Summary
The fact that you may need to register with state agencies like Iowa Secretary of State is a sneaky misconception that many folks miss.
However, with the rise of remote work, states have begun cracking down and levying penalties for those who (unknowingly) fail to register.
If you're considering operating in Iowa, use this guide to:
- Explore the that triggers the need to register with the Iowa Secretary of State, including criteria such as physical presence, economic activity, and advertising efforts.
- Determine where and how to register with the Iowa Secretary of State.
- Understand additional requirements such as Registered Agents, registration with other state departments, and ongoing annual reports.
What criteria would trigger the requirement to register with the Iowa Secretary of State?
Iowa typically considers a business to be "doing business" in the state if it meets any of these conditions:
- Physical Presence: Maintaining an office, store, warehouse, or any other physical location within Iowa's borders.
- Employees in Iowa: Employing individuals who work and reside in Iowa.
- Regular Activity: Consistently engaging in sales, providing services, or conducting other income-generating activities within the state.
- Income from Iowa: Deriving significant revenue from customers or clients located in Iowa.
Activities that are NOT usually considered "doing business" in Iowa:
- Isolated Transactions: Conducting sporadic or infrequent sales, without a pattern of repeated activity.
- Litigation: Defending or bringing legal action within Iowa courts.
- Owning Property: Simply holding property or investments within the state.
- Solicitation of Orders: Soliciting sales of tangible property if orders are approved and filled outside of Iowa, and the company doesn't have a physical presence in the state (this is protected under Public Law 86-272).
Where do I register, and what else is required?
- A Certificate of Good Standing is required
In addition:
A Registered Agent is required to serve as the company's physical in-state presence to receive important legal documents. Do not fall victim to the common misconception that you can leverage an in-state employee as your Registered Agent. It's far too risky.
You'll want to review the other registrations required in Iowa. Here's a Iowa specific guide we put together.
What is the registration fee?
The fee charged by Iowa is $100.
How long does Iowa usually take to process?
Iowa usually takes approximately 1 - 2 weeks to process registrations.
What is required ongoing?
Each state has a complex schedule of required annual reports, which can vary by entity type. Let's take a look at Iowa's:
C-Corporation
- Filing Date: By the end of the registration anniversary month
- Filing Frequency: Biennial
LLC
- Filing Date: By the end of the registration anniversary month
- Filing Frequency: Biennial
Non-Profit
- Filing Date: By the end of the registration anniversary month
- Filing Frequency: Biennial
There is an Easier Way
Automate registration and annual report tracking in AbstractOps.This guide should definitely help reduce some of the confusion for Iowa. However, if you have multiple states to worry about, you may look to:
Automate state registrations and annual reports
Centralize email, snail mail, state ID’s, and registered agents, and
Take control of action items, eliminating risks before they become penalties.
Start the AbstractOps product demo to see how easy this can be.
Note: For the avoidance of doubt, nothing provided here shall contemplate, constitute or include tax or legal advice. Always double check with state agency websites for the most up-to-date requirements.
