Indiana's restaurant industry is concentrated in Indianapolis, Fort Wayne, and the Chicago suburbs along the northern border. The state's regulatory environment is straightforward compared to coastal states, but Indiana has specific requirements for ATC permit surrender, final tax filings, and entity dissolution that restaurant owners need to complete in the right order.
Indiana ATC Permit
Restaurant liquor permits in Indiana are issued by the Indiana Alcohol and Tobacco Commission (ATC). Indiana uses a permit system rather than a license system -- permits are tied to the specific location and are not freely transferable in the same way as New Jersey licenses. However, a three-way permit (beer, wine, and liquor) attached to a desirable Indianapolis location can have value to a buyer. When you close, notify the ATC in writing and either surrender the permit or initiate a transfer if you are selling the business.
Indiana Final Paycheck Law
Indiana requires that final wages be paid on the next regular payday following separation under the Indiana Wage Payment Statute (IC 22-2-9). Indiana does not require same-day payment upon discharge. The state does not mandate vacation payout unless your written policy promises it. Indiana's minimum wage matches the federal minimum of $7.25.
Indiana WARN Act
Indiana does not have a state WARN Act. You are subject only to the federal WARN Act (100+ employees, 50+ layoffs within 30 days). The Indiana Department of Workforce Development administers federal WARN Act notifications in Indiana. Most independent restaurants do not trigger the federal threshold.
Indiana Sales Tax
File a final sales tax return with the Indiana Department of Revenue. Indiana's sales tax rate is 7% statewide with no local additions -- one of the simpler sales tax structures in the country. Cancel your registered retail merchant certificate (RRMC) through the INBiz portal. The Department of Revenue will issue a final review of your account.
Indiana Secretary of State Dissolution
To dissolve an Indiana LLC, file Articles of Dissolution with the Indiana Secretary of State. For an Indiana corporation, file Articles of Dissolution. Indiana does not require a tax clearance certificate before dissolution, but all state tax accounts should be closed before filing. The filing fee is $30 for LLCs.
The Correct Sequence
Notify employees and pay final wages on the next regular payday. File final sales tax return and cancel your RRMC. Notify the ATC and surrender or transfer the permit. File dissolution with the Secretary of State. For the full cost picture, see What Does It Actually Cost to Close a Restaurant. For the lease negotiation, see How to Negotiate a Restaurant Lease Buyout.