Your Iowa LLC name can identify the type of products and services your business will provide; or it may be the name of the founder; or it can be a combination of the two or something else.

In any case, the Iowa LLC name that you choose must be distinguishable from the name of any other registered Iowa LLC or other registered Iowa business entity, such as a Iowa Corporation or LLP.  The LLC name must also be different from any reserved names on record with the state of Iowa.  Your Iowa LLC name must not imply that it was formed for a purpose other than that stated in your Articles of Organization; and your Iowa LLC name must not be a name that is likely to mislead the public.

The name of an Iowa LLC must include the word "LLC" or "Limited Liability Company" or an abbreviation of one of these words.

It's important to choose a good name for your Iowa LLC because if you want to change it after you Form a LLC in Iowa you will have to file amended Articles of Organization with the Iowa Secretary of State (and pay a fee).

Every Iowa LLC must have an address that is physically located in the state of Iowa.  This address is "registered" with the Iowa Secretary of State.  The Registered Address is where official and legal correspondence can be delivered.

The individual or company that is registered with the state of Iowa to receive all correspondence on behalf of the Iowa LLC is called a "Registered Agent" or "Agent for Service of Process".  You may act as your own Registered Agent, however, many Iowa LLCs hire a Registered Agent because they don't have a physical address within the state of Iowa or to provide a distinct level of privacy.

The owners of an Iowa LLC are called Members - not Partners or Shareholders.  (a Iowa Limited Liability Company does not issue stock).  Members make all business decisions and realize the financial benefits generated by the Iowa LLC.  Division of ownership and distribution of profits are decided by private agreement among the Members.  Each Iowa LLC must have at least one Member.  Members need not live in the state of Iowa or be citizens of the United States.

Managers are responsible for the day to day operation of the Iowa LLC.  Members elect or appoint Managers and have the power to remove them.  Managers may or may not be Members of the Iowa LLC.  Management for your Iowa LLC may be defined in your Articles of Organization or, more commonly, in an Operating Agreement.

The IRS does not recognize a Limited Liability Company as a classification for federal tax purposes.  Iowa LLC Members can elect for the IRS to tax the LLC as a sole proprietorship, partnership, C Corporation, or S Corporation.  This decision may be made after the Iowa LLC is created.  If a single Member Iowa LLC does not declare a tax classification it is taxed the same as a sole proprietorship.  A multiple Member Iowa LLC that does not declare a tax classification is taxed as a general partnership.  More specific federal LLC tax information can be found at the IRS web site.

An Iowa Limited Liability Company is a type of business that is authorized by the state of Iowa - not by the federal government.  In order to form a LLC in Iowa you must file Articles of Organization with the Iowa Secretary of State. The Articles of Organization must include certain specific information about your Iowa LLC.  If the Articles do not conform exactly to state of Iowa requirements they will be rejected.  You may subsequently amend the Articles of Organization for your Iowa LLC but you will have to pay a fee to the state of Iowa in order to make the changes official.

A Federal Employer Identification Number, also known as a Federal Tax Identification Number, is used by the IRS to identify a business entity.  An FEIN is like a Social Security Number for your Iowa LLC.  All Iowa LLCs electing to be taxed as a C-Corporation or S-Corporation are required to have a FEIN.

If you do not elect to have your Iowa LLC taxed as a Corporation you may still need to get a FEIN if it is composed of multiple members or if you plan to have employees.

If you plan to form a Single Member Iowa LLC you may not need a separate FEIN for the LLC if you have no employees.  The sole Member of a Single Member Iowa LLC may be able to use his or her Social Security Number instead of applying for an FEIN.  You may request a FEIN for your Iowa LLC for banking or state tax purposes, but an FEIN may not be required for federal tax purposes depending on your business circumstances.

An Operating Agreement defines the rules by which your Iowa LLC will operate.  It is the core document that is referred to when issues concerning your LLC need to be resolved.  Operating Agreements may include requirements for almost anything that involves the management and operation of your Iowa LLC.  By having an Operating Agreement all Members will be provided with a clear set of rules they have agreed upon thus reducing the likelihood of disagreement in the future.

Items commonly included in an Operating Agreement for an Iowa LLC:


Although an Operating Agreement is not required in the state of Iowa, if you plan to form a multiple Member Iowa LLC it is highly advisable to have one.  Having an Operating Agreement will save you a lot of time and money should conflict arise down the line.  As your Iowa LLC grows over time, you may amend your Operating Agreement as necessary.

When your Iowa LLC has an Operating Agreement your business will be governed by your own rules and not some canned business rules created by the state of Iowa.

It's very important that you have a separate business bank account for your Iowa LLC.  Mixing personal and business funds may get you in a lot of trouble with the tax man down the line.  It's a good idea to contact the bank before you open a business bank account for your Iowa Limited Liability Company.  Specific requirements vary from bank to bank. 

In most cases you will need a FEIN, a copy of your Iowa LLC Articles of Organization, and a resolution identifying authorized signers if those names are not listed in the Articles.

Note that forming an Iowa LLC doesn't take the place of obtaining a business license, tax registration certificate, or other required business permits.  An Iowa LLC merely creates an ownership structure that limits the owner's personal liability.  You may still need to take care of getting set up to do business with your local government.

Depending on the nature of the business and the location of your Iowa LLC you may need to get one or more city business licenses or permits.  The business licenses or permits that are required for your Iowa LLC vary depending on your business activities and the specific locations within the state of Iowa in which you want to conduct business.

If your Iowa LLC will be selling products in Iowa you may be required to obtain a Reseller's Permit from the appropriate Iowa state agency.  If your Iowa LLC will be selling products in Iowa you will also be responsible for all applicable local and state of Iowa sales taxes if there are any.

An initial Iowa LLC Biennial Report must be filed with the Iowa Secretary of State between January 1 and April 1 of the first even-numbered year following the calendar year in which the Iowa Secretary of State approved the Articles of Organization of the IA Limited Liability Company.

For example, if the Iowa LLC was registered with the Iowa Secretary of State on April 1, 2014, the initial Iowa Biennial Report would be due at the Iowa Secretary of State by April 1, 2016.

If the Iowa LLC was registered with the Iowa Secretary of State on April 1, 2015, the initial Iowa Biennial Report would also be due at the Iowa Secretary of State by April 1, 2016.

Iowa LLC Biennial Reports must be delivered to the Iowa Secretary of State between January 1 and April 1 of the following even-numbered calendar years after the year in which the Iowa LLC filed its initial Biennial Report with the IA Secretary of State.

For example, if the Iowa LLC filed its initial Biennial Report with the Iowa Secretary of State on April 1, 2014, the initial Iowa Biennial Report would be due at the Iowa Secretary of State by April 1, 2016.

If an Iowa LLC does not file its Corporation Annual Report by the due date then that Iowa LLC will eventually be administratively dissolved by the Iowa Secretary of State.