Indiana is home to a vast quantity of covered bridges, one of the most prestigious opera programs in the country, and the Indianapolis 500 Car Race, one of the largest sporting events in the world. It may also be home to your next employee. Fortunately, no matter where your business is based, collaborating across state lines is easy in this era of remote work.
Bringing on a new employee can be exciting, but there’s often a lot to do as well. You want to onboard your new hire as quickly and smoothly as possible to ensure their success at your company. But before you get started with onboarding, you’ll need to register your business in the state of Indiana. There are two main steps you'll need to follow to register your company.
1) Any business with employees working in Indiana needs to register with the Indiana Department of Revenue.
a) Register your business at INBiz. INBiz is the state of Indiana's website, in coordination with the Indiana Secretary of State, Department of Workforce Development, and Department of Revenue, for registering and managing your business. On INBiz, companies can file a business entity report, complete tax registration, conduct a business search, and more. To complete registration on INBiz, you'll first need to sign up for an Access Indiana account.
b) After you've created your Access Indiana account, you can go to INBiz. You'll be asked to specify whether you're a business owner, business employee, registered agent, service provider, or other. Then, you'll need to state your primary reason for visiting INBiz, such as starting a business or completing tax registration. You'll also specify which Indiana state services you're interested in for your company, such as creating a business plan, obtaining licenses and permits, or filing a business entity report. You'll check at least the "start a business" option, which includes registering a business.
c) Once you've answered the initial questions, you'll be taken to the main page for INBiz, where you can register and manage your business in Indiana. Choose the tax registration option to register to receive your Withholding Account Number. In order to complete your tax registration, you'll need the Federal Employer Identification Number (FEIN) for your business, the Social Security Number or Individual Tax Identification Number of the responsible officer(s) or partner(s) for the business, your company's North American Industry Classification System (NAICS) industry code, and, of course, basics like your business name and business type. Please note that, if your business is a sole proprietorship or general partnership, you'll be directed to a separate section to register your business.
2) Next, you’ll need to register with the Department of Workforce Development to take care of unemployment insurance.
a) First, you'll create an account with the Indiana Department of Workforce Development. Once you've created the account, you can register for a State Unemployment Tax Account number online.
b) You’ll receive your Withholding Account number in about 2-3 days by email, and your State Unemployment Tax Account number immediately after registering.
Once you have both account numbers, you’ll be able to register new employees, file wage reports, and submit unemployment taxes online. You are responsible for paying unemployment taxes if you are a new employer in Indiana and have paid $1 or more to a worker performing covered services within the state. Wage reports are due quarterly. The Department of Workforce development has a helpful FAQ section, if you have additional questions.
After you have registered your business in Indiana, your company will pay state income tax and local income taxes on any profits that are earned in the state. Your business will also pay sales tax on property that is sold or shipped from Indiana. The Indiana Corporate Income Tax must be paid by corporations, while a limited liability company (LLC) can avoid double taxation. For more information, please see the INBiz website's page for out-of-state businesses.
For more details about tax requirements and federal law around doing business in Indiana, refer to the Internal Revenue Service. The IRS website has a page with helpful links for small businesses and other employers doing business in Indiana.
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⚖️ Legal Disclaimer: The information contained in this site is provided for informational purposes only, and should not be construed as legal advice on any subject matter.