How to Get a Business License in Indiana (2026)

Fact-checked by the LegalGlass editorial team against primary sources · Published Aug 6, 2026 · Last updated Aug 6, 2026

Indiana has no single general state business license. Instead, you register your business through INBiz, obtain a Registered Retail Merchant Certificate ($25 per location) from the Indiana Department of Revenue if you sell taxable goods, and get any industry-specific state license or local permit your activity requires. Indiana's state sales tax rate is 7%.

Indiana Has No Single General Business License

There is no one "Indiana business license" that every company must hold. Instead, business licensing in Indiana is a combination of three layers: state tax registration (through INBiz), industry-specific licenses (through the relevant state board), and local permits (through your city or county). Which layers apply depends on what you sell and where you operate.

That means the first question is not "which license do I buy" but "which of these apply to my activity." Forming the entity itself comes first - see how to form an LLC in Indiana - and then you layer on the registrations below. For the national framing, see the business license overview.

This structure is common across the United States: only a minority of states issue a single general business license, and Indiana is not one of them. The practical upside is that a business with no taxable sales, no regulated profession, and no local permit trigger may need very little beyond forming the entity and getting a federal EIN. The downside is that "no general license" is easy to misread as "no requirements at all," which is wrong - the obligations are simply distributed across agencies rather than bundled into one document. The rest of this guide walks through each layer in the order most new Indiana businesses encounter it, so you can quickly identify which ones apply to you and skip the ones that do not.

Step 1: Register Your Business Through INBiz

Most state-level registration runs through INBiz, Indiana's one-stop business portal shared by the Secretary of State and the Department of Revenue. When you form or register your entity there, you can also open the tax accounts your business needs - sales tax, withholding, and others - in the same system.

Before you register for taxes, get a federal EIN from the IRS, which is free and identifies your business for tax purposes. You will use the EIN when you set up your Indiana tax accounts. If you have not chosen a structure yet, review what an LLC is and compare S-corp versus LLC treatment first.

Registering through INBiz is what connects your new entity to the tax system. When you open the relevant accounts there, the Department of Revenue can issue the certificates and account numbers you need to operate legally. This is also where employers set up withholding so they can remit Indiana income tax withheld from employee wages. Because INBiz is shared between agencies, doing the registration in one place reduces the chance of missing a required account - but you still have to know which accounts your activity triggers, which is why the layers below matter. Keep your login and your registered agent details consistent so state notices reach the right place.

Step 2: Get a Registered Retail Merchant Certificate (Sales Tax)

If your business sells taxable tangible personal property or certain services, you must obtain a Registered Retail Merchant Certificate (RRMC) from the Indiana Department of Revenue before making sales. This is the closest thing Indiana has to a general "sales license." The RRMC costs $25 per business location under Indiana Code 6-2.5-8-1, and you apply through INBiz.

Indiana's state sales tax rate is 7%. The Department of Revenue issues a separate certificate for each location, and each must be displayed where customers can see it. Once you are current on your sales tax returns and have no outstanding liabilities, the RRMC renews automatically at no cost, per the Department of Revenue sales tax page. If liabilities go unpaid, the certificate can be revoked until they are resolved.

Step 3: Check Professional and Occupational Licenses

Many occupations require a state license regardless of business structure. The Indiana Professional Licensing Agency (PLA) administers licensing boards for dozens of professions - including contractors, cosmetologists and barbers, health care providers, accountants, and real estate professionals. Requirements, exams, and fees vary by board, so check the specific PLA board that governs your field.

Some regulated activities are licensed by other state agencies instead - for example, alcohol sales through the Indiana Alcohol and Tobacco Commission, or food establishments through the state and local health departments. If your work is regulated, this license is not optional and often must be in place before you open. Confirm the requirement early so it does not delay your launch.

The key question is whether your specific occupation appears on a licensing board's list, not whether you feel like a "professional." Trades and services people do not always associate with licensing - such as certain home-improvement contractors, private investigators, or auctioneers - can still fall under a board. Operating without a required occupational license can carry penalties well beyond a late fee, including orders to stop work, so it is worth confirming your status with the relevant PLA board before you take on clients. If your field is not regulated at the state level, you can skip this layer entirely and move on to local permits.

Step 4: Check Local City and County Permits

Even without a general state license, your city or county may require local permits or registrations. Common examples include zoning and land-use approvals, a home occupation permit for a home-based business, signage permits, and food service or health permits for restaurants and food trucks. Some municipalities also require a local business registration.

Because these rules are set locally, there is no single statewide list - check directly with the city and county where you operate. Handling local permits alongside your state registration keeps your business fully compliant from day one. Keep your registered agent and biennial Business Entity Report current so your entity stays in good standing while you obtain permits.

