How Much Does an LLC Cost in Iowa

Think starting an LLC has to break the bank? Iowa might just change your mind. Form an LLC in Iowa for as little as $50.

Iowa, impressively, weathered the pandemic relatively well. It continues to see positive trends in key sectors like manufacturing, logistics, and information technology.

Beyond a strong economy, Iowa also offers a financial advantage. Forming an LLC in Iowa is cheaper than in other states—and such factors make the Hawkeye State attractive for startups. See how much you'll spend, starting with the one-time formation fee.

You can also use the calculator below to get a clear picture of your minimum startup expenses.

Certificate of Organization

One-Time Fee: $50^[1]

To form an LLC in Iowa, you must submit a Certificate of Organization to the Secretary of State. Once the document is approved, your LLC will be recognized as a separate legal entity.

An Iowa LLC's Certificate of Organization contains the following information, among other details:

• Limited liability company name
  
• Principal office street and mailing address
  
• Registered agent name and address

Iowa has no pre-formatted form for a Certificate of Organization, so you must make this on your own. Alternatively, you could hire an LLC formation service to create one. It may contain other details about your LLC that you wish to make publicly available.

Foreign Registration Statement

One-Time Fee: $100^[1]

If you already have an LLC in another state and want to expand your business to Iowa, register it as a foreign LLC.

To create a foreign LLC, submit a Foreign Registration Statement to the Secretary of State. Don't forget to attach a Certificate of Good Standing from your domestic state.

Biennial Report

Biennial Fee: $30 (Fast Track) | $45 (Paper)^[1]

Iowa LLCs must submit biennial reports to the Secretary of State. This report shows any changes to the LLC's name, address, and other details.

Biennial reports must be filed every odd-numbered year between January 1st and April 1st.^[2] For example, if you filed the Certificate of Organization on June 4, 2025, you must submit the first biennial report in 2027 and every other year after that.

Business Permits and Licenses

Cost: Varies

Iowa does not have a state-level general business license. Instead, the state prefers leaving business licensing requirements to local jurisdictions and specific industries.

However, it has some standard rates for some licenses. For example, businesses selling alcohol on premises in a city with a population of 15,000 or more might expect to pay $1,625 yearly for a Class "C" Retail Alcohol License.^[3]

The number of permits and licenses your LLC needs depends on its business purpose. Some businesses may be regulated by various governmental offices simultaneously. The fees may also vary per city and could be renewable yearly.

Business Taxes

Personal Income Tax: 3.8% of taxable income^[4]

The profits and losses of an LLC are passed through to the LLC owner by default. There will be no tax brackets for individual income taxes in Iowa in 2025, so a flat 3.8% of your income, including any profit from the LLC, is considered a tax expense.

On top of that, you must also pay federal income taxes.

2025 Federal Income Tax Rates:^[5]

Don't forget the 15.3% federal self-employment tax. This tax covers Social Security and Medicare contributions.^[6]

Optional Fees

While the fees below are generally optional, some are unavoidable depending on your business needs.

For example, obtaining a Certificate of Existence is often necessary when opening an LLC bank account.

Expedited Services

Cost: $15 or $50^[1]

Most LLC forms and fees, including the Certificate of Organization, can be processed online within two business days. It could take longer if you file in person or by mail, unless you pay for expedited services.

Fees vary depending on how fast your documents are processed:^[1]

• $15: Five-day service
  
• $50: Two-day service

Registered Agent Services

Annual Cost: $0, or $100-$300/yr

In Iowa, you must have a registered agent to receive business and legal documents for your LLC. This includes government notices, tax forms, and annual reporting forms.

You can technically be your LLC's registered agent—as long as you're at least 18 and have a physical street address in Iowa. You must also be available to receive documents during business hours.

However, your address will be public record. So many LLCs like to hire a registered agent service to keep their personal details private. These services usually charge $100-$300 per year to be your registered agent.

Operating Agreement

Cost: $0, or up to $500+

LLCs in Iowa are not required to have an operating agreement. However, it's recommended because it defines important rules and regulations that all members must follow.

