Many Iowa business owners choose to form a limited liability company (LLC) for their new business. An LLC is a type of business structure that combines the limited liability protection of a corporation with the ease and flexibility of a partnership or sole proprietorship.
Follow these steps to create an LLC in Iowa. For more information on how to form an LLC in any state, see our article on how to start an LLC. You can also use our online LLC formation service to register your LLC.
When forming your LLC, you'll need to choose a name for your business. Iowa, like other states, has laws about LLC names.
LLC name must be distinguishable. Your LLC's name must be distinguishable (different) from the names of any businesses on file with the Iowa Secretary of State (SOS). You can search the SOS's business entities search to see whether your proposed business name is available. (Iowa Code § 489.112 (2024).)
LLC name must include an entity designator. Under Iowa law, your LLC name must contain the words "limited liability company" or "limited company" or the abbreviation "LLC," "L.L.C.," "LC," or "L.C." In addition, you can abbreviate "limited" to "Ltd." and "company" to "Co." (Iowa Code § 489.112 (2024).)
Name reservation. You can reserve an available business name for 120 days by filing an Application for Reservation of Name with the SOS. You can file the reservation online using the SOS's Fast Track Filing system. You'll need to create an account to use this online filing system. Once you have an account, choose "File a Document" from the "Business Filings" dropdown. As of 2024, the filing fee to reserve a name is $10. (Iowa Code § 489.113 (2024).)
Using a fictitious name. You can use a name for your LLC that's different from your LLC's legal name listed in your certificate of formation (called "articles of organization" in other states). This alternative name is sometimes called a "fictitious name," "assumed name," "DBA" (short for doing business as), or "trade name." If you use a fictitious name, you must file a resolution to adopt the fictitious name with the SOS. You can file a fictitious name using Fast Track Filing. (Iowa Code § 489.112 (2024).)
Every Iowa LLC must have an agent for service of process (called a "registered agent") in the the state. A "registered agent" is a person or business that agrees to accept legal papers on a company's behalf and forward the documents to the represented entity.
In Iowa, a registered agent must either be:
Your registered agent must have a physical street address in Iowa.
(Iowa Code § 489.115 (2024).)
You can create an Iowa LLC by filing a certificate of organization with the SOS. The certificate must include:
(Iowa Code § 489.201 (2024).)
You can file your certificate online using Fast Track Filing. In the online filing, you'll need to upload a PDF of your signed certificate of organization. As of 2024, the filing fee for an Iowa Certificate of Organization is $50.
LLCs in Iowa aren't required to adopt an operating agreement. However, it's critical to create this organizational document for your company. An operating agreement—like bylaws for a corporation—will establish the rules and procedures for how your LLC will operate, including your LLC's management structure. You don't need to file your operating agreement with the state but you should put it in writing.
This operating agreement should generally cover:
(Iowa Code § 489.105 (2024).)
Adopting an operating agreement has several meaningful advantages. It allows the LLC members to create their own rules for their company. In the absence of an agreement, the state's default rules under the Uniform LLC Act will govern the LLC's operations.
In addition, an operating agreement can help preserve your limited liability by showing that your LLC is truly a separate business entity from its owners. Moreover, investors and banks typically like to see an LLC's operating agreement when determining whether to invest or loan money to the company.
For help creating an LLC operating agreement, you can use our online LLC formation service.
Other tax and regulatory requirements might apply to your LLC. For instance, your LLC might need to obtain an EIN, apply for business licenses and permits, and register for business taxes.
EIN. If your LLC has more than one member, it must obtain a federal employer identification number (EIN), even if it has no employees. If you form a single-member LLC, you must obtain an EIN for your LLC only if you'll have employees or you elect to have your LLC taxed as a corporation instead of a sole proprietorship (disregarded entity). You can obtain an EIN by completing an online EIN application on the IRS website. There's no filing fee.
Business licenses. Depending on your business activities and location, your LLC could need to obtain local and state business licenses. For local licenses, check with the clerk for the city where the LLC's primary place of business is located (or county if it's in an unincorporated area). For state license information, you can use IASourceLink's Business License Information Center to help you find licenses relevant to your business. For further guidance on regulatory requirements for your business, read how to get a small business license in Iowa.
Iowa Department of Revenue. In some cases, for example, if you have employees or will be selling goods and collecting sales tax, you'll need to register with the Iowa Department of Revenue (IDR). You can register your LLC to file and pay taxes online via GovConnectIowa. For more information on Iowa LLC tax registration, check out our article on LLC annual report and tax filing requirements in Iowa.
Here are some other questions you might have about your Iowa LLC.
If you're just starting your business or have already been operating as a sole proprietor, you should consider forming an LLC. LLCs limit an owner's personal liability for business debts and lawsuits and offer a lot of flexibility when it comes to ownership, management, and taxation of the business.
To learn more about LLCs and decide if it's the right business structure for you, see our article on LLC basics.
Below are the fees (as of 2024) you might need to pay to form your LLC in Iowa:
Filing on your own is often the cheapest option, but completing all of the forms and filing them yourself can be complicated. Hiring a lawyer is another option, but it will often cost you hundreds, if not thousands, of dollars in the process. If you'd like help completing all the filings, try our online LLC formation service.
To learn more about the costs associated with forming and running an LLC, see our article on how much it costs to form an LLC.
Yes. You must file a biennial report with the SOS every two years. The report is due between January 1 and April 1 of every odd-numbered year.
You can file your report online using Fast Track Filing. As of 2024, the fee to submit the biennial report is $30.
(Iowa Code § 489.211A (2024).)
