Indiana LLC for Construction — Licensing & Insurance Guide
Construction in Indiana involves significant liability exposure, making LLC formation essential. Indiana does not have a state-level general contractor license, but workers' compensation is mandatory and many municipalities require local licensing. For formation, see how to form an Indiana LLC. For all industries, see our overview.
Why Construction Businesses Need an LLC
- High liability: Jobsite injuries, property damage, defect claims
- Workers' comp mandatory: Indiana requires it for all employees (Indiana law)
- Contract requirements: GCs require subcontractor entities and insurance
- Project isolation: Separate LLCs per major project possible at $95 each
Indiana Contractor Licensing
No state general contractor license. However:
- Electrical: Licensed through Indiana Electrical Licensing Board
- Plumbing: Licensed through Indiana Plumbing Commission
- HVAC: Some municipal requirements
- Municipal licensing: Indianapolis, Fort Wayne, Evansville may require contractor registration
Workers' Compensation (Mandatory)
Ready to get started?
Get StartedIndiana Code 22-3 requires workers' compensation insurance for all employers:
- Required from first employee (no minimum threshold)
- Sole proprietors/LLC members can opt out with proper filing
- Subcontractors without coverage may be deemed your employees
- Failure to carry: misdemeanor, fines, personal liability
- Get through private insurer or Indiana Insurance Guaranty Association
Insurance Requirements
| Type | Required? | Typical Coverage |
|---|---|---|
| Workers' comp | Yes (employees) | Medical + wages |
| General liability | Effectively required | $1M-$2M |
| Commercial auto | If business vehicles | State minimums + umbrella |
| Builder's risk | Often by contract | Active projects |
| Surety bond | Sometimes (by municipality) | Varies |
FAQ
Do I need a contractor's license?
No statewide GC license. Check municipal requirements for your work area. Electrical and plumbing require state licenses.
Can I avoid workers' comp?
Only for yourself (LLC member exemption with proper filing). ALL employees must be covered.
Should I form a separate LLC per project?
For large projects ($500K+) with significant risk, yes. At $95 per LLC and $32/2 years, project-specific LLCs are affordable liability isolation.