Overview
Getting an LLC in Iowa involves a straightforward process. Below, we’ll guide you through the essential steps and provide factual answers to common questions.
How To Get An LLC In Iowa: Step-By-Step
- Choose a Name for Your LLC:
- Choose a unique and available name for your LLC.
- Perform an Iowa LLC name search through the Iowa Secretary of State website.
- Reserve your chosen name if needed.
- Registered Agent:
- Appoint a registered agent with a physical address in Iowa.
- File Certificate of Organization:
- Complete the Iowa LLC Certificate of Organization form.
- File by mail or online through the Iowa Secretary of State website.
- Operating Agreement:
- Draft an operating agreement outlining the structure and operation of your LLC. Although not required by the state, it is highly recommended.
- Employer Identification Number (EIN):
- Obtain an EIN from the IRS for tax purposes.
- File the Beneficial Ownership Information Report:
- Beginning in 2024, Iowa LLCs must submit a Beneficial Ownership Information (BOI) Report.
1. Choose A Name For Your LLC
Check if the name you desire for your Iowa LLC is available in the state. This is important because no two businesses in Iowa can share the same name.
To do this, use the Secretary of State’s Business Entity Search tool to compare your business name with existing ones in Iowa.
Make sure your LLC name is unique by following Iowa’s naming rules to increase the chances of your LLC name being approved.
If you need, you can reserve the name for your LLC for up to 120 days. The cost is $10.
2. Appoint Registered Agent
In Iowa, you need to choose a registered agent for your LLC. This is the person or company allowed to get legal papers and important notices on behalf of your LLC.
Your registered agent can be a person, like yourself or one of your employees, or a company that offers this service.
The registered agent has to meet some requirements:
- If it is a company, it must offer registered agent services.
- The agent must have an address in Iowa.
- The agent must be there in person and ready to get documents during regular business hours.
3. File Iowa LLC Certificate Of Organization
To officially establish your Iowa LLC, you need to file the Iowa LLC Certificate of Organization.
This document provides essential details about your LLC and serves as the official registration.
To prepare the certificate, gather the following information: your LLC name, the name and address of the registered agent, specify the type of your LLC business, and provide the effective date if different from the filing date.
The Iowa LLC Certificate of Organization filing fee is $50. There is no official form in Iowa, and you need to compose your own document with the above information.
Once filed, the Iowa Secretary of State will review the document, and upon approval, your LLC attains legal business entity status.
You can undertake this process independently using our step-by-step guide or opt for the convenience of hiring a company for assistance.
>> Form your LLC with ZenBusiness for $0 (plus state fee) <<4. Create An Operating Agreement
An operating agreement is a document that shows how your LLC will do business.
While Iowa doesn’t make it a must, having one is crucial. It helps in different ways, like resolving money disputes or potential legal issues. Without it, the courts decide based on state laws, not necessarily what’s best for the LLC.
The agreement can include things like the LLC’s name, address, how long it will last, the registered agent’s details, info from the certificate of organization, the business’s purpose, member contributions, how profits and losses are shared, rules for new and leaving members, how the LLC is managed, and clauses about protection and responsibility.
5. Obtain Employer Identification Number (EIN)
The Internal Revenue Service (IRS) gives your LLC a nine-digit number called an Employer Identification Number (EIN) to identify it for taxes. You can get your EIN by mail or online through the IRS.
This number helps you:
- File and handle taxes at both the state and federal levels.
- Open a bank account for your business.
- Apply for permits and licenses.
- Hire employees.
Obtaining an EIN is FREE.
6. File The Beneficial Ownership Information Report
Starting in 2024, many Iowa LLCs must submit a Beneficial Ownership Information (BOI) Report to the Financial Crimes Enforcement Network (FinCEN).
Many Iowa LLCs must now file an extra document at the federal level, known as the Beneficial Ownership Information (BOI) Report.
This report mandates disclosing information about your company applicant and all beneficial owners to FinCEN. You can submit it online using the Beneficial Ownership Secure System (BOSS) or opt for a professional service to handle it for you.
Review: What Is Needed To Form An LLC In Iowa?
To form an LLC in Iowa, you need:
- A unique LLC name.
- Certificate of Organization
- Registered Agent information.
- Operating Agreement (recommended).
- Employer Identification Number (EIN).
What Forms Do You Need To Get An LLC In Iowa?
- Application to Reserve LLC Name (if needed)
- Certificate of Organization (online)
- Certificate of Organization (PDF)
- EIN Application Form
- BOI Form
How Much Does It Cost To Start An LLC In Iowa?
The cost to start an LLC in Iowa involves several steps, each with its own associated fees:
- Certificate Of Organization Filing Fee: $50
- Name Reservation Fee (if needed): $10
- File LLC Biennial Report before April 1st, starting the first odd-numbered year after formation: $30
What Is The Iowa Biennial Report?
Iowa LLCs need to submit a report known as the Biennial Report to the state. This report ensures the government has current contact details for your business and is informed about any changes in ownership.
It is due on April 1st, every odd-numbered, starting one year after formation.
The biennial report fee in Iowa is $30.
How Long Does It Take For An LLC To Get Approved In Iowa?
If you send your LLC application by mail, it will be approved in 7-10 business days, plus the time it takes for the mail (2-3 weeks in total).
However, if you file online, your LLC can be approved in 1-3 days.
What Are The Benefits Of Getting An LLC In Iowa?
- Limited liability protection for members
- Pass-through taxation
- Flexible management structure
- Credibility for business transactions
Is Iowa A Good State To Get An LLC?
Whether Iowa is the right state for your LLC depends on where you live and do business. If you live or operate in Iowa, it makes sense to start your LLC there.
Getting An LLC In Iowa: Next Steps
Once your LLC is registered, you can:
- Get the permits and licenses you need for your business, like health or zoning permits.
- Register your business with the state’s tax agency.
- Open a business bank account.
- Apply for a business credit card.
- Buy insurance for your business.
- Safeguard your name and logo with a trademark.
To maintain your LLC in Iowa, you must:
- Update any changes to the registered agent or business address promptly.
- File a Biennial Report.
- Pay Taxes (owners file their individual tax returns)
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Conclusion
Forming an LLC in Iowa involves a few key steps, from name reservation to obtaining an EIN.
Carefully following the process ensures a smooth establishment of your LLC.
For more detailed information and to access the necessary forms, visit the Iowa Secretary of State website.
