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Iowa · How-To Guide

How do I get a business license?

Iowa Secretary of State (entity formation) / Iowa Department of Revenue (sales tax permit) / City/County for local licenses
Step by Step

How to do it

  1. Determine your business structure: sole proprietor, LLC, corporation, partnership
  2. Register your business entity with the Iowa Secretary of State (for LLCs and corporations) - file online at sos.iowa.gov/business or in person/by mail
  3. Obtain an EIN (Employer Identification Number) from the IRS at irs.gov if forming an entity, hiring employees, or operating as a partnership
  4. Register with the Iowa Department of Revenue for a Retail Sales Tax Permit (also called Streamlined Sales Tax Registration) if you sell taxable goods or services in Iowa - register online at tax.iowa.gov; free to register; required to collect and remit Iowa sales tax
  5. Register with Iowa Workforce Development for unemployment insurance if you have employees - iwd.iowa.gov
  6. Check with your city or county for local business licenses - most Iowa cities require a local business license; county requirements vary; unincorporated areas may not require a county license
  7. Check for industry-specific state licenses: contractors, health professionals, real estate agents, cosmetologists, engineers, and many others require state professional licenses through the Iowa Professional Licensing Bureau or specific state agencies
  8. Renew entity biennial report with Secretary of State; renew local license per municipality schedule
Details

What you need to know

Required Docs
  • Business name and type of activity
  • Iowa business address
  • Entity formation documents if LLC or corporation
  • EIN or Social Security number
  • Industry-specific certifications if applicable
Fee
LLC formation: $50 (online) / $100 (paper); corporation: $50 (online) / $100 (paper); biennial report: $30 (online) / $45 (paper); Sales Tax Permit: free; local business license: varies by city ($25-$200+) RENEWAL: Entity biennial report due every 2 years in the month of formation anniversary; local license: annual per municipality ONLINE OPTION: Yes - sos.iowa.gov/business (entity formation and reports); tax.iowa.gov (sales tax registration); various agencies for professional licenses WHERE TO GO: Iowa Secretary of State (entity formation); Iowa Department of Revenue (sales tax); City Clerk (local license); appropriate licensing board (professional licenses)
Online Option
Yes - sos.iowa.gov/business (entity formation and reports); tax.iowa.gov (sales tax registration); various agencies for professional licenses
Where to Go
Iowa Secretary of State (entity formation); Iowa Department of Revenue (sales tax); City Clerk (local license); appropriate licensing board (professional licenses)
County-specific variations apply

Iowa cities each independently administer local business licenses. Iowa does not have a statewide county-level business license requirement. Larger cities (Des Moines, Cedar Rapids, Davenport, Sioux City, Iowa City, Dubuque, Waterloo, Ames, West Des Moines) have their own business license portals and requirements. In unincorporated county areas, typically only state registration is required. Verify with your specific city or county before operating.

Iowa Notes

Important state-specific details

  • Iowa LLC formation: $50 online / $100 paper - one of the more affordable fees among US states.
  • Biennial report: $30 online / $45 paper - due every 2 years; failure to file results in administrative dissolution.
  • Iowa sales tax: state rate 6%; no local sales taxes in Iowa (simpler than most states); groceries taxed at 0% (food exemption significant for retailers).
  • Iowa Professional Licensing Bureau: covers numerous professions including real estate, engineering, architecture, cosmetology, and others - iowa.gov/licensing.
  • Iowa Contractor's Registration: contractors doing work over $2,000 must be registered - Iowa Division of Labor - labor.iowa.gov.
  • Iowa has a graduated state income tax (recently reformed - confirm current rate at tax.iowa.gov); corporations pay Iowa corporate income tax.
  • DBA (Assumed Name/Fictitious Name): file with the Iowa Secretary of State for LLCs and corporations doing business under a different name; sole proprietors may file with county recorder.
Official Source

State office contact

State Office
Iowa Secretary of State, Business Services - sos.iowa.gov/business | (515) 281-5204; Iowa Department of Revenue - tax.iowa.gov | (515) 281-3114; Iowa Professional Licensing Bureau - iowa.gov/licensing