Forming an Limited Liability Company in Iowa is a relatively simple process and it that can help provide legal separation between you and your company.
Disclaimer: I am not a lawyer, this is just one entrepreneur’s journey on forming an Limited Liability Company in Iowa.
Disclaimer 2: Lawyers are nice people. There are several types of business structures you can form (LLC, S-Corp, C-corp, etc), each with their own legal and tax implications, if you are not sure which to form talk with your lawyer and accountant.
Step 1: Choose a Name
While deciding what to call your company might be a challenge, there are only two rules when choosing your LLC’s name. The first is must contain Limited Liability Company, L.L.C., or LLC. The second is it must be noticeably different from other business filed in iowa. You can search existing business here.
Step 2: File
One you have your name you will need to draft your Articles of Organization. This must include your LLC’s name, your LLC’s address, name of your registered agent, and the agent’s address.
There is a $50 filing fee.
Step 3: Wait
Now wait for you LLC to be approved. The Iowa Secretary of State’s website advertises that it take 10 days to hear back. However, I’ve found that it takes much longer.
Other things to consider
EIN – Employer Identification Number: You are required to have an EIN if your LLC is a partnership or if you have employees. It can also be helpful when setting up a bank account.
Separate bank account: It worth considering opening a second back account for you LLC it makes it easier to track expenses which will come in handy during tax season.