Form an LLC in Iowa with Inc Authority for Free

The first step toward forming an LLC in Iowa is choosing an appropriate name for your LLC. This should be something that represents your business well, follows the state’s naming conventions, and is not used by any other business.

Shortlist a few names that fit the requirements and search the state database to see if any other businesses have the same or similar names. Choose a business name that’s available for use and won’t cause any legal issues. 

The business formation process can be long and complicated. That’s why it’s prudent to reserve your business name once it’s finalized. In Iowa, you can reserve a name for 120 days by applying for it with the Secretary of State.

It’s also advisable to find and buy a domain name that matches your business name. Doing so at a later date is not recommended as you may find that a corresponding domain name may not be available, so do it early on.

To ensure that you don’t miss any important correspondence or legal notices, it’s important to have a registered agent. This can be an adult individual or an organization with a physical local address in the state of Iowa.

You can, of course, choose to be your own registered agent but that would require you to be present at the registered address during all business hours. This can be limiting for you, so it’s best to hire a professional for this purpose.

Depending on whether you’re starting a new business or expanding one, you may need to form a domestic LLC or a foreign LLC. To form a domestic LLC in Iowa, you need to submit the Certificate of Organization with the $50 filing fee.

To form a foreign LLC, you will need to submit a Foreign Registration Statement with a $100 filing fee. This will allow you to expand your existing business within the state of Iowa and give you permission to run operations there.

Though it’s not a legal requirement, it’s good practice to draft a comprehensive LLC operating agreement. This is a document that members draft, wherein they provide details on how the business will be run and decisions will be made.

Since the rules of management are created by the members, everyone is on the same page. This also helps avoid conflict among members or other managers as there will be clear rules for how different situations should be handled.

This is where you officially register your business with the Iowa Secretary of State. To form an LLC in Iowa, you need to submit a certificate of organization along with a $50 filing fee to the Secretary of State’s office in Iowa.

This should contain all important information related to your business, such as the business name and address. If you want to get your application processed quickly the state of Iowa offers expedited filing options at a cost.

If you’re planning to hire employees for your business, you will need an Employer Identification Number. Also known as a Tax ID, this is the number that the Internal Revenue Service (IRS) uses to identify your business for tax purposes.

It will also come in handy when you open a bank account for your business or try to seek funding from investors. Having an EIN is a must as it’s useful for various business purposes and lends credibility to your new business.

One key benefit of forming an LLC is that it offers limited liability protection to its members. This means that LLC members’ personal assets will not be seized to pay off the company’s debts or fulfill its financial obligations.

To make that possible, it’s important to keep the business and members’ personal finances separate. That’s why you need to open a separate bank account for your LLC in Iowa to keep business finances and assets separate.

Even after you’ve legally registered your LLC, you can’t start operations until you acquire all the licenses and permits required for your business. These will depend on the type of business you plan to run and your business location.

You may require different permits at federal, state, and county levels. For specific types of businesses, you will need special permits. For example, you may need food or liquor permits if you plan to start a restaurant or food business in Iowa.

An LLC in Iowa is treated as a pass-through entity for tax purposes, which means that business income passes to owners who then pay taxes. By default, this pass-through taxation structure will be followed for your new LLC in Iowa.

However, you have the option to choose if you want your LLC to be taxed as a C-Corp or an S-Corp. Doing so has its own set of advantages and disadvantages, so you need to consider those before you decide how you want your LLC to be taxed.

If you want to use a shorter name than your registered LLC name for your business, you can apply for a Doing Business As. This will allow you to register an assumed name or fictitious name that you can use for your day-to-day business.

As the business names are typically longer and include words like LLC or Limited, they are not the best for marketing purposes. Using a shorter name is better for branding and marketing purposes as it’s easier to remember for your customers.

If you’ve completed all the steps above, you’re ready to start your business operations. However, your job doesn’t end here, nor does your relationship with the state. You still need to stay compliant with the state’s laws and regulations.

The two key things to take care of include paying taxes on time and filing your business reports as frequently as required. Iowa currently requires a biennial report for LLCs, but that can change, so keep up with and follow all the rules.

Here are the features you’ll get with this plan:

• LLC formation: Get a free LLC formation service where a team of experts will prepare, review, and file your Iowa Certificate of Organization.

• LLC name availability check: You can use a free tool to check whether your chosen business name is available for use within the state of Iowa.

• Free registered agent services: You get complimentary registered agent services for the first year, after which you will need to pay for the service.

• Online document management: You can store all your business formation and legal documents online and easily manage their access through your account.

• Brief tax consultation: Get a brief consultation with a tax expert who will guide you on how to save money on taxes and how to prepare and file taxes. 

• S-Corp formation: Get help with filing Form 2553 of the IRS to elect to be taxed as an S-Corp for tax purposes and get the special S-Corp tax status.

• Business funding analysis: You can consult an expert who will assess your short-term business funding needs and offer some solutions for your LLC.

The free plan is perfect for those looking to form an LLC and don’t need other business services.

Here are the additional services you’ll get with this plan:

• LLC operating agreement: Get a template to create a comprehensive LLC operating agreement along with expert help on how to draft one.

• Employer Identification Number: Take expert help to apply for a Tax ID and let them take care of preparing and filing your federal EIN application.

• Corporate forms and documents package: Get templates for a variety of business documents, such as agreements, contracts, and more.

• Annual compliance notifications: You will get notified of any upcoming compliance deadlines, such as the last day to pay taxes in Iowa. 

• Detailed tax consultation: Get access to a tax expert who will help you with your entire tax preparation and filing process and answer any questions.

• Web domain + 5 business email addresses: Work with Inc Authority’s partner to create a website for your business that can help you win more leads.

If you need services like applying for an EIN or website development in addition to an LLC formation, then opt for this plan.

Price: Custom

Here are the additional services you’ll get over the Starter plan:

• Customer success advisor: This will be a dedicated point-of-contact for your business within Inc Authority. They will help guide you through the various processes and help you make the most of Inc Authority’s services.

• Private banking specialist: This is an expert who specializes in private banking and will help you with your banking needs. From helping you understand your requirements to offering the best options, they’ll help you through it all.

• Personalized business advisory: You will get access to various experts in different business areas who will help you with starting and running a successful business. You can get expert business advice from a range of experts.

• Expedited preparation & filing: As a top-tier customer, your application will be treated with utmost priority and be filed within the same day. This will help you get your business started much faster than you would otherwise.

This is the most exclusive plan offered by Inc Authority for its top clients. It’s perfect for those who want priority service and treatment.

Price: Custom