An LLC operating agreement contains the following:

• The roles and responsibilities of each member
  
• How new or departing members will be treated
  
• How business profits and losses will be divided

Ideally, you should already have a signed Operating Agreement before forming an LLC in Iowa. But if your LLC is already formed, you can always draft it yourself after.

Alternatively, an LLC attorney might charge you a $500 flat fee for a standard operating agreement. If you have more complex details, the cost could be higher.

Employer Identification Number

Cost: $0, or $50 to $99

Any LLC with more than one member or with employees must have an EIN, regardless of how it's taxed. This is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to identify a business entity for tax-related purposes.

You can just apply for an EIN for free on the IRS website. But if you'd like an LLC service to process it for you, you can do so for a small fee. Here are some providers that do this and their pricing:

• Northwest Registered Agent: $50
  
• Bizee: $70
  
• ZenBusiness: $99

Single-member LLCs in Iowa don't require an EIN, but it's almost essential in practice. For instance, you'll need one if you hire employees or want to open a business bank account.

LLC Name Reservation

Cost: $10^[1]

If you've already got a business name but aren't ready to form an LLC, you can reserve your desired name first. It will prevent others from using that name for 120 days.^[7]

Through Iowa's Fast Track Filing system, you can check if the name you want is available and reserve it immediately after payment.

Don't forget to review Iowa's detailed list of naming regulations to prevent your reservation from being rejected. For example, an LLC name must include LLC, Ltd., or a similar abbreviation.

Fictitious Name

Cost: $5^[1]

A fictitious name (also known as "Doing Business As" or DBA) allows your LLC to operate under a name different from its legal name registered with the state.

Some LLCs use a DBA for branding purposes. It's also ideal if you want to use a name without "LLC" at the end.

To do this, you must file a Resolution to Adopt Fictitious Name with the Secretary of State, along with the minimal filing fee. Unlike other states, there's no need to renew a fictitious name as long as your LLC remains in good standing.

Statement of Correction

Cost: $5^[1]

After your Iowa LLC application is approved, review all the details of the Certificate of Organization carefully.

If there are errors, like a misspelled business name or incorrect address, correct them as soon as possible by filing a Statement of Correction. There's no pre-formatted form, so you can make one using sample templates online.

Certificate of Existence

Cost: $5^[1]

A Certificate of Existence is an official document by the Secretary of State. It verifies that your LLC is updated with all state filings and has paid all its fees and taxes.

You might need a Certificate of Existence to:

• Open a bank account
  
• Apply for business loans
  
• Qualify for business insurance
  
• Conduct business as a foreign LLC

Certified Copy of Documents

Cost: $5 certification fee + $1 per page^[1]

Certified copies of documents verify that your LLC is legitimate and that its details are accurate. You might need it to open a business bank account or expand your LLC in another state.

Additionally, some LLCs keep certified copies of their initial Certificate of Organization and Statement of Correction (if any) for recordkeeping purposes.

Business Website Domain

Annual Fee: $10 to $20

A website domain and social media presence provide dedicated online spaces for your business. It's essential for marketing, customer engagement, and brand visibility in today's digital world.

Even if you aren't planning to build a business website now, you could still buy the domain name. This will prevent others from using your LLC's name as a web address.

Workers Compensation Insurance

Cost: Varies

Most businesses with one or more employees in Iowa must have workers' compensation insurance.^[8]

You can self-insure or purchase from an insurance carrier. The cost depends on factors like the number of employees, the risk level of your industry, and your past insurance claims.

You might also be required to get other types of insurance:

• General liability insurance
  
• Commercial property insurance
  
• Professional liability insurance
  
• Cyber liability insurance

Curious to know how much it costs to maintain an LLC in Iowa? Use the calculator below to get a clear picture of your ongoing expenses.

Bottom Line

In summary, the Certificate of Organization fee costs $50 in Iowa. Then, you must pay the $30 to $45 biennial report fee every odd-numbered year.

The total cost will increase depending on the additional services, documents, and licenses your LLC needs. Ultimately, it's never a bad idea to set aside an extra budget for unexpected fees.

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