How to Start an LLC in Iowa: Step-by-Step Guide
Last Updated:byTRUiC Team
To form anLLC in Iowa,你需要文件组织的证书n with the Iowa Secretary of State, which costs $50. You can apply online, by mail, or by fax.
Follow our step-by-stepHow to Start an LLC in Iowaguide to get started today.
- Name Your Iowa LLC
- Choose a Registered Agent
- File the Certificate of Organization
- Create an Operating Agreement
- Get an EIN
了解更多about LLCs and their benefits in our118bet金博宝
guide. To form an LLC in any state, visit ourHow to Set Up an LLCguide.
Step 1: Name Your Iowa LLC
Choosing a company name is the first and most important step in starting your LLC. Be sure to choose a name that complies with Iowa naming requirements and is easily searchable by potential clients.
1. Follow the naming guidelines:
- Your name must include the phrase “limited liability company” or one of its abbreviations (LLC or L.L.C.).
- Your name cannot include words that could confuse your LLC with a government agency (FBI, Treasury, State Department, etc.).
- Restricted words (e.g. Bank, Attorney, University) may require additional paperwork and a licensed individual, such as a doctor or lawyer, to be part of your LLC.
2. Is the name available in Iowa?Make sure the name you want isn't already taken by doing aname searchon the State of Iowa website.
To learn more about searching for anIowa LLC name, read our full guide. Find name ideas using ourfree LLC name generator.
3.Is the URL available?We recommend that you check online to see if your business name is available as aweb domain. Even if you don't plan to make a business website today, you may want to buy the URL in order to prevent others from acquiring it.
Once you have verified your name is available, you may now select a professional service to complete the LLC formation process for you.
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FAQ: Naming an Iowa LLC
What is an LLC?
LLC is short for “limited liability company.” It is a simple business structure that offers more flexibility than a traditional corporation while providing many of the same benefits. Read our118bet金博宝 guide for more information.
Or, watch our two-minute video:What is an LLC?
How do I name my Iowa LLC?
You must follow the Iowa LLC naming guidelines when choosing a name for your LLC:
- Include the phrase "limited liability company" or one of its abbreviations (LLC or L.L.C.).
- Do not use words that could confuse your business with a government agency (FBI, State Department, CIA, etc.).
- Receive the proper licensing when using the words such as lawyer or doctor.
If you are having trouble coming up with a name for your LLC, use ourLLC Name Generator. That will not only find a unique name for your business but an available URL to match.
After you get your business name, get a unique logo using ourFree Logo Generator.
Do I need to get a DBA or assumed name for my business?
Most LLCs in Iowa do not need an assumed name (known generally as a DBA name). The name of the LLC can serve as your company’s brand name and you can accept checks and other payments under that name as well. However, you may wish to register a DBA if you would like to conduct business under another name.
To learn more about DBAs in your state, read ourHow to File a DBAguide.
Step 2: Choose a Registered Agent in Iowa
You arerequiredto nominate anIowa registered agentfor your Iowa LLC.
What is a registered agent?A registered agent is an individual or business entity responsible for receiving important legal documents on behalf of your business. Think of your registered agent as your business's point of contact with the state.
Who can be a registered agent?注册代理人必须是爱荷华州的居民或corporation, such as aregistered agent service, authorized to transact business in Iowa. You may elect an individual within the company, including yourself.
Recommended:Check out thesebest registered agent services.
FAQ: Nominating a Registered Agent
Can I be my own registered agent?
Yes. You or anyone else in your company (i.e., other LLC owners) can serve as the registered agent for your LLC. You can also choose to have your registered agent be an Iowa-based or foreign business entity authorized to do business in Iowa. Your LLC as an entity cannot act as your agent.
Read more aboutbeing your own registered agent.
Is a registered agent service worth it?
Using a professional registered agent service is an affordable way to manage government filings for your LLC. For most businesses, the advantages of using a professional service significantly outweigh the annual costs.
For more information, read our article onIowa registered agents.
Step 3: File Your Iowa LLC Certificate of Organization
To register your Iowa LLC, you'll need to file aCertificate of Organizationwith the Iowa Secretary of State. You can apply online, by mail, or by fax. If filing a hard copy, you must draft your own Certificate of Organization in accordance with the Iowa state statutes.
Now is a good time to determine whether your LLC will bemember-managed vs. manager-managed.
File the Certificate of Organization
OPTION 1:File the Certificate of Organization Online With Iowa Fast Track Filing
- OR -
OPTION 2:File by Mail or by Fax
Fee:$50 (Nonrefundable)
Online Filing:After logging in, click "File a Document," located in the top menu.
Mailing Address:
Lucas State Office Building
321 E 12th St
Des Moines, IA 50319
Fax:(515) 242-5953
Note:The state of Iowa does not have a standard Certificate of Organization to file by mail or fax. Instead, you must create your own Certificate of Organization by following theprovided requirements.
For help with completing the form, visit ourIowa Certificate of Organizationguide.
If you’re expanding your existing LLC to the state of Iowa, you will need to form aforeign LLC.
FAQ: Filing Iowa LLC Documents
Can I file an LLC online in Iowa?
Yes. You can file your Certificate of Organization online using the Iowa Secretary of State's Fast Track Filing portal.
What is the processing time to form my Iowa LLC?
If filing online, your Certificate of Organization is immediately processed. If filing by mail or fax, processing times can reach up to two weeks.
What is the difference between a domestic Iowa LLC and foreign LLC?
An LLC is referred to as a "domestic LLC" when it conducts business in the state where it was formed. A foreign LLC must be formed when an existing LLC wishes to expand its business to another state.
Read ourWhat Is a Foreign LLCarticle to learn more.
How much does an LLC cost in Iowa?
