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Forming an Iowa LLC

How can Safe Shield help form an Iowa LLC?

Safe Shield - Your Partner in Forming an Iowa LLC Safe Shield is sought by many businesses who desire to cut their liabilities and succeed in their fields. Our service implements a three-step process in order to initiate your business safely and successfully. Through experienced guidance by our business formation experts, you can rest assured that your financial and personal investments will be protected and organized in such a manner that will ensure profitability.

In establishing your Iowa LLC, Safe Shield will assist you in the preparation and filing of the Articles of Organization with the Iowa Secretary of State. In addition, we will search name availability for your Iowa LLC. Safe Shield will prepare your Operating Agreement as well as all of the other necessary foundational documents, while also offering a number of other important personalized services that will benefit your company. After the filing of the documents, your Iowa LLC will then be recognized as a legitimate business entity by the state.

Click Here for more detail about how to set up your business properly from the very start.

Registration of your Iowa LLC’s name

Selecting a name for your business is the initial step in the proper formation of your Iowa Limited Liability Company. The name that you select must bear the words “Limited Liability Company” or the initials “L.L.C.”. If the company is registered in a language other than English, you must use words or initials of the same meaning. It cannot bear any of the following words: “Corporation”, “Incorporated”, “Limited Partnership” or the initials “Corp.”, “Inc. or “L.P.”. It must never bear any word or group of words that is not allowed by the existing law for the said LLC.

Your chosen name must also be distinguishable in the records of the secretary of state from all of the following:
  • The name of any other Iowa Limited Liability Company, Limited Partnership, or Corporation. Nor can it be identical to a previously registered foreign LLC, Limited Partnership, or Corporation.
  • A name authorized by the existing laws of the State of Iowa.
  • The false name used by an overseas company, “Foreign Limited Partnership”, or “Foreign Limited Liability Company” that has been given the authority to conduct business in Minnesota because its actual name is not available.
With the help of Safe Shield, you can choose the names you would most like to use. It is also very important to check for the availability of the names first. Safe Shield will search the possible names of your Iowa Limited Liability Company before filing. And, after you have chosen a particular name, Safe Shield will assist you in registering the chosen name with the State of Iowa.

Requirements in forming your Iowa LLC

For all Iowa LLC formations, the Certificate of Organization is required to be filed in the office of the Secretary of State. Iowa law requires that the following information is included:
  • The name of the company
  • The company street address
  • The registered agent’s name
  • The complete Registered Office address of the company
  • Additional provisions as chosen by the Members (Owners) of the Iowa LLC. These provisions must also comply with Chapter 489 of the Iowa state statutes
Click Here for more detail about how to set up your business properly from the very start.

Filing your Iowa LLC

Your LLC is legal and official when the Articles of Organization are filed by the Iowa Secretary of State, and they are determined by that office to meet all state laws.

The document must be signed by an organizer, manager, member, or fiduciary of the Iowa LLC, as specified in the document. The company will then receive a certified copy of the Articles of Organization from the State of Iowa.

When forming an Iowa LLC, there are other matters regarding organization that must be followed. The rules that apply are as follows:
  • The organizer can be any person natural to the United State that is over 18 years old and the person does not necessarily need to be a member of the organization.
  • An Iowa LLC requires that at least one person or business is listed as the organizer; however additional organizers may be included.
  • The organizer may be an individual, a corporation, a Limited Liability Company, a government or governmental agency, a business trust, an estate, a private trust, a partnership or association, or any other entity considered legal by the State of Iowa.
A member is essentially an owner or co-owner of the LLC. Any legal entity can become a member by obtaining a share in the LLC at the time of its formation or within the span of time provided in an operating agreement. A member must also be in compliance with any requirements of the Operating Agreement. The member must also include a contribution or subscription agreement for membership that will be included in the LLC records.

