In many states, the most difficult part of starting a business can be filling out the government forms. That’s not the case in Iowa, where it’s usually simple to file, costs are low, and the paperwork is manageable—as long as you get the details right.

Below, we’ll explain how to incorporate in Iowa and provide information on the fees and how your business can benefit.

What’s in this article?

• How do you incorporate a business in Iowa?
  
• What are the benefits of incorporating in Iowa?
  
• What are the legal requirements to incorporate in Iowa?
  
• How much does it cost to incorporate in Iowa?
  
• How Stripe Atlas can help
  

How do you incorporate a business in Iowa?

Forming a business in Iowa is straightforward. The state keeps fees low and paperwork minimal, and the requirements are simple. Whether you’re setting up a corporation or forming a limited liability company (LLC), here’s what you need to do:

Choose your structure

Start with the basics, like whether you're forming an LLC or a corporation. LLCs are easier to run and give you pass-through taxation by default. Corporations are more structured, but they’re the right choice if you plan to raise money or issue stock. Both protect your personal assets.

Name your business

You’ll need a name that’s available in Iowa and ends with the proper indicator for your business type (e.g., “LLC” for LLCs, “Corp.” or “Inc.” for corporations). The Iowa secretary of state has a search tool to see whether your business name is available.

If you’re not ready to file but have chosen a name, you can reserve the name for 120 days. If you’re ready, skip this reservation—your formation filing will lock in the name.

Designate a registered agent

Every corporation and LLC in Iowa needs a registered agent with a street address in the state (not a PO Box). This person or business is your legal point of contact; if the state sends a notice or you’re served a legal document, this person is the designated recipient.

You can be your own agent if you live in Iowa and don’t mind your address being public. Otherwise, you can hire a service. If your agent changes, you can update it.

File your formation paperwork

This is what officially creates your business. If you’re forming a corporation, you file articles of incorporation. For an LLC, you file a certificate of organization. Both can be submitted online through the Fast Track Filing portal or by mail.

Unlike many states, Iowa doesn’t provide these forms; you must draft your own document that includes:

• Your business name

• Registered agent information

• Principal business address

• The name and address of each incorporator (or organizer for LLCs)

• For corporations, your business purpose, the names and addresses of directors, and how many shares you’re authorizing

Filing by mail typically takes longer than filing online. Once your paperwork is approved, the state will notify you via email.

Handle the post-filing basics

Set up your internal documents: corporations should draft bylaws, appoint officers, and issue shares; LLCs should write an operating agreement, even if there’s only one owner. These won’t be filed with the state, but they matter if you need to prove who owns what or how decisions get made.

Register for taxes and any local licenses or permits

Depending on your business, you might need to register with the Iowa Department of Revenue, particularly if you’re selling taxable products or hiring employees. You might also need local licenses or permits (especially for regulated businesses such as food service or construction). Iowa doesn’t have a general statewide business license, but your city or county might.

File your biennial reports

To stay in good standing, you’ll need to file a report every two years: LLCs file in odd-numbered years, and corporations file in even-numbered years. You can file through the same Fast Track Filing portal.

What are the benefits of incorporating in Iowa?

Iowa makes it easy to make your business official and offers a few key advantages with its taxes, filing requirements, and business incentives. Let’s look at what you stand to gain:

No annual franchise tax

Many states charge you a recurring fee for existing as a business, whether or not you make a profit. In Iowa, only financial institutions pay a franchise tax. Once you’re set up, your only recurring state requirement is a biennial report. There’s no hidden maintenance tax.

Low up-front and ongoing costs

The costs of incorporating in Iowa are affordable. Filing your formation paperwork costs $50, with no upcharges based on the number of shareholders, business size, or industry. Small additional filings often cost $5–$10.

Tax flexibility, especially for small businesses

Iowa recognizes the federal S corporation, or S corp, election, which can help reduce self-employment taxes. The state also offers a standard corporate tax structure without surprise surcharges. The corporate income tax rate is tiered based on profits, with a top rate of 7.1% on income over $250,000—but that applies only to C corps.

Access to incentive programs

Iowa rewards businesses that create jobs, invest in local infrastructure, or build something worthwhile in the state.

If you qualify, you can apply for tax credits, including:

• The New Jobs Tax Credit

• The High Quality Jobs Program

• The Research Activities Tax Credit

Iowa businesses use these programs to reduce their tax bills and offset hiring or expansion costs. These programs are designed to be accessible for businesses of all kinds.

What are the legal requirements to incorporate in Iowa?

Iowa’s incorporation process is simple, but you must still get certain requirements right. Here’s what you’ll need to have to get your business up and running in good standing.

An available, compliant name

Your business name has to be distinct from anything on record with the secretary of state, and potentially confusing overlap with existing businesses isn’t allowed. You can use the state’s Business Entities Search tool to check for availability. You’ll also need to include the correct suffix: “LLC” or “Limited Liability Company” for LLCs; “Inc.,” “Corp.,” or a similar option for corporations.

