Iowa Code 547 specifies the legal requirements for individuals or entities operating a business under an assumed name or trade name in Iowa. It ensures public transparency regarding business ownership when the business name differs from the proprietor's true surname.
Understanding Iowa Code Chapter 547
Iowa Code Chapter 547, often referred to as the Assumed Business Name or Trade Name statute, outlines the conditions under which a business must register its operating name with the county recorder. The fundamental purpose is to create a public record of who is responsible for a business not operating under the true surname of its owner(s).
Core Mandate:
A person is generally prohibited from conducting business using a trade name or an assumed name that is not the true surname of each individual owning or having an interest in the business. The sole exception to this prohibition is if the person first fulfills a crucial registration step.
Key Requirement: Recording with the County Recorder
To lawfully operate a business under a trade name or assumed name in Iowa, the individual or entity must record a verified document with the county recorder in the county where the business is to be conducted. This filing serves as a critical public notification, providing clarity on the actual parties behind the business name.
Here’s a summary of the key aspects of Iowa Code 547:
| Aspect | Description |
|---|---|
| Purpose | To provide public notice and ensure transparency regarding the true identity of individuals or entities operating businesses under names that differ from their legal surnames or official entity names. |
| Who Must Comply | Any individual or entity engaging in or conducting a business under a trade name or an assumed name which is not the true surname of each person owning or having an interest in the business. |
| Action Required | The person or entity must first record a verified document with the county recorder in the specific Iowa county where the business will be conducted. |
Practical Implications for Businesses
Adhering to Iowa Code 547 is essential for legal compliance and establishing public trust.
- For Sole Proprietors and Partnerships: If your business operates under a name that does not include the true surname(s) of all owners (e.g., "The Coffee Bean" instead of "Smith's Coffee Shop" for a sole proprietor named Smith), you will likely need to file an assumed name.
- For Corporations and LLCs: While these entities have legally registered names, if they conduct business under a different, distinct name (often called a "doing business as" or DBA name), they typically need to register that assumed name under this code. For example, if "Iowa Holdings LLC" operates a restaurant named "Taste of Italy," "Taste of Italy" would need to be registered.
- Facilitating Public Record: This recording makes it easier for customers, suppliers, and other interested parties to identify the responsible parties behind a business, enhancing accountability.
For the exact wording and full details of the statute, refer to the official Iowa Legislature Code: Iowa Code Chapter 547.
