How to Start an NEMT Business in Iowa: A Several Part “Bambi Knows Best” State-By-State Series
Part 2: Develop a Business Plan and Get Registered in Iowa
Now that you've gained those golden insights from your Iowa NEMT market research in Part 1, it's time to develop a detailed business plan. This step is super important for several reasons, including registering your business and securing potential funding.
We recommend starting your research through the Iowa Department of Economic Development and The Iowa Secretary of State. Starting a new business and writing up a plan in Iowa involves several important steps such as: selecting a business structure, registering the business, obtaining the necessary licenses and permits and understanding tax rules.
Here is a quick guide to help you through this part of the process:
1 | Choose a Business Entity
Decide on the legal structure of your business. Common options include Sole Proprietorship, Partnership, Limited Liability Company (LLC), and Corporation (C-Corp or S-Corp). Each structure has different legal and tax implications so be sure to understand the differences.
2 | Register Your Business Name and Entity
Upon choosing the entity that best suits your needs, you'll want to come up with a name for it. Have fun with it, we did when we came up with our name, Bambi, for instance!
Anyway, both the entity and the name must then be registered with the Iowa Economic Development Authority (IEDA) if you are going to do business in Iowa or with Iowans.
3 | Obtain an Employer Identification Number (EIN)
Apply for an EIN from the IRS if you will have employees or operate as a corporation or partnership.
4 | Register for State Taxes
You’ll need to register with the Iowa Department of Revenue for state taxes such as sales tax and employer withholding tax.
Great! To proceed to Part 3, where we'll cover Iowa's regulations and how to obtain insurance, click here. Alternatively, you can navigate to different sections in the series by visiting the table of contents here.
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