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


Steve Goldstein
Steve Goldstein
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Steve Goldstein runs LLCBuddy, helping entrepreneurs set up their LLCs easily. He offers clear guides, articles, and FAQs to simplify the process. His team keeps everything accurate and current, focusing on state rules, registered agents, and compliance. Steve’s passion for helping businesses grow makes LLCBuddy a go-to resource for starting and managing 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.

LLC Service

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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

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.

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 essential costs associated with maintaining an LLC in Iowa is the filing fee required by the Iowa Secretary of State. This fee must be paid annually to stay in good standing with the state. In addition to the initial filing fee, there may be additional costs if you need to make any amendments or updates to your company’s information, such as a change in members or a change of address. It’s essential to keep your company’s information current to avoid any potential penalties or risks to your personal assets.

Another important cost to consider is the fee for a Registered Agent in Iowa. A Registered Agent is required for all LLCs in the state and serves as the official point of contact for legal documents and government correspondence. While there are options for serving as your Registered Agent, many business owners choose to hire a professional service to ensure that they receive timely communication and avoid missing any important notices or deadlines.

In addition to these ongoing costs, maintaining an LLC in Iowa may also involve expenses related to business licenses and permits. Depending on the nature of your business and its location, you may need to obtain specific licenses or permits to operate legally in Iowa. These costs can vary depending on the type of business you run and the local regulations that apply to your industry.

It’s important for business owners to budget and plan for these expenses to ensure that they can continue operating smoothly and maintain compliance with state laws. Properly managing the costs associated with maintaining an LLC in Iowa is crucial for protecting your personal assets and preserving the limited liability protection that comes with this business structure.

While there are costs involved in maintaining an LLC in Iowa, many business owners find that the benefits far outweigh the expenses. The limited liability protection and tax advantages that come with forming an LLC can help to safeguard your personal assets and provide a more secure foundation for your business. By understanding and planning for these costs, you can successfully navigate the process of maintaining an LLC in Iowa and reap the rewards of formalizing your business structure.

In conclusion, it’s essential for business owners to be aware of the costs associated with maintaining an LLC in Iowa. By budgeting for ongoing expenses such as filing fees, Registered Agent services, and licenses or permits, you can protect your personal assets and ensure that your business remains in good standing with the state. Properly managing these costs is key to maximizing the benefits of operating as an LLC in Iowa and setting your business up for long-term success.

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.

1 thought on “LLC Cost in Iowa – How Much to Pay for an LLC”

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