A registered agent with an Iowa address

Businesses in Iowa need a registered agent who has a physical street address in the state (no PO Boxes). This is the person or business that receives legal notices and state communications. You can name yourself if you’re based in Iowa, or you can hire a registered agent service. If you don’t keep an active registered agent on file, the state can administratively dissolve your business, so keep that information up-to-date.

Formation documents filed with the secretary of state

Iowa incorporation filing can be done online or by mail. You must draft your own documents, but it doesn’t require a legal background.

You’ll provide:

• Your business name (include the correct suffix)

• Your registered agent’s name and address

• Your principal office address

• The name and address of each organizer (LLC) or incorporator (corporation)

For corporations, you’ll also need to include:

• The names and addresses of directors

• The number of authorized shares

• Your business purpose

Internal governance documents

Corporations are required to adopt bylaws, document board actions (such as appointing officers and issuing shares), and keep a record of current shareholders. LLCs aren’t subject to the same requirements, but it’s best practice to create an operating agreement that lays out who owns what and how decisions are made.

Iowa tax registration

If your business will sell taxable goods or services or hire employees, you’ll also need to register with the Iowa Department of Revenue.

To register, you might need:

• A sales tax permit

• A withholding tax account (if you’ll have employees)

• Unemployment insurance registration (via Iowa Workforce Development)

These registrations can be completed online.

Biennial report filing

Iowa requires a report filed every two years, with LLCs filing in odd-numbered years and corporations filing in even-numbered years. It’s a basic information update of your registered agent, business address, and names of directors/members. It’s quick to file and can be done online.

How much does it cost to incorporate in Iowa?

Iowa keeps business formation costs low and predictable. There are no hidden taxes, no inflated annual fees, and no upcharges based on business size. Here’s what to expect, up front and long term:

Filing fees

To form your business, you’ll file a certificate of organization (LLC) or articles of incorporation (corporation). The filing fee is $50 for either one.

Registered agent

There’s no state fee to list your registered agent, but if you hire a professional service, you’ll usually pay $100–$300 per year.

Optional name reservation

If you want to reserve your business name before you file, it costs $10 and gives you 120 days of exclusivity.

Optional “doing business as” (DBA) registration

If you plan to operate under a name different from your official LLC or corporation name, you can register a fictitious name (a DBA) for $5. Depending on where you’re operating, some counties might have requirements and fees as well.

Biennial report

In Iowa, you file a report every two years after incorporation. LLCs pay $30 to file online or $45 by mail or in person. Corporations pay $60 to file, regardless of method.

Other potential costs

Depending on your business, you might also need to budget for:

• Business licenses or permits

• Legal help drafting operating agreements or bylaws

• Insurance

All in, you can get fully incorporated in Iowa for less than $100 if you file online and act as your own agent. Even if you hire help and use a paid agent, you can still keep your total first-year cost relatively low.

How Stripe Atlas can help

Stripe Atlas sets up your company’s legal foundations so you can fundraise, open a bank account, and accept payments within two business days from anywhere in the world.

Join 75K+ companies incorporated using Atlas, including startups backed by top investors like Y Combinator, a16z, and General Catalyst.

Applying to Atlas

Applying to form a company with Atlas takes less than 10 minutes. You’ll choose your company structure, instantly confirm whether your company name is available, and add up to four cofounders. You’ll also decide how to split equity, reserve a pool of equity for future investors and employees, appoint officers, and then e-sign all your documents. Any cofounders will receive emails inviting them to e-sign their documents, too.

Accepting payments and banking before your EIN arrives

After forming your company, Atlas files for your Employer Identification Number (EIN). Founders with a US Social Security Number, address, and cell phone number are eligible for IRS expedited processing, while others will receive standard processing, which can take a little longer. Additionally, Atlas enables pre-EIN payments and banking, so you can start accepting payments and making transactions before your EIN arrives.

Cashless founder stock purchase

Founders can purchase initial shares using their intellectual property (IP) (e.g., copyrights or patents) instead of cash, with proof of purchase stored in your Atlas Dashboard. Your IP must be valued at $100 or less to use this feature; if you own IP above that value, consult a lawyer before proceeding.

Automatic 83(b) tax election filing

Founders can file an 83(b) tax election to reduce personal income taxes. Atlas will file it for you—whether you are a US or non-US founder—with USPS Certified Mail and tracking. You’ll receive a signed 83(b) election and proof of filing directly in your Stripe Dashboard.

World-class company legal documents

Atlas provides all the legal documents you need to start running your company. Atlas C corp documents are built in collaboration with Cooley, one of the world’s leading venture capital law firms. These documents are designed to help you fundraise immediately and ensure your company is legally protected, covering aspects like ownership structure, equity distribution, and tax compliance.

A free year of Stripe Payments, plus $50K in partner credits and discounts

Atlas collaborates with top-tier partners to give founders exclusive discounts and credits. These include discounts on essential tools for engineering, tax, finance, compliance, and operations from industry leaders like AWS, Carta, and Perplexity. We also provide you with your required Delaware registered agent for free in your first year. Plus, as an Atlas user, you’ll access additional Stripe benefits, including up to a year of free payment processing for up to $100K in payments volume.

Learn more about how Atlas can help you set up your new business quickly and easily, and get started today.