LLC Cost in Iowa – How Much to Pay for an LLC


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Perhaps you are hoping to form an LLC in Iowa. People assume how to start an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in Iowa.

Iowa LLC Cost of Filing

Here are the costs involved in forming an LLC in Iowa.

Cost of Filing Formation Certificates

The Iowa Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the Iowa Secretary of State

Iowa Domestic LLC

  • Online Filing Fee costs $50
  • Biennial Report Fee costs $60
  • Name Reservation fee costs $10
  • By Mail: The State of Iowa does not have a standard document for Certificate of Organization to be filed by mail. You are required to create your own Certificate of Organization abiding by the specified requirements.

After creating your Certificate of Organization, you can mail the document to the following address: Lucas State Office Building, 321 E 12th St, Des Moines, IA 50319.

Visit the Official State website to learn more about Domestic LLC costs in Iowa.

Iowa Foreign LLC

  • Online Application for Certificate of Authority costs $100.00
  • By mail: Fill the Certificate of Authority form and submit the form to the following address: Secretary of State, Business Services Division, Lucas Building, 1st floor, Des Moines, IA 50319.
  • Biennial Report costs $60.00
  • Name reservation fee costs $10.00

Visit the official iowa.gov website to learn more about the costs of filing a foreign LLC in Iowa.

Note that filing online is ideal, not only because you need to go to the Secretary of State office, but also it would be faster. You won’t have to wait in a queue in doing so.

Iowa LLC Formation Service or Registered Agent Fee

You need a registered agent to form an LLC in Iowa, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.

LLC Service

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$99 per year

  • Standalone registered agent service

  • Take you through all steps

  • LLC formation package available

$125 per year

  • 1 year free service along with LLC formation package

  • Fast service

  • Flat rate, no hidden cost

Business Permits and Licenses 

The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the Iowa Department of Revenue Business Permit Registration

Iowa LLC Taxes to be Paid

Apart from the filing of the Annual Report, the Iowa LLCs are also subject to state tax filing obligations. Though the taxes vary from county to county.

Corporate Income tax

The Iowa Business Entities are subject to state income tax depending on the amount of income earned with certain deductions: 5.5% for $100,000 and below; 9.0% between $100,000 and $250,000;
and, 9.8% for over $250,000.

For additional information about taxes, you can visit the Iowa Department of Revenue website. You can also access the tax guide provided by the Revenue Department for assistance.

State Business Tax

Iowa imposes a corporate income tax at the maximum marginal rate of 12%, which constitutes the maximum among the States of the United States.

Iowa Withholding Tax

The withholding tax in Iowa on a nonwage income is made at the rate of 5%. Visit the Iowa Government Tax website to calculate your withholding.

Sales and Use Tax

The standard rate of sales tax is at the rate of 6% and the maximum local or county rate that applies additionally is 1.00%.

Cost comparison among States

Every state has different costs of filing for an LLC to their respective State Authorities. If you wish to gain a better understanding of the costs of opening an LLC in a different state in comparison to Iowa, read the table below:

StateFiling FeeAnnual Fee/Biennial FeeSales Tax
Iowa LLC$50$60 (Biennial)6%
Minnesota LLC$135$0 (Annual)6.87%
Illinois LLC$150$75 (Annual)6.25%
Missouri LLC$50$0 (Annual)4.225%
South Dakota LLC$150$50 (Annual)4.5%

Iowa is the source producer of standard quality agricultural and manufactured products. Iowa has established a diversified economy and welcomes significant business opportunities with a strong workforce.

Other Costs

How Much Does It Cost to Maintain an LLC in Iowa

To maintain an LLC in Iowa you will need to pay a biennial fee of $60 along with sales tax at 6%, corporate income tax, state business tax and federal taxes.

While you may be wondering How Much Does It Cost to Maintain an LLC, you can find out from this article. An LLC is a type of business entity, and in order to operate one, it needs a distinguishable name. You can get this name by filing a name reservation with the Secretary of State. This fee will protect the name for 120 days. You can renew the name reservation for another 120 days by filing for it again.

Each LLC in Iowa must designate a registered agent. This agent is responsible for accepting important legal papers and serving as the LLC’s representative in Iowa. The registered agent must be at least 18 years of age and be available to receive service of process during business hours. It is possible to select an individual or a business entity as the registered agent, but you must be a resident of Iowa to serve as an agent. You can also choose an individual member of your organization to serve as the registered agent.

You will need to file a Certificate of Organization with the Secretary of State’s office in Iowa. You can file this online, by mail, or in person. Be sure to include the phrase “limited liability company” on the certificate. It is also important to designate a registered agent and a physical street address. You may need to pay additional fees for these services, but they aren’t as expensive as they may seem.

In addition to obtaining your LLC license, you must also pay attention to the laws governing your industry in Iowa. Some industries require you to file annual reports and pay taxes. You should also be sure to stay updated on changes in Iowa law to ensure your business stays compliant with all state and federal laws. It’s a good idea to consider hiring a registered agent service to handle this task for you.

Unlike other forms of business, filing a Biennial Report in Iowa is relatively inexpensive. An LLC only needs to pay a $50 filing fee, which is much lower than the fees for other types of business. The cost of hiring a registered agent, however, can be costly. Listed below are a few of the costs associated with maintaining an LLC in Iowa. You will also need to pay a fee if you want to register a foreign LLC in Iowa.

Another fee associated with LLCs is the state’s biennial report. Failure to file this report will result in delinquency. The failure to file this report will prevent your business from obtaining a Certificate of Standing, which is required to renew professional licenses and participate in foreign trade. However, most of these costs are not significant and will not affect your business in the long run. This information is important to consider when considering LLCs.

If you want to form an LLC in Iowa, you will need a name for the business. Choose a name that will be easy to remember. A memorable name will attract customers and revenue, which is the key to growing and expanding your business. If you decide to register an LLC, it is important to choose a name that reflects the nature of your business. You can do this online or with the assistance of an attorney.

F.A.Qs

Can I start an LLC for free?

It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.

Is an LLC expensive?

It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.

Does an LLC need a bank account?

The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.

In Conclusion

The cost of Iowa is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the price of professional LLC services and choose the most affordable one.

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