Iowa is the largest corn producer worldwide, but beyond its acres of fields, the Hawkeye State is also a great place to set up a small business.
Those who long to start a business in Iowa’s farm country should do some research for a business name first. Iowa, like all other states, has rules about business names. You pick just any name. The name can’t already be in use by another company in the state. To check on a name’s availability, you’ll need to do a business name search. We’ll show you how to make the most of a business name search and offer some tips to get your LLC growing in Iowa.
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How to check business name availability in Iowa
The State of Iowa wants your business to have a name that no one else in the state is using. To find out if your business name is distinguishable, you will need to do a business name search. Here’s how to do it:
1. Go to the Iowa Secretary of State’s website
Once you are on the Secretary State’s webpage, go to the search tool. You can use that to check name availability.
2. Fill out the search bar
Iowa lets you search by name or keywords of a business. Enter the name you are considering into the search bar. The state allows you to enter the first few words of a name.
3. Hit search
The search will generate a list that has those keywords you entered. It is a broad search and will include every business that includes those words even if they aren’t in the same order or if they are similar.
4. Consider reserving a name
After running an Iowa business name search, you have two options: You can reserve a name or you can register the name. You should reserve a name if you aren’t planning to set up the business immediately.
Iowa allows business owners to reserve a name for 120 days for $10.
To do so, you’ll fill out a quick form and provide the payment.
Again, you don’t need to reserve a name if you plan to officially set up your business with the state of Iowa, but if you’re just doing some homework and plan to set up your business later, reserve the name now so it’s not taken when you’re ready.
5. Check domain name availability
We created a tool that makes it easy.
How to name your Iowa business
Now that you know a little more about the business landscape in the state, it’s time to start generating a list of names for your business. To do so, follow these steps:
1. Write down basic details about your business
Start by creating a verbal picture of your business. Think about what your business will offer and who it will serve. Will you sell a specific product or service? Who’s going to buy it? Jot down a few details about your company as a starting point.
Next, start creating a list of adjectives that describe your business. Think in terms of keywords. What keywords would your customer use to find the product or service that you offer? Write them down.
2. Stay away from initials and hard-to-say words
There are plenty of businesses that include initials, like A&J Plumbing, but consider upping your game with something a bit more creative and descriptive.
The same goes for names that are hard to say. If your last name is Stackowaski, for example, it’s not conducive to a business name because it’s too hard to pronounce.
3. Don’t pigeon-hole your business
Be careful not to select a name that limits your company’s potential growth. Think about where your business will be in five, ten, even twenty years, and take that into consideration when creating a name.
A company named Bob’s Bargain Books, for example, is a good name, but what if they plan to sell vintage records and cassettes down the road? The name only refers to books, so when vintage music is added people won’t associate it with the store.
4. Consider using a name generator
At this point, you probably have a list of a few ideas. Rather than brainstorm a bunch of different combinations, why not try a name generator? You simply enter a few of the adjectives that you came up with into the search bar and you’ll get a list of possible names.
Name generators can take some of the hassles out of creating a name. Most name generators will only show you available names too, which is helpful.
Check out some of Namechk’s name generators below:
What kind of business structure is right for your Iowa company?
As you research available business names in Iowa, you’ll also want to think about what kind of business you want to establish. There are a handful of options to choose from, but some of the most common are Sole proprietorship and LLC.
- A sole proprietorship is ideal for small businesses with no employees that want to test their business out. There’s virtually no paperwork to set up this kind of business, which is a plus. However, a sole proprietorship is not a separate business entity, which means you’re financially and legally responsible for any problems that might arise.
- An LLC, or limited liability company, provides a certain amount of liability protection. Your personal assets and your business are separate with this business structure, which means if the business is sued or goes bankrupt, you will not be forced to use your personal cash reserves to bail the business out.
Steps to register your Iowa business
Ready to set up your business in IA? Here’s what you do:
1. File your Articles of Organization
Visit the Iowa Secretary of State website and fill out the Articles of Organization. To fill this out, you’ll need to have an available business name, address, and contact information.
2. Name a registered agent
You’ll also need to name a registered agent. A registered agent is the point-person for your company who will receive important documents like tax notices or legal documents.
