Starting a business can be a whirlwind. There are many decisions on the table: When you finally build it, will your customers come? One of the most significant decisions is determining the structure of your business. Check more with the help of best commercial insurance companies
Do you need to limit your personal liability and protect your assets like a corporation? Do you need the flexibility to make decisions like a sole proprietorship? Building your business as an LLC has advantages, and plenty of new business owners find a flexible LLC structure is suitable for their needs. Depending on your goals, you may be among them.
Check out your other options if you aren’t sure that an LLC is the right business structure. When you’re ready to proceed, LLC formation in Iowa is not complicated. However, there are a few steps to complete to give your business the solid structure it needs to go the distance.
1) Check if your business name is available
Every business in Iowa needs a unique business name. It will help differentiate your business from the competition and create brand recognition in your community. It is also a legal necessity in Iowa. You can search the state’s business name database to find whether your preferred company name is available. If it’s already in use, you won’t be able to register it. This includes nearly identical names, such as if another business uses the plural or possessive version of a name you want to register. For example: Grant Wood’s Art Supply Store and Grant Wood Art Supply Store are too close.
It’s not enough for your name to be unique. You’ll need to include “Limited Liability Company” or an abbreviation as part of your registered name. This can consist of “LLC,” “L.L.C.,” “Ltd.” and “Co.” at the end of your name.
There are some additional rules in Iowa. Your business name cannot contain certain words like “treasury,” “FBI,” or “Iowa police.” These can confuse customers into believing your business is an official organization. Your name may not contain trademarked terms like “Olympic” nor imply your business carries out illegal activities.
You can do business as an entity that is not the Iowa LLC name you register. This DBA, also known as a “fictitious name” or a “trade name,” must be registered with the Iowa Secretary of State. Just fill out a fictitious name resolution and file it online. Alternatively, you can mail your copy. Either way, you’ll have to pay the $5 filing fee.
2) Claim your name
Almost ready to file? You can reserve your favorite business name for up to 120 days by filling out an application for a Reservation of Name for your domestic limited liability company. There is a $10 fee for the service, and you can return your form by mail or file online.
Ready to secure your name permanently? You’ll have to complete your LLC’s Articles of Organization, also called the Iowa Certificate of Organization. You’ll file your business formation documents with the Secretary of State in Des Moines in the Lucas Building. There is no form to fill out, but your Certificate of Organization should meet all Iowa LLC Act guidelines. There is a one-time $50 registration fee. In 15 to 20 business days, you will have an approved LLC in Iowa.
Congratulations!
As you work through this process, your LLC will need to designate a registered agent residing in the state of Iowa. This person or corporation should have a physical address in Iowa, be available during business hours, and be ready to communicate all your LLC’s business with the state. The registered agent will be the primary point of contact for service of process, tax documents, and compliance correspondence. There’s no need for this person to be a member of the LLC, and many LLCs choose to use a registered agent service.
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