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Business Information & Rankings

• Iowa ranked 6th as the Most Livable State. (Morgan Quitno Press, 2005)
• Iowa ranked 4th in Best State Liability System.( U.S. Chamber of Commerce, 2004)
• Iowa ranked 3rd lowest on the Cost of Doing Business Index. (Milken Institute, 2005)
• Iowa ranked 15th in State Competitiveness.(Beacon Hill Institute, 2004)
• Des Moines ranked 1st among the top 50 places to locate or expand a business. (Expansion Management Location Study, 2004)

Cost of living

Crime Rate

Iowa has the 17th lowest crime ranking in the U.S.(F.B.I.,2004)

Fees & Taxes

Business Inventory Tax
Business inventory is exempt.

Corporate Income Tax
Iowa’s single-factor, non-unitary tax is based only on the percentage of total sales income within the state. An Iowa manufacturer selling all its products outside Iowa would pay no Iowa corporate income tax. Iowa allows 50 % deductibility of federal taxes from Iowa corporate income tax, and Iowa corporate income tax may be reduced or eliminated by the New Jobs Tax Credit.

Personal Income Tax
Tax Rate Range: Low – 0.36%; High – 8.98%
Income Brackets: Lowest – $1,211; Highest – $54,495

Personal Property Tax
Exempt. There is no intangible personal property tax, but the state of Iowa assesses intangible taxes on capital employed in state by foreign corporations engaged in business as loan agencies.

State Sales and Use Tax
Base Rate: 5%
Machinery Rate: none

There is an exemption for gross receipts from the sale or rental of industrial machinery, equipment and computers, including replacement parts if they will be directly and primarily used in processing tangible personal property or in research and development of new products or processing or manufacturing, refining, purifying, combining of different materials.

Unemployment Insurance
The new employers’ rate in Iowa is 1.0% for 3 years. Iowa has the lowest new employer unemployment insurance rate in the nation.

The first thing that comes to mind when you are thinking of setting up a startup company Iowa is – how will the business perform here? There are several small and medium size startups and established businesses performing quite well in a variety of industries in Iowa. Some of the industries that have seen stable growth include health care and social assistance, accommodation and food services including travel and tourism related services, professional, scientific, and technical services, and manufacturing.

Business Growth Incentive for New Businesses

One of the biggest sector or industry in Iowa, which has seen a high number of startup companies being registered, is the advanced manufacturing industry. A Bureau of Economic Analysis (BEA) 2016 report revealed that advanced manufacturing has made a contribution of $28.062 billion towards the growing and thriving business economy of the state. Now, let’s take a quick look at why Iowa is the right destination for establishing a business:

Advantage#1: The benefits of Incorporation or LLC formation

Corporation

• Independent Life: One of the salient advantages of an S Corporation in Iowa is that it enjoys an independent life. This simply means that the business entity will continue operation undisturbed even if it faced the death of one of its stockholders or incapacity of one or more stockholders.
• Corporate Tax Credits: According to a report by Iowa Department of Revenue, corporations received $66 million in corporate tax credits in 2017. If you register a new business in Iowa as a C or S Corporation, you will be able to benefit from several tax credit programs including the New Jobs Tax Credit program.
• Pass through taxation: If you register a new company in Iowa as an S corporation then the corporation or firm will not pay any income tax. Instead, the income or loss of the corporation will be passed on to the stockholders.

LLC

• Flow through Taxation: When you register a new company in Iowa as an LLC, it can benefit from the process of flow through taxation that will ensure there are no double taxations.
• Limited Liability: As an owner of an Iowa LLC, you will be able to enjoy limited liability protection quite similar to what a corporation enjoys.
• Flexible Profit Distribution: An Iowa LLC has the benefit of being able to select different ways of distribution of profits unlike in a partnership where the distribution is 50-50.

Advantage#2: Incentive Programs for Iowa Businesses

Once you register a new business in Iowa, you will be able to qualify for different types of business incentives as a part of the state’s economic development program. Some of these programs have been initiated by Iowa Department of Revenue and Iowa Economic Development Authority. Let’s take a quick look at some of the top programs that will benefit your business:

• Economic Development Set Aside (EDSA): The EDSA program has been created to provide financial assistance to small and medium sized businesses as well as industries. The aim of this incentive program is to enable businesses in creating or retaining job opportunities in Iowa. As a startup company Iowa, if you qualify then the maximum financial assistance you can receive is $1 million.
• Business Tax Incentives: The state of Iowa has created several types of business tax incentives targeted at enabling small and medium sized businesses to achieve higher growth without losing revenue generated in taxes. Some of the top tax incentive programs in Iowa include new jobs tax credit, high quality jobs program, redevelopment tax credit program, targeted jobs withholding tax credit pilot program, computers and industrial machinery and equipment tax credit, and research activities tax credit among others.

