With the lowest cost of living according to US News, starting a business in Iowa is a great choice for entrepreneurs. Start your business today with our simple step-by-step guide and get on the fast track to financial and personal independence. If you get stuck along the way, connect with a business resource in your local area for help.

Steps to Starting your Iowa Business
To Start a Business in Iowa, follow these steps:
Step 1: Choose the Right Business Idea
The first step toward business ownership is deciding what kind of business to start. Look for an idea that suits your interests, your personal goals, and your natural abilities. This will help you stay motivated when the going gets tough and will greatly improve your odds of success. We have assembled a comprehensive list of small business ideas to help you get started. Need inspiration? Here were the most popular ideas among our Iowa visitors in 2020:
TRENDING BUSINESS IDEAS IN Iowa

Find the Right Business Idea for You
Our free Business Ideas Generator will help you identify great businesses that match your interests and lifestyle.
Step 2: Plan Your Business
Successful businesses are built through careful planning. Before committing a significant amount of money and other resources toward your business, critically analyze your idea and create a game plan. At a minimum, you should have good answers to the following questions.
Business Name
Naming a business can be challenging. You'll want to choose a brand name that follows Iowa naming rules, resonates with your customers, and is available as a URL.
Product Development
What problem does your business solve? What will set your product or service apart from the competition?
Sales & Marketing
Who are your potential customers? How will you get their attention and convert them into buyers?
People and Partnerships
What roles will you need to hire and what professional relationships will you need to form in order to succeed?
Financial Planning
How many clients or sales will you need in order to break even? How much money will it take to get there, and where will you get the funding?

Start Planning
- Create a robust business plan to help navigate the early years of your business. To use this free tool sign up for the Business Center.
- Need Help? Find organizations in your local area that can assist you with planning.
- If you’re a solo-entrepreneur, setting up a virtual office can add credibility to your business by having a business address on Google search, protect your personal privacy, and provide you with a business phone line and a live receptionist to answer your calls. Save $200 on a virtual office today.
- If you’re a woman in business, find funding, tools and resources with this great new series Women in Business.
- Learn how to plan, raise, and manage your funds by visiting our guide to Small Business Finance.
Step 3: Form Your Business
Registering your Iowa company as a legal business entity, such as an LLC or a Corporation, has two major advantages:
- Increased credibility
- Protection from personal liability in the event your business is sued
For most small businesses, registering an LLC is a great option. In comparison to other business entities, LLCs are easier to set up and manage and they have favorable tax treatment. You can set up an LLC in Iowa for as little as $50.
If you choose not to register your company as a business entity, you will be held personally responsible for the debts and liabilities of your business. In addition, unregistered business owners may need to file a Trade Name, also known as a "DBA." Find out if your business is required to file a DBA.
Secure Your Domain
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
Not sure what to name your business? Check out our Business Name Generator. Then, create a logo with our free Logo Maker.
After registering a domain name, consider setting up a professional email account (@yourcompany.com). Google's G Suite offers a business email service that comes with other useful tools, including word processing, spreadsheets, and more. Try it for free
Step 4: Register for Taxes
With limited exceptions, most businesses require an Employer Identification Number (EIN), also known as a Tax ID Number. An EIN is used to identify a business in its federal tax filings. Without an EIN, you can't hire employees or open a business bank account.
You should also be aware of important iowa taxes that may apply to your business:
- If you are selling a physical product, you’ll typically need to register for Iowa Sales Tax.
- If you hire employees in Iowa, you will have to register for Unemployment Insurance Tax and Employee Withholding Tax on behalf of your employees.
Step 5: Create Business Banking and Credit Accounts
Using dedicated business banking and credit accounts 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 business is sued. In business law, this is referred to as piercing your corporate veil.
Additionally, learning how to build business credit can help you get credit cards and other financing in your business's name (instead of yours), better interest rates, higher lines of credit, and more.
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.

Recommended: Read our Best Banks for Small Business review to find the best national bank, credit union, business-loan friendly banks, one with many brick-and-mortar locations, and more.
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 (e.g., small business loans) later on.
Step 6: Set Up Accounting
An accounting system helps you track the performance of your business and simplifies annual tax filings. Quality accounting software lets you download your bank and credit card transactions, making accounting fast and easy. Learn more about the importance of accounting and how to get started with accounting today.

Recommended: QuickBooks has all the accounting features your small business will need.
Step 7: Obtain Permits and Licenses
To operate your new business legally, you will need to comply with federal, state, and local government regulations. In many cases, this involves obtaining one or more business permits and/or licenses. For example, a restaurant will likely need health permits, building permits, signage permits, etc.

Learn how to obtain the necessary licenses and permits for your business
- or -
Use a professional service to help you obtain required licenses
Step 8: Get Insured
Business insurance helps you manage risks and focus on growing your business. The most common types of business insurance you should consider are:
We recommend that all small businesses, including home based businesses, purchase a general liability policy. Businesses selling professional advice or services, such as consulting and accounting firms, should also consider a professional liability policy. In Iowa, businesses with one or more employees, excluding business owners, are required by law to have workers compensation insurance.