The cost to start an Iowa LLC with the Secretary of State Business Services Division is $50.
To learn more, read our guide on thecost to form an Iowa LLC.
Step 4: Create Your Iowa LLC Operating Agreement
An operating agreement is not required in Iowa, but it's a good practice to have one.
What is an operating agreement?An operating agreement is a legal document outlining the ownership and operating procedures of an LLC.
Why are operating agreements important?A comprehensive operating agreement ensures that all business owners are on the same page and reduces the risk of future conflict.
For more information on operating agreements, read ourIowa LLC operating agreementguide.
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FAQ: Creating an Iowa LLC Operating Agreement
Do I need to file my operating agreement with the state?
No. The operating agreement is an internal document that you should keep on file for future reference. However, many states do legally require LLCs to have an operating agreement in place.
Step 5: Get an EIN for Your Iowa LLC
You can get an Employer Identification Number (EIN) from the IRS for free. It is used to identify a business entity and keep track of a business’s tax reporting. It is essentially a Social Security number (SSN) for the company.
Why do I need an EIN?An EIN number is required for the following:
- To open abusiness bank accountfor the company
- For federal and state tax purposes
- To hire employees for the company
Where do I get an EIN?An EIN is obtained from the IRS (free of charge) by the business owner after forming the company. This can be done online or by mail.
FOR INTERNATIONAL APPLICANTS:Youdo not need an SSNto get an EIN.Learn more here.
Get an EIN
Option 1: Request an EIN from the IRS
- OR -
Option 2: Apply for an EIN by Mail or Fax
Mail to:
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999
Fax:(855) 641-6935
Fee:Free
FAQ: Getting an EIN
How do I get an EIN if I don’t have a Social Security number?
An SSN isnotrequired to get an EIN. You can simply fill outIRS Form SS-4and leave section 7b blank. Then call the IRS at (267) 941-1099 to complete your application.Learn more here applying as an international applicant.
Do I need an EIN for my LLC?
All LLCs with employees, or any LLC with more than one member, must have an EIN. This isrequiredby the IRS.
Learn why we recommendalwaysgetting an EIN and how to get one for free in ourDo I Need an EIN for an LLCguide.
What tax structure should I choose for my LLC?
When you get an EIN, you will be informed of the differenttax classification optionsthat are available. Most LLCs elect the default tax status, which means they are taxed either as a sole proprietorship (single-member) or a partnership (multi-member).
However, some LLCs can reduce their federal tax obligation by choosing theS corporation (S corp) status. To learn more, read ourLLC vs. S Corpguide.
Considering Using an LLC Formation Service?
We reviewed and ranked the top LLC formation services. Find out which is best for you.
How to Maintain Your LLC
File the Biennial Report
Iowa requires LLCs to file a biennial report every other year with the Iowa Secretary of State. This can be done online for $30 or by mail for $45. In theFast Track Filing portal, you can choose whether to file the report online or print a paper form.
Biennial reports are due every odd-numbered year between January 1 and April 1. While the state does not charge late fees if you miss your filing deadline, it may administratively dissolve your LLC after a few months for failure to file a biennial report.
Steps After LLC Formation
Read all the steps you’ll need to maintain your LLC’s personal liability protection, open a business bank account, get business insurance, and stay up to date with state reporting requirements.
Visit ourAfter Forming an LLCguide to learn more.
What is the corporate veil?
Business entities, such as LLCs and corporations, protect their owners from personal liabilities for the business’s debts. This protection is often referred to as the corporate veil. Learn how to protect your LLC's corporate veil in ourguide.
Keep Your Company Compliant
To operate your LLC, you must comply with federal, state, and local government regulations. Fees and requirements for licenses and permits will vary depending on what sort of business license you need.
Find out how to get the necessary business licenses and permits for your LLC with ourIowa Business Licenseguide.
Recommended:Consider having a professional service research your business’s licensing requirements. Read ourbest business license servicesreview.
Iowa LLC Tax Filing Requirements
In order to keep your business in good standing, it's important to stay up to date on yourIowa LLC taxes.
Depending on the nature of your business, you may be required to register for one or more forms of state tax:
Iowa Sales Tax
If you are selling a physical product, you’ll typically need to register for aseller's permitthrough theIowa Department of Revenuewebsite.
Iowa has a base state sales tax of 6%, but the state notes that most sales subject to this tax will likely have an additional 1% local sales tax applied as well.
Iowa Employer Taxes
If you have employees in Iowa, you will have to register forUnemployment Insurance Taxthrough the Iowa Workforce Development website. You will also need to sign up for theEmployee Withholding Tax在爱荷华州的收入代表部门of your employees.
Income Tax
State:
Iowa's current individual income tax rates range from 4.4% to 6% as part of a graduated system. Your bracket will depend on your LLC's total revenue.
State tax returns are due each year by May 1. To calculate your tax or determine your tax bracket, visit theIowa Department of Revenue website.
Federal:
You’ll also need to report your federal income tax using eitherForm 1065(multi-member LLC) orForm 1040 Schedule C(single-member LLC).
Hiring Employees
If you plan to hire employees, stay compliant with the law by following these steps:
- Verify that new employees areable to work in the US
- Report employeesas "new hires" to the state
- Provideworkers' compensationinsurance for employees
- Withhold employee taxes
- Printworkplace compliance postersand place them in visible areas of your workspace
Find more information on theIowa WorkForce Development website.
Check out our雇佣你的小企业指南for resources like sample job descriptions, payroll service reviews, and more.
What is the minimum wage in Iowa?
The minimum wage in Iowa is $7.25 per hour.
How often do I need to pay employees?
Iowa allows wages to be paid in any frequency, as long as it is on a reliable schedule and happens once per month.