Starting a Business in Indiana: Licenses, Permits & Requirements (2026)

Last updated: May 3, 2026

Five things shape what it actually feels like to start a business in Indiana in 2026, and most of them are different from neighboring Midwest states. First, Indiana’s flat personal income tax is being phased down to one of the lowest in the country – 2.95% in 2026, dropping to 2.90% in 2027 under HEA 1001 of 2023, with SB 451 of 2025 setting a path to 2.55% by 2030 if state revenue thresholds are met. Second, Indiana imposes a flat 7% statewide sales tax with no local sales tax – one of only four states tied for the second-highest state-level rate, but vastly simpler to administer than Illinois (variable home-rule rates), Ohio (county-by-county add-ons), or Kentucky’s recent service-tax expansion. Third, Indiana is a Right-to-Work state under IC 22-6-6 since 2012 – no employee can be required to join a union or pay dues as a condition of employment. Fourth, the flat 4.9% corporate income tax is the lowest in the Midwest. Fifth, Indianapolis is one of the few US metros operating as a consolidated city-county “Unigov” structure (Marion County) since 1970 – one government, not separate city and county licensing.

The structural twist Indiana newcomers underestimate: county Local Income Tax (LIT) stacks on top of the state’s 2.95%. LIT rates run from roughly 0.5% to 3.38% across Indiana’s 92 counties, and they are withheld by the employee’s county of residence, not the county of work. A Carmel resident commuting to a job in Indianapolis pays Hamilton County’s 0.95% LIT, not Marion County’s 2.02% – that resident-based withholding is unusual and important when you set up payroll. Six Indiana counties raised their LIT rates effective January 1, 2026; check Departmental Notice #1 from the Indiana Department of Revenue every December.

This guide compiles the specific Indiana agency requirements, portal links, fee amounts, and city-level variations that apply to starting a business in Indiana in 2026. The source agencies referenced are the Indiana Secretary of State (INBiz), Indiana Department of Revenue (DOR), Indiana Department of Workforce Development (DWD), Indiana Workers’ Compensation Board (WCB), Indiana Professional Licensing Agency (IPLA), the Family and Social Services Administration (FSSA), Indiana State Department of Health (ISDH), and the Office of Indiana State Chemist (OISC) at Purdue.

Indiana Business Requirements at a Glance

Requirement	Agency / Portal	Cost	Timeline
LLC Articles of Organization	Indiana Secretary of State (INBiz)	$95 online / $100 paper	1-2 business days online
Biennial Business Entity Report	Indiana Secretary of State (INBiz)	$32 online / $50 paper, every 2 years	Due in anniversary month; 90-day early window per HB 1593 eff Jan 1, 2026
Trade Name / DBA	County Recorder (where business operates)	~$25-$30 per county; varies by recorder	Filed in each county of operation
Federal EIN	IRS.gov	Free	Immediate online
Registered Retail Merchant Certificate (RRMC)	Indiana Department of Revenue (via INBiz)	$25 one-time; biennial renewal at no charge	Required before collecting 7% state sales tax
Indiana Withholding Tax Account	Indiana DOR (via INBiz)	Free; flat 2.95% state PIT (2026) + county LIT 0.5%-3.38%	Register before first payroll
Unemployment Insurance Account	Indiana Department of Workforce Development	2.5% new employer rate on $9,500 wage base; experienced 0.50%-7.40%	Register before first payroll
Workers’ Compensation Insurance	Private insurer (competitive market); rates by ICRB	NCCI class code rate × payroll ÷ $100; required at 1+ employee per IC 22-3-2-2	Before first employee starts; non-coverage = Class A infraction up to $10K fine
New Hire Reporting	Indiana New Hire Reporting Center	Free	Within 20 days of hire/rehire per IC 22-4-10-8
Industry-specific local license	City Building / Health / Licensing Department (Indianapolis BNS, Marion County Public Health, Allen County Building, etc.)	Varies by industry and city	Before operating in that jurisdiction
Industry-specific state license	IPLA, FSSA, OISC at Purdue, ISDH, etc.	Varies by license type	Before practicing in licensed profession

How to Start a Business in Indiana (Step by Step)

Step 1: Form Your Indiana LLC

File Articles of Organization at the INBiz portal (inbiz.in.gov) run by the Indiana Secretary of State. Filing fee: $95 online or $100 by mail. Standard processing 1-2 business days for online filings.

