There is no general business license required in Iowa, which means that not every business needs to have a business license. However, some businesses are required to obtain a license based on what they do and the industry they are in. One of the most common licenses is a sales and tax license. The sales and use tax permit allows you to collect and remit the 6% state sales tax to the Department of Revenue.
Many professions also require a business license. The Iowa Office of Professional Licensing administers the requirements for many professionals, including accountants, architects, real estate brokers and appraisal management companies.
If you sell certain products such as alcoholic beverages or tobacco products, you need a special license to do so. And those who handle hazardous waste need a special license because it is a highly regulated industry. If you are not sure whether you need a license, you should consult with a local Small Business Administration (SBA) business professional to evaluate your business and determine what is needed.
When do you need a business license in Iowa?
If your business is required to obtain a business license or permit, you will need to obtain this square footage before starting your business. If a license is required, you cannot legally solicit or sell products and services without it.
Regarding sales tax licensing, the state requires a license for any business that sells tangible personal property or taxable services. The sales tax permit allows the business to collect and remit the 6 percent sales tax.
