Indiana taxes personal income (Flat 2.95% state rate, plus a separate county income tax on top), and LLCs owe Pass-Through Entity Tax (PTET) — elective, SALT-cap workaround. A Wyoming holding company does not erase Indiana's own entity-level obligations on a Indiana subsidiary, but it can still add liability separation and keep the parent's ownership off Indiana's public LLC filings.
Indiana has no franchise tax and no minimum LLC tax — standard LLCs owe nothing at the entity level beyond the Business Entity Report fee. LLCs taxed as partnerships file the informational Form IT-65; single-member LLCs report directly on the owner's IT-40. Only LLCs that affirmatively elect C-corp treatment file Form IT-20 and pay Indiana's 4.9% corporate rate. The one elective entity-level option is the PTET described above, available only to multi-member or S-corp-elected LLCs as a federal SALT-cap workaround.
The general federal tax treatment of holding companies (consolidated filings, dividends-received deductions, and the like) is set at the federal level and does not change state to state — what changes is the entity-level tax Indiana itself charges an LLC or corporation formed or registered there.
Indiana does not impose a franchise tax or an entity-level income tax on pass-through LLCs, so stacking a parent over several subsidiaries does not multiply a per-entity tax bill the way it does in states with a minimum franchise levy. Income earned by the operating subsidiaries passes through the holding company to the members and is taxed a single time on their Indiana returns at the flat 2.95% rate (declining to 2.9% in 2027). The wrinkle unique to Indiana is the county income tax: every member who lives or works in Indiana also owes a county rate between 0.5% and 3.38%, so the combined burden on pass-through income runs roughly 3.45% to 6.33% depending on the counties involved.
Indiana taxes C-Corporations at a flat 4.9% adjusted gross income tax, reported on Form IT-20 and due the 15th day of the fourth month after the corporation's fiscal year-end. There is no franchise tax and no tax on authorized shares or capital. Ongoing state filings are limited to the biennial $32 Business Entity Report, plus 7% sales tax collection if the corporation sells taxable goods or services.
Indiana LLCs must file Business Entity Report with Indiana Secretary of State (INBiz), due End of the LLC's anniversary month, every 2 years (biennial, not annual), with a fee of $32 online.
Indiana files this report only once every two years, matching the LLC's formation-year parity. Under HB 1593 (effective January 1, 2026), the Secretary of State now accepts filings up to 90 days early, giving owners a wider window to stay ahead of the deadline.
A common structure pairs a Wyoming LLC as the parent with a Indiana entity handling operations, holding property, or running a Indiana-facing business.
The Indiana entity still owes whatever Indiana itself charges — Pass-Through Entity Tax (PTET) — elective, SALT-cap workaround — regardless of where its parent is formed; pairing it with a Wyoming LLC does not change the Indiana subsidiary's own filing or tax obligations. What the Wyoming parent adds is liability separation, and the Wyoming company's own ownership stays out of Indiana's public LLC filings.
For more on the general structure, see the Wyoming holding company guide and how to set one up.
Tax agency reference: Indiana Department of Revenue (DOR) (in.gov/dor). Corporate filings: Indiana Department of Revenue.
Note: Tax rates, fees, and thresholds shown here reflect state tax research last verified July 2026; reconfirm current figures directly at in.gov/dor before relying on them for a specific filing.
Indiana's tax treatment of a holding structure comes down to its personal income tax (Flat 2.95% state rate, plus a separate county income tax on top) and its Pass-Through Entity Tax (PTET) — elective, SALT-cap workaround. If you have questions about structuring a Wyoming-Indiana holding arrangement, reach out through our contact form.
If you have questions about structuring a Wyoming-Indiana holding arrangement, reach out through our contact form or call +1 (307) 683-0983 to speak with one of our experienced Business Success Advisors. Visit our homepage and blog for more.