Here's what you need in Iowa
Official state business portal: IASourceLink. IASourceLink is the state supported starting point for new businesses in Iowa. It links you to free help and to the Business License Information Center, which lists licenses and permits.
| What you need | Who issues it | Official fee | Links | Checked |
|---|---|---|---|---|
| General state business licenseNo general state business license. Iowa does not have a general state business license. The licenses you need depend on your type of business or profession, and your city or county may have its own rules. | Iowa Economic Development Authority | Not needed | Source | Nov 7, 2026 |
| Form an LLCCertificate of Organization. To form an LLC, file a Certificate of Organization with the Iowa Secretary of State. | Iowa Secretary of State | $50 filing fee | Applyat filings.sos.iowa.govSource | Nov 7, 2026 |
| Business name (DBA)Trade name statement (county recorder). A person doing business under a trade name must first record a verified statement with the county recorder in the county where the business operates. LLCs, corporations and limited partnerships registered with the state do not file this. | County recorder | Fee not published.Ask the agency | Source | Nov 7, 2026 |
| Sales tax permitIowa sales and use tax permit. If you make taxable retail sales in Iowa, register for a sales and use tax permit with the Iowa Department of Revenue through GovConnectIowa. The department says most permits are free. | Iowa Department of Revenue | Fee not published.Ask the agency | Applyat govconnect.iowa.govSource | Nov 7, 2026 |
| Unemployment insurance (once you hire)Unemployment insurance tax account. Within 30 days after you first pay wages to employees working in Iowa, register an unemployment insurance tax account with Iowa Workforce Development at myIowaUI. | Iowa Workforce Development | You pay tax on wages | Applyat myiowaui.orgSource | Nov 7, 2026 |
| Federal tax ID (EIN)Employer Identification Number (EIN). You need an EIN if you have employees or pay certain federal taxes, and banks often ask for one. Apply online with the IRS and you get the number in minutes. | Internal Revenue Service (IRS) | Free | Applyat irs.govSource | Nov 7, 2026 |
Costs after you start
What an LLC in Iowa pays or files after it is formed.
| What you need | Who issues it | Official fee | Links | Checked |
|---|---|---|---|---|
| Biennial ReportEvery Iowa LLC files a Biennial Report with the Secretary of State every two years. Filing online costs less than filing on paper. | Iowa Secretary of State | $30 every 2 years online ($45 on paper) | Applyat filings.sos.iowa.govSource | Nov 7, 2026 |
Licenses by type of business
State level licenses. Your city or county may add its own permits.
| What you need | Who issues it | Official fee | Links | Checked |
|---|---|---|---|---|
| Hair salon, barber shop or nail salonEstablishment license. Salons and barber shops in Iowa apply for one establishment license from the Department of Inspections, Appeals, and Licensing. Apply at least 30 days before you open; the license is for one location. | Iowa Department of Inspections, Appeals, and Licensing (Barbering and Cosmetology) | $80 application fee, nonrefundable | Source | Nov 7, 2026 |
| Child care in your homeChild Development Home registration. You must register as a Child Development Home if you care for more than 5 children in your home, or more than 6 when at least one is school aged. Smaller homes may register if they wish. | Iowa Department of Health and Human Services | Fee not published.Ask the agency | Source | Nov 7, 2026 |
| Selling alcohol (bar or restaurant)Class C retail alcohol license. Bars and restaurants get a Class C retail alcohol license from the Iowa Department of Revenue. The fee depends on the population of the city. | Iowa Department of Revenue, Alcohol and Tax Compliance Division | $715 to $1,625 a year for a Class C license, by city size | Applyat revenue.iowa.govSource | Nov 7, 2026 |
| General contractorContractor registration. Iowa has no general contractor license, but contractors who earn at least a set amount a year from construction must register with the state every year. Plumbing and HVAC businesses need a separate license. | Iowa Department of Inspections, Appeals, and Licensing | $50 application fee | Source | Nov 7, 2026 |
| Selling homemade food (cottage food)Cottage food (no license needed). You can sell homemade foods that do not need to be kept hot or cold, made in your home and sold directly to the customer, without a license or inspection. Foods must be labeled; foods that need temperature control need a home food processing establishment license. | Iowa Department of Inspections, Appeals, and Licensing | Free, no license needed | Source | Nov 7, 2026 |
What is different in Iowa
- At $50, the LLC filing fee is among the lowest: only 3 of 49 verified states charge less.
- Where to file a business name (DBA): A person doing business under a trade name must first record a verified statement with the county recorder in the county where the business operates. LLCs, corporations and limited partnerships registered with the state do not file this.
- Contractor licensing in Iowa: Iowa has no general contractor license, but contractors who earn at least a set amount a year from construction must register with the state every year. Plumbing and HVAC businesses need a separate license.
