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Rental property LLCs in Indiana

Yes, you can hold an Indiana rental in an LLC. Articles of Organization cost $95 online through INBiz or $100 on paper. You file a Business Entity Report every two years. Indianapolis and Bloomington both make landlords register, and state law caps most cities' registration fees at $5. When the deed moves into your LLC, the county may need a Sales Disclosure Form.

Last checked 2026-10-21. General information, not legal or tax advice.

Local rental rules come first

State limit on city registries. Indiana lets a city or town run a rental registration program, but generally caps the annual fee at $5. The fee covers a whole rental community, or each separate parcel. After a change of ownership, the city can require the new owner to pay the fee and update the registration within 30 days (Ind. Code § 36-1-20-5).

Indianapolis. Owners or landlords of residential rental units in the city must register them; properties in excluded cities are exempt. Since January 1, 2025, short-term rentals also need an annual permit for each unit. The first permit has a one-time $150 fee, and renewals are free (indy.gov; Municipal Code ch. 852).

Bloomington. Every rental property in the city limits (Indiana University excepted) must be registered with and inspected by the Housing and Neighborhood Development department (HAND). After a passing inspection, the property gets a residential rental occupancy permit. An unregistered rental can be fined up to $100 a day (bloomington.in.gov; Bloomington Municipal Code Title 16).

Moving a rental into an LLC changes the owner. Update the city registration in the LLC's name; under state law a city can require that within 30 days.

What the LLC protects, and what it doesn't

Indiana's LLC law says: "A member, a manager, an agent, or an employee of a limited liability company is not personally liable for the debts, obligations, or liabilities of the limited liability company, whether arising in contract, tort, or otherwise, or for the acts or omissions of any other member, manager, agent, or employee of the limited liability company. A member, a manager, an agent, or an employee of a limited liability company may be personally liable for the person's own acts or omissions." (Ind. Code § 23-18-3-3(a)).

  • Guarantees still bind you. A personal guarantee you sign for a lender is your own promise.
  • Your own acts are yours. A repair you make yourself, or your own negligence, isn't shielded by the LLC; ask an Indiana attorney.
  • It isn't insurance. The LLC still needs coverage that pays claims and defense costs.

One LLC, or one per property?

Separate LLCs keep one property's judgment away from the others. Indiana has series LLCs: the Secretary of State lists "Series LLC Articles of Organization" as an online filing (SOS LSA 25-155 regulatory analysis: "Series LLC Articles of Organization $5.00"). Ask an Indiana attorney whether a series fits. More: Should you have a separate LLC for each rental property?. Other states: Mississippi · Alabama · Arkansas · Louisiana · Tennessee.

Form it where the property is, or register there

An LLC from another state files a Foreign Registration Statement (State Form 56369, under Ind. Code 23-0.5-5-3). The fee is $125 on paper or $105 online: the $75 statutory electronic fee (Ind. Code § 23-0.5-9-26) plus a $30 Enhanced Access fee. The Secretary of State's rule says that for "the electronic filing of a foreign registration statement, the secretary of state shall collect thirty dollars ($30) for the enhanced access fund" (75 IAC 8-3-6). It then files the same biennial Business Entity Report.

What it costs the state

  • Articles of Organization (State Form 49459): $95 online through INBiz, or $100 on paper. The statute sets "Seventy-five dollars ($75) for an electronic filing" and "One hundred dollars ($100) for filing in a manner other than electronically" (Ind. Code § 23-0.5-9-19). Online, the Secretary of State also collects a $20 Enhanced Access fee "in addition to collecting designated statutory filing fees" (SOS LSA 25-155 regulatory analysis: "Domestic LLC Articles of Organization $20.00").
  • Business Entity Report: due every two years in the month you formed; $32 on INBiz or $50 on paper (INBiz Business Entity Reports).
  • Foreign registration: $105 online, $125 on paper (Ind. Code § 23-0.5-9-26; 75 IAC 8-3-6).
  • EIN: free from the IRS.

Compare services: LLC services compared.

Forming the LLC, in order

  1. Pick a name containing "Limited Liability Company" or an abbreviation (State Form 49459).
  2. Name a registered agent, commercial or noncommercial, with an Indiana address (State Form 49459).
  3. File Articles of Organization on INBiz or on paper.
  4. Write an operating agreement.
  5. Get an EIN and open the LLC's bank account.
  6. Register the rental with the city in the LLC's name.

Forming the LLC doesn't move your deed

Moving a property into the LLC takes a new deed. When a deed (a "conveyance document") is filed, Indiana generally requires a Sales Disclosure Form (State Form 46021):

  • The county assessor reviews it for completeness before it goes to the county auditor. The auditor may not accept the conveyance if the form is missing, incomplete or unstamped (DLGF Sales Disclosure Form overview).
  • You need a separate form for each parcel, except one form for contiguous parcels in one taxing district on a single deed (DLGF).
  • The form asks whether the transfer is for valuable consideration (which also triggers a filing fee) and whether a family or business relationship exists between buyer and seller. Putting your own property into your own LLC is exactly that kind of relationship (State Form 46021).
  • Some conveyances don't need a form at all (DLGF 2024 legislation memo).

Ask an Indiana attorney or title company whether your transfer needs a form and a fee, and have them prepare the deed.

Check the mortgage before you transfer

Federal law lets a lender enforce a due-on-sale clause, and a transfer to an LLC isn't one of the exceptions for 1–4 unit homes (12 U.S.C. § 1701j-3(d)). Fannie Mae allows a transfer to an LLC the borrower controls for loans it acquired on or after June 1, 2016 (Fannie Mae Servicing Guide D1-4.1-02). Ask your servicer in writing.

Insurance and taxes

Tell your insurer before title moves. For federal income tax, a single-member LLC is disregarded unless it elects corporate treatment (IRS). A CPA can confirm Indiana and county reporting.

Keeping each LLC in good standing

  • Business Entity Report every two years, by the end of your anniversary month (INBiz).
  • Keep city registrations current. Indianapolis STR permits renew yearly.

Before you file or transfer a property

  • Attorney or title company: the deed and the Sales Disclosure Form
  • Servicer: is the transfer allowed?
  • CPA: state and federal reporting
  • City: registration or occupancy permit in the LLC's name
  • Calendar: biennial report; Indianapolis STR renewal

Form it with Corpus

Corpus prepares and files your Articles of Organization and includes the first year of registered-agent service. The Indiana page shows the current price. Corpus isn't a law firm: the deed, the loan and city registration are separate steps.

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Sources

Last checked 2026-10-21. Corpus is not a law firm and does not provide legal or tax advice.