How to Start an LLC in Iowa

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 a name search on the State of Iowa website.

To learn more about searching for an Iowa LLC name, read our full guide.

3. Is the URL available? We recommend that you 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 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.

We reviewed and ranked the best LLC services. Find out which is best for you.

Step 2: Choose a Registered Agent in Iowa

You are required to nominate an Iowa registered agent for 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? A registered agent must be a resident of Iowa or a corporation, such as a registered agent service, authorized to transact business in Iowa. You may elect an individual within the company, including yourself.

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 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 be member-managed vs. manager-managed.

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

If you’re expanding your existing LLC to the state of Iowa, you will need to form a foreign 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 our Iowa LLC operating agreement guide.

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 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.

Step 6: 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 the Fast 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.

Step 7: Keep Your Company Compliant

Iowa LLC Licenses & Permits

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 our Iowa Business License guide.

Iowa LLC Tax Filing Requirements

In order to keep your business in good standing, it's important to stay up to date on your Iowa 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 a seller's permit through the Iowa Department of Revenue website.

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 for Unemployment Insurance Tax through the Iowa Workforce Development website. You will also need to sign up for the Employee Withholding Tax through the Iowa Department of Revenue on behalf 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 the Iowa Department of Revenue website. 

Federal:
You’ll also need to report your federal income tax using either Form 1065 (multi-member LLC) or Form 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 are able to work in the US
• Report employees as "new hires" to the state
• Provide workers' compensation insurance for employees
• Withhold employee taxes
• Print workplace compliance posters and place them in visible areas of your work space

Find more information on the Iowa WorkForce Development website. 

Common Questions About Iowa LLCs

Iowa Business Resources

Get Help Starting a Business in Iowa

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State of Iowa Quick Links

• Iowa Secretary of State Business Entity Forms and Fees
• Contact Business Services
• Iowa LLC Statutes