If you have a limited liability company (LLC) in Iowa, you will need to draft and file a number of documents with the state to maintain your business. The following article covers some of these major documents that will need to be filed and the timelines for doing so.
In this article, we discuss the following annual filing requirements for LLC’s in Iowa, including:
- Biennial Reports for LLC’s in Iowa
- Iowa Business Taxes
- Iowa Employer Taxes
- Sales and Use Taxes in Iowa
Biennial Reports
Iowa requires LLC’s to file biennial reports with the Secretary of State. While you can still print out the report, fill it out and then mail it into the Secretary of State, the Iowa Secretary of State now has an online portal that allows you to fill in and submit all of the information online. These reports are due on odd-numbered years (2021, 2023, etc.) and are due by March 31. The Secretary of State will send an email to the address you registered your business with (should you have included it) as well as sending a notice to your registered address via mail. The current fees for filing are $30 if done online or $45 if filing by mail.
Iowa Business Taxes
In Iowa, most LLC’s are considered pass through tax entities for purposes of income taxes. In other words, the responsibility of paying income taxes passes through the LLC to the individual LLC members. By default, it’s the members of the LLC who pay the taxes of the LLC. Some states impose separate taxes or fees on LLC’s to be able to do business within the state. Luckily, Iowa isn’t one of those states.
If the owners of an LLC choose to have the business treated as a corporation for tax purposes, they will have to pay taxes. This election is made by filing IRS Form 2553. Unlike a standard pass-through LLC, when an LLC elects to be taxed as a corporation, the company must file its own tax return. In Iowa, the corporate tax rate is calculated using marginal rates applied to the net taxable income and is paid to the Department of Revenue. Iowa’s corporate tax return form is Form IA-1120.
Iowa Employer Taxes
If your LLC has employees you will need to pay employer taxes. Taxes will need to be paid both federally and in Iowa.
You will need to withhold and pay employee income taxes to the Department of Revenue. To do this, you will register your business with the Department of Revenue either online or with a mailed form (Form 78-005a). Once registered, you will have to file withholding taxes on a periodic basis, typically quarterly. The Department of Revenue provides incentive to file online.
Additionally, you will have to register to pay unemployment insurance taxes. These taxes are handled by Iowa Workforce Development. You can register and handle the payment of taxes through the MyIowaUI website. There is no mail in form available.
Sales and Use Taxes in Iowa
If your LLC sells any goods to customers in Iowa, you have to collect and pay sales tax. To do this, you must register with the Department of Revenue and submit tax payments periodically. Only if you’re doing business in Iowa are you required to collect these taxes. If you have a physical presence such as a business location or are soliciting business in the state, you will have to pay taxes.
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