Bill
1424XD
The bill waives filing fees for formation documents for veterans and qualifying service members forming LPs, LLCs, corporations, or nonprofits in Iowa.
Bill Information
- Bill Number: 1424XD
- Title: Business Entity Filings, Fee Waivers for Veterans (1424XD) - Secretary of State
- Status: Introduced November 28, 2025 (proposed bill)
- Classification: Proposed bill
- Primary Focus: Provide fee waivers for certain formation documents filed with the Secretary of State by qualifying military service filers (veterans and active-duty service members)
Overview and Purpose
- The bill would authorize fee waivers for filing formation-related documents for four types of entities:
- Limited Partnership (LP) — Chapter 488
- Limited Liability Company (LLC) — Chapter 489
- Business Corporation — Chapter 490
- Nonprofit Corporation — Chapter 504
- The waivers apply when the filer is a “qualifying military service filer,” defined by residency, military status, and a qualifying interest in the entity.
Key Provisions
1) Definitions (new and revised)
- Formation Document: Defined as the document or record filed with the secretary reflecting formation, domestication, or changes for the specified entity types (as described by the relevant chapter sections).
- Qualifying Military Service Filer: A state resident who is:
- Serving in the Iowa National Guard, a reserve or regular component of the U.S. armed forces, on active duty, or has an honorable discharge.
- Eligible to sign the formation document on behalf of the entity (per the relevant code sections) or has an ownership interest (general/limited partner, member/manager, director/officer/shareholder, etc.).
- Secretary: The Secretary of State.
2) Waiver of Fees (formation documents)
- For each entity type, the secretary must waive the amount otherwise charged for filing a formation document (and related filings) upon request by a qualifying filer:
- LPs: Section 488.117A (new subsection 2A added)
- LLCs: Section 489.122 (new subsection 2A added)
- Business Corporations: Section 490.122 (new subsection 2A added)
- Nonprofit Corporations: Section 504.113 (new subsection 2A added)
3) Administrative Procedures and Rules
- The secretary shall adopt rules to administer this subchapter (Chapter 9, subchapter III), including procedures for filing formation documents and evidence of military service.
- Code editor directive to designate sections 9.21–9.23 as subchapter III within Chapter 9.
4) Related Statutory Adjustments
- Minor adjustments to references in Code 9.11 and related provisions to accommodate the new subchapter and définition alignments (including a note about service periods in 9.14).
5) Implementation and Administration
- The waivers are enacted “upon request” by a qualifying filer, implying the filer must demonstrate eligibility (as defined by the new subsections) and the secretary must process the waiver accordingly.
Who Is Affected
- Eligible individuals who file formation documents for LPs, LLCs, business corporations, or nonprofit corporations in Iowa, who are veterans or otherwise meeting the “qualifying military service filer” criteria.
- Affects filing fees collected by the Secretary of State for the specified formation-related filings.
Potential Impact
- Financial: Reduces or eliminates initial filing fees for eligible veteran/military filers, potentially lowering startup costs for veterans launching or reorganizing entities.
- Administrative: Requires the Secretary of State to implement an eligibility process and rules; may impact fee accounting and verification procedures.
- Policy Implication: Encourages veteran entrepreneurship and service member participation in business and nonprofit formation.
Notes
- The bill includes a Code Editor directive to organize the referenced sections under a dedicated subchapter III within Chapter 9.
- No explicit effective date is listed in the provided text; implementation would depend on enacted language and rulemaking.
Compiled from official sources — confirm details with the bill’s official record.
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