People who are thinking of opening a business in the state of Indiana will need to investigate the Indiana Small Business Tax Laws. The gross and supplemental income tax rate for corporations had gone up to rates ranging from 0.3 percent to 1.2 percent, but in 2003 that was repealed. Now there is no gross income tax for corporations. The tax rate for general corporations and non-financial entities is 8.5 percent. The tax for financial institutions, who extend credit or process credit card payments, is 8.5 percent.

In addition to these income taxes, the states charges some taxes based on the type of business you are operating. For example, I know that there is a county innkeeper’s tax in many of the counties in Indiana. I looked at the Department of Revenue’s chart and it looks like a few of those innkeeper taxes are as low as 3 percent, but most of them are around five to six percent.

There is also a food and beverage tax in Indiana, this one too is levied by the counties. It is 1 percent in nearly every county, except Marion County which has a rate of 2 percent. If a business is located in a municipality (for example it is inside a city as well as a county) then the tax will be 2 percent. You will also collect a sales tax of 6 percent in Indiana.

If your business involves charging people admission and it is located in Marion County, there will be a tax of 5 percent of the admission price. Parimutuel betting on either live or simulcast TV is taxed at a rate of 2 percent of the take, and if the betting takes place on a boat, there is a 22.5 percent tax charged, based on the adjusted gross receipts.

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This entry was posted on Sunday, December 3rd, 2006 at 5:19 pm and is filed under Small Business Tax Laws, Tax Laws. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.