Start a Business

Launch Your Business in Newton!

Thinking of starting a business in Newton like Jerry Schwaller? This brief overview provides some things you should consider before taking the leap as a business owner in our community. For those embarking on this journey, a reassuring first step is to reach out to the Small Business Development Center (SBDC). They provide a wealth of free, confidential business counseling services across Iowa, including in Newton. SBDC is your partner in business planning, financing, marketing strategies, and more, offering the support you need to navigate the complexities of starting a business.

Contact Jenica Johnson at jenica@iastate.edu or 515-331-8954. Meetings can be scheduled at Engage Coworking (Newton Development Corporation, 403 W. 4th St. N.). You can also find resources in the U.S. Small Business Administration (SBA) Business Guide.

Determine Your Legal Structure

Choosing the proper legal structure affects your taxes, liability, and management style. Common structures include:

      • Sole Proprietorship – Simple but carries personal liability.
      • Partnership – Shared ownership and responsibility.
      • Limited Liability Company (LLC) – Limits personal liability while offering flexibility.
      • Corporation – More structure, but also more legal and tax requirements.

It’s best to consult an attorney to determine what works for you. The SBA Business Guide provides more information about choosing a business structure.

SBA Business Guide

Understand Your Tax & Legal Liabilities

Some goods and services require sales tax collection. To find out what applies to your business and register for a tax permit, visit the Iowa Department of Revenue. All businesses carry some level of risk. The main types are: 

Tort risk: injuries, property damage, liability claims
Contract risk: agreements with vendors, financial obligations

Insurance can help protect your business from most risks. Consult an attorney or insurance professional to ensure proper coverage.

Home-Based Businesses in Newton

Newton allows home-based businesses as long as they don’t disrupt neighborhoods. Key rules include:

      • The business must operate inside the home.
      • No outside employees.
      • No exterior storage or large deliveries.
      • Limited customer visits (by appointment only).
      • A small sign (up to 3 sq. ft.) is allowed with a permit.

For questions, contact the Community Development Department at (641) 792-6622.

Does Your Business Require a Permit?

Newton does not require a general business license. Still, some businesses need special permits from the City of Newton or the State of Iowa, including:

      • Alcohol sales (City & State)
      • Cigarette sales (City & State)
      • Construction trades (City & State)
      • Daycare centers (City & State)
      • Foodservice including restaurants, groceries, food trucks, catering (City & State)
      • Funeral homes (State)
      • Home-based businesses (City)
      • Hotels/Motels (City & State)
      • Outdoor service areas (beer gardens) (City)
      • Peddlers, solicitors or transient merchants (City)
      • Sidewalk cafes (City & State)
      • Tattoo Parlor (State)
      • Vehicles for hire (City)

Zoning & Building Permits

Before opening, ensure your business location is in the proper zoning district. The Community Development Department at (641) 792-6622 can assist with this, as well as provide information on building permits and zoning regulations. You can also check the City of Newton Zoning Map for more details.

If constructing or renovating

  1. Verify zoning for your location.
  2. Apply for a building permit.
  3. If electrical, plumbing, or mechanical work is needed, apply for trade permits.
  4. Schedule inspections before opening with the City’s Building Official and the Fire Marshal at the Newton Fire Department.

If installing a sign

A sign permit is required from the Community Development Department.

If changing the use of a building

Changes in building use require a Certificate of Occupancy. Contact the Community Development Department at (641) 792-6622.

Register with the State of Iowa

Certain business types must register with the Iowa Secretary of State. This includes corporations, LLCs, nonprofits, and trademarks. Learn more at IASourceLink.

Keep Good Records

Accurate financial records are essential for tax filing and business management. Hiring an accountant can help you stay organized and plan for expenses. Good records also help track profits, manage costs, and identify areas for improvement.

Sales and Use Taxes

You must obtain a sales tax permit from the Iowa Department of Revenue if selling taxable goods or services. Learn more GovConnectIowa.

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