Tue 19 Jan 2016 | By:

Indiana Business Taxes: Everything You Need to Know

Small Business Taxes

A full understanding of your business tax obligations when you’re registering a business in Indiana (LLC, Corporation, etc) can go a long way in giving you peace of mind and hassle-free operations for your business.

As well, having a clear understanding of your Indiana business taxes helps you identify tax advantages for your startup and keep you from possible tax problems in the future. Business compliance is a major issue in both the federal and state levels, so keeping up with your responsibilities in terms of Indiana business taxes is a must.

Completing business tax obligations is a no-joke task due to the sheer amount of paperwork and number of requirements to be compiled. However, good awareness of what needs to be done, how to do it, and what tools to use to help accomplish it; can make a very big difference in completing the entire task easily and stress-free.

To help you with Indiana business tax completion, this guide will point out a few of the common business taxes that your business may be asked to comply with. Note that each tax type differs on your business structure, nature, and type; so what may apply to one entity may not be applicable on your end.


Indiana Business Income Tax

Indiana imposes a Corporate Income Tax, but foregoes the imposition of privilege or franchise tax as compared to other states. Nevertheless, the state requires that personal income be taxable if the business income will go through you personally. A flat rate of Corporate Income Tax is applicable with the deadline set at the fourth month’s 15th day after tax year has been closed.

Indiana Federal Tax Forms

Aside from visiting the district office for tax forms, the only other source for official Indiana federal tax forms and publications can be found at Indiana’s Department of Revenue. All income tax forms, publications, and updates are provided on this link source. It is also a hassle-free and faster method to fulfill tax obligations as income tax returns are dealt with faster and is also a safe and secure transaction.

Unemployment Insurance Tax

Every Indiana business is also required to pay for Unemployment Insurance Tax. As part of the compliance requirements, you are obliged to pay for this tax type as this is a temporary benefit for employees who are temporarily jobless through no fault of their own to sustain their basic needs while they are in the process of looking for another job.

Indiana Sales and Use Tax

Both the sales and use tax is in effect in the state. As both are complimentary, any sales made in the state is subject to 7% sales tax. On the other hand, if a purchase has been made outside of Indiana, but will be delivered or used within the state, the use tax comes into effect. There are also exemptions to these tax types, but generally, it is imposed for most businesses.


Powerful Tools That Make Your Indiana Business Tax Life Easier

Startup Tools and ResourcesOne of the important aspects to effectively comply with your Indiana business tax obligations is through the use of valuable small business accounting tools.

Aside from the fact that these tools make your business tax life so much easier and more convenient, every facet of your bookkeeping and accounting processes are simplified as well, without having to spend so much time, effort and money. As compared to manual financial and tax managements, the use of small business tools really does make your life easier.

Small Business Accounting Software

XeroQuickBooks, and FreshBooks are examples of powerful small business accounting tools that are proven to simplify your financial transactions and help simplify your business tax in return. Each software is specifically designed to keep track of your finances, expenses, and taxes so you can fulfill your regular obligations. From bookkeeping, expense tracking, bank reconciliations, time tracking, expense management, and more, you can do all these on a budget as well.

As a precaution, note that this article is an informational guide, and it does not, in any way, represent legal advice or a legal document. There is no substitute for a lawyer’s professional advice. For any specifics on Indiana business taxes or starting a new business in Indiana, always seek expert advice from your lawyer.

About Ryan James

Half hardworking hermit, half avid adventurer, Ryan founded Startup Savant to simplify entrepreneurship and pay it forward by donating a portion of all revenue to support children's education via DonorsChoose.org.