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In Iowa the permit that matters most to a new seller is a tax permit. It is free, it comes from the Department of Revenue, and you can ask for it online. The company filing is a separate step with the Secretary of State.
Is there one Iowa business license?
We did not find one on the pages we read. Iowa splits the job three ways. The Secretary of State files and records the entity. The Department of Revenue issues tax permits. Professional licensing sits with the Department of Inspections, Appeals and Licensing (DIAL). A page on the Professional Licensing Bureau site points to DIAL for licensing information, and keeps discipline records for professions the bureau handled.
What does the Department of Revenue require?
Its Business Permit Registration page says your business must register for a separate permit number for each of these tax types:
- Sales and use tax
- Automobile rental
- Hotel and motel
- Construction equipment
- 911 surcharge
- Household hazardous materials
- Withholding tax
- Water service excise tax
- Fuel tax
The permits are free of charge. Register through GovConnectIowa. Have your Federal Employer Identification Number ready. Our EIN guide shows how to get one. For corporations, partnerships, LLCs and associations, the page also asks for each business owner's full name and Social Security number.
What happens after I apply?
Keep a copy of your request. You may start to collect tax right away, and that copy serves as proof of registration until your account number arrives. The letter with your account number, IDR ID and filing instructions can arrive in as early as one business day. The page asks you to allow up to 6 weeks from submission for a mailed letter. If you register through GovConnectIowa, the letter is available electronically.
How long does a permit last?
Once issued, a permit is effective until the owner cancels it or the Department revokes it. If you close the business, cancel every tax permit and file returns through the cancellation date. Permits do not transfer from one owner to another. The page also says the Department no longer reinstates business tax permits, so a business must apply for a new one.
What changes must I report?
The Department needs to hear about a new business name, a new physical location, a new mailing address and a change of corporate officer, partner or responsible party. If the new name is quite different, it may ask for papers such as Articles of Amendment. For sales tax, a move to a different county means you cancel the original permit and register again. You can also ask to change your filing frequency by logging in to your GovConnectIowa account.
Where do I check a permit or a license?
For retail sales and use tax, the Department links a Tax Permit Database on data.iowa.gov that covers active and inactive registrations. For the company record, use the Secretary of State search described on our Iowa business guide. For a professional license, start at DIAL.
What does forming the LLC add?
The Secretary of State's fee for an LLC certificate of organization is $50. The biennial report costs $30 online or $45 on paper, and LLCs file in odd years. These are entity filings and not licenses. See the Iowa LLC page.
What is left out?
City and county permits, alcohol and tobacco licenses and each trade's fees are outside this page, because we did not read those pages. Neighbours differ, so compare Wisconsin, Illinois and Minnesota. This is general information, not legal advice.