Indiana LLC vs Delaware LLC (2026)
Compare Indiana LLC vs Delaware LLC — filing fees, taxes, privacy laws, and annual costs. Find out which state is actually better for your business.
| Factor | Indiana | Delaware |
|---|---|---|
| Filing Fee | $95 | $90 |
| Processing Time | 1 day(s) | 7 day(s) |
| Annual Report Fee | $32 | $300 |
| Annual Report Due | April 15 (biennial) | June 1 |
| State Income Tax | No state LLC tax | No state income tax for LLCs |
| Anonymous LLC | No | Yes |
| Publication Requirement | No | No |
| Foreign LLC Cost (if forming out-of-state) | N/A — you're in your home state | ~$50 + registered agent ~$150/yr |
Verdict: Indiana wins for most businesses
For most small businesses operating in Indiana, forming locally is the clear winner. Delaware only makes financial sense if you need anonymous ownership or have investors requiring Delaware formation.
Filing Fees & Formation Costs
Delaware's $90 filing fee appears cheaper than Indiana's $95, but that's misleading. If you form in Delaware while operating in Indiana, you'll pay Delaware's $90 fee plus Indiana's foreign LLC registration fee of around $50, bringing your total to $140. Delaware also requires a registered agent costing $150+ annually, making the true first-year cost significantly higher than simply forming in Indiana.
Taxes: Indiana vs Delaware
Both states are tax-friendly for LLCs, with no state-level LLC taxes. Indiana LLCs pay only federal taxes (unless electing corporate taxation), while Delaware has no state income tax for LLCs either. However, if you form in Delaware but operate in Indiana, you may still owe Indiana income taxes on business conducted in the state. Neither state imposes franchise taxes or minimum annual taxes on LLCs.
Privacy & Asset Protection
Delaware offers superior privacy protection, allowing anonymous LLC ownership where member names aren't disclosed in public filings. Indiana requires member or manager names in the Articles of Organization, making ownership information publicly accessible. Both states provide standard charging order protection for LLC members, but Delaware's anonymity features make it attractive for business owners prioritizing privacy. However, this privacy comes at a significant cost premium for Indiana-based businesses.
Annual Maintenance Costs
Indiana wins decisively on ongoing costs. Indiana LLCs pay just $32 every two years for their biennial report, averaging $16 annually. Delaware charges $300 annually for its report, nearly 19 times more expensive. When you add Delaware's required registered agent fee of $150+ per year, the total annual cost difference becomes substantial. Over five years, Indiana costs about $80 total while Delaware costs over $2,250.
When Delaware Actually Makes Sense
Delaware formation is justified for Indiana businesses in specific situations: when you need anonymous ownership for privacy or security reasons, when investors or lenders specifically require Delaware incorporation, or when planning significant fundraising or eventual sale to larger companies. For typical small businesses, local service companies, or sole proprietorships, the extra costs rarely provide meaningful benefits. The convenience and cost savings of forming in your home state almost always outweigh Delaware's advantages for small businesses.