Residents and non-residents who earn money in Indiana must pay taxes on that income. Depending on the individual’s income level, the tax rate changes. With several exceptions, Indiana’s 2020 income tax rate is 3.23% of federal adjusted gross income (AGI). The exceptions include a special supplemental rate of 7% on bonuses and commissions, as well as county option income taxes, which range from 0.1% to 1.23%.
You must compute your AGI and use the 3.23% tax rate to determine your Indiana state tax obligation. To calculate your AGI, you can either utilize tax preparation software or speak with a tax expert. As with federal income tax forms, Indiana state tax returns are due on or before April 15th.
If you want to launch a business in Indiana, you might need to check the availability of a potential name. The Indiana Secretary of State’s Business Entity Search database can be used to determine whether a business name is available in Indiana. All entities registered with the Indiana Secretary of State, such as corporations, limited liability companies (LLCs), and partnerships, are included in this database.
You can also utilize the Business Entity Search database to look up a registered company in Indiana. You may look up a company using either its name or the name of its registered agent. You can check the registered agent’s contact details, the company address, and other pertinent information once you’ve located the company you’re looking for.
You might also need to apply for an Employer Identification Number (EIN) from the Internal Revenue Service (IRS) if you’re beginning a business in Indiana. A nine-digit number with no duplicates is given to enterprises as an EIN for tax purposes. By visiting the IRS website and submitting the online EIN application, you can get a free EIN number in Indiana. As an alternative, you can mail or fax Form SS-4 to the IRS.
In conclusion, Indiana’s state income tax rate for 2020, with few exclusions, is 3.23% of federal adjusted gross income. The Indiana Secretary of State’s Business Entity Search database can be used to discover a registered business and determine whether a business name is accessible if you’re establishing a new venture in Indiana. The IRS will accept Form SS-4 in addition to online applications for free EIN numbers in Indiana.