How do you determine what organization structure a business should be formed?

For sole proprietorships, general partnerships, and unincorporated nonprofit associations there are no filings required to form the entity. There are some optional filings that could be made with the secretary of state. The traditional rule is that a business of this type is named after the owner. However, in some circumstances, the state will require a verified trade name statement (DBA) with the county recorder. The purpose is to help normal individuals research a business if needed. According to the Iowa Code Chapter 547, you need to file this unless the person is operating the business with their surname (or filed as an entity). Any changes in the name or ownership will also need to be recorderd.

All other entities—including LPs, LLCs, Corporations, and nonprofit corporations—need to file with the Secretary of State. This rule also applies to entites formed in other states and wich to transact business in Iowa.

Any changes to those formation documents require other filings as required in Iowa Code Chs. 489 (LLC), 490 (Business Corporations), and 504 (Nonprofit Corporations).

In Iowa, it costs:

  • 100 for LP
  • 50 for LLC
  • 50 for Corporations
  • 20 for Nonprofit

Foreign entities are charged slightly more.

Each entity must also file a biennial report (every other year) and pay the biennial fee.

Disclaimer

The content contained in this article may contain inaccuracies and is not intended to reflect the opinions, views, beliefs, or practices of any academic professor or publication. Instead, this content is a reflection on the author’s understanding of the law and legal practices.

Will Laursen

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