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Why incorporate in Indiana?

Business Information & Rankings

  • Indiana ranked 15th in Total Gross State Product and 1st in the Manufacturing and Durable Gross State Product categories among all 50 States. (U.S. Bureau of Economic Analysis, 2004)
  • Indiana ranked 4th in Venture Capital Invested Per Deal. (PricewaterhouseCoopers Thomson Venture Economics/National Venture Capital Association MoneyTree Survey, 2004)
  • Among states levying corporate income taxes, Indiana’s rate ranks 2nd lowest nationally. (Tax Foundation, 2004)

Cost of living

For Indianapolis, IN (2005):Index Score
Misc. Goods & Services:93.2

Crime Rate

Indiana has the 22nd lowest crime ranking in the U.S. (U.S. Dept. of Justice, FBI, Uniform Crime Reports, 2004)

Fees & Taxes

Business Inventory Tax
Business inventory is taxed. Manufacturers may have inventories assessed on average annual value.

Corporate Income Tax
Rate: 8.5% of adjusted gross income.

Personal Income Tax
Rate: 3.4% of adjusted gross income. If you operate your business as an S corporation, partnership, limited liability company or sole proprietorship, you may be subject to a 3.4% personal income tax on your business’ income that is not taxed at the corporate level, but instead passes through to you and any other business partners or shareholders.

Personal Property Tax
Taxable. Indiana is one of the 38 states that collect property taxes at both the state and local levels. Indiana does not collect taxes on intangible property.

State Sales and Use Tax
Base Rate: 6%
Machinery Rate: none

There is an exemption for sales of manufacturing machinery for direct use in manufacturing, producing, etc., tangible personal property.

Unemployment Insurance
The new employers’ rate in Indiana is 2.7% for 3 years.