Forming a PLLC in Iowa is a process of registering a legal entity for licensed professionals. It is a popular option for small business owners who want to build and maintain relationships with colleagues.
If licensed individuals start a PLLC in Iowa, it gives them a number of advantages, like the protection of the participant’s personal assets and the possibility to choose the method of taxation: as a pass-through entity, a C-corporation, or an S-corporation.
The process of starting a PLLC in Iowa is similar to the one of starting a limited liability company. Yet Iowa law imposes the most stringent requirements for PLLC participants: the state law requires all PLLC members to be licensed professionals in their field.
Among other things, they should all be licensed professionals. So, obtaining business licenses and various permits is mandatory to start a company.
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Before asking “How to start a PLLC in Iowa?”, make sure your type of business is on the state's list of licensed activities:
Also, real estate brokers, landscape architects, family therapists, and social workers are on this list.
The first thing you need to do before starting a PLLC in Iowa is to choose a name for your company. It should include one of the following word combinations:
Moreover, the company name should indicate the type of its activity. For example, the phrase "law office" is preferred for lawyers.
Next, for Iowa PLLC registration, you will need to appoint a registered agent. His/her responsibilities include:
For Iowa PLLC registration, you need to fill out and file Articles of Organization with the Secretary of State's office. It should include the following information:
You can submit a statement of information online. It will cost you $50.
Want to know how to create a PLLC in Iowa and ensure its smooth operation? Then you should draft Operating Agreement. This is an important document that contains information about the business structure.
The Operating Agreement is not a mandatory document in the state of Iowa. But you should take the time and hire an attorney to draft it.
According to Iowa's LLC Act Section 489.110, this document governs all aspects of a company's business operations.
It will give you such advantages:
Another advantage is that the operating agreement takes precedence over Iowa law. There is an opportunity to avoid those basic procedures that are set by default but are disadvantageous to you.
In order to file a PLLC in Iowa, you need to get a federal tax identification number (EIN).
To do this:
If you already have a business in the U.S., you do not need a new EIN. Just contact the IRS representatives to make all the necessary changes. The same procedure is needed when you change the name of your company.
Obtaining an EIN is completely free.
The basic PLLC Iowa cost includes the following fees:
The list of mandatory expenses in the state also includes obtaining the necessary licenses and permits.
The list of other fees includes:
|A PLLC name reservation for up to 120 days||$10|
|Obtaining a DBA||$5|
|Obtaining certified copies of documents||$5 + $1 for each page|
|Certificate of Existence||$5|
If you decide to use LLC formation services to register your company, it will increase the cost of setting it up, but you will get rid of a lot of problems.
Want to know how to set up a PLLC in Iowa easily and quickly? Choose a contractor to register your company in advance.
After PLLC registration Iowa, there are many more formalities that need to be completed in order for your company to operate legally and productively. This list includes:
Also, for PLLC formation Iowa, you will need to obtain all the licenses required for your business.
Insurance for your business is also needed when forming a PLLC in Iowa. The following ones are necessary:
If, after creating a company you plan to suspend your company operations, you will additionally need business income insurance.
Now, the process of opening a PLLC in Iowa is complete, and your company is ready to start operations. But the founder still needs to perform many tasks regularly to meet all the requirements of Iowa state law.
This list includes:
Use Iowa's Fast Track Filing system for easy biennial filing and tax compliance.
The tax requirements for your company depend on which type of taxation you choose for your PLLC.
For example, if you pay taxes as a C-Corporation, your PLLC is not a pass-through legal entity. So, company members pay taxes separately. Their dividends are subject to corporate tax.
If you choose to be taxed as an S-Corporation, you will need to pay corporate income tax on your share of the company's profits.
The list of required taxes for PLLCs in Iowa includes:
Also, the manager and all PLLC employees have to file individual tax returns and pay payroll taxes.