State guide · Indiana
Starting a Medical Practice in Indiana
What physicians need to know about Indiana's regulatory environment, entity requirements, and practice-specific rules.
Entity required
Professional Corporation or LLC
LLC permitted
Yes
CPOM enforcement
Limited
Top income tax
Verify — flat 3.05% (2024, scheduled to decline)
Min. franchise tax
None
Med board registration
Not required
The information on this page is provided for general reference only and may not reflect recent regulatory or legislative changes. Entity formation requirements, tax rates, and CPOM rules vary by state and change frequently. Always verify requirements with your state's official agencies, a qualified healthcare attorney, or a CPA with medical practice experience before making business formation decisions. Nothing on this page constitutes legal or financial advice.
Entity Requirements
Indiana physicians may form a Professional Corporation under Indiana Code §23-1.5 or an LLC under §23-18. Indiana's LLC statute is broadly permissive of professional practice.
Filing is with the Indiana Secretary of State, Business Services Division.
- •Form a Professional Corporation or LLC
- •Owners practicing medicine must be licensed Indiana physicians
- •File Articles of Incorporation or Articles of Organization with the Secretary of State
- •File Business Entity Report with the Secretary of State (biennial for LLCs)
Corporate Practice of Medicine
Indiana has a limited Corporate Practice of Medicine doctrine. Lay ownership is restricted but Indiana's LLC statute is permissive. Fee-splitting is prohibited.
Tax Considerations
Indiana has a flat personal income tax of approximately 3.05% (scheduled to decline further). Local income taxes apply at the county level.
- •Flat personal income tax: Verify — approximately 3.05%
- •Local county income taxes (typically 0.5–3%)
- •No franchise tax
- •4.9% corporate income tax
Indiana Medical Licensing Board
Indiana does not require general entity registration with the Medical Licensing Board. Individual physicians are licensed.
- •No general entity registration required
- •All practicing physicians must hold an active Indiana medical license
Employment Law Considerations
Indiana is generally employer-friendly. At-will employment, no state-mandated paid sick leave, and non-competes generally enforceable. Indiana enacted a physician non-compete reform (HEA 1004) limiting some physician non-compete provisions.
- •At-will employment
- •No state-mandated paid sick leave
- •Physician non-competes restricted under HEA 1004 (good-faith buyout, patient notification rules)
- •Indiana minimum wage at federal $7.25/hour
Official resources
Bookmark these official agency portals for Indiana entity formation, tax registration, and medical board information.
Looking for Indiana licensing and credentialing information?
State medical license requirements, controlled-substance registration, and Medicaid enrollment specifics for Indiana.
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