Iowa is one of the top 10 most attractive states for small businesses. If you plan to launch your own series LLC formation process in Iowa, have no doubt that this state has a lot to offer.
You can expect low filing fees, cost-efficient company maintenance, various federal deductions, and beneficial taxation, including several tax credit programs from the state.
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Compared to a traditional limited liability company, the main advantage of a series LLC lies in its structure. Thus, you can expect additional flexibility and liability protections for each of your "protected series" (or cells) within the parent company.
Each cell is fully protected from liabilities, lawsuits, and penalties imposed on any other cell in the series.
Before you find out how to start a series LLC in Iowa, you should know that you will need to choose a distinguishable and available name for your business. Iowa law doesn't have any specific requirements for series LLC names.
Thus, you should simply follow these next basic rules:
You can check if your chosen business name is available in the state. To do this, visit the Secretary of State's website.
Iowa does not require you to reserve a business name for the venture in advance. However, if you've already chosen an attractive business name but don't plan to start your business operations right away, you can still "save" the name for up to 120 days.
The cost of the name reservation service in Iowa is $10. Before you find out how to form a series LLC in Iowa, note that if you are ready to register your business, you won't need the service, which lowers the final LLC Iowa cost.
On your way to learning how to form a series LLC in Iowa, you need to choose a registered agent (RA) for your business. This is required by Iowa Code § 489.113.
An RA can be an individual or a commercial entity with a physical address in the state. If you prefer to hire a professional service provider, it's advisable to choose the best registered agent in 2022.
Alternatively, you can also use the services of Iowa Registered Agent. The cost of an RA on the website is $49 a year. The provider has a transparent pricing policy with no hidden fees or additional charges.
Next, Iowa series LLC registration involves submitting the Certificate of Organization to the Secretary of State's office. The filing fee is $50, and you can always register online to expedite the process.
To file a series LLC in Iowa, you don't need to include the names and addresses of all your managers or members in the company. However, you will still need to indicate the following details in the statement of information:
If you're in doubt, we recommend hiring an attorney to help you complete the Certificate of Organization (also known as the Articles of Organization).
Iowa law does not require series LLCs to draft an Operating Agreement (OA). Neither must your OA be filed with the state. Additionally, according to Iowa Statute § 489.110, there are no details about the information to be included in the document.
However, you should know that an OA is a legal document that outlines the ownership and operating procedures of the company. That is why it's highly recommended to have this agreement (in written form) for your series LLC registration in Iowa.
Here's why you need an OA for your business:
Essentially, an operating agreement is an internal company document, i.e. a contract for the company, which formalizes its structure, rules, and regulations for everyone to follow.
We recommend hiring a professional attorney when creating your OA.
Iowa law requires series LLC owners to file a biennial report with the Secretary of State every two years. This can be done online via Fast Track Filing.
The cost to file a two-year report is $60 (non-refundable). A biennial report is filed by the umbrella LLC on behalf of all the entities within it. The due date is between January 1st and April 1st of every odd-numbered year. This lowers the final LLC Iowa cost.
Note that if you miss your filing deadline, the state will not charge any late fees. However, your series LLC may be administratively dissolved.
You will also need to report income for your series LLC. This task is best outsourced to an accountant with experience. Thus, we recommend you hire one that’s familiar with the series LLC tax code.
Before you understand how to get a series LLC in Iowa, you will need to obtain a federal employer tax identification number (EIN or FEIN). This 9-digit number is used by the IRS to identify a business entity in the state.
You will need an EIN if you want to:
The obtaining procedure is not required if you already have an existing business in the U.S. Note that all your child series will also require an EIN.
Even though the IRS doesn’t have any specific guidelines for obtaining an EIN, you will still need to:
In most cases, it takes 1 business day to process the form and receive the EIN. Make sure you use your series LLC's name combined with your child series name for each extra EIN.
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999
Fax: (855) 641-6935
The process of starting a series LLC in Iowa is not expensive. The basic costs include:
If you need to form a series LLC in Iowa as a foreign entity, the filing fee is $100.
Also, the list of costs for forming a series LLC in Iowa includes the following services/documents:
|Application for Reservation of Name||$10|
|Fictitious Name Resolution (DBA)||$5|
|Certified Document Copies||$5 plus $1 for each page|
|Certificate of Good Standing||$5|
Also, depending on your industry and geographical location, you may need certain business licenses or permits (on the federal, state, and local level) to conduct business in the state. In this case, the final cost of your series LLC will be higher.
Thus, to obtain a sales tax permit, you can visit the Iowa Department of Revenue’s website. Additionally, you go to IASourceLink to see a list of professions that require specialized business licensing.
To get more information about business licensing requirements, make sure you check with the local Iowa city/county government offices.
Once you know how to create a series LLC in Iowa, you might need to complete these next steps:
The Iowa Business License Information Center portal has all the licensing information you need. A list of licensed business areas includes:
Another important step after starting a series LLC in Iowa is to get the right insurance policies for your business. The most popular insurance types in the state are as follows:
It is also recommended to obtain commercial real estate and auto insurance, as well as workers' compensation insurance. If you plan to temporarily suspend the company, business income insurance will also be required.
Once you officially open a series LLC in Iowa, your company can be considered fully operational. However, as an owner of a venture, you will also have a variety of obligations to various federal, state, or county agencies.
First and foremost, these include:
To make sure your SLLC is keeping up with state and local taxes, you can go to the Department of Revenue's website to see a full list of taxes in the state.
Also, even if your series LLC has only a manager and no employees, paying FICA tax (federal payroll tax) is mandatory in Iowa.
It is also mandatory for a series LLC to pay federal taxes:
Social Security tax is 12.4% at the IRS rate. The Medicare tax rate is 2.9%.