A registered agent must be trustworthy and be available during regular business hours when documents are delivered. The business owner can serve as the registered agent in Iowa, or another person or company can be named.
You might decide to name your accountant or co-founder, for example. You can also hire a registered agent service to serve in this role. Northwest Registered Agent, ZenBusiness, and Bizee are a few examples. These companies will receive documents on your behalf and notify you of their arrival.
3. Pay the filing fee
Every state charges a filing fee to file LLC formation documents with the government. In Iowa, the cost is $50.
4. Wait for approval
Iowa will review your application and typically provides approvals within five business days. Once approved, your business is officially set up.
Our picks of the best registered agent services
Financing options for an Iowa business
There are several options for financing a business in Iowa although none is guaranteed to give you money or a loan. The Small Business Development Center is a good resource for funding options. Its services are confidential and free, including business funding counseling.
Here’s a look at some funding options in Iowa.
Business loan
You can also apply for a business loan with a lender. Most banks require 20% down and proper collateral to qualify for a loan. Having a good business plan helps garner a loan even without the full 20 percent down payment. Banks are one source for SBA small business loans but not all banks make SBA loans so you may need to visit several to find one that works with SBA. Make sure a bank responds with a sure answer about whether they can provide for an SBA loan as some may not fully answer to keep your business with them.
An SBA loan is the way to go for a small business loan because it guarantees a large percentage of the loan. This means a bank can make a loan that normally they wouldn’t make because of the risk.
Check local options
Check with the local Chamber of Commerce about financing. Some chambers have loan programs with them usually geared toward Main Street businesses or manufacturing companies.
Regional planning offices or councils of government can have some resources for finances. Its purpose is to serve a regional area of city and county governments so they may know of financing options for new businesses and sometimes work with or manage monies for business loans.
The Iowa Economic Development Authority has financing programs that are linked to a direct loan or grant for eligible businesses. They have several programs and will help link a business owner to finances if the business falls within their criteria.
Iowa small business facts
Before you head for the corn state to set up a business, it would be beneficial to check out these facts from the U.S. Business Administration:
- There are 270,484 small businesses in Iowa and that makes up 99.% of the state’s economy.
- There are 651,635 Iowan workers who work for a small business, making up 48.1% of all employees in the state.
- Iowa’s growth rate in the third quarter of 2018 was 3.3%, slower than the U.S. average of 3.4%.
- The unemployment rate in February 2019 was 2.4%, below the U.S. average of 2.8% during the same period.
- The top industries for Iowa in 2016 were healthcare and social services, accommodations and food service, manufacturing and retail trade.
FAQs
To further help entrepreneurs, check out these frequently asked questions about starting a business in Iowa:
Why is it so important to check on business name availability?
Iowa will not allow two businesses in the state to have the same name. There are many reasons for this, but at its core, it’s to avoid any confusion. For example, if someone plans to sue Bob’s Fruit Stand and there are two of these companies in the state, things can get complicated quickly.
All businesses must have a unique name. And, you can’t just add a hyphen to a name to make it different. Each name must be “distinguishingly different.”
Do I need a sales tax permit for a business in Iowa?
You will need a sales tax permit if you have a retail business that sells services or products that are taxable by Iowa law. You will need to file an Iowa Business Tax Registration form, available at all SBDC centers and at accounting offices. You can file by mailing it in or by fax. You can also complete the form online.
Is there any place where a nonprofit can get help getting started in Iowa?
Yes, nonprofits can get guidance about setting up an organization by contacting the Larned A Waterman Iowa Nonprofit Resource Center.
Do I need special permitting to start a business in Iowa?
Every business is required to have certain licenses and permits but that differs for each business, depending on the industry. If an Iowa licensing board of authority regulates your business, you will need a license to do business. Professional services and those in the food industry, including restaurants, bars, grocery stores need special permits and licenses.
Check with a nearby Small Business Development Center to get some clear answers about permitting for your business as each business has unique requirements.
Where can I look to find out about labor laws?
Most information about labor laws can be found in the U.S. Department of Labor. There are three websites listed with the U.S. Department of Labor that are helpful to those either starting or growing a business. They are:
– U.S. Department of Labor
– eLaws Advisors
– Employment Law Guide
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