A useful way to find local requirements is to call or search the website of the specific municipality or county where your business address sits, since a home-based consultant in one town may face different rules than a storefront in another. Some larger Indiana cities publish a business checklist that lists the local permits they issue; smaller jurisdictions may direct you to the county. Ask two questions: is my activity allowed at this address under the zoning code, and does the locality require any registration or permit for what I do. Getting a "no" to the second question in writing is just as valuable as a permit, because it documents that you checked. Building this local step into your launch - rather than discovering a permit gap after you open - is what separates a smooth start from a costly one, and it complements the state-level registrations you complete through INBiz.

Indiana Licensing and Registration Summary

Common Situations and What They Require

The fastest way to see how these layers combine is by example. A freelance graphic designer or consultant who sells services (not taxable goods) and works from home typically needs only the entity registration and a federal EIN - no Registered Retail Merchant Certificate, no PLA license, and often just a home-occupation check with the city. An online retailer selling physical products to Indiana customers needs the entity, an EIN, and an RRMC to collect the 7% sales tax, but usually no professional license. A restaurant or food truck needs the entity, an EIN, an RRMC, and food and health permits from state and local health authorities, plus possible zoning approval.

A licensed trade - say a residential contractor, cosmetologist, or real estate agent - adds a Professional Licensing Agency credential on top of the entity and tax registrations. And a business that sells alcohol layers on a permit from the Alcohol and Tobacco Commission. The pattern is consistent: start from the entity and EIN, add the RRMC if you sell taxable goods, add a state occupational license if your field is regulated, and confirm local permits last. Because your obligations depend on your exact activity, the safest approach is to write down what you sell and where, then match each layer to that description rather than assuming a one-size-fits-all "license."

Putting It in Order

A clean sequence for a new Indiana business is: form the entity through INBiz, get a free EIN from the IRS, register any tax accounts (RRMC for sales tax, withholding if you have employees), obtain any professional license from the PLA, and confirm local permits with your city or county. Following that order avoids gaps - for example, collecting sales tax before your RRMC is issued, or opening a regulated business without its board license. For the formation step itself, start with how to form an LLC in Indiana and budget the fees in Indiana LLC cost. Keeping the entity in good standing through the biennial Business Entity Report and a valid registered agent runs alongside all of this, since a lapsed entity can complicate renewing permits or opening accounts later.

Frequently Asked Questions

Does Indiana require a general business license?

No. Indiana has no single statewide general business license. Businesses register through INBiz, get a Registered Retail Merchant Certificate if they sell taxable goods, and obtain any industry or local license their activity requires.

How much is a sales tax permit in Indiana?

The Registered Retail Merchant Certificate costs $25 per business location under IC 6-2.5-8-1. You register through INBiz with the Department of Revenue, and it renews automatically once you are current on returns.

Do I need a license to sell online in Indiana?

If you sell taxable goods to Indiana customers, you generally need a Registered Retail Merchant Certificate to collect the 7% sales tax, even for online sales, through INBiz.

What professions need a state license in Indiana?

Many regulated professions - contractors, cosmetologists, health providers, real estate agents, and more - are licensed through the Indiana Professional Licensing Agency. Requirements and fees vary by board.

Do I need a local business license in Indiana?

Possibly. Cities and counties may require local permits, zoning approvals, or registrations for activities like food service, home occupations, or signage. Check your city or county government.

Related

• Business license overview (cluster hub)
• How to form an LLC in Indiana
• How much does an Indiana LLC cost?
• Indiana Business Entity Report and taxes
• Indiana registered agent requirements
• How to get an EIN
• How to dissolve an LLC in Indiana

Sources

1. Indiana Department of Revenue - Sales Tax (7% rate; RRMC display and auto-renewal).
2. Indiana Code - IC 6-2.5-8-1 (RRMC application and $25 per-location fee).
3. INBiz (Indiana's official business portal) - Business Filings (register entity and tax accounts).
4. INBiz - Taxes & Fees (tax registration).
5. Indiana Professional Licensing Agency - Licensing Boards (professional and occupational licenses).
6. Indiana Secretary of State - Business Forms (Articles of Organization, State Form 49459).
7. Indiana Department of Revenue - Business Tax (tax accounts overview).
8. Indiana Alcohol and Tobacco Commission - Permits and licensing (alcohol permits).
9. IRS - Get an Employer Identification Number (free EIN).
10. IRS - Business Structures (choosing an entity).
11. Indiana General Assembly - Indiana Code Title 6, Taxation (Article 2.5, sales and use tax; RRMC).
12. Indiana Department of Workforce Development - Employer Resources (state unemployment insurance registration).

LegalGlass provides general information for educational purposes and is not a law firm or a substitute for advice from a licensed attorney or tax professional. Licensing rules and fees change and vary by locality; verify current requirements with the Indiana Department of Revenue, the Indiana Professional Licensing Agency, and your local government before acting.