How to Start an LLC in Iowa (Step-by-Step) 2025 Guide

It costs $50 to start an LLC. And then it costs $30 every 2 years.

What are these fees for?

• The $50 is to file the Certificate of Organization – the document that creates an LLC.
• The $30 every 2 years is for your Biennial Report – a mandatory filing that keeps your LLC in good standing.

To learn more about LLC Costs, see LLC Costs in Iowa.

If you file your LLC by mail, it will be approved in 7-10 business days (plus mail time).

But if you file online, your LLC will be approved in 1 business day.

Please see How long does it take to get an LLC in Iowa to check for any delays.

Getting an EIN Number from the Internal Revenue Service is completely free.

If you apply online, it takes 15 minutes.

If you apply by mail or fax, it can take 1-3 months.

You’ll want to open a business bank account for your LLC.

This makes accounting and record-keeping much easier for your business finances.

Having a separate business bank account also maintains your personal liability protection. This is because it keeps your business entity finances separate from your personal finances.

Good news, Iowa doesn’t have a state general business license.

However, depending on where your LLC is located, you may need a local business license or permit.

For example, if you want to start a daycare, you may need a business license from the city or county.

You can learn more on our Iowa Business License page.

All Iowa LLCs must file a Biennial Report every 2 years.

The Biennial Report keeps your LLC in good standing with the state.

How much does an Iowa Biennial Report cost?

The LLC Biennial Report filing fee is $30 every 2 years if you file online.

If you file by mail, it costs $45 every 2 years.

We recommend filing online. It’s cheaper and faster.

When is the Biennial Report due?

Your Biennial Report is due every odd-numbered year by April 1st.

When is my first Biennial Report due?

Your first Biennial Report is due the first odd-numbered year after your LLC was approved.

For example:

• If your LLC was approved on February 15, 2031, your first Biennial Report is due by April 1, 2033.
• If your LLC was approved on February 15, 2032, your first Biennial Report is due by April 1, 2033.

And then your report is due every odd-numbered year after that.

How do I file my LLC Biennial Report?

You can file your LLC’s Biennial Report online or by mail. We recommend the online filing because it’s cheaper and easier to complete.

Follow our step-by-step guide here: Iowa LLC Biennial Report.

LLCs don’t pay federal taxes. Instead, the LLC Members pay the taxes for the LLC.

Said another way, the owners pay taxes for the LLC as a part of their personal tax return.

How will my LLC be taxed?

By default, an LLC is taxed by the IRS based on the number of owners your LLC has:

• A Single-Member LLC is taxed like a Sole Proprietorship.
• A Multi-Member LLC is taxed like a Partnership.

Alternatively, you can ask the IRS to tax your LLC like a C-Corporation or S-Corporation.

Besides federal taxes, there are also state and local income taxes – and sales tax. Learn more in Iowa LLC Taxes.

Yes, you can file your LLC online in Iowa. The Certificate of Organization filing fee is $50.

When you start your LLC online, it will be approved in 1 business day.

The first benefit of an LLC is protecting your personal assets. Meaning, if your business is sued, your personal assets – like your home, cars, and bank accounts – are protected.

This protection applies to all LLC owners (called LLC Members). It doesn’t matter if you have a Single-Member LLC or Multi-Member LLC. All of the LLC owners are protected from the business debts and liabilities.

This type of protection wouldn’t apply if you operate as a Sole Proprietorship or Partnership. With these types of informal business structures, the owners aren’t protected in the event of a lawsuit. For that reason, Limited Liability Companies (LLCs) are a much more popular business structure.

Another benefit is LLC pass-through taxation. This means the LLC itself doesn’t pay federal income taxes. Instead, the profits “pass through” to the LLC Members. And the Members pay the taxes on their personal tax return.

And state income taxes are very similar, since the state honors the federal tax treatment of your LLC.

To learn more, please see How are LLCs taxed.

Whether Iowa is a good state to start an LLC depends on where you live – and where you’re doing business.

Meaning, if you live in or do business in Iowa, then you should start your LLC there. While many websites talk about tax rates and advantages of certain states, none of that applies if it’s not the state where you live and do business.

For example, if you form an LLC in Wyoming, but live in and conduct business in Iowa, you’ll also need to register your Wyoming LLC in Iowa (and pay extra fees). And you’ll end up paying Iowa taxes anyway. This ends up leading to more costs and more headaches with no advantages.

In summary, if you live in and conduct business in Iowa, then yes, it’s a good state to start a business. If you don’t live in and do business in Iowa, then no, it isn’t a good state to start a business.

Real estate exception: If you’re purchasing real estate outside of Iowa, you should form your LLC in the state where the property is located.

For more information, please see Best State to Form an LLC.