Select a Name for Your LLC in Step 1 Choosing a name for your company is the first step in founding an LLC. Your selected name must be original and not on record with the Secretary of State of Iowa. Utilizing the online database maintained by the Iowa Secretary of State, you can determine whether your desired name is available. Once you’ve decided on a name, you must file an Application to Reserve a Name with the state to reserve it.
Step 2: Submit Articles of Incorporation You must submit Articles of Organization to the Iowa Secretary of State in order to formally establish your LLC. Your LLC’s name, address, and the names and addresses of its members are all listed in the Articles of Organization. The articles of organization can be submitted by mail or online. $50 is the filing fee.
Step 3: Write an Operating Agreement
Although LLCs are not required by Iowa law to establish an operating agreement, it is strongly advised that you do so. A legal document known as an operating agreement spells out your LLC’s ownership and management structure, as well as its financial and administrative procedures. An operating agreement can give members clarity in decision-making and assist prevent conflicts between them.
Step 4: Register for taxes and get an EIN An LLC needs its own tax identification number because it is a separate legal entity from its owners. You can apply online, by mail, or by fax to the IRS for an Employer Identification Number (EIN). You might also need to register for state taxes like the sales tax or the employer withholding tax depending on your business activity. How Long Does It Take in Iowa to Form an LLC? Depending on the option you select, processing times for LLC filings change. Processing times for online filings are often shorter—between one and two business days. Processing times for mail-in filings might range from 7 to 10 business days. Is a Registered Agent Required in Iowa? Yes, an LLC must have a registered agent in Iowa. A person or company named as the LLC’s registered agent will receive legal notices on its behalf. The registered agent must be readily accessible during regular business hours and have a physical address in Iowa. How Do I Establish a PLLC in Iowa? A specific kind of LLC called a professional limited liability company (PLLC) is created by qualified professionals including doctors, lawyers, and accountants. In Iowa, forming a PLLC is comparable to forming a conventional LLC, with the addition of the need to show proof of membership for each member.
An LLC (Limited Liability Company) is a type of company entity that offers its owners limited liability protection, which means that the business’s debts and liabilities normally do not put the owners’ personal assets at risk. On the other hand, a limited liability partnership (LLP) is a type of partnership where the individual members are protected from certain liabilities. An LLC and an LLP are fundamentally different from one another in that an LLC is a distinct legal entity and an LLP is not. An LLP can be utilized for any kind of business, whereas an LLC can be used in professional service industries like accountancy and law.