How Much Does It Cost to Start an LLC in Iowa?

Iowa LLC Online Filing Fee: $50

The main cost to start an LLC in Iowa is the $50 fee to file your LLC's Certificate of Organization online with the Iowa Secretary of State.

For a look at LLC costs in every state, read our other Cost to Start an LLC and How to Form an LLC guides.

Cost to Form a Foreign LLC in Iowa

If you already have an LLC that is registered in another state and you’d like to expand your business into Iowa, you’ll need to register your LLC as a foreign LLC in Iowa.

The cost for registering an Iowa foreign LLC is $100. You can register a foreign LLC in Iowa by filing an Application for Certificate of Authority online or by mail.

Optional LLC Formation Costs

There are optional fees associated with LLC formation:

LLC Name Reservation

Reserve your name for up to 120 days prior to LLC formation by filing an Application for Reservation of Name and paying the $10 filing fee. This can also be done by mail.

Fictitious Name

File a Fictitious Name Resolution and pay the $5 filing fee to create a name other than your legal LLC business name. This can also be done by mail.

Seven Basic Steps to Start an LLC in Iowa

Step 1: Name Your Iowa LLC
Step 2: Choose a Registered Agent
Step 3: File a Certificate of Organization
Step 4: Create an Operating Agreement
Step 5: Get an EIN
Step 6: File the Biennial Report
Step 7: Keep Your Company Compliant

Step 1: Name Your Iowa LLC

When you name your Iowa LLC, you’ll need to choose a name that:

1. Is available for use in the state of Iowa
2. Meets Iowa naming requirements
3. Is available as a web domain

Recommended: Visit our Start an LLC in Iowa guide for detailed naming rules and instructions for registering a business name in Iowa.

Not sure what to name your business? Check out our How to Name a Business guide and free LLC Name Generator.

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 create a business website today, you may want to buy the URL in order to prevent others from acquiring it.

Step 2: Choose a Registered Agent

All LLCs in Iowa must appoint a registered agent. A registered agent primarily acts as your LLC’s main point of contact with the state. But most importantly, they are responsible for accepting service of process in the event your business is sued.

Your Iowa registered agent must:

• Be at least 18 years or older
• Have a physical address in Iowa
• Be available during normal business hours to accept service of process

Step 3: File the Certificate of Organization

The Iowa Certificate of Organization is a document that is filed with the Iowa Secretary of State to form an LLC. The fee for filing a Certificate of Organization is $50 online.

If filing by mail or by fax, you must draft your own Certificate of Organization according to the Iowa state statutes. For detailed instructions for completing the Certificate of Organization, visit our How to File the Iowa Certificate of Organization guide.

Step 4: Create an Operating Agreement

An operating agreement isn't required for Iowa LLCs, 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

What is an EIN? An EIN or Employer Identification Number is a nine-digit number issued by the Internal Revenue System (IRS) to identify a business for tax reporting purposes. An EIN is essentially a Social Security number (SSN) for your company.

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

• Opening a business bank account
• Hiring employees

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

Ensuring regulatory compliance for your Iowa-based LLC involves several steps:

• State Licenses & Permits: Adherence to all federal, state, and local regulations is vital for your LLC. The specifics of the licenses and permits required depend on your business activities, as there are no mandatory general business licenses.
• Tax Commitments for Iowa LLCs: Keeping on top of your tax obligations is key. Iowa imposes a flat state sales tax of 6%, with a max local tax rate of 1%. If you plan on having employees, remember to register for Unemployment Insurance Tax and Employee Withholding Tax. The state also has a graduated income tax ranging from 4.4% to 6%.
• Hiring Employees in Iowa: When hiring, you must ensure that all new employees are legally permitted to work in the US, report new hires to the state, provide workers' compensation insurance, handle employee tax withholdings, and visibly display workplace compliance posters.