Delaware charges $110 to form an LLC; Indiana charges $95. Day-one sticker price is only part of the story, since most of the real cost comes from the annual obligations that stack up each year you keep the LLC open.

Over a rolling three-year window, Indiana runs about $867 less in total state fees than Delaware. Whether that gap matters depends on whether you actually operate in one of these states or are weighing a non-resident filing.

Delaware imposes an entity-level annual tax on every LLC ($300 minimum). Indiana does not. For pass-through LLCs that would otherwise owe nothing at the state level, that minimum is the deciding line.

On speed, Indiana typically clears standard online filings faster than Delaware. Both states offer expedited tiers at an additional cost for filers on tight timelines.

For most small operators the choice is not really between these two states at all. It is between forming where the business actually operates and trying to route through a non-resident filing. The data below shows what each option actually costs.

Formation filing fee
Delaware $110
Indiana $95
Indiana saves $15
Year 1 total estimate
Delaware $510
Indiana $211
Indiana saves $299
Ongoing per year
Delaware $400
Indiana $116
Indiana saves $284
3-year total
Delaware $1,310
Indiana $443
Indiana saves $867

Key differences at a glance

  • Indiana costs $15 less to form ($95 vs $110).
  • Indiana is $284 per year cheaper to maintain ($116 vs $400).
  • Delaware imposes an entity-level franchise or LLC tax that applies to pass-through LLCs. Indiana does not.
  • Delaware has no annual report filing at all. Indiana requires an annual (or biennial) report every reporting period.

Where each state fits

For most filers, forming in the state you actually operate from is the right call. The side-by-side below shows where the two states meaningfully diverge.

What each state offers that the other does not

Only Delaware

  • Paid expedited tier
  • No state sales tax
  • No annual report

Only Indiana

  • No entity-level franchise or LLC tax

Both states

  • Online filing
  • No publication requirement
  • Operating agreement not statutorily required

Three-year cost, side by side

Rough estimate of the state-facing cost to form and keep an LLC through three years. Both totals include a $100 per year registered-agent estimate.

Delaware Indiana
Year 1
$510
$211
Year 2
$910
$327
Year 3
$1,310
$443

Running total includes the one-time filing fee and annual ongoing costs (report fee or franchise tax plus a $100/year registered agent estimate).

What it costs under your specific situation

The table below runs the same LLC through four common scenarios. "Non-resident" rows assume a typical home-state foreign LLC registration adds about $200 per year of stacked cost; the real number depends on which state you live in and ranges from $50 to over $800 depending on jurisdiction.

Scenario Year 1 Each year after 3-year total
You live in Delaware, business operates there
No foreign LLC registration needed. You pay Delaware fees only.
$510 $400 $1,310
You live in Indiana, business operates there
No foreign LLC registration needed. You pay Indiana fees only.
$211 $116 $443
Non-resident forming in Delaware with operations elsewhere
You pay Delaware's fees plus a typical home-state foreign LLC registration of about $200 per year.
$710 $600 $1,910
Non-resident forming in Indiana with operations elsewhere
You pay Indiana's fees plus a typical home-state foreign LLC registration of about $200 per year.
$411 $316 $1,043

Delaware vs Indiana: full comparison

Dimension Delaware Indiana
Online filing
Can you file the formation document online?
Yes Yes
Online approval time
Standard, non-expedited
10 business days 1 business day
Expedited option
Paid fast-track filing
$100 Not offered
Annual report
Required in addition to tax
None Required, $32
State-imposed annual tax
Franchise, privilege, or LLC tax minimum
$300 minimum None
State income tax
On pass-through LLC income at member level
Yes Yes
Publication requirement
Newspaper publication after formation
No No
Operating agreement
Required by state statute
Recommended, not required Recommended, not required
Foreign LLC fee
Cost to register as a foreign LLC in this state
$200 $105
State sales tax
General statewide rate
None 7.0%

Taxes in Delaware and Indiana

How each state handles entity-level tax on LLCs. Pass-through classification means member-level income tax also applies at each member's residence state.

Delaware tax

$300 minimum annual tax (flat basis). State income tax applies to member-level pass-through income. Corporate rate 8.7%.

Indiana tax

No entity-level franchise tax on LLCs. State income tax applies to member-level pass-through income. Corporate rate 4.9%.

Ongoing compliance

The recurring filings each state requires after formation.

Delaware

Annual $300 tax, due 06/01. No separate annual report. Registered agent required in Delaware.

Indiana

Annual report $32, due on your anniversary month. Registered agent required in Indiana.

Formation process, side by side

What actually happens from the moment you start filing to the moment you're in good standing. Use this as a checklist.

Delaware

  1. Check business-name availability on the Delaware entity search.
  2. Appoint a registered agent with a physical Delaware street address.
  3. File Certificate of Formation of Limited Liability Company for $110.
  4. Wait for approval. Online typically 10 business days. Paid expedite from $100.
  5. Adopt an operating agreement (recommended, not required by Delaware statute).
  6. Apply for a federal EIN (free from the IRS).
  7. Open a business bank account to separate personal and business finances.
  8. Pay the $300 annual Delaware LLC tax when it comes due.

