Starting a Business in Iowa Checklist

Check business name availability with the Secretary of State Start by doing a search to see if your business name is available: http://sos.iowa.gov/search/business/%28S%28hivow5uzf30xm530i0q0re55%29%29/search.aspx The name of a limited liability company must contain the words “limited liability company” or “limited company” or the abbreviation “L. L. C.”, “LLC”, “L. C.”, or “LC”. “Limited” may be abbreviated as “Ltd.”, and “company” may be abbreviated as “Co.” The name of an Iowa corporation must contain the word “corporation”, “incorporated”, “company”, or “limited”, or the abbreviation “corp.”, “inc.”, “co.”, or “ltd.”, or words or abbreviations of like import in another language. Secretary of State Secretary of State Business Services Lucas Building, 1st Floor 321 E. 12th St. Des Moines, IA 50319 (515) 281-5204 sos@sos.iowa.gov http://www.sos.state.ia.us
File paperwork to form my business You form a new business entity by filing the documents with the Secretary of the State of Iowa. To form a corporation, file Articles of Incorporation and pay the $50 filing fee. To form an Iowa LLC, file a Certificate of Organization and pay the $50 fee. You can mail your paperwork to the Secretary of the State or file online. If you file online you have two payment options. You can set up an account or you can call in or fax your credit card information. If you want to use a card, you have to call or fax the info the same day you submit the filing online. Normal processing takes 1-2 days. Iowa does not provide forms for those who want do paper filings, so you’ll need to make your own if you’re not filing online. You can incorporate in Iowa with Northwest Registered Agent if you would rather hire a professional corporation service company complete the filing for you. Business Services Secretary of State Business Services Lucas Building, 1st Floor 321 E. 12th St. Des Moines, IA 50319 (515) 281-5204 sos@sos.iowa.gov http://www.sos.state.ia.us
Register with the Department of Revenue You can register with the Department of Revenue Services a for variety of taxes (sales and use/income tax withholding/business entity tax) online at https://www.idr.iowa.gov/CBA/start.asp Income Tax: Iowa Corporate Net Income Tax Rates 6% on first $25,000; 8% on next $75,000; 10% on next $150,000; 12% on all over $250,000 Iowa Individual Income Tax Rates $0-$1,407 tax is .36% $1,407-$2,814 tax is .72% $2,814-$5,628 tax is 2.43% $5,628-$12,663 tax is 4.5% $12,663-$21,105 tax is 6.12% $21,105- $28,140 tax is 6.48% $28,140-$42,210 tax is 6.8% $42,210-63,315 tax is 7.92% $63,315 + tax is 8.98% Sales Tax: The Iowa sales tax rate is 6% Withholding Tax: Employers who do business in Iowa and who are required to withhold federal income tax on any compensation paid to employees for services performed in Iowa are required to withhold Iowa individual income tax from that compensation. Use the Iowa withholding tables to calculate the amount. Iowa Department of Revenue Iowa Department of Revenue Hoover State Office Building 1305 E. Walnut Des Moines, IA 50319 T: (515) 281-3114 F: (515) 242-6487 http://www.iowa.gov/tax
Get a business license Only certain types of businesses require a state license. The easiest way to find out is to enter your business information on the website https://www.iowa.gov/business/default.aspx?cmd=busportal.area&cc=LIC_PERM Any other registration requirements? You will want to check with the city and county where you do business. For example, Cedar Rapids and Des Moines only require certain types businesses to get a city license. Local Licensing Info City of Cedar Rapids City Clerk’s Office 101 First Street SE Cedar Rapids, IA 52401 P: (319) 286-5060 F: (319) 286-5130 http://www.cedar-rapids.org/doing-business/licenses-permits-taxes/business-licenses/Pages/default.aspx City of Des Moines City Clerk 400 Robert D Ray Drive Des Moines, IA 50309 P: (515) 283-4209 https://www.dmgov.org/Departments/CityClerk/Pages/LicensesandPermits.aspx
Collect and Charge Sales Tax Do I need to collect Iowa sales tax? All sales of tangible personal property in Iowa are subject to sales tax unless exempted. What is the Iowa sales tax rate? The state sales tax rate is 6%. How do I register for Iowa sales tax? You can register with the Department of Revenue for a variety of taxes, including sales and use tax, online at https://www.idr.iowa.gov/CBA/start.asp You will receive your sales tax permit in 4-6 weeks. How much does an Iowa sales tax permit cost? There is no fee for the Iowa sales tax permit. Iowa Department of Revenue Iowa Department of Revenue Hoover State Office Building 1305 E. Walnut Des Moines, IA 50319 (515) 281-3114 http://www.iowa.gov/tax