Fact Checked by Editorial Staff
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 | Our Rating & Pricing | Top Features | Learn More |
#1 TOP PICK  | $0 + State Fees |
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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:
| 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
It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.
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.
The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.
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 of keeping an LLC active 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 and pay a fee for this service. Failure to file this report on time can result in late fees and penalties, so it is essential for LLC owners to stay on top of this requirement.
In addition to the annual report fee, Iowa LLC owners may also need to budget for a registered agent service. This service ensures that the LLC has a designated individual or entity responsible for receiving legal documents and official correspondence on behalf of the business. While some owners may choose to act as their own registered agent, many opt to hire a professional service to handle this responsibility.
Furthermore, it’s important for Iowa LLC owners to consider the costs associated with business licenses and permits. Depending on the nature of the business and its location, owners may need to obtain various licenses and permits to operate legally in the state. These fees can vary widely depending on the industry and specific requirements, so it’s crucial for owners to research these costs thoroughly.
As with any business, maintaining an LLC in Iowa also requires ongoing expenses such as insurance, utilities, and payroll. While these costs may not be unique to LLCs, they are essential factors to consider when calculating the overall cost of running the business. It’s crucial for owners to budget carefully and forecast these expenses accurately to ensure the financial health of the LLC.
Additionally, Iowa LLC owners should also factor in the cost of professional services such as legal and accounting fees. While some owners may attempt to handle these tasks themselves, it’s often advisable to seek expert advice to ensure compliance with state laws and regulations. Though hiring professionals will incur additional expenses, it can provide peace of mind and safeguard the LLC against costly mistakes.
In conclusion, maintaining an LLC in Iowa involves various costs that aspiring entrepreneurs should be aware of before starting their businesses. From annual report fees to professional services, there are several expenses to consider when calculating the overall cost of running an LLC in the state. By understanding these costs and budgeting accordingly, LLC owners can navigate the complexities of business ownership and ensure the long-term success of their ventures.
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.