Apart from biennial reports, your LLC will need to file and pay applicable taxes to the local, state, and federal governments. In addition, your LLC might need to obtain and periodically renew any required general or special business licenses or permits. You'll be responsible for keeping track of these maintenance requirements to keep your LLC in good standing and legally compliant.
Starting in 2024, all LLCs were previously required to submit a beneficial ownership information (BOI) report to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of Treasury. However, in March 2025, after some constitutional challenges, FinCEN revised the BOI reporting rule so that the requirement only applies to companies created outside the U.S. So, if you form your LLC within the U.S., then you no longer need to worry about the BOI reporting requirement.
You're not required to have an operating agreement in Iowa. Though, it's highly advisable to have one. An operating agreement can help protect your limited liability status, prevent financial and managerial misunderstandings among members, and ensure that you choose the rules that govern your business instead of your state's default rules.
Iowa doesn't issue a general business license at the state level. However, depending on your industry, you might need to apply at the state level for a license specific to your business activities. In addition, your local government might have requirements and restrictions related to all or certain types of businesses.
In addition, you could need professional licenses, tax licenses or registrations, safety certifications, or environmental permits.
IASourceLink is a great place to start for new business owners. You can find how-to guides, search for licenses, and locate resources. You can also check out the Department of Inspections, Appeals, and Licensing for details and information about professional and occupational licenses.
You can also find extensive details about state and local regulatory requirements in our Iowa business license article.
Your LLC will likely be responsible for paying some type of business tax. LLCs are considered "pass-through entities" (PTEs) by default, meaning the responsibility for paying taxes on the LLC's income passes through to the members. So, in this case, you'll report and pay taxes on your share of the LLC's income on your personal tax return.
However, there are other taxing scenarios that you should be aware of. Some LLCs elect to be taxed as a corporation rather than as a partnership (a type of PTE). Alternatively, Iowa allows LLCs to pay income tax at the entity level. If you elect PTE tax status for your LLC, then your LLC will be taxed at the entity level on behalf of the members (owners). You'd then claim a tax credit on your personal return for the tax already paid by your LLC. You'll make these elections and report and pay these state taxes to the IDR.
In addition to income tax, your LLC might be responsible for reporting and paying sales tax, withholding employee wages, and paying unemployment insurance (UI) tax. You'll register to withhold and pay wages and to report and pay sales tax through the IDR. You'll need to register to pay the UI tax to the Iowa Workforce Development.
See our article on Iowa tax filing requirements for more details.
Yes. To do business in Iowa, all LLCs organized outside of the state (called "foreign LLCs") must register with the SOS. Your foreign LLC must appoint a registered agent for service of process that's physically located in Iowa.
To register, file a Foreign Registration Statement with the SOS. You must attach a certificate of existence or good standing from your LLC's home state that's no more than 90 days old.
You can file the statement online with Fast Track Filing. You can also submit the statement by mail. As of 2024, the fee to register your foreign LLC in Iowa is $100.
Before filing, make sure your LLC's name is available in Iowa by using the SOS's business entities search. If your name isn't available, you must adopt an alternate name for your LLC to use in Iowa.
(Iowa Code §§ 489.901 and following (2024).)
See our guide to qualifying to do business outside your state for more information.
Yes. For most formation purposes, an Iowa single-member LLC is considered the same as a multi-member LLC. The steps to form a single-member LLC in Iowa are generally the same as those listed above.
Single-member LLCs do have additional flexibility when it comes to filing a tax return. To learn more, see our article on how single-member LLCs pay federal income tax.
Yes. If you practice a qualified profession in Iowa and want to form an LLC, you can form a professional LLC (PLLC). Iowa lists 24 professions that can form PLLCs, including architecture, engineering, medicine, law, and more.
To form a PLLC, file a Certificate of Organization with the SOS. You can file the certificate online with Fast Track Filing. As of 2024, the fee to file a Certificate of Organization for a PLLC is $100.
Only individuals licensed to practice a profession in Iowa can form a PLLC. You can form the PLLC to provide one specific profession or two or more specific professions that can be practiced in combination by law. You can also provide any services that are necessary and convenient in connection with practicing your specific profession.
(Iowa Code §§ 489.1101 and following (2024).)
When you're ready to close your business, you should legally dissolve your LLC to limit your liability for lawsuits and government fees. To dissolve an LLC in Iowa, you should:
(Iowa Code §§ 489.701 and following (2024).)
You also need to close your tax accounts and take any other steps necessary to close out your business. See our article on what you need to do when closing your business for more in-depth information and guidance.
Ready to start your LLC?
Frequently asked questions about starting and running an LLC, or limited liability company.
LLC owners report business income and losses on their personal tax returns. Learn how to make the most of your LLCs tax flexibility.
Take our business formation quiz to find out what the best form of business ownership is for you.
Read about why you need an operating agreement and what to include in one.
LLCs offer their owners liability protection, but if you aren't careful an LLC's owners, members, or shareholders may be on the hook personally for business debt.
Appointing a registered agent is a simple - but essential - step for every business. Learn more about what a registered agent does.
Get all of the information you need to start and run a small business.
Copyright ©2025 MH Sub I, LLC dba Nolo ® Self-help services may not be permitted in all states. The information provided on this site is not legal advice, does not constitute a lawyer referral service, and no attorney-client or confidential relationship is or will be formed by use of the site. The attorney listings on this site are paid attorney advertising. In some states, the information on this website may be considered a lawyer referral service. Please reference the Terms of Use and the Supplemental Terms for specific information related to your state. Your use of this website constitutes acceptance of the Terms of Use, Supplemental Terms, Privacy Policy, Cookie Policy, and Consumer Health Data Notice.
Your Privacy Choices
