Iowa Business License Requirements for an LLC

A Iowa business license gives your Limited Liability Company (LLC) permission to operate in a certain location or within a specific industry.

While we can’t walk you through any applicable license applications step-by-step, we do provide helpful resources like:

• information about state licensing rules
• instructions for researching municipal licenses

And if you want to just hire a company to do the research for you, we have a recommendation below.

Iowa Business License Requirements

After you form an Iowa LLC, you may need to obtain a business license or permit.

Your requirements are determined by the industry you are in and where your Iowa Limited Liability Company is located.

Because of the large number of industries and all of the municipalities in Iowa, it’s not possible for us to explain them all. However, you can use the search tools below, call your local municipality, or hire a company for help.

How to get a Business License in Iowa

You can obtain a business license in Iowa by applying with the relevant licensing or regulatory agency. The agency you apply with will depend on where your business is located and what business activities it engages in.

The business license application typically requires basic information, such as your LLC name, EIN Number, business address, and contact information. Many also include a questionnaire that asks about your business activity.

There are three main licensing jurisdictions:

• State licensing
• Local licensing, such as county, city, township, etc.
• Federal licensing

Does Iowa Require a Business License?

That depends on where your business is located, and what it does.

There are two types of state-level business licenses:

• a general business license
• and an occupational license

Iowa General Business License

Some states have a general license requirement, which means all businesses operating in those states must have the license, regardless of what they do.

But good news: Iowa doesn’t require a general license to do business in the state.

Meaning, your Iowa LLC doesn’t need a general state business license. But depending on what type of business you run, your LLC might need an occupational license.

Iowa Occupational License

Most states have occupational business license requirements. This means a license or permit may be required depending on what your business does or what your occupation is. For example, if you sell used cars, or run a hair salon, you may need an occupational business license. But a license may not be required for other types of businesses.

The Iowa Economic Development Authority and the University of Northern Iowa created a website called IASourceLink, which has lots of great resources for new business owners.

IASourceLink has a Licensing Resources for Small Businesses page that can explain the licensing process and connect you to other helpful organizations.

The IASourceLink Business License Navigator page can help you determine if your Iowa business needs an occupational license or permit, and which agency to contact about applying for the license. You can use the search feature on the left, or just scroll through the list of license types.

You can also contact IASourceLink with questions.

Note: Iowa business licenses are not issued by the Secretary of State. The Secretary of State is responsible for business entity administration, for example Limited Liability Company formation.

How much is an Iowa Business License?

Iowa doesn’t have a general business license at the state level, so there are no fees there.

However, your business may need a state-level occupational license or municipal-level license or permit to operate. The filing fee for these licenses will vary depending on where you’re doing business and what industry you’re in. To be honest, we can’t predict your specific Iowa business license cost.

For example, licenses issued by a county that contains a large city are usually more expensive than licenses in less populated, rural counties. And licenses for regulated industries, like child care facilities, are usually more expensive than generic business licenses.

But your LLC might not need a license or permit at all. So your Iowa business license cost could be $0.

See LLC Cost in Iowa to learn about all the possible LLC fees.

Municipal Business License

Municipal business licenses can be issued by the city, town, county, parish, township, borough, etc. We refer to all of these as a “municipality” to keep things simple.

There are two types of municipal business licenses:

• general business license
• industry-specific license

For example, if a municipality has a general business license requirement, all businesses operating in that municipality must have the license, regardless of what they do.

And if a municipality has industry-specific business licenses, a license or permit may be required depending on what your business does. For example, if you operate a food truck, or run a daycare, you may need an industry-specific municipal business license. Or if you’re purchasing or leasing real estate, you may need a zoning permit.

But a license may not be required for other types of businesses, like making wedding invitation templates or offering marketing consulting.

You can contact your municipality to check on their local licensing requirements:

• Iowa.gov: Local Government Directories
• Iowa League of Cities: Search for Cities
• Iowa State Association of County Auditors: County Directory

The Iowa State Association of County Auditors also has a list of permit types, and which county official to contact for each type: Permits.

Iowa Sales Tax License

If you sell products to consumers in Iowa, you may need to collect sales tax and file a Sales and Use Tax Return.

If your business activities are subject to sales and use tax, your LLC must register with the Department of Revenue.

Note: This requirement will apply whether you sell products online or in a physical location in Iowa. Learn more about Remote Sellers rules in Iowa.

You can register for business tax with the Department of Revenue. Learn more in the IASourceLink Register for State and Local Taxes guide.

For additional information about the Sales Tax License, check out the Iowa Department of Revenue Iowa Sales and Use Tax Guide.

You should also review the Department of Revenue’s Permits and Filing Requirements page to determine whether your LLC needs tax permits in Iowa.

Do I need any federal business licenses?

Most businesses in Iowa don’t need a federal business license. However, certain industries do need federal licenses:

Check out the Small Business Administration’s Licenses and Permits page for a full list of industries with federal license requirements.

If your business isn’t one of these special cases, then the only federal requirements are that your LLC get an Iowa EIN Number (aka Federal Employer Identification Number) and that you file taxes.

Iowa Business License FAQs

Matt Horwitz

Founder & Educator, LLC University®

Matt Horwitz has been the leading expert on LLC education for the past decade. He founded LLC University in 2010 after realizing people needed simple and actionable instructions to start an LLC that other companies weren't offering. He's cited by Entrepreneur Magazine, Yahoo Finance, and the US Chamber of Commerce, and was featured by CNBC and InventRight.
 
Matt holds a Bachelor's Degree in business from Drexel University with a concentration in business law. He performs extensive research and analysis to convert state laws into simple instructions anyone can follow to form their LLC - all for free! Read more about Matt Horwitz and LLC University.