Iowa does not require a general business license, which means that not every business must have a business license. However, depending on their business and industry, some businesses require a license. One of the most common licenses required is a sales and use tax license. A sales and use tax license allows you to collect and pay 6% state sales tax to the Department of Revenue.
Many occupations also require a business license. The Iowa Professional Licensing Authority administers the requirements for a wide range of professionals, including accountants, architects, real estate agents, and appraisal management firms.
If you sell certain products, such as alcoholic beverages or tobacco products, you need a special license to do so. Those dealing with hazardous waste will need special permits as this is a highly regulated industry. If you’re not sure whether you need a license, you should consult with your local Small Business Administration (SBA) business specialist to evaluate your business and determine what’s needed.
When do you need to get a business license in Iowa?
If your business needs to obtain a business license or license, you will need to address this issue before starting your business operations. If a license is required, you cannot legally solicit or sell products and services without a license.
When it comes to sales tax licenses, the state requires any business that sells tangible personal property or taxable services to obtain a license. A sales tax license allows businesses to collect and pay 6% sales tax.