How to Start an LLC in Iowa (2025 Guide)

How to Form an LLC in Iowa in 5 Steps

In order to form your LLC in Iowa, there are certain steps you’ll need to complete:

1. Name Your Iowa LLC
2. Choose a Registered Agent
3. File the Certificate of Organization
4. Create an Operating Agreement
5. Get an EIN

Step 1: Name Your Iowa LLC

The first step toward starting an LLC in Iowa is choosing a business name. 

Your LLC’s name should be both memorable and easily searchable as well as comply with the state’s naming requirements.

1. Important Naming Guidelines for Iowa LLCs:

• Your name must include the words “limited liability company,” “limited company,” or a suitable abbreviation (e.g., “L.L.C,” “L.C.,” “LLC,” etc.). 
• Your name must be distinguishable from all other names that have been registered with the Iowa Secretary of State. 
• Your name cannot contain language that in any way suggests that your LLC is related to or sponsored by a state or federal agency (e.g., “city,” “state,” “FBI,” etc.). 

For more information, we recommend having a look at Iowa’s official LLC naming guidelines.

2. Conduct a Business Name Search in Iowa

To check whether your desired name has already been taken by any other business entities in Iowa, you can perform a business entity search on the Secretary of State’s website. 

If you’re not going to start your LLC right away, it might be a good idea to consider reserving your name for up to 120 days. You can file for a name reservation online along with a $10 filing fee.

For more information, you can have a look at our Iowa LLC Name Search guide.

3. Conduct a Domain Name Search

You should check online to see if your business name is available as a web domain. Even if you don’t plan to make a business website right away, this is an extremely important step as it will 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.

FAQ: Naming an Iowa LLC

Step 2: Choose a Registered Agent in Iowa

After you find the right name for your LLC, you will need to nominate an Iowa registered agent. This is a requirement for all LLCs in Iowa.

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 (e.g., service of process). Your registered agent will need to be physically present at your LLC’s registered office address during normal business hours.

Who can be a registered agent? A registered agent must be a resident of Iowa or a corporation that is authorized to transact business in the state. This can be a registered agent service (recommended), business attorney, or an LLC member (including yourself).  

FAQ: Nominating a Registered Agent

Step 3: File Your Iowa LLC Certificate of Organization

To register your Iowa LLC, you’ll need to file a Certificate of Organization with the Iowa Secretary of State. You can do this online, by mail, or by fax.

Before you get started, we recommend taking some time to ensure you have all of the required information, including:

• Your LLC’s finalized name, principal office address, and business purpose
• Your LLC’s registered agent name and physical street address.
• The names and addresses of your LLC’s members and organizers
• Your LLC’s duration period 
• Your LLC’s management structure (e.g., member-managed, manager-managed, etc.).

File the Certificate of Organization

OPTION 1: File the Certificate of Organization Online With Iowa Fast Track Filing

File Online

– OR –

OPTION 2: File by Mail or by Fax

Read Requirements

Fee: $50 (Nonrefundable)

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 the provided requirements.

For help with completing the form, visit our Iowa Certificate of Organization guide.

If you’re expanding your existing business to the state of Iowa, you’ll need to register as a foreign limited liability company (LLC).

FAQ: Filing Iowa LLC Documents

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.

An operating agreement is a legal document outlining the ownership and operating procedures of an LLC.

A comprehensive operating agreement ensures that all business owners are on the same page and reduces the risk of future conflict.

You can use the free tool in our Business Center to create a custom operating agreement in minutes — or download our free templates:

• Iowa Single-Member LLC Operating Agreement
• Iowa Multi-Member LLC Operating Agreement

FAQ: Creating an Iowa LLC Operating Agreement

Step 5: Get an EIN for Your Iowa LLC

You can get an Employer Identification Number (EIN) from the Internal Revenue Service (IRS) for free. This nine-digit is used to identify a business entity and keep track of a business’s tax reporting. You can think of an EIN as essentially a Social Security number (SSN) for the company.

Why do I need an EIN? An EIN is required for the following:

• To open a business bank account for 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: You do not need an SSN to get an EIN. Learn more here.

Get an EIN

Option 1: Request an EIN from the IRS

Apply Online

– OR –

Option 2: Apply for an EIN by Mail or Fax

Download Form

Mail to:
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999

Fax: (855) 641-6935

Fee: Free

FAQ: Getting an EIN

Best LLC Services in Iowa Compared

For a comprehensive comparison, read our Best LLC Services review. We reviewed and ranked the top LLC formation services to help you determine the best fit for your new business.

Important Next Steps to Protect Your Iowa LLC

After you’ve formed your LLC, you’ll need to complete key steps in order to:

• Separate your personal and business assets
• Stay compliant with state and federal laws

Get a Business Bank Account & Credit Card

Using a dedicated business banking account and business credit card is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your LLC is sued. In business law, this is referred to as piercing your corporate veil.

