tax Credit.
- Venture Capital Investment Tax Credit: Encourages investment in Indiana businesses.
- Industrial Recovery Tax Credit: Support for businesses in economically challenged areas.
Small Business & Startup Support:
- Indiana Small Business Development Center: Comprehensive business resources.
- Next Level Ventures: Support for technology and innovation-driven businesses.
- Rural Business Development Grants.
Regulatory Considerations
Indiana provides a business-friendly regulatory framework with clear guidelines.
Key Business Regulations:
- Data Privacy: Laws protecting consumer and business information.
- Environmental Compliance: Regulations supporting industrial and agricultural sectors.
- Professional Licensing: Required for various service-based professions.
Additional Regulatory Areas:
- Manufacturing Compliance.
- Small Business Reporting Requirements.