Your LLC name must include “LLC,” “L.L.C.,” “Limited Liability Company,” or “Limited Company” and must be distinguishable from existing Indiana entities. Run a name search on INBiz before filing.

Registered agent: Your LLC must designate a registered agent with a physical street address in Indiana (P.O. boxes not accepted). You can serve as your own agent if you have an Indiana street address, or hire a third-party registered agent service.

Biennial Business Entity Report: Indiana LLCs file a Business Entity Report every two years, not annually. Filing fee: $32 online or $50 by mail. The report is due during the anniversary month of formation. Effective January 1, 2026, HB 1593 opened a 90-day early filing window before the report’s due month. Missing the deadline triggers late fees and eventual administrative dissolution.

Trade Name (DBA): Indiana DBAs are filed with the County Recorder of the county where the business operates, not the Secretary of State – a structural difference from most states. Fees vary by county (typically $25-$30). If you operate in multiple counties under a DBA, you may need to file in each.

Get your free federal EIN immediately at IRS.gov. You need it before you can register for state taxes, open a business bank account, hire employees, or apply for most local licenses.

Step 2: Register for State Taxes Through INBiz

Use the INBiz registration to set up your Indiana tax accounts in a single session.

Indiana Sales Tax

Indiana imposes a flat 7% sales tax statewide. Critically, there is no local sales tax – no county or city add-on rates. This makes Indiana one of the simplest sales tax environments in the country compared to neighboring Illinois (Chicago combined ~10.25%), Ohio (6.50%-8.00% combined county-by-county), or Kentucky’s expanded service-tax base. The 7% rate is one of only four states tied for the second-highest state-level rate (joining Mississippi, Rhode Island, and Tennessee).

• Registered Retail Merchant Certificate (RRMC): $25 one-time fee at registration; renewed at no charge every two years. Required before any taxable sale of tangible personal property or taxable repair work.
• Service businesses: Most pure services (cleaning, lawn care labor, professional consulting) are NOT subject to Indiana sales tax. The split between taxable retail sales and non-taxable services matters most for repair-and-install businesses (HVAC, appliance repair, vehicle repair) where labor and parts are treated differently.
• Food and groceries: Most grocery food is exempt. Prepared food, restaurant meals, and some snack items are taxable at 7%.

Indiana Income Tax

Indiana operates a flat individual income tax under HEA 1001 of 2023:

Tax Year	Indiana Flat PIT Rate
2024	3.05%
2025	3.00%
2026	2.95%
2027	2.90%
2030+ (potential)	As low as 2.55% in 0.05% biennial increments per SB 451 of 2025, if state revenue thresholds are met

County Local Income Tax (LIT) layers on top. Each of Indiana’s 92 counties sets its own LIT rate, ranging roughly 0.5% to 3.38%. Notable rates for major counties in 2026:

County (Major City)	2026 LIT Rate	Combined with State PIT
Marion (Indianapolis)	2.02%	~4.97%
Hamilton (Carmel/Fishers/Noblesville)	0.95%	~3.90%
Allen (Fort Wayne)	1.80%	~4.75%
Vanderburgh (Evansville)	2.20%	~5.15%
Lake (Gary/Hammond – Central Time)	1.50%	~4.45%

The county LIT is withheld by the employee’s county of residence as of January 1 of each tax year, not the county of work. This resident-based system is unusual in the US and means a Carmel resident commuting to an Indianapolis job has Hamilton County’s 0.95% withheld, not Marion County’s 2.02%. Six Indiana counties raised their LIT rates effective January 1, 2026 – check the Indiana DOR’s Departmental Notice #1 annually for current rates and any year-mid changes (LIT rates can also adjust October 1).