Safe Shield - Your Partner in Forming an Iowa LLC Members are also allowed to resign from membership; however there are some restrictions on how this may be done. The Operating Agreement is crucial to define the terms of any possible resignation. Any member has the right to resign from membership when the process is laid out clearly and it is not prohibited in the Operating Agreement. If there is not a specified process for resignation, the member will have the right to resign only upon not less than six months' prior written notice to each member. In some instances, even with an Operating Agreement members may be prohibited from withdrawing based on the agreement, or at the very least be subject to stringent withdrawal guidelines.

In Iowa, it is recommended that all members join to create a legal document called an Operating Agreement, which includes all terms of any agreement. The document can be revised or changed at will if it is done so in writing with the agreement of all members. However, all changes must comply with all state laws.

There are other requirements concerning membership, minimum numbers, requirements for eligibility, and the actual process of securing membership in which Safe Shield will assist. Safe Shield will ensure all requirements are met and make it simple for the LLC to be established and operate successfully.

In the matter of member contributions to the Iowa LLC, any member may contribute cash, property, services, promissory notes, or some other binding promise to provide cash, property, or other good and valuable considerations, or to render any services.

Other Safe Shield Services for Iowa LLC’s

Safe Shield - Your Partner in Forming an Iowa LLC Safe Shield can help provide your Iowa LLC with a Registered Agent in Iowa. Iowa does require a Registered Agent, and it is important that all LCCs have an agent duly registered with the state. This agent is the individual authorized to receive letters, correspondence, and notices coming from the state including court documents.

Safe Shield is also pleased to inform you about any continuing obligations set by the State of Iowa. This would include information about all required record keeping according to state law. The state requires certain records to be kept that are available for inspection at the Registered Office of the Iowa LLC. The records must include:
  • An up to date listing of each member and manager including full name and business address
  • Copies of the LLC's federal, state, and local income tax returns and reports, if any, for the 3 most recent years
  • A copy of the Articles of Organization that includes any amendments made
  • A copy of any Bylaws or Operating Agreement currently in effect
  • All financial statements
  • Any general reports made to members
  • Any Member Control Agreements
  • A contribution statement of any contributions
  • A formal explanation of any restatement of value
  • Any written consents received from members
  • Any written consents received from governors or managers
  • Any meeting minutes of the governors, managers or members
  • A copy of all agreements, contracts, or other arrangements made
Safe Shield can also offer some assistance in the matter of state and federal taxes, though they cannot give tax advice. An LLC can avail of a few tax incentives and more tax deductions. Because it is not necessary for an LLC to be a separate entity like a corporation, it can be a “pass-through entity”. This means the owners of an Iowa LLC may report losses in business or increase in profits on their own tax returns, similar to a partnership. LLC’s with only one owner are treated by the IRS as “single-member” or solely owned business which means that in itself, the LLC does not remit taxes and does not necessarily have to submit a tax return.

In clear terms, this means that owners of LLC’s pay taxes based on their legitimate part of the profits on their personal income tax returns, and not the LLC they are a part of. You also have the option of filing IRS Form 2553 or 8832 in which you may choose corporation taxation if you want to keep your profits within the LLC. Also, the tax rate for LLC’s in Iowa varies, depending on the taxable net income.

Your LLC is required to get a federal tax identification number or “employment identification number (EIN)” which is very much like the social security number of an individual. A separate tax identification number will be needed by your LLC so you can open a bank account. Safe Shield can assist you in filing for certain tax requirements like your Federal Tax ID Application as well.

It is also helpful to have assistance with future state filings. Filings, which must be completed with the Iowa Secretary of State, must be submitted annually with the necessary filing fee (if applicable). The fees may be paid by two checks, one payable to the judge of probate, and one payable to the Iowa Secretary of State. The checks must cover all charges for the State Secretary of Iowa.

Click Here for more detail about how to set up your business properly from the very start.

Forming your own LLC is an exciting and rewarding endeavor, but it can also be wrought with challenges and dangers. Protect your interest and contact Safe Shield today!