Indiana

  1. Check business-name availability on the Indiana entity search.
  2. Appoint a registered agent with a physical Indiana street address.
  3. File Indiana Articles of Organization (State Form 49459) for $95.
  4. Wait for approval. Online typically 1 business days. No paid expedite offered.
  5. Adopt an operating agreement (recommended, not required by Indiana statute).
  6. Apply for a federal EIN (free from the IRS).
  7. Open a business bank account to separate personal and business finances.
  8. File your first annual report and pay $32 when it comes due.

Before you pick either state

A few things that apply no matter which state you choose. These trip up enough first-time filers that they're worth stating explicitly.

Registered agent is non-negotiable. Both Delaware and Indiana (and every other US state) require every LLC to designate a registered agent with a physical street address in the state of formation. You can serve as your own agent if you live in the state; otherwise a commercial agent runs $50 to $125 per year. Using your own home address makes it part of the public record.

Forming elsewhere does not escape your home state's tax. If you live and operate a business from your home state, forming the LLC in Delaware or Indiana does not avoid your home state's income tax. The moment you transact business at home, your home state requires a foreign LLC registration, and state tax liability follows your residence regardless of where the entity sits on paper.

EIN applications are free. The IRS issues Employer Identification Numbers directly at no cost. Any service charging you to "get your EIN" is reselling a free form submission. Single-member LLCs with no employees technically don't need one for federal tax, but nearly every bank requires an EIN to open a business account.

Operating agreement matters more than the state you pick. A well-drafted operating agreement governs member ownership, management, profit splits, buy-sell terms, and dissolution. Without one, your LLC runs on the state's default rules, which are rarely what you want. California, Maine, Missouri, and New York require a written one by statute; every other state treats it as strongly recommended.

Agency contacts

Delaware Division of Corporations

Website
corp.delaware.gov
Phone
(302) 739-3073
Mail
401 Federal Street, Suite 4, Dover, DE 19901
Hours
8:00 AM to 4:30 PM Eastern, Monday to Friday

Indiana Secretary of State, Business Services Division

Website
www.in.gov/sos
Phone
(317) 232-6576
Email
inbiz@sos.in.gov
Mail
Indiana Secretary of State, Business Services Division, 302 W. Washington Street, Room E018, Indianapolis, IN 46204
Office
Indiana Statehouse, 200 W. Washington Street, Room 201, Indianapolis, IN 46204
Hours
8:00 AM to 4:30 PM Eastern, Monday to Friday

Delaware Division of Revenue

Website
revenue.delaware.gov
Phone
(302) 577-8200
Mail
820 N. French Street, Wilmington, DE 19801
Hours
8:30 AM to 4:00 PM Eastern, Monday to Friday

Indiana Department of Revenue

Website
www.in.gov/dor
Phone
(317) 232-2240
Mail
Indiana Department of Revenue, 100 N. Senate Avenue, Indianapolis, IN 46204
Office
100 N. Senate Avenue, Indianapolis, IN 46204
Hours
8:00 AM to 4:30 PM Eastern, Monday to Friday

Frequently Asked Questions

  • Is it cheaper to form an LLC in Delaware or Indiana?

    Indiana is cheaper at formation ($95) than Delaware ($110). Ongoing costs are also different: $116 vs $400 per year. Total over three years: $443 vs $1,310.

  • Can I form an LLC in Delaware if I live in Indiana?

    Yes, but your Indiana business will almost certainly need to register as a foreign LLC in Indiana too, which means paying Indiana's foreign registration fee and any ongoing Indiana obligations on top of the Delaware ones. The "form elsewhere to save" math usually doesn't work for operating businesses; it only works when you have no physical operations tied to any specific state.

  • How long does it take to form an LLC in Delaware vs Indiana?

    Delaware online: 10 business days; Indiana online: 1 business day. Delaware offers paid expedite from $100. Indiana does not offer paid expedite.

  • Which state has lower taxes for an LLC, Delaware or Indiana?

    Delaware: state income tax applies to member-level pass-through income, plus a $300 minimum entity-level tax. Indiana: state income tax applies to member-level pass-through income, no entity-level franchise or LLC tax.

  • Do both states require a registered agent?

    Yes. Every US state (and DC) requires every LLC to maintain a registered agent with a physical street address in the state. Delaware and Indiana both have this requirement. You can serve as your own agent if you live in the state; most out-of-state filers use a commercial agent for $50 to $125 per year.

  • Which state should I pick if I run an online business from home?

    Form in the state you actually live in. Your home state's Department of Revenue treats your residence as nexus regardless of where the LLC is filed, which means you owe state income tax there anyway. Forming in Delaware or Indiana to escape your home state's tax doesn't work; it adds paperwork. The non-resident filings make sense when you genuinely operate nowhere in particular: international founders, purely passive holding entities, or real-estate LLCs owning property in other states.

