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

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 12^th 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, 1^st 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.

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:

State	Filing Fee	Annual Fee/Biennial Fee	Sales 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

• Iowa Name Reservation: $10 for online filing and by mail
• Doing Business As (DBA): $5 if filing by mail
• Certified Document Copies: $5 plus copy charge per page
• Certificate of Good Standing: $5
• Business Domain Name and Website: depend on your preference, but domain name could be as low as $2.99/yr at NameCheap, and web hosting is at least $30/mo at Kinsta.
• Online workspace: at least $4.20/mo for GSuite.
• Business Insurance: would vary depending on insurance type–whether general liability insurance or professional liability insurance–and coverage.
• Dissolution of Iowa LLC: $5

F.A.Qs

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.

One of the primary costs associated with maintaining an LLC in Iowa is the annual report fee. All LLCs in the state are required to file an annual report with the Iowa Secretary of State’s office and pay a $45 fee. This report provides updates on the LLC’s management structure, registered agent, and any changes to the business’s address. Failure to file this report on time can result in penalties and potentially even the dissolution of the LLC.

Another recurring cost for Iowa LLCs is the biennial renewal fee. LLCs are required to renew their registration with the state every two years and pay a $15 fee. This renewal ensures that the LLC’s information is up to date and that the business remains in good standing with the state.

In addition to these annual and biennial fees, Iowa LLCs may incur other expenses related to compliance and record-keeping. For example, LLCs are required to maintain accurate financial records and file state and federal taxes each year. Depending on the complexity of your business operations, you may need to hire an accountant or tax professional to help ensure that your financial reporting is accurate and compliant.

Furthermore, Iowa LLCs are required to maintain a registered agent in the state to receive legal documents and government correspondence on behalf of the business. While business owners can serve as their own registered agent, some may choose to hire a professional registered agent service for a fee. This can help ensure that important documents are received in a timely manner and that the business remains in compliance with state laws.

Overall, the cost of maintaining an LLC in Iowa can vary depending on the size and nature of the business. While some of the expenses are fixed, such as the annual report and biennial renewal fees, others are more flexible and may depend on the individual needs of the business owner.

It’s important for business owners to budget for these ongoing expenses and plan accordingly to ensure that their LLC remains in good standing with the state. By understanding the costs associated with maintaining an LLC in Iowa, business owners can better manage their finances and focus on growing their business successfully.

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.