Licenses and permits in Iowa

The Secretary of State filing is not a license to do the work. Iowa does not have a general business license. What you need depends on the business or the occupation.¹ Start with the state’s license center, then the city and county, then the board that regulates your kind of work.

What’s different in Iowa

• No general business license. IASourceLink keeps a searchable database of licensing requirements.¹
• Contractors register with the state, at a low dollar line. The fee is $50² a year. The bond and the workers’ compensation certificate apply when you have employees. Most contractors based outside Iowa need the bond either way.
• Cottage food is not licensed or inspected when every condition is met. The page does not print a yearly sales cap. Temperature-controlled food, regulated milk, and regulated meat are out.
• Alcohol licenses are a fee table, plus a local approval. A Class C retail license is three prices, based on city population.

Do this

1. Start at the Business License Information Center. Iowa does not have a general business license. What you need depends on the business or the occupation. IASourceLink keeps a searchable database of licensing requirements.¹ The authority page also points to a start-a-business guide on that same site. Use the database for your activity. A city or a county can still require a permit, a zoning approval, or a building permit when the state row is silent.* Ask the clerk where you will work.
2. Get a contractor registration if the work and the amount require one. The contractor page says Construction contractors who earn at least $2,000 a year from construction must register. Someone under that amount, or who works only on their own property, does not. The fee is $50. Credit cards are not taken over the phone. An Iowa unemployment insurance number is required to register, even with no employees. Out-of-state contractors need an Iowa unemployment number too. If you have employees, you also need a Certificate of Workers’ Compensation and a $25,000 bond. With few exceptions, a contractor whose principal place of business is outside Iowa must file a $25,000 bond to register, with or without employees. Renew every year. A subcontractor is not covered by the general contractor's registration². Plumbing, mechanical, HVAC, refrigeration, sheet metal, and hydronic work can also need a license from the Plumbing and Mechanical Systems Board. That board has its own application.
3. Selling food from home? Read the cottage food page. The food is food prepared in a residence that is not licensed or inspected, if every condition is met. It must be prepared in a private residence, does not need temperature control, sold directly from the producer to the consumer, and labeled. The only food establishment that may sell it is a temporary food establishment the producer operates, and the food must be packaged and labeled. The exemption does not cover food that must be kept hot or cold for safety, regulated milk, and regulated meat or poultry. The label must include: “This product was produced at a residential property that is exempt from state licensing and inspection.³” Allergens and, for home-canned pickles, vegetables, or fruits, the date, are on the same list. Home-canned items also need a measured pH or water activity. The page does not print a dollar cap on sales.* A restaurant, or food that must stay hot or cold, is not this exemption.
4. Selling alcohol? Iowa law says retailers, wholesalers, manufacturers, importers, and brokers must have a license or permit before doing business⁴. Selling without one is a violation. The licensing process is online, and the city or county is part of the approval. On the fee table, a 12-month Class C retail alcohol license is $1,625 in a city of 15,000 or more, $1,170 in a city of more than 2,500 and less than 15,000, and $715⁵ in a city of 2,500 or less. Shorter terms cost less, and other license types are on the table. The department also points alcohol sellers to a sales tax permit and, if you serve food, a food license.
5. Selling taxable goods or taxable services? Register with the Department of Revenue: Get your tax IDs. A professional license is also separate from the company filing. The license center is the place to find the board. Register your business is only the company.

What you get back

A state contractor registration if the work requires one, a cottage-food setup you can document if you sell from home, and an alcohol license if you sell alcohol. Everything else depends on the activity and the place. The Secretary of State certificate is not any of these.