Why incorporate in Iowa

Business Information & Rankings

Iowa ranked 6^th as the Most Livable State. (Morgan Quitno Press, 2005)
Iowa ranked 4^th in Best State Liability System.( U.S. Chamber of Commerce, 2004)
Iowa ranked 3^rd lowest on the Cost of Doing Business Index. (Milken Institute, 2005)
Iowa ranked 15^th in State Competitiveness.(Beacon Hill Institute, 2004)
Des Moines ranked 1^st among the top 50 places to locate or expand a business. (Expansion Management Location Study, 2004)

Cost of living

For Des Moines, IA (2005):	Index Score
Composite:	95.6
Housing:	95.7
Utilities:	107.7
Misc. Goods & Services:	94.2

Crime Rate

Iowa has the 17^th lowest crime ranking in the U.S.(F.B.I.,2004)

Fees & Taxes

Business Inventory Tax

Business inventory is exempt.

Corporate Income Tax

Iowa's single-factor, non-unitary tax is based only on the percentage of total sales income within the state. An Iowa manufacturer selling all its products outside Iowa would pay no Iowa corporate income tax. Iowa allows 50 % deductibility of federal taxes from Iowa corporate income tax, and Iowa corporate income tax may be reduced or eliminated by the New Jobs Tax Credit.

First	$25.000	6.0 %
Next	$75.000	8.0 %
Next	$150.000	10.0 %
Over	$250.000	12.0 %

Personal Income Tax

Tax Rate Range: Low - 0.36%; High - 8.98%
Income Brackets: Lowest - $1,211; Highest - $54,495

Personal Property Tax

Exempt. There is no intangible personal property tax, but the state of Iowa assesses intangible taxes on capital employed in state by foreign corporations engaged in business as loan agencies.

State Sales and Use Tax

Base Rate: 5%
Machinery Rate: none

There is an exemption for gross receipts from the sale or rental of industrial machinery, equipment and computers, including replacement parts if they will be directly and primarily used in processing tangible personal property or in research and development of new products or processing or manufacturing, refining, purifying, combining of different materials.

Unemployment Insurance

The new employers' rate in Iowa is 1.0% for 3 years. Iowa has the lowest new employer unemployment insurance rate in the nation.

Why incorporate in Iowa?