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Steps to Forming an LLC
Follow these steps to start one in Iowa:
- Name your LLC
- Your business name must include "limited liability company".
- Check name availability: The name must differ from existing businesses and should be memorable and easily searchable by clients.
- Choose a Registered Agent
- An agent receives legal documents for the LLC.
- File Certificate of Organization
- This officially creates your LLC in Iowa. File it with the Iowa Secretary of State.
- Obtain Licenses and Permits
- Create an Operating Agreement
- This document helps settle disputes between members by outlining rights and responsibilities.
- Get an Employer Identification Number (EIN) from the IRS
- This is a 9-digit number used for tax purposes.
Costs of an Iowa LLC
- To file the Certificate of Organization: $50
- Registering a foreign LLC in Iowa: $100
- LLC name reservation (optional): $10
- Fictitious name registration (optional)
- Average LLC filing fee nationwide: $132
An LLC in Iowa provides liability protection, flexibility in management and taxes, and has relatively low starting costs.
Important Considerations
- An operating agreement is key for outlining the structure of your LLC.
- Before completing your LLC’s name registration, make sure to confirm its availability on the Secretary of State website.
- Costs to consider include the filing fee, registered agent service, licenses, permits, taxes, and biennial reports.