Apart from these, Iowa Economic Development Authority also provides several programs like Entrepreneur and Innovation Support and International Trade Assistance. You can qualify for these programs only after you register a new company in Iowa.

Are there any Disadvantages of Incorporating in Iowa?

Iowa, as a state offers a lot of opportunities to businesses that are willing to register or relocate here. This is a state with a growing economy but there are a few disadvantages like formation of a corporation may take longer, foreign businesses will be required to provide certificate of existence, and LLC’s have a limited life. Apart from these, there is much to look forward to especially in terms of advantages that will help push your business towards a new future!

Click here to REGISTER today!

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Once you have applied for registration of your new business, what next? The next step is to check whether your business requires an Iowa company license. If a business entity requires a license or permit and you have not applied for one, then even after registration or incorporation in Iowa, your business will not be operational.

The state of Iowa does not have, what is known as a “general” business license although some licenses and permits are categorized under “regulatory.” They can be classified under industries or state departments like:

• Building and construction
• Health and safety
• Environment

How to Get a Business License in Iowa

How do you find out if your business requires a permit or a license, or both? Who is the issuing authority for a business permit or license? How do you apply for business license in Iowa? Will a business entity require a single license or multiple licenses or permits? The only way to answer these questions is by understanding the process of business licensing.

There are two steps towards acquiring a business license in the state of Iowa and they are:

The Industry or Business Type

Which industry is your business entity a part of? It is important to identify the industry as some businesses may require a business license in Iowa while others might require just a permit to become operational. Depending on the type of business, the type of license issued, the fees, etc, the duration or validity are different. Let’s look at an example to understand this well.

RESTAURANT OR FOOD BUSINESS

If you are planning to start a restaurant or food business then you need to further identify a specific segment. Some of the common segments include:

• Brew Pub
• Catering Privilege
• Food Service Establishment
• Outdoor Service Areas

1. Brew Pub: A brew pub does not require a business license in Iowa but requires a permit that expires annually. The fee for the permit is $750.
2. Catering Privilege: This is a regular license with an annual expiry date. You can apply for this license if you are a Class “B” or “C” liquor license holder.
3. Food Service Establishment: If you are planning to start a full-service restaurant then you will require this business license to operate. The license allows consumption on-the-premises and is valid for 1 year. The fee varies from $67.50 – $303.75 depending on annual gross sales.
4. Outdoor Service Area Privilege: If you wish to start a full service restaurant and allow serving of food in a designated outdoor area then you will be required to apply for this license.

Note: These are not stand alone licenses and you will require other licenses and permits to operate a food establishment.

GAMBLING OR GAMING BUSINESS

If you are planning to start a gaming parlor or a gambling business, then the business license comes with a short-term or time bound validity.

You can apply for the following type or validity of business license for gambling:

1. 14-Day License: This license authorizes businesses to organize an unlimited number of small lotteries or raffles as well as one large raffle during the period of validity of the license. This license also authorizes one bingo event within a period of seven (7) consecutive calendar days.
2. 90-Day License: This business license authorizes businesses to organize an unlimited number of small lotteries or raffles as well as one large raffle during the period of validity of the license. However, it does not authorize games of chance or bingo.
3. 180-Day License: Same as above.

Who Issues the License?

Once you have identified the type of Iowa company license you require, the next step is to file the application for the license necessary. The license or business permit information is available under one roof, i.e., at the Iowa Business License Information Center. Although, you would be required to file an application for business license with different authorities. For example Food Service Establishment License is issued by Department of Inspections & Appeals while Outdoor Service Area Privilege License is issued by the Department of Commerce.

If you have any questions regarding registration of your business, feel free to call us on 702-871-8678.

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If you are planning to set up company in Iowa, you need to ask yourself: Will my business grow here? Iowa is one of the few states that provide a good business climate. In the past, surveys have been carried out by Forbes, NBC News, MarketWatch, and USA Today and they all revealed that the state has a highly trained and committed workforce, and provides significant tax advantages as well as business incentives. Some of the top companies headquartered in Iowa include A.Y. McDonald Manufacturing Company, Casey’s General Stores, Inc., Dubuque Bank & Trust, Fareway Stores, Inc., MediRevv, and Athene Holding among others.