Corporate Income Tax

Indiana imposes a flat 4.9% corporate income tax (Adjusted Gross Income Tax) – the lowest corporate rate in the Midwest, ahead of Ohio’s 0.26% Commercial Activity Tax (which is gross-receipts-based and being phased out for small businesses) and well below Illinois (9.5% combined) or Michigan (6%). Pass-through entities (LLCs taxed as partnerships, S-corps, sole proprietorships) flow income to owners’ personal Indiana returns at the 2.95% individual rate plus county LIT.

Step 3: Workers’ Compensation, Unemployment, and Payroll

Workers’ Compensation

Indiana requires workers’ compensation insurance for any employer with one or more employees under IC 22-3-2-2. Full-time, part-time, and seasonal workers all count. Coverage is administered by the Indiana Workers’ Compensation Board (WCB), with the Indiana Compensation Rating Bureau (ICRB) handling classification and rating.

Situation	Indiana Requirement
1+ employees (any status)	Workers’ comp required under IC 22-3-2-2
Sole proprietor with no employees	Optional (owner may elect coverage)
True independent contractors	Not required – but Indiana applies an IRS-style multi-factor test; misclassification is heavily audited
Agricultural workers, casual labor, certain corporate officers	Statutory exemptions available
Penalty for non-coverage	Class A infraction under IC 22-3-5-1 – up to $10,000 fine + double compensation + medical + attorney fees + business closure order

Indiana operates a competitive workers’ comp market – any admitted carrier (Travelers, The Hartford, Liberty Mutual, EMC, Pinnacol, etc.) can write your policy. There is no state monopolistic fund (unlike neighboring Ohio, where the BWC is the only legal carrier).

Unemployment Insurance

Register for Indiana Unemployment Insurance through DWD before your first payroll. The 2026 setup:

• Taxable wage base: $9,500 per employee per calendar year (one of the lowest in the country)
• New employer rate: 2.5%
• Experienced employer rates: 0.50% to 7.40% based on claims history
• Maximum first-year UI cost per employee: ~$237.50 at the new employer rate

New Hire Reporting

Report all new and rehired employees to the Indiana New Hire Reporting Center within 20 days of the hire/rehire date under IC 22-4-10-8. Failure to report carries a $25-per-employee fine, escalating to $500 if the failure is part of a conspiracy with the employee.

Minimum Wage and Right-to-Work

Indiana’s minimum wage is $7.25/hour – the federal floor. Indiana has not enacted a state minimum wage above the federal level, putting it at the bottom of the regional pack alongside Wisconsin and Kentucky (Illinois is at $15.00 in 2026; Michigan at $13.73; Ohio at $11.00 non-tipped). The tipped wage is $2.13/hour federal, with the employer required to make up the difference if tips don’t reach $7.25/hour.

Indiana is a Right-to-Work state under IC 22-6-6 since February 1, 2012. Employers cannot require an employee, as a condition of employment, to join a labor union, pay union dues, or pay any equivalent charge to a third party (including charitable organizations standing in for dues). Violations are Class A misdemeanors.

Step 4: City and County Licensing – Marion County Unigov and Beyond

Indiana has no statewide general business license. Local requirements vary substantially by city and county – and Indiana’s geography includes one truly unusual structure.

Indianapolis – Marion County Unigov

Indianapolis and Marion County operate as a consolidated city-county under “Unigov” since 1970 – one combined government, not separate city and county licensing authorities. The Indianapolis Department of Business and Neighborhood Services (BNS) handles trade contractor licensing under Revised Code of the Consolidated City and County. The Marion County Public Health Department handles food, lodging, and mobile food vendor licensing. Four “excluded cities” within Marion County (Beech Grove, Lawrence, Southport, Speedway) maintain separate municipal governments for some functions but are within the Unigov tax and licensing structure for most purposes.

