Iowa Taxes

Last updated on

Iowa LLC
Tax Registration & Requirements

Quick Start Guide
This Quick Start Guide is a brief overview of how to form an LLC in Iowa.

Detailed Lessons:

 

Iowa LLC Costs:
Iowa state fee: $50
Biennial Report fee: $45 online or $60 by mail (paid every 2 years)

Need to save time?
Hire a professional to form your LLC in Iowa:
Northwest ($39 + state fee) or LegalZoom ($149 + state fee)

(check out Northwest vs LegalZoom)

Note: Our tax lesson is not as step-by-step as our LLC formation lessons, due to the uniqueness and variation among businesses. Taxes are usually not as straightforward as forming an LLC in Iowa, and therefore, the information below is an overview, and not a comprehensive guide.

You will likely need to hire a tax professional to make sure you meet all your Iowa state and local tax obligations. We recommend using Thumbtack.

Do it yourself in Iowa

Register for Iowa Business Tax
You can register for Iowa business tax online with the Iowa Department of Revenue:
https://www.idr.iowa.gov/CBA/start.asp

Sales Tax Permit and Tax ID Number
For a Sales Tax Permit or Tax ID Number, you can contact the Iowa Department of Revenue at [email protected] or 515-281-3114.

Other Taxes
Depending on your industry, where your business is located, how you are taxed by the IRS, and whether or not you have employees, will determine which additional taxes and forms are due.

Some examples of other taxes and forms due are:

  • Use tax
  • Individual income tax
  • Income withholding tax
  • Partnership and LLC tax
  • Transient tax
  • Accommodations tax
  • Rental motor vehicle tax
  • Tour tax
  • Vehicle tax
  • Car sharing tax
  • Vehicle surcharge tax
  • Cigarette and tobacco tax
  • Liquor tax
  • Fuel tax
  • Local taxes
  • And more

You can also read this guide from the Iowa Department of Revenue to learn more about the different taxes your LLC might have to pay: https://tax.iowa.gov/starting-business

Our Recommendation

Calculating your tax obligations in Iowa can be complicated and if done improperly can negatively impact your LLC.

We recommend that you get help from a tax professional once your LLC is formed. You can use Thumbtack or Yelp.

Hiring a tax professional will not only help you keep your Iowa LLC in compliance, but it will also give you an advisor to go to for other business questions.

You’ll want someone who’s a good fit for your company, makes you feel comfortable, and is willing to answer all of your questions. It should be someone you like personally as well as professionally. We recommend talking with at least 2-3 people before making your final decision.

Matt Horwitz
Founder & Educator, LLC University®
Forming an LLC shouldn't be so complicated. Our step-by-step guide will make the process a breeze – and no complex legal jargon! LLC University® teaches people how to form an LLC for free in all 50 states. We hope you find our free guides and resources helpful in your business journey.
Disclaimer: Nothing on this page shall be interpreted as legal or tax advice. Rules and regulations vary by location. They also change over time and are specific to your situation. Furthermore, this comment section is provided so people can share their thoughts and experience. Please consult a licensed professional if you have legal or tax questions.

4 Comments

  1. Kirby July 31, 2017

    Thank you, Matt. Your help with this process was invaluable! Starting a business is new for me and you made the process easy to understand.

    reply
    • Matt Horwitz July 31, 2017

      Hi Kirby, you’re very welcome! Thank you for the nice comment. Best wishes with your business :)

      reply
  2. Ed April 18, 2018

    Great information, with good and appropriate links. I had an LLC years ago, and had career change. Now I am eager to get started again in a different venture and the tutorial was a great refresher. Site is one on my favorites. Thank you.

    reply
    • Matt Horwitz April 21, 2018

      Ed! Thanks so much for the kind words :) We’re happy to hear you’re getting value from the site. Best wishes with the new venture!

      reply

Leave a comment or question