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Spaces, tabs and blank lines are meaningless in HTML. In HTML paragraphs are surrounded by <p> and </p>, and they are displayed in whatever defined style. The default style is probably without indent and some vertical space, but you can easily change it with CSS like this:
p { margin: 0; text-indent: 1em; }
... but I guess you don't know about CSS yet. Well, there's no excuse for not learning the basics of it, it's quite simple and there are many tutorials online. Take some time to read some of them and you'll see how easy it is to alter the look of HTML documents.
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