Indiana's business formation statutes provide a modern, flexible framework anchored by the Indiana Business Corporation Law (I.C. 23-1-17 et seq.) and the Indiana Uniform Limited Liability Company Act (I.C. 23-18.1 et seq.), which was substantially revised in 2018 to improve flexibility and default rules for operating agreements. Indiana does not impose a minimum franchise tax on new business entities, and the Secretary of State's online portal makes formation straightforward and fast. LLC operating agreements and corporate bylaws give Indiana businesses considerable latitude to customize governance, voting rights, profit allocation, and transfer restrictions.

Businesses operating in Indiana are subject to corporate income tax at 4.9% and may also incur county-level income tax obligations and the business personal property tax on tangible equipment and fixtures used in commerce. Indiana has adopted an economic nexus standard for sales tax following South Dakota v. Wayfair, requiring out-of-state businesses with significant Indiana sales to collect and remit Indiana's 7% sales tax. Businesses that scale into new counties or lines of business should review both state and county tax exposure with a business law attorney familiar with Indiana's compliance landscape.