How Much Does a Business License Cost in Indiana?  

Starting a business in Indiana involves a range of expected expenses, from rent to payroll, that entrepreneurs rarely forget to budget for. Yet one cost that often slips through the cracks is the business license.

Researching which licenses are required, how to apply for the permits you need, and what they cost is a critical part of starting a company in the Hoosier State. Because no two businesses are exactly alike, these expenses can be very different from one company to the next.

This quick guide breaks down what business licenses are, who needs them, and the state business license fees you need to pay for some of the most common types.

Planning ahead when it comes to business licenses can protect you and your company from a nasty surprise down the road.

What is a “business license”?

A business license is a general term for a wide range of licenses, permits, and certifications. Business licenses are issued by the local, state, and federal governments, and most, but not all, businesses in Indiana will require at least one of them before they can legally operate.

The good news is that in Indiana, there isn’t a mandatory state business license requirement. But that doesn’t mean companies won’t need any business licenses at all. Almost all start-ups will need some sort of business license, such as:

• State licenses for specific activities
• Industry- or profession-based licenses
• Local municipality permits and licenses
• Federal permits and licenses

At the end of the day, the business licenses you need and how much you’ll have to pay for them depend on your location and business type. Remember that you may need multiple licenses from different levels of government, so be sure to check the local, state, and federal requirements.

Top Tip: Making sure you have all the business licenses, permits, and certifications for your business is tough. But with our business license service, finding exactly what you need is easier.

What are the Indiana business license costs?

With no state-wide business license requirement, there are no fixed costs. The expense is solely based on the kind of business a company is involved in and where it is located in Indiana. But to provide you with some idea of what you may need to pay, here are a few common business licenses and how much you will need to pay for them:

• Registered Retail Merchant Certificate (RRMC): Most businesses in Indiana that sell taxable goods must register with the Department of Revenue to allow them to collect sales tax. The registration fee is $25.00 for each location. Businesses can get an RRMC through the INBIZ website. This license is good for two years and is automatically renewed at no cost.
• Real Estate Broker/Agent: To represent a buyer or seller in a real estate transaction in the state of Indiana, a person needs to obtain a Broker license from the Indiana Professional Licensing Agency. The cost for the license is $60.00. This is in addition to the cost to take the real estate exam. The license is good for three years and requires additional payment.
• Food Establishment: While Indiana does not require a single statewide license for food businesses, owners must apply for a local permit in the city and/or county where they operate. Fees and requirements vary by location. For instance, in the City of Fishers, the fee schedule includes a $150 plan review, a $25 application fee, and up to $800 for the actual license, depending on the type of food establishment. Renewal periods and renewal costs also differ by location.

You can see that the costs of getting Indiana business licenses are not fixed. While some businesses may get away with paying minimal business license fees, others can pay hundreds of dollars. Since having the proper licenses, permits, and certifications is a legal requirement, paying these fees is non-negotiable.

Unique elements of Indiana business licensing

Each state has its own quirks when it comes to licensing, and here are a few things that make getting a business license in Indiana different:

• There is no general statewide business license required in Indiana. Instead, licensing is based on the type of business and where it operates within the state.
• The RRMC (Registered Retail Merchant Certificate) is Indiana’s version of a sales tax permit. Any business that is required to charge sales tax must register for an RRMC.
• Businesses can apply for an RRMC either online through the INBiz portal or by mail by submitting a completed BT-1 form. While the cost is the same for both methods, applying online is often quicker.

Top tip: The INBiz portal is an excellent resource for learning more about business requirements in Indiana and filing business forms directly with the state.

Types of businesses that require a license in Indiana

Indiana does not require a general statewide business license for every company. However, many industries and professions must obtain specific licenses or permits before they can legally operate. Some examples include:

• Retailers selling taxable goods
• Real estate brokers and agents
• Contractors and building trades
• Cosmetologists, barbers, and other personal care professionals
• Attorneys
• Healthcare providers, pharmacists, and medical practitioners
• Pawnbrokers and secondhand dealers
• Architects
• Financial service providers
• Food service establishments
• Agricultural businesses, pesticide applicators, and those handling regulated chemicals

Top tip: The Indiana Professional Licensing Agency portal is a valuable resource for professional licenses. It provides a lot of information on licensing requirements, online applications for new and renewal licenses, and tools to help track the approval status of applications.

Renewing your business license in Indiana

Once you go through the process of applying for a business license, permit, or certificate, unfortunately, that’s not the end of it. At some point in the future, you are most likely going to need to renew it. Luckily, as long as you pay your taxes on time, the RRMC renews automatically every two years, but that is not the case for most.

Most business licenses are renewable through the same agency where you applied for the initial license. For renewals at the state level, you can also go through the Indiana Professional Licensing Agency.

Failing to renew your business license on time can lead to a late fee and penalty, a lapse in legal authority, or even reinstatement requirements. Avoid all the issues by setting a reminder to renew your license at least 60 days before it is due to lapse.

Conclusion

Now you have a better understanding of what business licenses are, why they are so important, and how to apply for the most common ones. But starting a new company is much more than just applying for a business license, and it can all feel overwhelming. Tailor Brands can help get your business started, get the business license and permits you need and keep it going. Find out how you can reduce your stress, and still grow a successful business.

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