Full state guides

More Delaware and Indiana comparisons

Sources

  • Filing fee: corpfiles.delaware.gov/AugustFee2024.pdf · verified April 21, 2026
    Delaware DoS Division of Corporations Fee Schedule, revised August 1, 2024. 'Formation – domestic' under Limited Liability Companies = $110.00 state filing fee.
  • Expedited filing: corpfiles.delaware.gov/AugustFee2024.pdf · verified April 21, 2026
    Same Day $100, 24-Hour $50, Priority 2 (2-hour) $500, Priority 1 (1-hour) $1,000. We report 24-hour as the default expedited tier.
  • Annual report fee: delcode.delaware.gov/title6/c018/sc11/index.html · verified April 21, 2026
    6 Del.C. §18-1107(b): annual tax of $300 for every domestic and foreign LLC. §18-1107(c): due June 1 each year. §18-1107(e): $200 late penalty plus 1.5% interest.
  • Franchise tax: delcode.delaware.gov/title6/c018/sc11/index.html · verified April 21, 2026
    Flat $300 annual LLC tax under 6 Del.C. §18-1107. Not a share-based franchise tax like Delaware corporations; we classify it as a flat franchise-style tax for compare purposes.
  • Operating agreement requirement: delcode.delaware.gov/title6/c018/sc01/index.html · verified April 21, 2026
    6 Del.C. §18-101(9) recognizes oral, written, or implied LLC agreements. No statutory requirement that the agreement be written or filed, so recorded as not-required.
  • Foreign LLC registration fee: delcode.delaware.gov/title6/c018/sc10/index.html · verified April 21, 2026
    Foreign LLC registration filing fee. Cross-check against the practitioner-facing fee schedule before publishing.
  • Business name search: icis.corp.delaware.gov/eCorp/EntitySearch/NameSearch.aspx · verified April 21, 2026
    Delaware eCorp entity search. Confirm name availability before filing.
  • Sales tax rate: revenue.delaware.gov/ · verified April 21, 2026
    Delaware has no general state sales tax. Gross receipts tax may apply to some business activities.
  • Corporate income tax rate: revenue.delaware.gov/ · verified April 21, 2026
    Delaware corporate income tax rate is 8.7%. Applies to C-corp income, not LLCs by default, but note here for completeness.
  • Filing fee: law.justia.com/codes/indiana/title-23/article-0-5/chapter-4/section-23… · verified April 21, 2026
    Indiana LLC Articles of Organization filing fee is $95 when filed online through INBiz and $100 when filed by paper/mail. Form is State Form 49459. Online is the default and fastest path with approximately 1 business day processing. Indiana does not offer a separate expedited service tier; online filing through INBiz is the fast lane.
  • Expedited filing: inbiz.in.gov/business-filings · verified April 21, 2026
    Indiana does not publish a formal expedited service tier for LLC Articles of Organization. Online INBiz filings are processed in approximately one business day at the standard $95 fee, so the practical expedite path is to file online rather than by mail.
  • Annual report fee: law.justia.com/codes/indiana/title-23/article-0-5/chapter-2/section-23… · verified April 21, 2026
    Ind. Code 23-0.5-2-13 requires every domestic filing entity and registered foreign entity (including LLCs) to deliver a biennial report to the Secretary of State every two calendar years on a schedule set by the SOS. Filing fee is $32 online through INBiz and $50 by paper. No statutory late monetary penalty; failure to file leads to administrative dissolution.
  • Corporate income tax rate: www.in.gov/dor/business-tax/corporate-income-tax/ · verified April 21, 2026
    Indiana corporate adjusted gross income tax is a flat 4.9% as of July 1, 2021 and remains at 4.9% for 2026. Applies to C-corporations and to LLCs electing C-corp treatment.
  • Sales tax rate: www.in.gov/dor/business-tax/sales-tax/ · verified April 21, 2026
    Indiana statewide sales and use tax is 7% flat, with no local add-on. Food and prescription drugs are generally exempt.
  • Foreign LLC registration fee: forms.in.gov/Download.aspx?id=13562 · verified April 21, 2026
    Indiana foreign LLC Application for Certificate of Authority: $105 online through INBiz, $125 by paper/mail. After registration, the foreign LLC owes the same $32 online biennial Business Entity Report.
  • Business name search: bsd.sos.in.gov/publicbusinesssearch · verified April 21, 2026
    Indiana Secretary of State Business Search. Confirm LLC name availability before filing Articles of Organization.
  • Operating agreement requirement: law.justia.com/codes/indiana/title-23/article-18/chapter-4/section-23-… · verified April 21, 2026
    Ind. Code 23-18-4-4 permits but does not require a written operating agreement. 23-18-1-16 defines operating agreement as any written or oral agreement of the members. Indiana does not mandate that LLCs adopt a written operating agreement.