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.

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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.

How much does it cost to maintain an LLC in Iowa? Several fees apply to all Iowa LLCs. Some are mandatory and apply to all businesses, while others may only apply to certain industries. Paying these fees is crucial to keep your business operating smoothly and in good standing. It’s best to plan ahead to avoid costly mistakes and hassles down the road. Listed below are a few of the fees you’ll have to pay each year to maintain your LLC in Iowa.

Registered Agent: The registered agent acts as the principal contact person between the state and your LLC. They accept legal documents and act as the company’s representative. Your registered agent must be 18 years of age and live in Iowa. They must be able to accept service of process during business hours. They can be a person or a third party organization with a physical address in the state. The filing fee is $50.

Biennial Reports: Every other year, LLCs in Iowa must file Biennial Reports to keep the state informed of important business details. These reports cost $60 each. Additionally, your LLC may have to pay continuing company taxes. The amount of these taxes depends on the commercial activity your LLC engages in. A company in Iowa must pay both state and federal taxes. You can check with the Iowa Department of Revenue for more information.

Name Reservation: You can reserve a business name for 120 days before you form an LLC. During this time, it will be protected from being taken by another business. You can reserve a name by filling out an Application for Reservation of Name. You can submit this application online. If the name you want to use is not available, you should reserve a different name. Generally, a registered agent is required for LLCs in Iowa.

Forming an LLC in Iowa requires filing an application with the state. This form requests information about the business, including name, address, and purpose. It is important to remember that you need to list a registered agent to receive any legal documents related to the LLC. The registered agent can be a person or a service. Many business owners use a registered agent service, and Northwest Registered Agent offers a free year of service when you form an LLC with them.

If you have a registered agent, you can file an application online or through the mail. The process takes about a day. You must also have a business name that contains the words “limited liability company” or “limited company.” The abbreviation for “limited” is “L.L.C.” You must also have a physical street address for your registered office. There are other fees to be aware of, but these are the most common.

An LLC must file a Biennial Report with the Secretary of State every two years. You can file this report online or by mail. The filing fee for this report is $30 for online filing and $45 for mail filing. Listed here are the main steps you need to take when filing an Application to Reserve a Business Name. There are other fees that you should consider when filing an application for name reservation.

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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