Forming an LLC in
Iowa IA
Checked November 4, 2026 · How we score
Filing fee
$50
Articles of Organization
Annual fee
$15
per year, normalised
State income tax
3.8%
top rate
Cost rank
#8
of 51, first-year fees
Iowa LLC costs
| Filing fee | $50 |
|---|---|
| Annual report / franchise fee | $15 Biennial report: $30, due April 1 of each odd-numbered year (≈$15 per year). |
| First-year state fees | $65 |
| Registered agent | Required (about $50–$300/year if you don't use your own address in the state) |
| Newspaper publication | No |
| Anonymous ownership | No |
| Processing time | 3 days |
Iowa taxes for LLCs
| Personal income tax (top) | 3.8% Flat 3.8% for 2026. |
|---|---|
| Corporate income tax | 7.1% Flat 7.1% from 2026. |
| State sales tax | 6% |
| Franchise / gross receipts | No LLC franchise tax. Local option sales tax of up to 1% applies in most counties. |
A single-member LLC is a disregarded entity: profit flows to the owner's personal return. Federal income tax applies in every state. Non-US owners without US-source business income generally owe no US income tax but must file Form 5472 with a pro-forma 1120 each year.
Pros and cons
Why form in Iowa
- Cheap $50 filing and biennial $30 report
- Flat 3.8% income tax is among the lowest
- Series LLCs allowed
Watch out for
- Corporate rate of 7.1% is high for C-corps
- Fewer venture-capital precedents than Delaware
Best for: Midwestern small businesses · Agricultural and service LLCs
Iowa LLC: common questions
How much does an LLC cost in Iowa?
Filing the Articles of Organization in Iowa costs $50. After that, expect $30 every two years ($15 per year). Biennial report: $30, due April 1 of each odd-numbered year (≈$15 per year). A commercial registered agent, if you need one, is typically $50–$300 a year extra.
Do I need a registered agent in Iowa?
Yes. Iowa requires every LLC to keep a registered agent with a physical street address in the state to accept legal and tax notices. You can act as your own agent if you live there, but non-residents and owners who want privacy usually pay a commercial agent, typically $50–$300 a year.
Can a non-US resident form an LLC in Iowa?
Yes. Iowa does not require US citizenship, residency or an SSN to own an LLC; you need a Iowa registered agent address and then an EIN from the IRS (by fax or mail with Form SS-4 if you have no SSN). A foreign-owned single-member LLC must also file Form 5472 with the IRS every year, even with no US income. Check what Iowa publishes, since member or manager names may appear in public filings.
Does Iowa have a state income tax?
Yes. Flat 3.8% for 2026. LLC profits normally pass through to the owners' personal returns. Corporate income tax: Flat 7.1% from 2026.
How often does an Iowa LLC file a report?
Iowa LLCs file a biennial report every two years, in odd-numbered years, by April 1. The fee is $30 and it is filed online with the Secretary of State.
Sources
Iowa Secretary of State business filings
- Iowa Secretary of State / business filing office
- Tax Foundation – 2026 state income tax rates
- LLC University – LLC filing and annual fees by state (cross-check)
Similar states
Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.