Starting a Business – Tips from the Iowa Department of Revenue

Starting a business is exciting……and also a little scary.  There are lots of steps new business owners need to take and be aware of.  One of those steps is getting the business set up with the Iowa Department of Revenue (IDR).  Here are some helpful hints from IDR to hopefully make that part of the process a bit easier.

IDR issues permits for many types of state taxes, including:

• Sales tax – charged to customers on retail sales of goods and taxable services.
• Withholding tax – Iowa state income tax withheld from employee wages.

Businesses can apply for permits online using the IDR website at https://tax.iowa.gov/.  The online application also allows you to register for corporation/partnership/LLC income tax.

Sales & withholding taxes are filed electronically through IDR’s eFile & Pay system.  Access and filing information is sent once the application is processed in about 4 to 6 weeks.  Businesses can operate once they have submitted the application, even if a permit hasn’t been issued yet.

Sole proprietors should remember they may need to make quarterly estimated income tax payments.

There are also a large number of Iowa tax benefits and credits available to businesses, which you owe it to yourself to become familiar with.

And don’t forget to contact the federal Internal Revenue Service (IRS) for information about your federal tax responsibilities.

IDR encourages you to learn more about these issues, by using the following resources:

• Starting or Expanding a Business webinar – 8/26/15The Iowa Department of Revenue has partnered with the Center for Business Growth and Innovation at the University of Northern Iowa to provide free tax webinars to small business owners on IASourceLink.   In this webinar, get up-to-date on state and federal tax information for small business, and learn about other technical and financial resources available in Iowa.
• On the Department’s website:

• Starting a Business
• Standard Contacts, Resources, and Tax Benefits for Businesses
  • Sign up for e-mail updates from the Department:
• https://public.govdelivery.com/accounts/IACIO/subscriber/new
  • Follow IDR on Twitter
  • Like Us on Facebook – www.facebook.com/iowadepartmentofrevenue
  • E-mail Taxpayer Services at [email protected]
  • Call Taxpayer Services at 515-281-3114 or 1-800-367-3388

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Content contributed by Greg Stokke, Iowa Department of Revenue