How to Start an LLC in Iowa

For the easiest process possible, it’s well worth considering using an LLC formation service to help you start your new company. These services walk you through the process, simplifying and expediting the entire process.

For most entrepreneurs, we recommend either ZenBusiness or Northwest Registered Agent. ZenBusiness has budget-friendly plans (starting at just $39), while Northwest Registered Agent offers personalized service at great rates. Either company would be an excellent choice to help you start a limited liability company in Iowa.

Of course, this step is optional: You can complete the necessary paperwork on your own. But if you want to save time and money, it’s definitely worth looking into ZenBusiness or Northwest Registered Agent.

Recommended services

Visit ZenBusiness

The focus of ZenBusiness is on forming new companies. They help simplify the process of starting a business, using powerful online tools. ZenBusiness plans are ongoing and help customers grow their businesses. They provide many services and resources, and can also help connect entrepreneurs to other relevant services.

See the full ZenBusiness review here

Visit Northwest

Northwest Registered Agent will scan all documents you receive for your business so that you can easily see them in your online account. There, you’ll have unlimited cloud storage as well as strong business data protection, and help from their friendly customer service staff when you need it. A yearly subscription for their registered agent services costs $125.

See the full Northwest review here

Visit Bizee

Bizee specializes in new company formation. With Bizee, you can form a new LLC, corporation, or other business entity in your state. So far, they have helped form more than 500,000 new businesses. Bizee works directly with each US state to help start new businesses. Essentially, they are a middleman between you and your state’s business department.

See the full Bizee review here

The first step you must take is to select a name for your new business. You will want to find a memorable, unique name that will fit your business well. More importantly, you must find a name that meets the requirements laid out by the state of Iowa, including:

Once you find a name that satisfies these requirements, you’ll need to make sure it’s available. You can do this by using the Business Entities Search feature on the Iowa Secretary of State’s department website.

All LLCs in Iowa must appoint a Registered Agent to represent their business. The Registered Agent can be any Iowa resident, or Iowa company licensed to do business in the state. You can be your own Registered Agent, you can appoint an employee, or you can hire a professional service.

What is a Registered Agent? Essentially, this individual or company is tasked with receiving legal documents, tax forms, and notice of lawsuits for your company. They are the public-facing entity that represents your business. They must publicly list a physical mailing address (no PO boxes allowed), and are responsible for receiving all important documents for the business.

While you can be your own registered agent, there are substantial benefits to using a professional service. A Registered Agent service will ensure that everything is handled professionally and that nothing important slips through the cracks. Using a service also protects your privacy – if you are your own Agent, you’ll need to have your mailing address publicly listed.

If you choose to use a service, we recommend Northwest Registered Agent for the most personalized service. For a slightly cheaper route, ZenBusiness is a great option.

Note: This step is optional, but recommended.

Most LLCs should have an operating agreement. This is particularly important for multi-member LLCs and companies with shared ownership. However, this step is technically optional, as the document does not need to be submitted to the state of Iowa.

An operating agreement establishes key details about a new company and is kept on file internally. Crucially, it establishes ownership structure and agreements between multiple owners. Thus, this document is essential for reducing the risk of future ownership disputes.

To draft an operating agreement, you can use a service like ZenBusiness, which provides useful templates. You can also search the internet to find a template, or engage the services of a local attorney to help you.

The formal documents that need to be filed in order to form an LLC are the Articles of Organization. In Iowa, this form is called the Certificate of Organization. This form collects key information about your new company and is submitted to the Secretary of State for processing. The Iowa LLC fee is $50 and is nonrefundable.

There are two ways to file the Certificate of Organization: Online, or by mail.

Note: Iowa does not have a standard Certificate of Organization form that can be submitted by mail. Businesses are expected to draft their own certificates, which must meet all the requirements. If you need help, consider using a company like ZenBusiness.

Once you have submitted everything, you will need to wait for your documents to be processed. In Iowa, this generally takes 2-3 weeks. Expedited processing may be available for an additional charge.

An EIN (employer identification number) is a tax ID number that’s used by the federal government (IRS) for tax filing purposes. In a way, it’s like a social security number, but for a business instead of an individual. An EIN is also required to hire employees, so unless you’re a solo operation, you will definitely need an EIN.

EINs are handled on the federal level, which means your state-level LLC application with Iowa will not issue you an EIN.

The good news is that it is very simple to apply for an EIN, and it’s also free. You can complete the application in just a few minutes. Click here to learn more on the IRS website.

Once your LLC is established, you will also need to apply for various permits and business licenses. An LLC itself is just a business entity – it’s not necessarily licensed to do business in the particular area where it plans to operate. You may need to apply for:

The requirements in this category vary depending on the type of business you are operating, as well as where you are operating it. Some requirements are met on the state level, but most are processed locally with city or county governments.

To learn more, check out this Iowa business license resource.

Finally, there are ongoing requirements that you should learn about and complete, in order to keep your company in good standing with various federal, state, and local governments. This includes tax filings, permit renewals, annual reports, and more.

The specific ongoing requirements will vary depending on the type of business, and where it’s located. You will want to research the specifics of your firm as soon as possible. Here are just a few of the potential requirements that your business may have to meet:

All of these requirements can seem overwhelming, but they don’t need to be. By researching the required steps from day one, and making a plan, you can stay on top of things and avoid issues. We recommend adding key due dates to a calendar so that you never miss a due date.

For any business, keeping finances separate from the finances of the owner(s) is very important. This makes accounting easier, and also protects personal assets from lawsuits related to the business. So, as soon as possible, you will want to open a business bank account and use it for ALL business transactions.

Most financial institutions have business accounts now, so you can simply look around to find a bank in your area that suits your needs. Business accounts have more requirements than consumer accounts, so be sure to call ahead to learn what documents and information you will need to open the account.