You must obtain a seller’s permit if you intend to sell products or services in Indiana. You are permitted to collect sales tax on behalf of the state using this permit. What you need to know about obtaining an Indiana seller’s permit is provided here.
Selecting your business structure is necessary before you can submit an application for a seller’s permit. The two most popular choices are an LLC and a single proprietorship. The most straightforward and affordable choice is a sole proprietorship. You will declare your business income on your personal tax return, and there is no official registration with the state necessary. However, there is no personal responsibility protection offered by this structure. An LLC, on the other hand, needs to be formally registered with the state and offers protection from personal liability. It costs more, though, and there is more paperwork.
Step 2: File a Business Registration Form You must register your business with the state after choosing your business structure. You must submit articles of incorporation to the Indiana Secretary of State if you’re founding an LLC. You must register your business with the Indiana Department of Revenue if you are a solo owner.
Step 3: Submit an application for a seller’s permit You may submit an application for a seller’s permit after your business has been registered. The INBiz portal of the Indiana Department of Revenue allows you to submit an application online. The details of your company, such as your EIN or Social Security number, business type, and the kinds of products or services you’ll be selling, must be provided.
Step 4: Gather and Send Sales Tax You must collect sales tax on all taxable sales after receiving a seller’s permit. In Indiana, the current sales tax rate is 7%. Regularly submit a sales tax return to the Indiana Department of Revenue along with any sales tax you have accrued.
A federal fee is not required to create an LLC. Some states do, however, charge a fee to create an LLC. The cost to file articles of organization is $95 in Indiana.
A sole proprietorship is the most straightforward type of business to launch. This structure is reported on your personal tax return and doesn’t need to be officially registered with the state.
The IRS offers free EIN (Employer Identification Number) requests.
Yes, if you have employees or if you file specific federal tax returns, you will need an EIN (Employer Identification Number) for your LLC in Indiana. Instead, you might be able to utilize your own Social Security number if your LLC has only one member and no employees. To find out your precise needs, it’s always a good idea to speak with a tax expert or the IRS.