Why Choose Iowa for Incorporation?

The state of Iowa and federal agencies provide assistance for business entities in the form of grants and a variety of lending programs. Business incorporation in Iowa will not only aid in the overall growth of your business but will also provide various incentive programs.

Now let’s take a look at some of the salient benefits that are the reasons why small businesses are growing.

Iowa Business Tax Incentives

Iowa state and counties provide new startups with a variety of business tax incentives. Some of the popular incentives include:

• High Quality Jobs (HQJ) program: Company incorporation in Iowa enables businesses to qualify for this program. The aim of the program is to provide assistance in off-setting the costs incurred while expanding business, locating, or modernizing an Iowa business or facility. This includes Local property tax exemption of almost 100% of the value added to a property.
• Redevelopment Tax Credit Program: If you set up a company in Iowa that is into property development then this program is just ideal for you. The program aims towards providing tax credits for redeveloping those properties that are known as grayfield and brownfield sites.

Tax Advantages

Business entities can leverage on various tax advantages applicable after company incorporation in Iowa. For example:

• Tax assessment is not applicable on personal property and this includes corporate inventories of raw materials or saleable goods.
• There is no sales tax on purchase of natural gas or electricity to be used in the manufacturing process
• There is no use or sales tax on industrial equipment, machinery, or computers.

How do you incorporate in Iowa?

What is the process of business incorporation in Iowa? What type of documentation is required? These are some of the common questions that you will be confronted with if you planning to establish a new business in the state. The following steps will enable understanding of the entire process:

Business Type

What type of business do you want to set up in Iowa? There are different types of businesses that can be set up in Iowa using proper documentation. You can choose to form Co-operative Corporations, Limited Partnership, Professional Corporations, Limited Liability Companies (LLC), Limited Liability Partnerships (LLP), and Non-profit Corporation. The type of business entity you want to form can be either domestic or foreign. The forms and fee will be different for each type of entity. Know more

Business Entity Name

If you have already identified the type of business you want to set up then the next step towards incorporation in Iowa is to identify a name for your business entity. There are 3 steps towards business name formation and they are:

• Naming Requirements: The naming requirements for LLC should be pursuant to IA Code § 489.108 while that of a business corporation should be pursuant to IA Code § 490.401. The name of each limited liability company must contain words like “Limited Liability Company” or abbreviations like “L.L.C.” or “LLC”. A corporate name must contain words like “corporation”, or “incorporated” or abbreviations like “corp.” or “inc.”
• Business name search: You need to search for a business name that is not in use currently. You can conduct name search here.
• Name Reservation: Once you have identified business entity name, you can reserve the name with the Secretary of State for a period of 120 days.
• Name Registration: If you are a foreign entity planning to set up a company in Indiana then you will be required to register your business name with the Secretary of State.
  Application for Registration of Corporate Name

Choose a Registered Agent

A domestic business entity as well as foreign entity authorized to transact business in the state of Iowa will have to maintain a registered agent pursuant to IA Code § 490.501 for corporations and IA Code § 489.113 for limited liability companies. We are one of the respected registered agents in Iowa and will be responsible for initiating incorporation in Iowa through processing of your “Articles of Incorporation” for domestic corporations and “Application for Certificate of Authority” for foreign corporations.

Articles of Incorporation and Application for Certificate of Authority

You will be required to submit “Articles of Incorporation” governed by IA Code § 490.131 through 490.134 if your business is a domestic corporation and an ” Application for Certificate of Authority” pursuant to IA Code § 490.1501 through 490.1503, if it is a foreign business entity. In order to streamline the process of incorporation in Iowa, we can file documents on your behalf through the online process or through an expedited process.

Date Stamped Copies

As a part of the process of company incorporation in Iowa, we will ensure, you receive date-stamped and filed copies that verifies the state has filed as well as formed your corporation.

Costs and Fees associated with Iowa Incorporation

What would it cost to set up company in Iowa? Check Fees here!

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Iowa with its diverse and vibrant economy and complemented by its skilled workforce provides just the right infrastructure and opportunity to a start-up business. You can form an Iowa business, small or medium size without having to worry about future growth prospects. The state is already home to 267,733 small businesses that is playing a key role in the state’s annual growth rate of 2.2%. What makes Iowa even more attractive for businesses is the low operational costs and a pro-business environment.