Other Major Indiana Metros

• Fort Wayne (Allen County): Allen County Building Department handles most contractor licensing; City of Fort Wayne handles some local business registrations
• Evansville (Vanderburgh County): City of Evansville and Vanderburgh County coordinate most licensing; Ivy Tech administers contractor exams
• South Bend (St. Joseph County): City of South Bend + St. Joseph County Health Department
• Bloomington (Monroe County): City of Bloomington + Monroe County Health Department
• Lafayette / West Lafayette (Tippecanoe County): Separate city-level business licensing in each city
• Hamilton County (Carmel, Fishers, Noblesville, Westfield): Each rapidly growing suburb operates its own contractor licensing; this is the fastest-growing area of Indiana
• Northwest Indiana (Lake + Porter Counties – Central Time): Gary, Hammond, Whiting, Munster, Crown Point, Valparaiso each have local business registration; many businesses also hold Illinois licenses for the Chicago metro spillover market

Indiana 811 (Holey Moley)

Any excavation work – landscaping installations, HVAC condenser pads, geothermal loops, fence post-holes, irrigation trenching – requires a free Indiana 811 (also called Indiana Underground Plant Protection Service or “Holey Moley”) notice at least two full working days in advance under IC 8-1-26-16. The Indiana Utility Regulatory Commission enforces with significant civil penalties for damage to underground facilities. Notice is valid for up to 10 calendar days.

Step 5: State Professional Licenses

Indiana Professional Licensing Agency (IPLA) – The Umbrella

The Indiana Professional Licensing Agency (IPLA) is the umbrella for most state-level occupational licensing. IPLA boards include:

• State Board of Cosmetology and Esthetics (IC 25-8 / 820 IAC) – cosmetologists, estheticians, manicurists, electrologists, salon establishments
• Plumbing Commission (IC 25-28.5 / 860 IAC) – plumbing contractors, journeymen, hydronic and gas-piping work
• Private Investigator and Security Guard Licensing Board (IC 25-30) – PI and security guard companies and licensees
• Real Estate Commission – real estate brokers and salespeople
• State Board of Nursing, Medical Licensing Board, Pharmacy Board – regulated health professions
• Auctioneer Commission, Funeral & Cemetery Board – other regulated trades

Note that Indiana has no statewide HVAC, electrical, or general building contractor license – those are city/county responsibilities. Plumbing IS state-licensed through IPLA’s Plumbing Commission.

Sector-Specific State Agencies

• FSSA Office of Early Childhood and Out-of-School Learning (OECOSL) under Family and Social Services Administration licenses daycare and child care under IC 12-17.2; also administers the Child Care and Development Fund (CCDF) subsidy and the Paths to QUALITY 4-level rating system
• Indiana State Department of Health (ISDH) oversees food safety statewide but delegates most enforcement to 94 Local Health Departments (LHDs) across Indiana’s 92 counties (Marion County combines city and county functions). Food trucks, restaurants, and most food-service businesses are licensed at the LHD level.
• Office of Indiana State Chemist (OISC) at Purdue University handles commercial pesticide applicator licensing under IC 15-16-5 – unusual nationally, as most states regulate pesticides through the Department of Agriculture, not the land-grant university
• Indiana Department of Insurance licenses insurance producers and agencies
• Alcohol and Tobacco Commission licenses alcohol retailers, restaurants serving alcohol, and tobacco sellers

Indiana’s Distinctive Tax and Regulatory Environment

1. The flat-tax phase-down is real and accelerating. HEA 1001 of 2023 took the personal income tax from 3.23% (2022) to 2.95% by 2026, with 2.90% in 2027 already locked in. SB 451 of 2025 added a path to 2.55% in 0.05% biennial increments starting January 1, 2030 – if state general fund revenue grows at least 3.5% over the prior fiscal year. Indiana is competing aggressively with Tennessee (no PIT), Kentucky (3.5% flat in 2026), and Ohio (flat 2.75% effective Jan 1 2026 with $26,050 exemption) for relocating retirees, remote workers, and corporate headquarters.