- At $80, the salon or shop license fee is near the middle: 11 of 36 verified states charge less and 24 charge more.
- Biennial Report: $30 every 2 years online ($45 on paper). Every Iowa LLC files a Biennial Report with the Secretary of State every two years. Filing online costs less than filing on paper.
Steps to start a business in Iowa
Pick a structure and register it
Sole owners can start under their own name. To form an LLC, file the Certificate of Organization with the Iowa Secretary of State ($50).
Get a free EIN
Apply on irs.gov. You need it to hire, and banks usually ask for it. Never pay a website for an EIN.
Register your business name
If you trade under a name that is not your legal name, file a DBA with the County recorder.
Register for sales tax
If you sell taxable goods or services, get your permit from the Iowa Department of Revenue before your first sale.
Get a state license for your type of business
Salons, child care, alcohol, building work and home food each have their own state rules. See the table above.
Check city and county permits
Ask about a local business license, zoning, health and building permits before you sign a lease.
Register as an employer when you hire
Open a state unemployment insurance tax account with the Iowa Workforce Development.
City and county permits
Cities and countys in Iowa can require their own business license, zoning approval, health permit or building permit. Rules change from place to place, so ask your city hall and county clerk before you sign a lease. Home businesses often need a home occupation permit.
Questions about business licenses in Iowa
Do I need a business license in Iowa?
No. Iowa does not have a general state business license. The licenses you need depend on your type of business or profession, and your city or county may have its own rules.
How much is a business license in Iowa?
There is no general state business license fee in Iowa. A local business license, if your city or county requires one, is priced by that city or county. State licenses for some types of business have their own fees, listed on this page.
How much is an LLC in Iowa?
The Iowa Secretary of State charges $50 filing fee to file the Certificate of Organization. To form an LLC, file a Certificate of Organization with the Iowa Secretary of State.
How much does an LLC cost per year in Iowa?
Biennial Report: $30 every 2 years online ($45 on paper). Every Iowa LLC files a Biennial Report with the Secretary of State every two years. Filing online costs less than filing on paper.
Does an LLC need a business license in Iowa?
Yes, if your type of business or your location requires one. Forming an LLC only registers your company with the state; it is not a license. An LLC in Iowa still needs any state license for its type of business and any local business license from its city or county.
Do I need a sales tax permit in Iowa?
Yes, if you sell taxable goods or services. If you make taxable retail sales in Iowa, register for a sales and use tax permit with the Iowa Department of Revenue through GovConnectIowa. The department says most permits are free.
How do I get a DBA in Iowa?
A person doing business under a trade name must first record a verified statement with the county recorder in the county where the business operates. LLCs, corporations and limited partnerships registered with the state do not file this.
Can I sell homemade food from home in Iowa?
You can sell homemade foods that do not need to be kept hot or cold, made in your home and sold directly to the customer, without a license or inspection. Foods must be labeled; foods that need temperature control need a home food processing establishment license. Fee: Free, no license needed.
Do contractors need a state license in Iowa?
Iowa has no general contractor license, but contractors who earn at least a set amount a year from construction must register with the state every year. Plumbing and HVAC businesses need a separate license. Official fee: $50 application fee.
Do I need an EIN?
You need an EIN if you have employees or pay certain federal taxes, and banks often ask for one. Apply online with the IRS and you get the number in minutes. It is free: never pay a website for an EIN.
Sources
Every fact on this page comes from an official government page, checked on the date shown. Facts we could not confirm are marked Not yet verified and show no number. How we check.
- General state business license Iowa Economic Development Authority Checked Nov 7, 2026
- Form an LLC Iowa Secretary of State Checked Nov 7, 2026
- Business name (DBA) County recorder Checked Nov 7, 2026
- Sales tax permit Iowa Department of Revenue Checked Nov 7, 2026
- Unemployment insurance (once you hire) Iowa Workforce Development Checked Nov 7, 2026
- Official business portal Iowa Economic Development Authority Checked Nov 7, 2026
- Hair salon, barber shop or nail salon Iowa Department of Inspections, Appeals, and Licensing (Barbering and Cosmetology) Checked Nov 7, 2026
- Child care in your home Iowa Department of Health and Human Services Checked Nov 7, 2026
- Selling alcohol (bar or restaurant) Iowa Department of Revenue, Alcohol and Tax Compliance Division Checked Nov 7, 2026
- General contractor Iowa Department of Inspections, Appeals, and Licensing Checked Nov 7, 2026
- Selling homemade food (cottage food) Iowa Department of Inspections, Appeals, and Licensing Checked Nov 7, 2026
- Biennial Report Iowa Secretary of State Checked Nov 7, 2026
- Federal tax ID (EIN) Internal Revenue Service (IRS) Checked Nov 7, 2026