What do I need to do to start a small business in Iowa?

Every business is different, but there are some basic things that every business will need to do to start a business in Iowa. Every business will need to register with either the state or their county recorder, obtain licensing if they sell or provide services that require additional licensing, collect and remit sales and use tax, and pay unemployment taxes if you have employees.

Does Iowa require a business license?

Technically, there isn’t a single “Business License” in the state of Iowa. In order to operate your business in Iowa, you may need to register your business with the state, obtain sales and use tax permits, and even pay unemployment taxes for your employees.

How much does it cost to register a business in Iowa?

The cost to register your business in Iowa will vary depending on what type of business structure you have, and what type of licensing you will need to obtain to get everything up and running. Your cost could range from around $10 to hundreds of dollars.

Nonprofit Startup Guide

File the Proper Paperwork

STEP THREE

File the Proper Paperwork

Articles of Incorporation

Filing your nonprofit’s Articles of Incorporation officially mark the creation of your organization.

They document where and when the organization was formed and other information necessary to verify its existence. There are some basic provisions the IRS looks for when you apply for 501(c)(3) exemption.

Customize the articles for your organization and make sure you meet the state and IRS requirements from the start to help avoid having to make amendments later or risk getting your 501(c)(3) application rejected. Some states require you to publish your articles of incorporation, so be mindful of any deadlines and publishing instructions.

Employee Identification Number

Apply for Employer Identification Number (EIN) Form SS.4

This unique, nine-digit number is assigned by the IRS to identify your nonprofit. All types of nonprofits will apply for an EIN, not only those that hire employees. You will use your EIN to open a bank account, apply for 501(c)(3) status, and submit 990 returns to the IRS.

501c(3)

Apply for 501(c) –

File Federal IRS Form 1023, Form 1023-EZ, or Form 1024

Obtaining 501(c) tax exemption comes with many benefits. You will be able to apply for grants and grow your fundraising success in addition to being exempt from IRS income tax. 501(c) is the chapter of the Internal Revenue Code that regulates nonprofit organizations. Like others, you may be most familiar with 501(c)(3) nonprofits, including charities and foundations. 501(c)(3) nonprofits apply using Form 1023 or Form 1023-EZ.

Review the criteria for each application and make sure you meet the eligibility requirements set out by the IRS. Other types of nonprofits, including 501(c)(4)s and 501(c)(6)s, apply using Form 1024. After reviewing and approving your application, the IRS will return a Determination Letter officially recognizing your exemption.

Completing the federal application for tax exemption can be significantly easier with the assistance and support of a professional, such as a SCORE Mentor. Find someone with the expertise to ensure the correct application is being used and is completed accurately. A well-prepared application takes time, over 100 hours by IRS estimates, so put yourself on the path to success by finding a specialist to walk alongside you in the journey – from start to tax-exempt finish!