Start an LLC in Iowa

Naming your LLC is almost as important as naming your child. Except you’ve got more hoops to jump through. In Iowa, you’ll need to follow the LLC naming laws outlined in Iowa Code § 23-0.5-3. To sum it up, your name:

• Needs to include the words limited liability company, limited company, or an abbreviation such as LLC
• Must be unique to other active businesses in Iowa

Want to lock in that perfect name before someone else snags it? You can reserve an Iowa LLC name for 120 days by filing an Application of Reservation of Name with the Iowa Secretary of State for $10.

Tip: Use our handy business name availability guide to check if your name is available to use.

Now that you’ve secured your LLC’s name, it’s time to claim your spot on the internet by snagging a domain name for your website. Your domain name is like your online street address—it’s how folks find you in the vast world wide web.

Remember these key points when choosing a domain name for your business:

1. It should match your business name, industry, or service
2. Make it easy to remember and stick in people’s minds

Grabbing your domain name early comes with some sweet perks. Your domain name gives you access to a professional business email address. Registering your domain name before you build your business website also takes it off the market to others.

Tip: Ready to claim your domain name? When you hire Northwest as your registered agent or to form your Iowa LLC, you get a whole year of free domain registration and a business email.

Iowa is a bit funky in that there is no official Certificate of Organization to submit to form your LLC. You’ll need to write a document yourself that’ll act as your Certificate. This document is what you’ll submit, plus a $50 filing fee.

Here’s what you need to include.

How Do You Submit the Iowa Certificate of Organization?

You can submit your Iowa Certificate of Organization by mail or in person, but online is going to be your fastest option.

By mail or in person:

Secretary of State
Business Services Division
Lucas Building, 1st Floor
Des Moines, Iowa 50319

Online:

Iowa Fast Track Filing

Your LLC’s operating agreement lays out the essential rules and procedures of how your business will run. An operating agreement usually covers things like:

• Member investments
• Profit distribution
• Dissolution plans
• Member removals or additions

As long as your operating agreement doesn’t go against anything in your Certificate or Iowa law, you have a lot of flexibility to tailor the agreement to the needs of your business.

Tip: Don’t sweat the small stuff! Our attorneys have already written up an initial Iowa operating agreement that you can personalize for free.

An EIN (Employer Identification Number) is the ID number the IRS uses to keep tabs on your LLC for tax purposes. You can get an EIN for free directly from the IRS. If you’re a US citizen, you just need to hop online and submit your info. Not a US citizen with a social security number? You can still get an EIN for your business by submitting Form SS-4.

Tip: We have a guide covering everything you need to know to get an EIN for your LLC.

Getting an EIN opens many doors for your business, including one of the most crucial steps: opening a business bank account. Your LLC is like its own little legal island, legally separate from you. But if you start mixing business and personal cash, things get messy real quick, leading to legal and tax headaches. To keep things clean and tidy, set up a separate bank account for your LLC. You’ll need to bring the bank your LLC’s:

• Certificate of Organization
• Operating agreement
• EIN

If your LLC has more than one member, you’ll also need an LLC Resolution to Open a Bank Account.

Once you’ve formed your business, you’ll still need to do some things to keep it in compliance and running successfully. In Iowa, you’re required to file a biennial report every two years. This report updates the state on your business’s contact details and informs them of any changes in ownership.

The filing fee for the biennial report is $30. The biennial report is due between January 1st and April 1st of the first odd-numbered year after your LLC was formed. So if you formed your LLC in May 2024, your first report would be due on April 1st, 2025, but if your LLC was formed in August 2023, your report would also be due on April 1st, 2025.

By default, Iowa LLCs are taxed as pass-through entities. This means that the business itself isn’t taxed; instead, profits are passed through to the owners. Your LLC’s owners, you and your partners, report the business profits as income on your own individual tax returns. Iowa LLC profits are also subject to the federal self-employment income tax rate. LLCs in Iowa also have the option to elect to be taxed as an S-Corp or C-Corp instead.

Tip: If dealing with paperwork isn’t your cup of tea, you can opt to have us handle filing your Iowa Biennial Report for you.

Most LLCs are asked to file a Beneficial Ownership Information (BOI) Report with the federal Financial Crime Enforcement Network (FinCEN) within 90 days of formation. This report identifies all beneficial owners and company applicants of a business. You can file your LLC’s BOI Report for free through the FinCEN.gov website, or we can file your BOI Report for you.

*This is informational commentary, not advice. This information is intended strictly for informational purposes and does not constitute legal advice or a substitute for legal counsel. This information is not intended to create, nor does your receipt, viewing, or use of it constitute, an attorney-client relationship. More information is available in our Terms of Service.