You can protect your business with these two steps:

1. Opening a business bank account:

• Separates your personal assets from your company’s assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

2. Getting a business credit card:

• Helps you separate personal and business expenses.
• Builds your company’s credit history, which can be useful to raise capital later on.

Get Insurance

Even though an LLC offers limited liability, you’ll still likely need to purchase some form of business insurance to protect your LLC’s assets. The most common types are:

• General Liability Insurance: A broad insurance policy that protects your business from lawsuits. Most small businesses get general liability insurance.
• Professional Liability Insurance: A business insurance for professional service providers (consultants, accountants, etc.) that covers your LLC against claims of malpractice and other business errors.
• Workers’ Compensation Insurance: A type of insurance that provides coverage for employees’ job-related illnesses, injuries, or deaths. In Iowa, businesses with one or more employees, including LLC members and corporate officers, are required by law to have workers’ compensation insurance.

Want to learn exactly what coverage your Iowa business may need? Read our full Iowa Business Insurance Guide.

Obtain Business Licenses If Needed

While Iowa doesn’t require a general state business license, your LLC may need specific licenses or permits based on its industry, location, and activities.

• State-Level Licenses: Use the IASourceLink website to determine if your business requires any state-issued licenses or permits.
• Local Licenses: Check with your city or county clerk’s office to identify any local licensing requirements, such as zoning permits or health department approvals.
• Federal Licenses: If your business activities are regulated by a federal agency (e.g., selling alcohol or firearms or operating in the transportation industry), consult the U.S. Small Business Administration’s website to determine necessary federal licenses or permits.

For a comprehensive overview and step-by-step instructions, refer to our Iowa Business License Guide.

Pay Iowa LLC Taxes

Your Iowa LLC will have several key tax obligations:

Federal LLC Tax Requirements

As a pass-through entity, profits typically flow to your personal tax return. LLC members pay self-employment tax (15.3%) on their earnings.

Income Taxes

Iowa imposes multiple state income taxes: individual, corporation, and pass-through entity tax. You can submit tax returns by mail using the forms below or online through the GovConnectIowa portal. 

• Individual Income Tax: These are currently between 4.4% and 5.7%, but are set to change to a flat rate of 3.9% in 2026. Each member of your LLC will need to file Form IA-1040 in order to report their income to the state.
• Corporation Income Tax: If your LLC elects to be taxed as a corporation, it will be obligated to pay corporate income tax at a rate of 5.5% on all taxable income up to $100,000 — going up to 7.1% above this figure. To pay and file this tax, you’ll need to submit Form IA-1120 to the Department of Revenue.
• Pass-Through Entity Tax: Qualifying LLCs can choose to pay a pass-through entity tax (PTET) – equal to the state’s highest individual income tax rate (5.7%) – instead of paying an individual income tax rate at a member level. You can do this by filing Form IA 1065.

Sales and Use Taxes

If you’re selling a physical product, you’ll need to register for a seller’s permit through the Iowa Department of Revenue. 

This certificate allows a business to collect sales tax on taxable sales.

Sales tax, also called “Sales and Use Tax,” is a tax levied by states, counties, and municipalities on business transactions that involve the exchange of certain taxable goods or services.

Read our sales tax guide to find out more.

Employer Taxes

If you have employees in Iowa, you’ll need to register for Unemployment Insurance Tax through the Iowa Workforce Development Agency. You’ll also need to sign up for Employee Withholding Tax through the Iowa Department of Revenue.

Local Taxes 

Some Iowa counties and cities impose specific taxes that may be applicable to your business. These include local option sales tax, property tax, hotel and motel tax, school district tax, and more.

You can search for relevant tax requirements for your business on the Iowa Department of Revenue’s website.

Most Iowa LLCs must file their state tax returns by April 30. For help understanding your full tax obligations — and making sure nothing gets missed — check out our full Iowa LLC Tax Guide.

File Your LLC Biennial Report

All Iowa LLCs are required to file a biennial report with the Secretary of State by April 1 every two years in order to keep their business records both up-to-date and accurate. 

This is typically done through the Fast Track Filing portal, where you can choose to file the report online ($30 filing fee) or print a paper form ($45 filing fee).

Note: If you still haven’t filed your biennial report by August 8, the state will dissolve your LLC and you’ll have to apply to have it reinstated.

To stay on top of this deadline and other important compliance tasks, we recommend hiring a professional registered agent service — they can help ensure you never miss a filing.

Iowa Business Resources

• TRUiC Business Center
• Iowa Small Business Development Center
• Iowa Department of Revenue
• Iowa Secretary of State Business Services
• Iowa Secretary of State Business Entity Forms and Fees
• Iowa LLC Statutes
• Iowa Small Business Resources