We are one of the top Iowa registered agents and are familiar with all processes pertaining to the Iowa State and can provide information and assistance for successful set up of your business!

Let’s take a look at how you can form an Iowa business LLC or Corporation.

Iowa LLC Registration and Formation

LLC company formation in Iowa is governed by Chapter 489 of the Revised Uniform Limited Liability Company Act. The process for registration and formation of LLC is as follows:

Step#1: Maintain a registered agent

According to IA Code § 489.113 of the 2011 Iowa Code, a domestic and foreign LLC needs to continuously maintain a registered agent in the state. If you are planning to form an Iowa business, you will need to appoint an agent authorized to receive service of process on your behalf. We would take this opportunity to share with you the fact that we are one of the top registered agents in the state and have been responsible for over 11,494 businesses set up in Iowa.

We are in compliance with all regulations in the State of Iowa.

Step#2: LLC Name Reservation

One of the foremost steps towards company formation in Iowa is identifying a name for your business entity. What is the process? The process is as follows:

• Identify a name for your business entity
• According to IA Code § 489.108, the name should contain the phrase or words “limited liability company” or the abbreviations “L.L.C.”, or “LLC”.
• The chosen name should be distinguishable from any other name that exists in the records of the Secretary of State
• Apply for reservation of name pursuant to IA Code § 489.109
• File with the Secretary of the State along with the applicable fee. An LLC can reserve its name for a period of 120 days.

Step#3: Articles of Organization and Certificate of Authority

If you are planning to form an Iowa business LLC then the most important step is to prepare and file the proper documents for a Limited Liability Company. The steps are:

• If you want to register a domestic LLC then you will be required to file “Certificate of Organization” governed by IA Code § 489.201, Revised Uniform Limited Liability Company Act.
• If your business entity is a foreign LLC then you will be required to file an “Application for Certificate of Authority” pursuant to IA Code §489.1117, Revised Uniform Limited
• Liability Company Act.
• The application or documentation for registration of LLC can be filed with Secretary of State, Business Services Division, in person or online.

We can file the form on your behalf as your registered agent in the state and provide you with certified copies of the LLC registration.

In case, you have any questions regarding how to form an Iowa business, feel free to call us on 702-871-8678.

Iowa Corporation Registration and Formation

If you are planning to form a Corporation in Iowa then the procedure for registration and formation is as follows:

Step#1: Maintain a Registered Agent

According to IA Code § 490.501, 2009 Iowa Code, Iowa Business Corporation Act, a domestic and foreign Corporation needs to continuously maintain a registered agent in the state. If you are planning to form a corporation in Iowa, you will need to appoint an agent authorized to receive service of process on your behalf. We would take this opportunity to share with you the fact that we are one of the top registered agents in the state and have been responsible for over 11,494 businesses set up in Iowa.

We are in compliance with all regulations in the State of Iowa.

Step#2: Corporate Name Reservation

In order to form a corporation in Iowa, one of the key steps is identifying a name for your business entity. What is the process? The process is as follows:

• Identify a name for your business entity
• According to IA Code § 490.401, a corporate name should contain the phrase or words “corporation”, “company”, “incorporated”, or the abbreviations “Corp.”, or “Inc.”
• The chosen name should be distinguishable from any other name that exists in the records of the Secretary of State
• Apply for reservation of name pursuant to IA Code § 490.402.
• File with the Secretary of State, Business Services Division along with the applicable fee. A business corporation can reserve its name for a period of 120 days.

Step#3: Articles of Incorporation and Certificate of Authority

If you are planning to form a corporation in Iowa, then the most important step is to prepare and file the proper documents for a business corporation. The steps are:

• If you want to register a domestic corporation then you will be required to file “Articles of Incorporation” pursuant to IA Code § 490.131 through 490.134 of the 2009 Iowa Code.
• If your business entity is a foreign corporation then you will be required to file an “Application for the Certificate of Authority” to transact business in the state pursuant to IA Code § 490.1501 through 490.1503.
• The application or documentation for registration of a corporation can be filed with the Secretary of State, Business Services Division, in person or online.

We can file the form on your behalf as your registered agent in the state and provide you with certified copies of the incorporation.

If you have any questions regarding Iowa incorporation or LLC formation, you can simply visit the Iowa Business formation.

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