Our recommended insurance provider can set you up with an insurance policy that is right for your business
Read our review of the best small business insurance companies
Step 9: Define Your Brand and Promote your Business
The strongest and most memorable businesses are built on a solid brand. When developing your brand, you should consider:
- What your business stands for?
- What are your core values?
- What will earn customer trust?
Once you feel confident about your answers to these questions, it’s time to move onto your business name. Your business name is the cornerstone of good branding and a successful business. To learn more about creating the best name for your business, read our How to Name a Business guide.
Once you have your name established, to finalize your brand, you will need a logo. To get a unique logo for your business use our Free Logo Generator. You can also try this premium logo maker by Tailor Brands. For something as important as your brand image it is always a good idea to source ideas from different places.
Promoting Your Business
There are many different methods to promote your business, but the two most effective methods are:
- Press Releases
Press Releases
Press Releases are a great way to promote your brand and are one of the most cost-effective strategies as they:
- Provides publicity
- Establish your brand on the web
- Improve your website's SEO, driving more customers to your website
- Are a one-time cost in terms of effort and money
- Have long-lasting benefits
Recommended: TRUiC has negotiated a 25% discount for you on a service that will write and distribute press releases for you.
A Facebook page is a great, free way to interact with your customers. But, it does require ongoing effort to be successful.
A Facebook page can be used to:
- Establish your local business presence
- Showcase your business products and services
- Communicate with your customers
- Get and share reviews from customers
- Promote your business through ads, though this may not be suitable for your business.
Step 10: Establish a Web Presence
A professional website is critical to the long-term success of your business, regardless of what industry you are in. A website allows potential customers to find your business online and discover the products or services you offer, and it also enhances your business’s credibility.
In addition to a website, you should also consider other avenues for promoting your business online:
- Setting up social media profiles (Facebook, Twitter, etc)
- Creating accounts on review sites (Yelp, Google Reviews, etc)
- Registering for a local Google profile
Iowa Formation Guides
How to Form an LLC Iowa
- Should I Start an LLC for My Small Business?
- Cost to Form an LLC in Iowa
- Iowa LLC Name Search
- How to Choose a Registered Agent in Iowa
- How to File LLC Articles of Organization in Iowa
- Iowa LLC Operating Agreement
- Iowa LLC Biennial Report
- How to Dissolve an LLC in Iowa
How to File a DBA in Iowa
How to Start a Corporation in Iowa
How to Start a NonProfit in Iowa
OTHER GUIDES
Cedar Rapids Metro Economic Alliance
Here are the Principle Service Areas:
- Sales & Marketing
- Networking
Offers Free Service
Description
Cedar Rapids Metro Economic Alliance is an economic and business development program embedded in Cedar Rapids, Iowa. Members of CRMEA participate in various networking events and roundtable series with experts and seasoned professionals in the field. In addition, members receive discounts on facility rental, exclusive advertising opportunities in CRMEA's e-magazine/newsletter, and connections to other local resources. CRMEA also hosts a variety of events, most of which are free and some of which are open to the general public.
CONTACT INFORMATION:
501 First St. SE
Cedar Rapids, IA 52401
319-398-5317
economicalliance@cedarrapids.org
Iowa Center For Economic Success
Here are the Principle Service Areas:
- Mentoring
- Business Planning
- Fundraising
- Networking
Offers Free Service
Accepts Walks In
Description
Iowa Center for Economic Success provides educational and financial assistance to small business owners. Some highlights include free year-round tax preparation, business planning workshops, networking events, and one-on-one counseling in business planning and launching. Collaborating with SBA and Iowa Economic Development Authority, ICES also houses a Women’s Business Center and a microloan program. ICES also offers two paid 8-week courses that teach entrepreneurs the basics of planning and starting a business.
CONTACT INFORMATION:
8345 University Blvd., Suite F
Clive, IA 50325
515-283-0940
info@theiowacenter.org
HOURS OF OPERATION:
MON - THU: 8:30 am - 4:30 pm
FRI: 8:30 am - 1 pm
Dubuque SCORE
Here are the Principle Service Areas:
- Mentoring
- Business Planning
- Sales & Marketing
- Networking
Offers Free Service
Description
SCORE (Service Corp of Retired Executives) is a leading, nation-wide organization that has assisted millions of entrepreneurs over its 50+ years of operation. SCORE is a resource partner of the SBA that offers access to a network of experienced business leaders who donate time to mentor entrepreneurs and small business owners. They also host free or inexpensive workshops online and at 300 local chapters around the United States. Mentoring can be conducted either in person or remotely and is always free and confidential, no matter how often you take advantage of this service.
University of Iowa: John Pappajohn Entrepreneurial Center
Here are the Principle Service Areas:
- Mentoring
- Business Planning
- Networking
Offers Free Service
Description
University of Iowa's John Pappajohn Entrepreneurial Center offers a few programs to the community. Venture School is a comprehensive six-week intensive training program with a rigorous curriculum that aims to mimic the process of creating a startup. The business consulting program allows community members to seek help for their startup or business free of charge. Each consulting team is comprised of 3-5 students under the guidance of an experienced mentor and faculties at the University of Iowa. The Institute for International Business offers business consulting services (similar to the business consulting in 2) as well as online CGBP exam prep. The CGBP (Certified Global Business Professional) is good for people who work in a field related to international trade. If you’re a UI student, faculty, or staff, there are more business support programs just for university affiliates. Annual International Entrepreneurial Summit is a panel discussion comprised of business professionals from the U.S. and abroad focusing on a variety of business and entrepreneurial topics. This event is open to the public.
UNI Center for Business Growth and Innovation
Here are the Principle Service Areas:
- Mentoring
- Business Planning
Offers Free Service
Accepts Walks In
Description
The UNI Center for Business Growth and Innovation is a large organization that is comprised of several business development programs. All of the services are designed to attract, start and grow businesses in the Waterloo area. In addition to their local work, the UNI Center for Business Growth and Innovation also handles and creates online workshops, statewide events, and the midwest's largest celebration of entrepreneurs: EntreFEST.
CONTACT INFORMATION:
8120 Jennings Dr., Suite 13
Cedar Falls, IA 50614
319-273-4344
cbgi@uni.edu