Business licenses are an important legal requirement for any companies or branches who want to do business from and within the state of Indiana. Permit applications can be made online, or through the relevant local city or town office, and they remain valid for 2 years from their approval.
How much is a business license in Indiana? Business license applications in Indiana cost $25, and renew automatically after a period of 2 years unlike most other states. Specific industries can be expensive, up to $250 per application. Indiana requires all businesses and company types to register for a valid tax sales license, also called a business license, before they can legally trade and pay tax within the state.
Indiana law requires all businesses to have a valid sales tax permit to legally trade, buy, sell and pay tax to the state. This is the most basic requirement for any business, whether they intend to operate a branch location or main office from within Indiana. Other licenses might be required for specific industries, but the sales tax license or business license is always first.
Business License Applications Indiana
Business licenses, employee identification numbers (EIN) and special liquor or food sales permits are just some of the important documents required by law in Indiana. Any and all businesses must apply for the basic business license before they are allowed to trade or open.
A business license costs approximately $25 to apply for online or through your local city or town office. Applications are immediate, but online applications can take 2 to 4 weeks to be approved. In-person applications can take longer according to state resources.
Indiana sales and business licenses are valid for a period of 2 years from their date of approval. Unlike most other states, an Indiana business license will renew automatically – though renewal fees could still be payable.
Basic licenses are required for all types of businesses in Indiana, including consumer retail, online sales, entertainment, food and agriculture. Applicants will be required to state their type of license clearly on the form.
There’s one catch in Indiana: anything that is not a basic sales license and for a specific industry can cost up to $250 to register. These licenses apply to any companies or businesses that are more than “basic sales”.
Online applications forms must be accompanied by the necessary fees to be valid. Fees are non-refundable, even if a license application has been filled in wrong.
If the application is successful, the applicant will receive a downloadable copy of their valid license within 2 to 4 weeks while the print copy is sent via the mail.
Registrations are fast, but Indiana resources recommend to make applications online to ensure faster processing. An in-person application for an Indiana business license should take 2 to 4 weeks, but can take longer at busy times of the year.
Without a business license in place, businesses operate below the law and could be subject to heavy fines or closure as a result. Indiana is strict about the basic business license requirement, and the laws get enforced often.
How long does a business license in Indiana take?
Registrations for a business license in Indiana are meant to be fast, and online applications take 2 to 4 weeks to approve. Applications that are made offline through the local city or town office can sometimes take longer: most take no longer than a month.
When does a business license in Indiana expire?
An valid Indiana sales tax license will last for a maximum of 2 years from its application date. Unlike most of the other states, renewals happen automatically after they have expired – though fees might still be payable through the same local office where the application was made.
Is the business license the only one an Indiana company will need?
A business license is the first document a business needs to trade legally in Indiana, but it might not be the only one considered necessary. The basic business license in Indiana covers only basic operation and sales tax. Additional licenses are necessary for specific company or industry types.
Where can I apply for a business license in Indiana?
The best place to apply for a business license in Indiana is online, but it can also be done through the local city or town office in which the business intends to register. Online business license applications are processed faster, while those who apply in person might have to wait up to a month to receive theirs.
| Types of Business Licenses | |
| A General Operating License | A general operating license is also called a basic business or sales tax license. It’s the base requirement for all businesses who want to operate within Indiana. |
| A Food License | Food licenses are required only for businesses that sell, buy or process food and beverage-related items. It’s a specific type of sales permit required on top of a basic business application. |
| A Nonprofit | Nonprofit business licenses are only for charities and charitable businesses operating in Indiana. Not all business types need one. |
Indiana Business Facts
• Small businesses in Indiana employ approximately 1.2 million people
• More than 20, 000 new jobs are created each year by emerging industries and new businesses.
• Industries like energy, pharmaceuticals, mining and general sales are some of the largest ones in Indiana State.
Getting Business Licenses in Indiana
Business licenses are required for any type of business who wants to buy, sell, trade or operate within Indiana State. The business license or tax certificate allows them to pay tax to the state as the law requires.
Basic license applications for Indiana cost $25 to apply for, and will remain valid for 2 years after the approval date. Specific businesses, like forestry or agriculture businesses, can expect to pay as much as $250 to register through Indiana State.
Without a business license, a company technically operates away from the legal framework of Indiana – and could be shut until the right licenses have been obtained from the city or town office.
Here are the business license costs in other states: