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The objective of the annual report is threefold. The annual report keeps the Government informed about all the updates, communicates about all the modifications or changes, & keeps the LLC members informed about the necessary taxes and costs. This article has all the information about the Iowa LLC annual report filing in Iowa.
An annual report can be called an address book, as it features all the relevant addresses of the company & the members. This yearly report is a record of all the company’s activities in an entire year. It is also referred to as the Annual Franchise Tax Report because it helps in filing the franchise tax.
Content of the Annual Report
Typically, the annual report filed by an LLC in Iowa (or any other business entity for that matter) will include all the information related to its business & members. The standard contents of the annual report or the annual franchise tax report are
- Office Address of the LLC
- Names & Addresses of the Members & managers.
- Identification Documents
- Social Security numbers of the key members of the LLC
- The objective of the business of the LLC
- List of all the signatories of the LLC
- Information of the registered agent, if any
LLC Tax Update: Before you file your LLC annual report in Iowa, make sure to pay all the tax dues for the year.
Iowa LLC Annual Report
An Annual report is essential for all business types. It authenticates that the information provided to the Secretary of State is accurate & updated. The information provided in the annual report helps state officials ensure that all companies pay taxes. The Iowa Annual Report is filed with the Iowa Secretary of State, Business Services. Note that the LLC Annual Report is not the same as the Certificate of Standing in Iowa.
Does the State of Iowa Require an Annual Report Filing?
It is mandatory for an LLC to file a Biennial Report in the State of Iowa with the Office of the Iowa Secretary of State. In addition to LLCs, legal entities such as LLPs & Corporations are bound to file the Biennial Report.
How to File an Iowa LLC Biennial Report
The Iowa LLC Biennial Report can be filed online, in person, or by mail. The Iowa Biennial Report must be filed biennially on the 1st of April of every odd year. In Iowa, annual reports can be filed with the Secretary of State online by following a few simple steps.
- Step 1: Visit the Fast Track Filing Site to log in or create an account. (The Iowa authorities allow filing the report even without the login)
- Step 2: After logging in, select the “File A document” option under the heading “Business Filing”, and select “Biennial Reports” mentioned under “Existing Businesses”. A textbox will appear on the screen. Fill in the details of your business.
- Step 3: Toggle ‘no’ in front of the paper filing option. Click on the Search tab. Choose your business name from the results & begin the filing process.
- Step 4: On the Fast Filing homepage, a “Click here to file Biennial Report” (no account required) link is located just below the login section. Click on that.
- Step 5: Type the Business name or number in the search box & toggle off the paper filing option.
- Step 6: After clicking on the search button, you will see the business names matching your text. Select your business name from the list & start filing.
Filing Iowa LLC Biennial Report By Mail
To file the Annual Report in Hawaii by mail, follow the steps below,
- Visit the Fast Track Filing Site to log in or create an account.
- You can opt to file without logging in by clicking on the “Click here to file Biennial Report(no account required) link, just below the login section.
- Enter your business name or number in the search box.
- Toggle on yes for paper filing.
- Download the form on your computer.
- Fill the form with correct information.
- Send the printed copies of the forms and relevant documents with the $15 fees to the address: Office of the Secretary of State, First Floor, Lucas Building 321 E. 12th St., Des Moines, IA 50319
Iowa LLC Biennial Report (Domestic & Foreign)
| State Office: | Office of the Secretary of State, First Floor, Lucas Building 321 E. 12th St., Des Moines, IA 50319 Links to Website, Forms |
| Due Date: | Every odd year, by the 1st of April. |
| Filing Fee: | The filing fee for online filing is $45 & filing by mail costs $60. |
| Penalty: | The Iowa authorities do not charge any late filing fees, but the delay of more than 60 days can cause dissolution of the LLC. |
| Filing Method: | The Iowa Biennial Report can be filed online or by mail. |
| Forms: | The form to file the Iowa Biennial Report can be found here. |
| Important Information: | Once the Biennial report is filed with the Iowa Secretary of State with appropriate fees, the process of filing shall be complete. |
Annual Report Deadline
The Iowa Biennial Report must be filed every odd year on the 1st of April of every odd year. Every LLC in Iowa is required to file the Biennial Report to maintain good standing.
Penalties for non-filing or late filing
Filing the Biennial Report with the Iowa Secretary of State is essential. The Iowa authorities do not charge any late filing fees; however, a delay of more than 60 days can result in the dissolution of the LLC.
Tax Structure in Iowa LLC
For an LLC in Iowa, the tax structure is very simple and flexible. First of all, every LLC has the advantage of a pass-through taxation. On the other hand, an LLC can choose the desired tax structure at the time of formation. There are two ways an LLC can be taxed,
Default Status:
When filing your LLC in Iowa, entrepreneurs have the opportunity to select a desirable tax structure. If they do not choose a specific structure, the LLC will be taxed under the ‘Default Status’. That means the tax will be levied based on the number of LLC members.
For a single-member LLC, it is considered a ‘disregarded entity’. This means that a single-member LLC does not have to file a federal income tax return, but the individual (or the LLC member) must file it personally. In the case of a single-member LLC, it is treated as a sole proprietorship.
In the case of a multi-member LLC, it is considered a partnership for tax purposes. Hence, the default status for a multi-member LLC is a partnership firm. LLCs are required to file a separate ‘partnership form’ with the IRS.
LLCs with Spouses: There are specific states (like California) where starting an LLC with a spouse is considered a single-member LLC instead of a partnership or multi-member LLC. In such cases, both husband and wife will be liable to pay taxes
Elective Status:
For an elective status, the LLC can choose the tax structure while filing the formation documents. LLCs in Iowa should file a separate tax form if they do not wish to be taxed by default. Many LLCs choose to be taxed as a corporation to enjoy corporate benefits, especially if the LLC is large.
LLCs can choose between S-Corp and C-Corp tax status when filing the formation document in Iowa. In that case, the concerned LLC needs to submit a separate form for each type it chooses. For the S-Corp type, Form 2553 must be submitted; for the C-Corp type, Form 8832 must be submitted.
In Iowa, there may be local taxes (inquire with the local government body for details) that LLCs must pay to be updated. Make sure to pay and update your tax dues before you file your annual report in Iowa.
Annual Report vs Certificate of Standing in Iowa
The Certificate of Standing is a legal document that certifies that an LLC in Iowa is in good standing and compliant with all applicable laws. That includes an updated annual report as well. While Annual Reports show if your company is up to date.
They are both similar documents (although not identical) and serve as proof of the company’s good standing. The Annual Report is a domestic document, whereas the Certificate of Standing in Iowa is a mandatory document if the LLC is going beyond the home state to a foreign state. There are several ways to obtain a Certificate of Standing in the state of Iowa.
In Iowa, you can obtain the Certificate of Standing by submitting a request online. You must visit the Secretary of State portal to Search Business and Print Certificate of Standing smoothly. The steps include searching for the business, selecting the one, and finally printing the Certificate.
A filing fee of $5 must be paid to the SOS to obtain the Certificate of Standing. The amount might be more depending on the number of copies you request. If you request additional copies of documents, you may incur an additional fee.
Request Certificate of Standing:
- Online application: Search Business and Print Certificate of Standing
- Offline application: Not available
- Fees: $5
Why Do LLCs Have to File the Annual Report?
Some states are not required to file this yearly report, commonly referred to as the Annual Report. However, there are several reasons why states require an LLC Annual Report. Here are some reasons,
To Maintain the Accuracy of the Information
An annual report filed by the LLC has all the updated information about its official addresses & the names or addresses of all its officials. This updated information enables state authorities to track down any LLC when communicating.
To Provide the Correct Correspondence
Often, creditors or other entities willing to transact with the LLC require the correct correspondence address. If this information (which can only be modified with the help of an annual report) is not updated annually, such entities will be unable to communicate with them.
To Notify the Government About All the Significant Changes
If you have changed your main business address or had new business appointments of managers or members, the annual public information report notifies the State Government Entities about it. So, the next time someone questions a newer reform that you have introduced in your LLC, you will be saved because you had submitted the information to the Government.
To Provide an Activity Log of an LLC
The Annual Report is like an activity log of the LLC. It brings on record all the transactions, new associations, appointments, etc. & keeps those records intact for all future references.
To Help You With the One-time Filing of Taxes
The annual report is an excellent means to keep you on your toes in case of your dues payment. Every LLC must pay taxes through the annual report filing. By filing the report on time, the LLC can manage the exemptions & can avoid penalties imposed by the Government.
To Enable the State to Track the Payments
The government authorities use all the information filed through the annual report for tracking the payment of State Taxes.
Seek the Help of a Registered Agent
Every State will have a different rule for filing the Annual Report. Usually, it is submitted annually, but in some states, it is submitted every other year. Some states require the filing of the report only once in ten years.
Not only the timing, but also the mode of filing, proper addresses, exemptions, legality, and annual report compliance, among other factors, must be taken into account when paying taxes or filing reports with state authorities. In many such scenarios, it is advised that an LLC appoints a Registered Agent to manage all this. Check out the best LLC service that offers all the services at an affordable price. An experienced agent is required for:
- Streamlining the mandatory processes & filing.
- Sending or receiving any documents.
- Reminding you of important tax filing and payment dates.
- Simplifying the filing procedures.
- Avoid any penalties.
- Flexibility in working.
- Maintaining Privacy (as it keeps your personal records off the public record)
You can read more about an Iowa Registered Agent here.
FAQs
Yes, an annual report is essential for every business entity in most states. Some states also require filing biennial or decennial reports.
A Yearly Business Report, or the annual report, typically incorporates the address of the business, names & addresses of the members, a list of all signatories, SSNs of the members, & details of the registered agent.
A Registered Agent is well-aware of all the filing requirements, annual report filing fee, & overall Annual Report compliance. The knowledge & proficiency of the registered agent allow the smooth filing of reports & other fees.
The most important aspect of filing an Annual Report is maintaining accurate record-keeping. Ensure that you document every transaction thoroughly.
Yes, the fees may vary depending on the type of entity or the type of legal entity being represented.
In Conclusion
An LLC must file various types of reports, such as the Application for Reinstatement and the Periodic Report of a Limited Partnership (typically filed by an exempt nonprofit organization), depending on the entity’s type. The Annual Report is mandatory irrespective of the entity type. It requires compliance across entities.
Additionally, please note that an annual report is not the same as a Certificate of Standing in the state of Iowa. They might look similar, as many parts of the certificate are the same as those in the annual report; however, it is a completely different document and should be compliant with the filing requirements for the annual report in Iowa.