We’ve put together a free step-by-step guide on how to set up an LLC in Iowa. We want you to have a clear idea of how to set up and manage an LLC for your state. We’ve tried to make sure you have the information you need right at your fingertips. Each step has instructions and links to the sites for you to fill out the forms in the correct order. So, let’s set up your Iowa LLC right now!
A few points to remember before setting up your LLC in Iowa
When you set up an LLC in Iowa you’ll need a few things before you get started. This section will help you get your checklist in order.
A Unique Business Name
Every business in the state must be unique. You’ll need to search for an Iowa LLC name. Go to Iowa Business Entity Search to make sure yours is not taken.
An LLC Designator
You must have an LLC designator in your name in one of the following formats.
- LLC (most common)
- L.L.C.
- LC
- L.C.
- Ltd. Liability Co.
- Ltd. Liability Company
- Limited Liability Co.
- Limited Liability Company
Now that you have your unique business name, it’s time to register it with the state of Iowa. Let’s get down to business.
A Registered Agent
In most states, a registered agent is a person or a company that accepts “Service of Process” for your Iowa LLC. A registered agent will receive any subpoenas, notices, and other legal, and official documents sent to your business by the Iowa Secretary of State.
If you’re opening a business in Iowa but you aren’t a resident, you’ll need to get a registered agent in that state. The requirements for a registered agent are as follows:
An Individual:
- Must be 18 and be a resident of the state
- Must be authorized to do business in the state.
- Must have a physical street address located in Connecticut
A Company
- Must be authorized to do business in the state
If you meet the above criteria, you can be your own registered agent. Or you can set up a friend or family member to be your registered agent.
You can also hire a commercial Registered Agent. A company that provides their name and address to receive legal documents from the state.
Hot Tip
The nice part of using a company is that their address is used instead of yours. As the business address will be public knowledge. By using a registered agent, you can protect and secure your own address.
Step 1: Reserve Your Business Name
To Set up an LLC in Iowa you need to reserve your business name. This way during the process no one can steal the name of your company.
You’ll need to fill out an Application for Reservation of Name. If you want to reserve your name online, upload it to the Iowa Secretary of State: Business Entity Filings. Or you can send the form directly by mail.
Your applied LLC name will be reserved for up to 120 days with a filing fee of $10.
Step 2: File Your Certificate of Organization in Iowa
Setting up an LLC in Iowa is easy, especially for single-member LLCs. Just go directly and sign up on the Iowa Secretary of State: Fast Track Filing.
The Iowa Secretary of State does not provide the downloadable form. You will have to draft your own Certificate of Organization or have a lawyer do it for you. After you have it, scan and upload it if you file online or just directly send it by mail.
Fees: In Iowa, the cost of setting up your LLC and filing the Certificate of Organization is $50.00 both online and by mail. It takes 7 to 14 business days to get an approval back for mail filing. While it only takes 1 business day for online filing.
Step 3: Complete Your Iowa LLC Operating Agreement
An operating agreement is a key document used by LLCs and partnerships. It outlines the business’ financial and functional decisions including rules, regulations, and provisions. This describes how your LLC will operate internally. For more information on operating agreements, you can check out the Small Business Administration’s article on basic operating agreements.
Hot Tip
You are not required to file an Operating Agreement with your state. But it may be vital to have it, especially if there are multiple members of your LLC.
Step 4: Get Your Federal Tax ID Number (EIN)
Once your LLC has been approved it’s time to get your Federal Tax ID Number from the IRS.
Your EIN is the social security number of your business. Keep it well protected. You’ll use this number to open bank accounts, file tax documents, apply for loans, and many other uses. It also protects your social security number when doing business with other businesses like merchant accounts, 1099s received, etc.
To apply for your EIN you can go to IRS EIN/Tax ID Application. Make sure you pick the correct Business Entity Type.
Just a Note
You can only file online if you have a Social Security Number (SSN) or Taxpayer ID (ITIN). Otherwise, you’ll have to mail in the forms and wait for the response. If you don’t have an SSN, on Form SS-4, where it asks for your SSN, ITIN, or EIN (line 7b), write “Foreign”. Your EIN application will then be approved without the need for having an SSN.
Taxes, Permits, and Licensing in Illinois
To do business in Iowa you will need to file tax returns, and hold permits and licenses in your county or city.
Your Iowa LLC is required to file a biennial report even if you have no business activity or no ($0) revenues. The biennial report fee is $45 for filing online and $60 by mail.
File your biennial report online at the Iowa Secretary of State: Fast Track Filing or download and print out a pre-filled form on the same site then send it by mail.
Aside from business licenses and permits, all LLCs must also pay appropriate taxes and meet obligations with the Iowa Department of Revenue.
Just a Note
Filing after April 1st is considered late and will make your LLC into delinquent status. If not filed after August 1st, your LLC will be administratively dissolved by the state.
Never miss a deadline
Not sure which forms to file with the IRS and your State after you set up your new business?
Sign Up to Simply Tax Compliant. File the right forms and the right time to avoid penalties and interest.
Putting it All Together
Now that you can set up an LLC in Iowa online it shouldn’t take more than a day or two to get up and running. The Iowa Secretary of State’s website is very easy to navigate and following the five steps above will help you get your talents and ideas to market faster.
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