So you’ve decided to move your LLC to Iowa, or maybe you’re just considering it. Either way, you’ve come to the right place. This guide will walk you through the process of Iowa LLC domestication step by step, so you can rest assured that everything is done correctly.
If you are in a similar situation, keep on reading. This Iowa LLC domestication guide has all the information that you seek.
What is Iowa LLC Domestication?
LLC domestication in Iowa means changing the location or domicile of your LLC from any state into Iowa. In other words, if you want to move your Georgia LLC to Iowa, for instance, LLC domestication is the best way to do so.
By LLC domestication, you change the governing laws of your LLC. Domesticating your LLC into Iowa will have the following benefits over other methods of moving your LLC to Iowa:
- LLC domestication allows you to maintain previous business relationships.
- No need to renew contracts made in the previous state.
- No need to change bank accounts and credit rating.
- You can retain your EIN (Tax ID Number).
- No need to rehire employees.
- No need to transfer assets.
How to Domesticate your LLC in Iowa
There’s always something new to learn in the ever-changing landscape of business, and this same goes for LLC domestication in Iowa. Below, we explained the process of transferring an LLC from any state to Iowa via IA LLC domestication in 3 simple steps.
Acquire a Certificate of Good Standing
A certificate of good standing is also called a certificate of existence or certificate of status in some states. It is a legal document issued by the state authorities, usually the secretary of state.
In other words, this official document states that you timely pay your LLC taxes, submit LLC annual reports and fees, follow the state laws in all business operations: hence, your business is in good standing with the state.
Iowa LLC domestication requires that your LLC does not have any outstanding debts or taxes in the home state. So you have to pay state taxes, LLC annual fees, and other fees in the state where you initially registered your LLC.
To prove that your LLC is up to date on all important business marks, you need to submit a certificate of status while filing Articles of Domestication in Iowa.
Approval of LLC Domestication
Before you file articles of domestication with the Iowa Department of State, you need to acquire approval from the state where you originally formed your LLC.
Contact the state department where you initially filed your articles of organization and acquire permission to move your business out of that state.
For instance, if you want to move your Texas LLC to Iowa, you need to get permission to transfer your LLC out of Texas from the Texas Secretary of State.
File an Articles of Domestication Iowa
To formally move your LLC from the LLC’s home state to Iowa, you need to file articles of domestication downloaded with the Iowa department of state.
With Iowa Articles of Domestication, you will see Iowa articles of organization form as well. So you need to file the Iowa certificate of domestication along with the Iowa articles of domestication.
To download both forms, click on the link below:
Moreover, you also need to submit the certificate of good standing to show that your LLC does not have any outstanding state taxes or debts in the previous state.
Finally, depending on the LLC management structure mentioned in your LLC operating agreement, you need the signature of the authorized person to sign the Iowa LLC domestication form. After completing all the information, send the complete forms to:
321 E. 12th St.
Des Moines, IA 50319
Requirements to Complete Iowa Articles of Domestication Form
As mentioned earlier that Iowa articles of domestication are filed with the Iowa articles or organization; the following information/documents will be needed to complete the LLC domestication process:
- Certificate of good standing from the previous state
- LLC domestication approval from the previous state
- Name of the domesticating entity (The name of your LLC with which you used to operate your business in the previous state)
- The name of the previous state where your LLC was registered
- The date when your LLC was formed initially
- Iowa articles of organization form with Iowa registered agent information
- Signature of the authorized person to initiate LLC domestication
- The effective date of the LLC domestication, if it is not the same as the date of filing of the Iowa articles of domestication
Iowa LLC Domestication Fee (Cost)
To convert an out-of-state LLC into a Iowa LLC, you need to pay the following fee to the Iowa Department of State along with the Iowa articles of domestication:
- Articles of Domestication: $25
- Articles of Organization: $125
- Total to Domesticate and file: $150
Alternatives to LLC Domestication Iowa
If you do not plan to move your LLC to Iowa permanently, or for any other reason Iowa LLC domestication does not seem suitable, the followings are the alternative to Iowa LLC domestication:
What Next After Iowa LLC Domestication?
Once the state of Iowa domesticates your LLC, the laws of the previous state will no longer apply to your LLC.
Now your LLC will be governed under the LLC statute of Iowa. Now, to remain compliant with the laws of Iowa, you need to:
- Make sure you pay outstanding LLC federal taxes or debts in the previous state.
- Keep your registered agent information up to date. If you don’t have one, you can review top registered agent services here.
- Follow your LLC operating agreement.
- Acquire licenses and permits specifically required by the new state.
- Regularly submit annual reports and fees.
- Pay Iowa sales tax (6% on the total sales).
Moving an LLC out of Iowa
The Iowa Department of state allows an LLC to move out of Iowa via LLC domestication. However, the law of the other state must permit LLC domestication in its statute.
For the states that allow LLC domestication, you need to submit a Iowa certificate of status to domesticate your LLC there. Click on the following link to get a Iowa certificate of status.
FAQs on How to Domesticate an LLC in Iowa
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