Iowa

Iowa is home to a number of small businesses. The cost of living in Iowa is relatively low when compared to other states, which makes it an affordable place to start a business

Starting a Business in Iowa

The Basics

Start Your LLC Today in Iowa

The state has a strong economy with a low unemployment rate, which means the demand for new businesses is high. Iowa is known for its outstanding and highly educated people, but it is also noted for its low company operating costs. There are other tax benefits that contribute to the reasons why Iowa is the best state for starting a business. 

Launch-A-Biz offers end-to-end services that enable you to form a legal entity in Iowa rapidly and effectively. Our team of legal experts, who have a deep grasp of the business registration services, can advise you on how to initiate your business in Iowa.

How to Start a Business in Iowa

In Iowa, you must file a Certificate of Organization with the Iowa Business Services Division in order to form an LLC. The filing fee for the Certificate of Organization is $50. The state fees for incorporating an Iowa LLC can range from $50 to $60, depending on the type of business. Every two years, the Secretary of State requires all LLCs doing business in Iowa to file a Biennial Report. 

Business Taxes in Iowa

Iowa imposes a corporate income tax, a franchise tax, and a sales and uses tax. The state corporate income tax rate starts from 6.0% and goes up to 12%. In Iowa, individuals pay income taxes between .36% and 8.98%. The taxable income base is federal taxable income with modifications. The state sales tax rate is 6%. All business activities are subject to this tax unless specifically exempted by law. Additionally, local sales taxes are collected in some jurisdictions. 

Iowa Corporation

By submitting Articles of Incorporation with the Iowa Secretary of State, your corporation becomes legally formed. Because the Secretary of State's office does not offer an official form to use for articles of incorporation, you must either submit online or design your own articles that comply with Iowa law's minimum legal criteria.

Every two years, all corporations conducting business in Iowa are required to file a Biennial Report with the Secretary of State. The report must be filed in the month of the corporation's formation anniversary.

Business Taxes in Iowa

Iowa imposes a corporate income tax, a franchise tax, and a sales and uses tax. The state corporate income tax rate starts from 6.0% and goes up to 12%. In Iowa, individuals pay income taxes between .36% and 8.98%. The taxable income base is federal taxable income with modifications. The state sales tax rate is 6%. All business activities are subject to this tax unless specifically exempted by law. Additionally, local sales taxes are collected in some jurisdictions. 

If you need legal assistance in order to register your business in Iowa, count on Launch-A-Biz. We can help with the process and file all necessary paperwork for a successful long-lasting success story!

Steps to File Your LLC EIN Application:

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