What Is a Business License in Iowa?

A business license is a permit issued by a local, state, or federal body in order to allow businesses to perform a specific business activity and/or operate legitimately.

So, if there isn’t a “general business license” in Iowa, what exactly is there?

Well, Iowa — like the vast majority of states — imposes different requirements depending on where you’re located and what you actually do.

For example:

• A restaurant in Des Moines will need a food establishment permit from the Iowa Department of Inspections, Appeals, and Licensing, and additional relevant permits from the City of Des Moines’ city clerk’s office. 
• An accounting firm in Davenport will need a Certified Public Accountant (CPA) license from the Iowa Professional Licensing Agency.
• An interior design business in Cedar Rapids will need a certificate of license or registration through the Iowa Department of Inspections, Appeals, and Licensing. 
• A retail store in Davenport will require a retail merchant license from the City of Davenport Revenue Division as well as zoning and land development approval from the Fire and Police Departments.

Do I Need an Iowa Business License? 

Well, the answer to this will ultimately depend on your business’s situation. You can have a look at our table below in order to get a general idea:

Iowa Business Licensing at a Glance

Jurisdiction	Business Licenses	Who Needs It & Where to Apply
Local	Health Permits, Zoning Permits, Occupancy Certificates, Industry-Specific Permits, etc.	Varies by location Contact your local municipality to determine local requirements.
State	Sales Tax Permit	Businesses selling goods or services or conducting business activities in Iowa. Apply via Iowa Department of Revenue.
	Professional Licenses	Required for regulated professions (e.g., healthcare, contractors, real estate, etc.) Apply via the Iowa Department of Inspections, Appeals, and Licensing: Other Professional License division.
	Industry-Specific State Licenses	Businesses in regulated industries (e.g., food establishments, liquor, childcare, environmental permits). Apply through the relevant Iowa agency.
Federal	Industry-Specific Licenses	Businesses involved in federally regulated activities such as agriculture, aviation, firearms, alcohol, broadcasting, or wildlife. Apply through the relevant federal agency (e.g., USDA, FAA, ATF, FCC, FWS).

*While this table is meant to give you a general idea, it’s by no means exhaustive. For all your licensing needs, we suggest either going with a professional licensing service or consulting with a business attorney. 

How to Get a Business License in Iowa

The process of obtaining a business license in Iowa will depend on the permit in question, but generally involves completing the following steps:

1. Form a Business Structure & Obtain an Employer Identification Number (EIN)

We recommend formalizing your business before acquiring a business license in order to avoid potentially having to repeat this process again later down the line. 

This also gives other benefits depending on the business model, such as:

• Personal liability protection
• Improved legitimacy 
• Larger access to loans and corporate finance

We generally recommend that most small business owners form an LLC. An LLC provides liability protection, is affordable, and offers flexibility in how it can be taxed and managed.

Note: You should obtain an Employer Identification Number (EIN) after forming your LLC. You can have a look at our How to Get an EIN overview for more information. 

2. Apply for the Right Business License in Iowa

This step will depend on the business license in question.

Iowa Local Business Licenses

Many Iowa cities and counties require local business licenses or permits to be obtained. This can be in addition to the common state-wide licenses talked about above.

Here are some common local permits you may need:

• Industry Permits: This includes health permits required for restaurants, food trucks, and businesses handling food products. Food establishment licensing is handled by the state as well as local governments (e.g., if your business is based in Siouxland, you would apply with the Siouxland District Health Department).
• Zoning Permits: You may need this in order to ensure that your business’s location is zoned appropriately and is compliant with local laws (e.g., if you were based in Des Moines, you would check with the City of Des Moines Zoning Enforcement Division).
• Sign Permits: These can be required before installing business signage (e.g., if you were based in Dubuque, you would apply through the City of Dubuque Inspection and Construction Services division for signage permits).
• Building Permits: Required for construction, renovation, or modification of business premises to ensure compliance with building codes and safety standards (e.g., if your business is in Cedar Rapids, you would apply with the Cedar Rapids Building and Trades division).
• Certificate of Occupancy: Required for most businesses before they can legally occupy a building or space. This verifies that the structure meets building codes and is safe for the intended use (e.g., if your business is in Iowa City, you would obtain this through the Iowa City Neighborhood and Development Services).
• Home-Based Business Permits: Some municipalities require special permits for businesses operating from residential properties, particularly those that may generate traffic or impact neighbors. (e.g., a home-based business in Dubuque must follow city zoning requirements).

