CobaltProsper

How to start an LLC in Iowa

By Brent Chudoba, editor Updated

Forming an LLC in Iowa costs $50 to file the Certificate of Organization with the Iowa Secretary of State. After that you file a biennial report of $30. Iowa charges no franchise tax on a standard LLC. Biennial report fee is $30 if filed online via Fast Track Filing but $45 if filed by mail/in person; due by April 1 of each odd-numbered year. A registered agent with a physical Iowa street address is mandatory (Iowa Code 489.201, 489.115(1)); going 60+ days without one exposes the LLC to administrative dissolution.

How much does it cost to start an LLC in Iowa?

Iowa LLC costs (reviewed August 29, 2026)
ItemCost
Filing fee (Certificate of Organization)$50
Biennial report$30 every 2 years
Franchise or business taxNone
Registered agentRequired

Source: Iowa Secretary of State, fee schedule reviewed August 29, 2026.

What are the steps to form an LLC in Iowa?

  1. Name your LLC. Pick a name that is available and meets Iowa naming rules, then check it against the Secretary of State's business database.
  2. Appoint a registered agent. Iowa requires a registered agent with a physical in-state address to receive legal mail. You can be your own agent, or hire a service.
  3. File the Certificate of Organization. Submit it to the Iowa Secretary of State and pay the $50 fee. This is the step that legally creates the LLC.
  4. Get an EIN from the IRS. It is free and takes minutes. Do not pay a service for it. See how to get an EIN free from the IRS.
  5. Calendar your biennial report. Iowa charges $30 to keep the LLC in good standing. Missing it risks penalties or administrative dissolution.
  6. Open a business bank account. Keep business money separate from personal money so your liability protection holds up.

Does Iowa have a franchise tax on an LLC?

No. No franchise tax applicable to LLCs in Iowa (Iowa's franchise tax applies only to financial institutions, not standard LLCs).

How is an LLC taxed in Iowa?

By default, an LLC is a pass-through entity: it pays no income tax itself, and the profits flow to the owners' personal returns. Iowa has a state individual income tax with a top rate of 3.8% (flat brackets), so those profits are taxed on your Iowa return on top of federal tax. Iowa Senate File 2442 (signed May 2024) accelerated the state's earlier phase-down (HF 2317, 2022) straight to a single flat individual income tax rate of 3.8% for tax year 2025 and later, skipping the previously scheduled graduated step at 4.82% for 2025. There are no income brackets for 2025 or 2026; every level of taxable individual income is taxed at 3.8%.

An LLC can also elect to be taxed as an S-corp, which changes how owners pay self-employment tax. See LLC vs S-corp vs sole proprietorship and how self-employment tax works.

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