How to Start an LLC in Iowa: Step By Step Guide

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Are you looking forward to owning an LLC in Iowa, and are you looking for the best guide to start? read this post to the end.

The state of Iowa offers various opportunities for tax credits and exemptions for businesses, providing that your LLC meets the specific criteria. 

So, if you are looking for the best guide on how to start an LLC in Iowa that meets the criteria, here is the step-by-step guide on how to start an LLC in Iowa. 

It contains all you need to know about starting your LLC without hassles. 

How to Start an LLC in Iowa in Simple Steps

Here are the most straightforward steps to start your LLC in Iowa without stress. 

  • Complete an Iowa LLC Search and Choose a Unique Business Name
  • Provide an Official Business Address for Your LLC
  • Assign a Registered Agent
  • File Your Certificate of Organization with the Iowa Secretary of State
  • Get an Employer Identification Number (EIN) from the Internal Revenue Service
  • Create an Operating Agreement

Complete an Iowa LLC Search and Choose a Unique Business Name

You’ll first need a name for your LLC to make it original and stand out.

However, the name must be one that’s not used by any other formed business or incorporation in the state. 

Also, you’ll need to follow a few naming rules listed below:

  • Your business name must include limited liability company” or its abbreviations (LLC or L.L.C.). 
  • Ensure that your name is distinguishable from an Iowa limited liability company, corporation, limited partnership, or registered limited liability partnership business name. 
  • Ensure the name you desire isn’t already taken by doing a Business Entity Search on the Iowa Secretary of State’s website.
  • Your business name cannot contain words used to name a government agency (i.e., State Department, CIA, FBI, Treasury, etc.)
  • Also, it can’t contain certain restricted words like bank, lawyer, attorney, credit union, etc.
  • Ensure to Reserve the name once you find the availability: You must complete the Name Reservation Request for Domestic Entities form at least two weeks before registration or reserve your business name when completing the online LLC registration.
  • Consider if the URL is available: Check online to see if your business name is known as a web domain. If it is, you may want to buy the URL to prevent others from acquiring it.
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Provide an Official Business Address for Your LLC

Every LLC in Iowa has a specified address regardless of whether your business is in an office building, a home, or a physical location.

However, it can be located outside the state of Iowa, but it cannot be a P.O. Box.

Assign a Registered Agent

A Registered Agent accepts official legal and tax correspondence and is responsible for filing reports with the Iowa Secretary of State. 

You can fill this position with another manager in your business or use a dedicated Registered Agent service.

However, if your Iowa Registered Agent is a person, they must have a physical street address in Iowa and be present during business hours to receive important documents on behalf of your company.

In addition, you appoint your Registered Agent when you file your Certificate of Organization and formally create your business.

File Your Certificate of Organization with the Iowa Secretary of State

You’ll also need to file a certificate of organization with the Iowa Secretary of State once  you’ve compiled all the information for your Iowa LLC, 

The certificate of organization must include:

  • Entity name
  • The address of the principal office
  • Registered agent and contact information
  • Names and addresses of organizers
  • Period of duration (can be indefinite)
  • Whether it will be member-managed or manager-managed

Meanwhile, your Certificate of Organization can be filed online using a Fast Track Filing system. 

The Iowa Secretary of State has set up a Fast Track Filing system for all business entity filings.

All you need to do is create an account to file any business-related forms and documents for $50.

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Furthermore, you only need to file a biennial report every odd year, as authorized by the Iowa Legislature. 

This can be done for $60. 

Get an Employer Identification Number (EIN) from the Internal Revenue Service

For your LLC in Iowa, you’ll need an Employer Identification Number to identify your business to the Internal Revenue Service.

Moreover, you will use this number when filing and paying taxes or submitting payroll information and payments for your employees.

Also, an Employer Identification Number is required to open a business bank account. 

You can obtain one directly from the Iowa IRS.

Create an Operating Agreement

An operating agreement is a kind of “instruction manual” that states how you’ll run your business.

Also, an LLC Operating Agreement shows the main components of your business and how decisions will be made.

Also, how the business is divided among members and what will happen if a member leaves the company are stated in the agreement. 

How to start a Foreign LLC In Iowa

If your business is already operating in another state and you want to expand to Iowa, you’ll need to form a Foreign LLC.

This is because forming a foreign LLC allows your company to operate as one entity in multiple states. 

Also, if you have an existing LLC and want to do business in Iowa, you must register as a foreign LLC. 

Conclusion

To start an LLC in Iowa, you need to complete an Iowa LLC search and choose a Unique business name, provide an Official Business Address for Your LLC, assign a Registered Agent, file Your Certificate of Organization with the Iowa Secretary of State, get an Employer Identification Number (EIN) from the Internal Revenue Service, and create an Operating Agreement

However, if you find these processes daunting, you can choose to seek professional services at a cost. 

We hope you find the article on how to start an LLC in Iowa helpful.

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