2. The county LIT layer is a real cost that’s easy to miss. A new Indiana resident from a no-LIT state (Texas, Florida, Tennessee) can owe an extra ~$1,500 in annual income tax compared to expectation just from the county portion – and high-LIT counties like Pulaski (3.38%) or Switzerland (3.13%) push the combined state+county rate over 6%. Always look at combined effective rates, not just the headline 2.95% state figure.

3. The 7% statewide sales tax with no local complexity is a real operational advantage. Indiana retailers configure ONE sales tax rate. Compare to Colorado (home rule cities each with separate rates and registrations), Illinois (Chicago combined 10.25% + various RTAs), Tennessee (variable local 1.5%-2.75%), or even Texas (8.25% combined cap with thousands of taxing jurisdictions). The Indiana DOR collects the entire 7%; bookkeeping is simpler.

4. Indiana audits independent contractor classification heavily. The DWD, ICRB, and Indiana DOR all run audits looking for misclassified workers. The cost difference between an “employee” (workers’ comp + UI + withholding + new hire reporting) and a “1099 contractor” creates strong incentive to misclassify, and Indiana enforcement looks at it. The IRS multi-factor test applies – use it conservatively.

5. Right-to-Work shapes the labor market. Since 2012, no Indiana employee can be required to pay union dues, which has reduced union density across manufacturing, transportation, and the building trades. The competitive labor market – particularly skilled trades – reflects this in compensation and turnover dynamics.

6. Northwest Indiana’s Central Time Zone matters. Lake, Porter, Newton, Jasper, Starke, LaPorte, Pulaski, Spencer, Perry, Posey, Vanderburgh, Warrick, Gibson, and Knox counties all observe Central Time, while the rest of the state runs on Eastern Time. For dispatch, payroll cutoffs, and customer scheduling, the time-zone split is a real consideration – Indianapolis-based companies serving NW Indiana customers often run separate dispatch boards.

Indiana Market Context: Where the Activity Is

Indianapolis-Carmel-Anderson MSA (2.1+ million population): The largest market and the fastest-growing suburban ring. Hamilton County (Carmel, Fishers, Westfield, Noblesville) is regularly ranked among the fastest-growing US suburbs. Eli Lilly’s $9 billion LEAP campus expansion in Lebanon (Boone County) is the largest single corporate investment in Indiana history. The Indiana Convention Center, Lucas Oil Stadium, Gainbridge Fieldhouse, and the NCAA national headquarters in downtown Indianapolis sustain hospitality, food service, and event-driven small business demand. The Indianapolis 500 (Memorial Day weekend), the Brickyard 400, the NCAA men’s basketball tournament’s frequent rotation hosting, and the Indy 500 Festival generate predictable annual revenue spikes for food trucks, cleaning services, and security businesses.

Northwest Indiana (Lake + Porter Counties): Gary, Hammond, Whiting, Munster, Schererville, Crown Point, Valparaiso. Operates economically as the southern edge of the Chicago metro – many small businesses serve clients on both sides of the state line. Steel (Cleveland-Cliffs, U.S. Steel Gary Works), petroleum (BP Whiting refinery), and casino gaming (Horseshoe Hammond, Ameristar East Chicago) anchor the industrial base.

Fort Wayne (Allen County, ~420K metro): Indiana’s second-largest metro. Heavy manufacturing base (BAE Systems, GM Fort Wayne Assembly producing Silverado/Sierra trucks, Sweetwater Sound, Steel Dynamics, Vera Bradley). Allen County operates one of the higher contractor licensing standards in the state.

