Legal Bueno

    How to Start Your LLC in Iowa

    Legal Bueno helps with everything you need to start your business. We take care of all the paperwork so you don't have to worry about it. Want to learn more about the process we handle? Keep reading!

    Quick Summary:

    • Filing Fee: $50
    • Turnaround time: 1 business day

    How do I start an LLC in Iowa?

    Thinking about starting an LLC? The process is pretty similar across the states. You'll start by picking a unique name for your business (you'll need to check to make sure it hasn't been taken!) and then filing some paperwork—usually called Articles of Organization or a Certificate of Formation—with your state's agency.

    If you want to check the name availability for Iowa, visit https://sos.iowa.gov/search/business/search.aspx.

    After that's taken care of, you'll want to draft a governing doc for your business called an operating agreement & find any licenses you might need. Just keep in mind that each state has its own little quirks, so it's always a good idea to double-check specific requirements for your area.

    What are the costs & processing times of starting a business in Iowa?

    Here's the rundown for Iowa:

    • The filing fee is: $50
    • There are ongoing fees of $30 (every 2 years)
    • It usually takes 1 business day if you're filing online or 7-10 business days (plus mail time) if by mail.

    Why Iowa is a great state for your LLC

    Starting a company in Iowa comes with several distinct advantages that can significantly benefit entrepreneurs. Here are some key reasons to consider Iowa for your business venture:

    • Tax Incentives: Iowa offers a range of tax credits and exemptions for businesses that meet specific criteria, allowing for potential savings and improved financial health.
    • Sales Tax Holiday: Each year, Iowa hosts a Sales Tax Holiday, during which businesses selling clothing and footwear can sell items valued at $100 or less without charging sales tax. This opportunity can boost sales and attract customers looking for bargains.
    • Ease of Formation: Creating a Limited Liability Company (LLC) in Iowa is straightforward and efficient. This structure is particularly advantageous for startups and small to medium-sized businesses, offering a blend of liability protection and operational flexibility.
    • Personal Asset Protection: An Iowa LLC protects personal assets from business liabilities, ensuring that owners’ personal finances remain secure should challenges arise.
    • Simplified Tax Filing: LLCs enjoy simplified tax filing processes and may benefit from favorable tax treatment, easing the administrative burden on business owners.
    • Low Formation Costs: Starting an LLC in Iowa is budget-friendly, with a filing fee of only $50, making it a cost-effective option for entrepreneurs.
    • Compliance and Regulation: Iowa’s regulatory environment allows for easier management and adherence to compliance requirements compared to other business structures.

    These factors combined make Iowa an attractive place to launch and grow a business, providing both financial relief and structural advantages for entrepreneurs.

    Legal Requirements

    Remember! Legal Bueno will handle all of these requirements for you, but if you're interested, here are the legal requirements for Iowa:

    Articles of Organization

    A certificate of organization must include:1. The name of the LLC; and

    1. The street address of the initial registered office and the name of the initial registered agent for service of process on the company.

    A certificate of organization may include statements as to matters other than those required.

    Iowa Code § 489.201

    Filing fee: $50

    Iowa Code § 489.117

    Filing Process

    After you've prepared the initial formation documents, you need to file it! Here is what Iowa laws require for filing:

    A record authorized or required to be delivered to the secretary of state for filing must be:1. Captioned to describe the record's purpose;

    1. In a medium permitted by the secretary of state; and
    2. Delivered to the secretary of state.

    If the filing fees have been paid, unless the secretary of state determines the record does not comply with the filing requirements, the secretary of state will file the record and:1. For a statement of denial, send a copy of the filed statement and a receipt for the fees to the person on whose behalf the statement was delivered for filing and to the LLC.

    1. For all other records, send a copy of the filed record and a receipt for the fees to the person on whose behalf the record was filed.

    Iowa Code § 489.205

    Additional Legal Considerations

    Here are some additional relevant laws that might be useful when operating your business in Iowa:

    Operating agreement–scope, function and limitations

    Iowa Code § 489.110

    Operating agreement–effect on limited liability company and persons becoming members - preformation agreement

    Iowa Code § 489.111

    Operating agreement–effect on third parties and relationship to records effective on behalf of limited liability company

    Iowa Code § 489.112

    Certificate of existence or authorization

    Iowa Code § 489.208

    Biennial report for secretary of state

    Iowa Code § 489.209

    Series LLC Provisions

    Iowa Code § 489.14101- 14804