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.

While the initial cost of forming an LLC in Iowa is relatively straightforward, with fees for filing articles of organization and other necessary paperwork, it is important for business owners to understand that there are ongoing costs associated with maintaining the LLC. These costs can vary depending on several factors, including the size of the company, the industry in which it operates, and the specific requirements set forth by the state of Iowa.

One of the primary expenses that LLC owners must budget for is the annual report filing fee required by the Iowa Secretary of State. This fee must be paid each year by a specified due date, typically determined by the month in which the LLC was formed. Failure to file an annual report and pay the associated fee can result in penalties and the potential loss of good standing status for the LLC.

In addition to the annual report filing fee, some LLCs in Iowa may be required to pay a biennial renewal fee. This fee is separate from the annual report filing fee and is typically due every two years. Like the annual report filing fee, failure to pay the renewal fee can have negative consequences for the LLC, including loss of good standing status and potential dissolution.

Depending on the nature of the business being operated, there may be additional costs associated with maintaining an LLC in Iowa. For example, some industries require special licenses or permits, which can come with their own set of fees and renewal requirements. Additionally, LLCs with multiple members may choose to enter into operating agreements, which can incur legal fees and other expenses.

It is important for business owners considering forming an LLC in Iowa to carefully consider these costs and budget accordingly. By understanding the ongoing expenses associated with maintaining an LLC, entrepreneurs can plan ahead and ensure that they are able to meet their financial obligations while also protecting their personal assets.

While the cost of maintaining an LLC in Iowa can add up over time, the benefits of this business structure often outweigh the expenses. By taking the necessary steps to stay in compliance with state regulations and filing requirements, LLC owners can enjoy the liability protection and flexibility that come with operating this type of business entity.

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.