Evansville (Vanderburgh County, ~310K metro): Anchors the SW corner with Toyota Indiana (Princeton), Berry Global, Ohio River industrial corridor, and the regional medical hub for southern Indiana, western Kentucky, and southern Illinois.

South Bend – Mishawaka – Elkhart (St. Joseph + Elkhart Counties, ~325K metro): University of Notre Dame anchors the institutional economy. Elkhart County is the recreational vehicle capital of the world (~80% of US RV production), creating supply-chain businesses serving RV manufacturing.

University Towns – Bloomington and West Lafayette: Indiana University (Bloomington, Monroe County, ~50,000 students) and Purdue (West Lafayette, Tippecanoe County, ~50,000 students) drive rental housing service markets, food service, and institutional facility services. Subaru of Indiana Automotive in Lafayette adds heavy manufacturing on top of the university base.

Southern Indiana / Louisville Metro Spillover: Clark and Floyd counties (Jeffersonville, New Albany, Clarksville) operate as the Indiana side of the Louisville metro – the bridge crossings shape pricing dynamics, and many businesses hold dual Indiana/Kentucky credentials.

Cincinnati Metro Spillover: Dearborn County (Lawrenceburg, Aurora, Greendale) is part of the Cincinnati metro economically, with proximity to the Greater Cincinnati region’s labor and service markets.

Indiana Business Guides by Industry

Every industry has different licensing, permit, and insurance requirements in Indiana. Select your business type:

• How to Start a Cleaning Service in Indiana – sales tax treatment of cleaning services, no state license, municipal registrations, workers’ comp at 1 employee
• How to Start a Food Truck in Indiana – 94 Local Health Departments across 92 counties, Marion County Public Health, commissary requirements, Indy 500 / NCAA event-driven economy
• How to Start a Daycare in Indiana – FSSA OECOSL licensing under IC 12-17.2, Paths to QUALITY 4-level QRIS, CCDF subsidy, On My Way Pre-K
• How to Start an HVAC Business in Indiana – no state HVAC license, Indianapolis BNS / Allen County / Evansville city programs, Plumbing Commission for hydronic, A2L refrigerants
• How to Start a Salon in Indiana – IPLA State Board of Cosmetology and Esthetics, 1,500-hour cosmetology, Establishment License separate
• How to Start a Landscaping Business in Indiana – no state landscape license, OISC at Purdue for pesticide, Indiana 811 (Holey Moley) 2-day notice
• How to Start a Private Investigation Business in Indiana – IPLA Private Investigator and Security Guard Licensing Board, IC 25-30, one-party consent recording

Key Indiana Business Resources

Resource	What It Covers
Indiana Secretary of State (INBiz)	LLC formation ($95), biennial Business Entity Report ($32), name searches, registered agents
Indiana Department of Revenue (DOR)	State PIT 2.95% (2026) + county LIT 0.5%-3.38%, 7% sales tax, RRMC, withholding, county LIT collection
Indiana Department of Workforce Development (DWD)	Unemployment insurance ($9,500 wage base, 2.5% new ER), wage and hour, new hire reporting
Indiana Workers’ Compensation Board (WCB)	Workers’ comp claims, employer compliance, IC 22-3-2-2 enforcement
Indiana Compensation Rating Bureau (ICRB)	Workers’ comp classification, NCCI rate filings, manual rates
Indiana Professional Licensing Agency (IPLA)	Cosmetology, plumbing, PI/security, real estate, nursing, medical, pharmacy, many other professions
FSSA Office of Early Childhood (OECOSL)	Daycare licensing under IC 12-17.2, CCDF subsidy, Paths to QUALITY QRIS
Office of Indiana State Chemist (OISC) at Purdue	Commercial pesticide applicator licensing under IC 15-16-5
Indiana 811 (Holey Moley)	Excavation notification – 2 working days advance under IC 8-1-26-16
Indiana New Hire Reporting Center	Report new and rehired employees within 20 days per IC 22-4-10-8

Frequently Asked Questions

How much does it cost to start an LLC in Indiana?

