How to Start a Business in Iowa

Introduction

Starting a business in Iowa is not that hard, but requires following a lot of steps in the right order.

Get an Employer Identification Number

After you’ve decided on your business name and checked for availability online, the next step is to apply for an Employer Identification Number (EIN). This is a tax ID number that’s used to identify businesses in the same way a Social Security number does for individuals. It’s also used as a business identifier by banks and other institutions when conducting transactions with your company.

If you want to open a bank account or apply for credit, you’ll need an EIN to do so. You’ll also use it when calculating taxes, preparing payroll documents, and reporting employee wages on Form W-2s each year. While these are just some examples of how you might use an EIN—there are many more!—it’s important that you get started early so that when the time comes, there isn’t any unnecessary delay in getting set up properly with your new business venture

Write a Business Plan

In the business world, the term “business plan” can be a little misleading. A business plan is not just a piece of paper that says “I want to start a business and here’s why.” Instead, it’s a detailed document that covers everything from the broad strategy behind your venture to the specific steps you’ll take to get there. While it may seem like overkill at first glance, writing one will help you clarify your goals for starting an Iowa-based company and set yourself up for success in several ways:

Choose a Business Name and Register

Register your business name with the Secretary of State, if you haven’t done so already. You can do this online or in person at an Iowa Department of Transportation Motor Vehicle Division (DMV) office, depending on which county you live in. If someone else has already registered your desired name, it’s time to move on to another one. Some resources that may help you find available names include:

• The Iowa Secretary of State’s Business Services Division (http://www.iowaabizregistry.com/)
• The United States Patent and Trademark Office (USPTO) Trademark Electronic Search System website
• A local lawyer who specializes in intellectual property law

Register your Business with the State

You’ll need to register your business with the Iowa Secretary of State. You can do this online or by mail, but registration is a simple process that only takes a few minutes. Once you’re registered, there are some other forms that you should file:

• Business License
• Certificate of Authority
• Tax registration certificate (or registrations)
• Sales tax permit (or permits)
• Use tax permit (or permits)
• Withholding tax permit (or permits)

Set up Tax Payment System

To start a business, you’ll need to set up a tax payment system. This can be complicated and it’s best to work with an accountant if you don’t know what you’re doing. To pay taxes on all income, expenses, sales, and purchases of assets:

• Keep accurate records of all revenues and expenditures in your books
• Make sure that all income is reported as such on your tax return (this includes money from businesses that aren’t yours)
• Make sure that any purchases made by the business are reported as such on the tax return

Learn More about Iowa Taxes

A business license is the first step in starting a business, but it’s only the beginning. Once you’ve received your license, there are still many things to consider before opening for business. The following guide will help you learn about the Iowa tax system and how it affects your small business.

File for Annual Reports

Annual reports are required by the state.

• You must file an annual report on or before January 15 of each year for a corporation or limited liability company (LLC).
• The fee for filing is $20, plus $10 per page after the first two pages. There may also be additional fees depending upon your corporate structure and the state in which you incorporate.[1]

Incorporation has some financial benefits that make it worthwhile, but there are no hard and fast rules about when to incorporate—it’s up to you! If you think that incorporating makes sense for your business, talk with an attorney about whether it’s right for you.

Obtain Licenses and Permits

Licenses and permits are necessary for many types of businesses. For example, you will need an Iowa business license to operate most businesses in the state. You can apply for an Iowa business license online or by mail. You will be asked to provide a variety of information about your company, including its name and address, its legal form (e.g., corporation or LLC), its date of incorporation/establishment in Iowa, and the names of officers and directors. This information should be available on your articles of incorporation or operating agreement; if it is not, contact an attorney who specializes in small business law so that they can help you properly fill out the application forms.

Takeaway

Starting a business in Iowa is not that hard, but requires following a lot of steps in the right order. It is important to know the rules and regulations before you begin. There are many resources available to help you get started, including an online guide with information on filing taxes and starting a business.

Conclusion

Starting a business in Iowa is not that hard, but requires following a lot of steps in the right order. The most important thing to know is that you cannot skip any steps, even if one of them seems unnecessary for your type of business. You will also need to gather information about your state’s tax laws and regulations before starting any kind of taxable activity with your company name or brand name on it.