Thinking of Starting A Business?
Updated: August 2, 2023 | Posted: January 12, 2023
Starting a business in Iowa involves several steps, including planning, completing legal requirements, and making financial decisions. These steps, courtesy of the Small Business Administration will help you plan, prepare and manage your business. Additional information has been included in each step from Allamakee County Economic Development & Tourism.
Step 1
Write a Strategic Business Plan
A business plan is essentially a blue print or road map for your business. The Small Business Development Center or SCORE can assist with business planning. Contact the ACEDT Office at 563.568.2624. LivePlan is also a helpful tool: www.liveplan.com
Step 2
Get Business Assistance and Training
Take advantage of the many free resources and services available in Iowa. Contact the Iowa SourceLink Concierge at 866.537.6052.
Step 3
Choose a Business Location
When starting or expanding a business, determining location requires planning and research. You will also need to be aware of county and city requirements.
Contact your local municipality.
Step 4
Finance Your Business
Loans, personal savings, friends and family, and crowdfunding are all options for financing a new or expanding a business. Take the time to explore and understand your options.
Step 5
Determine the legal structure of Your Business
When choosing the type of legal structure for your business, you will need to consider how you’ll pay your taxes and how much personal liability exposure you will risk. Your options may include: sole proprietorship, partnership, Limited Liability Company (LLC), Corporation, S Corporation, Nonprofit or Cooperative.
Step 6
Register a Business Name
All businesses in Iowa must register their business name if they don’t intend to operate under their legal name. How you register depends on the way you legally structure the business. To be sure the business name you’ve chosen is not already in use in Iowa, do a name search in the Secretary of State Business Entities Search database.
To register as a sole proprietor or simple partnership, contact your local county recorder to file a Register a Trade Name Certificate.
All other structures, contact the Iowa Secretary of State.
Step 7
Get a Tax Identification Number
The federal Tax Identification Number for businesses is known as an Employer Identification Number (EIN). It a unique number used to identify a business, much like a Social Security number identifies an individual person. In most cases, businesses are required to obtain an EIN.
Contact the Iowa Department of Revenue at idr.iowa.gov or 515.281.3114.
https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employee-identification-number-ein-online
Step 8
Register for State and Local Taxes
In addition to federal tax requirements, businesses will need to pay state and local taxes, which may vary from location to location.
Contact the Iowa Department of Revenue at idr@iowa.gov or 515.281.3114.
Step 9
Choose a Business Location
When starting or expanding a business, determining location requires planning and research. You will also need to be aware of county and city requirements.
Contact your local municipality.
