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Indiana BT 1 Form

Hi, I had a question and was hoping someone could help me out. I tried calling the DOR but had a 2 hour wait time. I just formed a SMLLC that will focus on mining and trading crypto. On Zen Business they told me I needed to file a BT-1 form for State Tax Registration. When I was doing that, the site told me I had to choose Yes to one or both of the two options. One was related to Selling, Manufacturing, and Distributing, and the other was related to Withholding. My business won't be manufacturing or Distributing, and the selling they're referring to didn't make mention of crypto. Only things like food, alcohol, tobacco, tires... So I was forced to choose the Withholding option. It asked me about how much wages were being Withheld, and I typed 0 since I'm the only person in the business and wouldn't be taking any salary, and that gave me an error saying it needs to be greater than 0. So I don't know if I'm doing something wrong or if maybe I'm not supposed to file this form?

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1 Reply
DanielV01
Expert Alumni

Indiana BT 1 Form

If you haven't finished registering your business, I recommend you setting it up directly with the state website:  inbiz.in.gov.  It is not terribly difficult to navigate, and will ask you all of the questions you need to determine if you need a particular form or not.

 

Having said that, your business won't likely need to file that form.  The form is used to register tax accounts, like for sales/use tax, withholding tax, and so forth.  You won't have those accounts.  Crypto mining, while "sales" are involved, is not subject to sales tax (at least not yet).  Since you (of course) will need tangible assets (computers, video cards, etc.) for your business, you could have to register for a use tax, but if you do, you will likely be filing a $0 return.  (Use tax is if you own business equipment, and were sales-tax exempt when you purchased it).  I suspect you won't need that account.

 

And you shouldn't need a withholding account, either.  If you are a Single-Member LLC and do not make an election to be treated as an S- or a C-Corp for tax purposes, then you have no need to have a withholding account (which is to withhold tax for employees), and you will not need an unemployment account, either.  

 

So I don't really see any reason why you should need the BT-1 Form.  But, again, if you follow the website's registration process, you'll know for sure.

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