The Articles of Organization filing fee through INBiz is $95 online or $100 by paper. Indiana LLCs file a Business Entity Report every two years ($32 online or $50 paper) in the entity’s anniversary month. HB 1593 (effective January 1, 2026) opened a 90-day early filing window. Trade names (DBAs) are filed with the County Recorder where the business operates – not the Secretary of State – and fees vary by county (typically $25-$30). If you operate in multiple counties, you may need to file in each.

What is Indiana’s income tax rate in 2026?

Indiana’s flat individual income tax rate for 2026 is 2.95% under HEA 1001 of 2023, dropping to 2.90% in 2027. SB 451 of 2025 set a path to as low as 2.55% by 2030 in 0.05% biennial increments if state revenue thresholds are met. County Local Income Tax (LIT) layers on top, ranging 0.5% to 3.38% across Indiana’s 92 counties – Marion County (Indianapolis) is 2.02%, Hamilton County (Carmel/Fishers) is 0.95%, Allen County (Fort Wayne) is 1.80%, Vanderburgh County (Evansville) is 2.20%, Lake County (Gary/Hammond) is 1.50%. LIT is withheld by the employee’s county of residence, not work.

Does Indiana have a sales tax?

Yes – Indiana imposes a flat 7% sales tax statewide with no local sales tax additions. Indiana is one of only four states tied for the second-highest state-level sales tax rate. The flat structure is administratively simpler than most neighboring states (Illinois, Ohio, Kentucky, Michigan all have varying local rates). Get a Registered Retail Merchant Certificate (RRMC) for $25 from the Department of Revenue before collecting sales tax. The certificate renews free every two years.

Does Indiana require workers’ compensation for small employers?

Yes – Indiana requires workers’ compensation under IC 22-3-2-2 for any employer with one or more employees, full-time, part-time, or seasonal. Indiana operates a competitive market – any admitted carrier writes coverage. The Indiana Compensation Rating Bureau (ICRB) handles classification and rating; the Workers’ Compensation Board enforces. Non-coverage is a Class A infraction under IC 22-3-5-1: fines up to $10,000 plus double statutory compensation, medical expenses, attorney fees, and a potential business closure order.

Is Indiana a Right-to-Work state?

Yes – Indiana enacted Right-to-Work under IC 22-6-6 effective February 1, 2012. Employers cannot require an employee to join a labor union, pay union dues, or pay any equivalent charge to a third party (including charitable organizations standing in for dues) as a condition of employment. The law applies to almost all private employers in Indiana but does not apply to employees covered by the Railway Labor Act (airline, rail). Violations are Class A misdemeanors.

What is Marion County Unigov and how does it affect business licensing?

Indianapolis and Marion County operate as a consolidated city-county “Unigov” structure since 1970. Most government functions – including most business and contractor licensing – are unified rather than split between the city and county. The Indianapolis Department of Business and Neighborhood Services (BNS) handles most contractor licensing under Revised Code of the Consolidated City and County. The Marion County Public Health Department (a Unigov agency) handles food, lodging, and mobile food vendor licensing. Four “excluded cities” within Marion County – Beech Grove, Lawrence, Southport, Speedway – maintain separate municipal governments for some functions but remain within the Unigov tax structure.

What is Indiana’s minimum wage in 2026?

Indiana’s minimum wage is $7.25/hour – the federal floor. Indiana has not enacted a state minimum wage above the federal level, putting it at the bottom of the regional pack alongside Wisconsin and Kentucky. By contrast, Illinois is at $15.00 in 2026, Michigan at $13.73, and Ohio at $11.00 non-tipped. The tipped wage is $2.13/hour federal; the employer must make up the difference if tips don’t bring total compensation to $7.25/hour.