How to start a business in Iowa

What do you file before you open in Iowa?

1. Pick a structure

   Most owners choose an LLC or a corporation; the S corp or C corp tax choice comes later. See Iowa LLC guide, Iowa corporation guide, S corp or C corp in Iowa. By trade: cleaning business, handyman.

2. Check and register the name

   Search the Secretary of State records before you pick a name: state name search. In Iowa, a sole proprietor or partnership doing business under a trade name records a verified statement with the recorder of the county where the business is conducted. ¹ See Iowa name search guide.

3. File with the state

   Iowa charges the state filing fee once: an LLC costs $50 ² and a corporation's articles of incorporation cost $50 ³. See LLC cost.

4. Name a registered agent

   An Iowa corporation must continuously keep a registered office in Iowa and a registered agent, who can be an individual who lives in Iowa or a corporation or other entity with its business office at the registered office. ⁴ Our registered agent service runs through our partner Registered Agents Inc (RAI), the registered agent of record. See Iowa registered agent rules.

Which accounts do you open after you file in Iowa?

1. Get an EIN

   An EIN is the business's federal tax ID. The IRS issues it online, for free, and warns about websites that charge for one. ⁵

2. Open your state tax accounts

   The Iowa Department of Revenue takes new business tax registrations through GovConnectIowa or a paper form, and one combined registration covers sales and use tax and withholding tax permits. ⁶ See Sales tax permit.

3. Register as an employer

   Iowa Workforce Development runs MyIowaUI, the system employers use for all unemployment tax functions, including business registration. ⁷ Iowa law requires employers to report every newly hired or rehired employee, not only those who may pay child support, within 15 days of the date of hire through the iowachildsupport.gov site. ⁸ Iowa law requires most employers to have workers' compensation liability insurance or register as self-insured, and proprietors, LLC members and partners may make a nonelection of coverage. ⁹

What keeps your Iowa business in good standing?

1. Check licenses and permits

   In Iowa, licenses are typically administered by a variety of state and local departments, and the Small Business Administration directs owners to the local business license office where the business will be located. ¹⁰

2. Calendar the yearly filings

   Iowa biennial report: $30, due every two years, by April 1. ¹¹ See Iowa annual report.

3. Use free local help

   Small business advising in Iowa runs through America's SBDC Iowa. ¹² The Iowa Department of Revenue's Permits and Licensing page covers business permits and licensing in Iowa, including alcohol, lottery, and cigarette and tobacco permits. ¹³

What it costs to start a business in Iowa

Do you need a business license in Iowa?

It depends on the trade and the place. The U.S. Small Business Administration says most small businesses need a combination of licenses and permits from federal and state agencies, and that requirements and fees depend on the business activity and the issuing agency. ¹⁵ Iowa's own rule is in step 8. ¹⁰ Where to look up licenses: Iowa Department of Revenue Permits and Licensing.

How to register a business name in Iowa

Check that the name is free first: state name search.

Also in Iowa

• Local option sales tax. Many Iowa cities and counties add a 1% local option sales tax on top of the state sales tax, according to the Iowa Department of Revenue. ¹⁶
• Unemployment tax table for 2026. Iowa Workforce Development lists employer unemployment insurance taxes for 2026 at Table D, the lowest allowed by Iowa law. ¹⁷

More for Iowa

• LLC guide
• Corporation guide
• Iowa LLC cost
• Name search
• Registered agent
• Iowa sales tax permit
• Annual report
• S corp or C corp

Common questions