To find your local county or city’s official contact information and licensing requirements, you can visit the state’s list of cities and counties. 

Iowa State Business Licenses

Below we’ve included the most common business licenses that are required on a state level. 

Iowa Business Tax Permit

You can register for an Iowa sales tax permit online through the Iowa Department of Revenue website, by mail, or by fax.

Apply for an Iowa Business Tax Permit

Apply Online With GovConnectIowa

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Apply by Mail

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Fee: $0

Mailing Address:

Registration Services
Iowa Department of Revenue
P.O. Box 10470
Des Moines, IA 50306-0470

Fax: (515) 281-3906

Iowa Professional Licenses

If you’re interested in a professional license, you’ll need to head over to the relevant state commission, as this is not handled on a local level. We’ve provided the licensing boards of a few of the most common professions below to get you started:

• Accountancy Examining Board: Oversees the licensing of Certified Public Accountants (CPAs) and Public Accountants (PAs), including individual licenses and accounting firm permits.
• Real Estate Commission: Regulates real estate brokers, salespeople, and property managers, along with continuing education requirements.
• Board of Medicine: Licenses physicians (MDs and DOs), physician assistants, and other medical professionals.
• Board of Nursing: Oversees licensing for Registered Nurses (RNs), Licensed Practical Nurses (LPNs), and Advanced Practice Registered Nurses (APRNs).
• Board of Pharmacy: Regulates pharmacists, pharmacy technicians, and pharmaceutical facilities.
• Barbering & Cosmetology Licensure: Licenses cosmetologists, barbers, estheticians, manicurists, and related beauty professionals.

For more information on how to go about getting licensed, you can have a look at StateRequirement’s in-depth licensing guides. 

Industry-Specific State Licenses

Some Iowa businesses require additional licenses based on the specific industry they operate in.

Here are some common examples of industry-specific state licenses in Iowa:

• Liquor License: Required for businesses that manufacture, distribute, or sell alcoholic beverages. Regulated by the Iowa Department of Revenue. Iowa offers various permit types including on-premises consumption, off-premises sales, and manufacturer permits.
• Motor Vehicle Dealer License: Required for businesses that sell, offer to sell, or advertise for sale more than six motor vehicles in a 12-month period. Regulated by the Iowa Department of Transportation. Requires an office, repair facility, and display facility.
• Child Care License: Required for child care centers and home-based providers caring for more than 6 children. Regulated by the Iowa Health & Human Services Child Care Licensing division.
• Food Manufacturing License: Required for businesses that manufacture, process, or package food products for wholesale or retail distribution. Regulated by the Iowa Department of Inspections, Appeals, & Licensing. 

Iowa Environmental Permits

If your business’s industry will mean that it could negatively impact the environment, there’s a good chance you’ll need some sort of license or permit from the Iowa Department of Natural Resources. 

Examples of industries regulated here include:

• Gravel and stone crushing 
• Hazardous waste 
• Underground storage tanks
• Waste management 
• Water supply
• Environmental cleanups 
• Landfills 
• Building construction or modification 
• Automotive coating 
• Cabinet making 
• Storm water 
• Wastewater 
• Printing operations 
• Woodworking and lumber mills 

Federal Business Licenses for Iowa LLCs

If your business is in a federally regulated industry (which is uncommon), it’ll need to acquire the appropriate business license from the right body before starting to operate. 

A full list of industries regulated at a federal level can be found below:

• Agriculture: Overseen by the U.S. Department of Agriculture
• Alcoholic Beverages: Overseen by the Alcohol and Tobacco Tax and Trade Bureau and the Local Alcohol Beverage Control Board
• Aviation: Overseen by the Federal Aviation Administration. 
• Firearms, Ammunitions, and Explosives: Overseen by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
• Fish and Wildlife: Overseen by the U.S. Fish and Wildlife Service.
• Commercial Fishing: Overseen by the National Oceanic and Atmospheric Administration Fisheries Service.
• Maritime Transportation: Overseen by the Federal Maritime Commission.
• Mining and Drilling: Overseen by the Bureau of Safety and Environmental Enforcement.
• Radio and Television Broadcasting: Overseen by the Federal Communications Commission.
• Transportation and Logistics: Overseen by the U.S. Department of Transportation