Incorporate In Iowa

A former French and Spanish colony, Iowa is the only US state bordered by rivers and one of the safest American states in which to live.

Iowa enjoys a very diversified and advanced economy, including information technology, biotechnology, and green energy production. Agriculture is the backbone of the state’s economy, making it the nation’s largest food product producer.

Benefits of incorporating in Iowa:

Protection of personal assets

Foreign entrepreneurs starting businesses in Iowa should feel confident knowing that their personal assets are protected. Limited liability companies and corporations separate the assets and liabilities of companies from the personal assets of the business owner.

Enhanced credibility

Whether starting a new business or incorporating an existing one, incorporation makes a business appear more credible to potential customers, suppliers and investors. You also have the security of operating under US law.

Ability to Open a Bank Account

In many instances, forming a company is the first step for a non US resident to open a bank account. A US bank account gives businesses access to a debit card, and the potential to open a merchant service account. Internet commerce is made much easier with a US bank account because companies like PayPal, Amazon and EBay considers you more qualified as a vendor.

Your corporate name can boost your brand

Iowa requires that a C corporation or an LLC not have a name that is the same or could be confused with a business already in existence. To make sure your business name is eligible Inc. Plan can help you with a free corporate name search. Creating a unique corporate name enhances your company’s reputation and also helps protect the identity of your brand.

Tax flexibility and benefits

The state of Iowa recognizes businesses that choose to operate either as a C-Corp or an LLC. The type of business entity you choose determines the nature of the taxes to which your entity will be subject. Under Iowa law corporate taxes are either based on a corporation’s net income or the income tax return of the members of the LLC.

Residency Requirements

Iowa does not have any residency requirements. Owners and directors of companies do not need to live in state to legally operate an Iowa company. Before your firm is legally eligible to operate, make sure you possess all the required business licenses, permits, and tax registrations. If you need assistance, Inc. Plan can help you make sure your business is in compliance.

Other incorporating requirements

It is mandatory for Iowa C-corps and LLCs to have at least one owner/member. State law only requires C-corps directors to be listed in the incorporation documents; LLC members do not need to be included. There are no age restrictions imposed for LLC owners, but C-corps directors must be at least 18 years old.

Requirements for forming an LLC in Iowa:

When forming a Limited Liability Corporation certain steps must be taken to keep the business in compliance on an ongoing basis.

Name requirements for LLCs

In order to qualify under the Iowa law, LLC names must end with the term “Limited Liability Company”, “Limited Company” along with their abbreviations “LLC”, “L.L.C.”, “Ltd. Co.”, “L.C.” or “L.C.”.

LLC filing requirements

People looking to form an LLC must submit a Certificate of Organization to the state. Iowa requires LLCs to file a biennial report which is due between January 1st and April 1st. It is possible to submit the annual report online.

Required information for the Certificate of Organization

The Certificate of Organization must contain the name and address of a registered agent who resides in Iowa and who is available to manage legal and tax business documentation. For more help filing an incorporation or with finding qualified registered agent services feel free to contact Inc. Plan (USA).

LLC taxes and fees

Iowa LLCs are taxed based on its members’ personal income. However, LLCs can opt to be charged as C corporations or partnerships for federal tax purposes.

Requirements for forming a C corporation in Iowa:

Each of the 50 American states has its requirements for incorporating. The essential requirements for C- corporations established in Iowa are as follow:

Name requirements for C corporations

Iowa-based companies are allowed to use name endings like “Company”, “Corporation”, “Incorporated” or “Limited”, along with their abbreviations. Names must be unique and not deceptively similar to existing companies.

Filing requirements in Iowa

Companies incorporated in Iowa are required to file a document called Articles of Incorporation with the state. State law also requires corporations to file a biennial report which is due between January 1st and April 1st. The biennial report can also be submitted online.

Required information for the Article of Incorporation

The Articles of Incorporation must list of the company’s authorized shares along with their assigned par value. The Articles of Incorporation must include the name and address of a registered agent with a physical Iowa address. Inc. Plan (USA) can help you with the necessary filings and also provide qualified registered agent service.

Taxes and fees requirements

Both domestic and foreign corporations are subject to a corporate income tax at a minimum rate of 6% of the taxable net income. However, if you are a financial institution then you also qualify for a franchise tax at a 5% rate of the net income obtained during the taxable year.

If you are ready to get started you can fill out our application or call 1-302-428-1200 for a Free 30 Minute Live Consultation.

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