Having an LLC in Louisiana is a better and cheaper option than having other business structures. A limited liability company (LLC) reduces the owners’ personal liability and protects their personal assets. One can start an LLC in two ways, domestic LLCs or foreign LLCs (LLCs in more than one state). By following some basic steps, you can easily form an LLC in Louisiana.
On this page, you’ll learn about the following:
- How to Start an LLC in Louisiana
- After Starting your Louisiana LLC
- Louisiana Foreign LLC
- Why an LLC in Louisiana
- 3 Best Businesses in Louisiana
- Louisiana LLC Formation Review
How to Start an LLC in Louisiana
An LLC or a Limited Liability Company is a hybrid business entity combining a corporation’s characteristics with a partnership or sole proprietorship. It separates your personal assets from your business assets, thus giving you personal asset protection. This section gives you a step-by-step guide on how to start an LLC in Louisiana.
Step 1: Decide a Name for Your LLC
Deciding on a business name is the first step to start an LLC. In Louisiana, before you name your LLC, it is important to note a few things. Firstly, make sure the name is available to use. If the name is available, then check if the name complies with all the Louisiana business naming requirements. Once you pass through them, you can successfully name your business.
Why do you need a proper business name?
If you want your LLC to have special identification, your company name is essential. However, many people face many issues by avoiding focus on choosing a business name for their LLC business formation filings.
Here are some of the major benefits of choosing the best LLC names.
- Helps establish a company’s presence in the market;
- Creates a new identity that will resemble your LLC;
- Allows ease in finishing your LLC registration process;
- You can get the EIN once you have your name registration certificate
Requirements when deciding a name for your LLC
LLC Name Search: A business name search is required to check if the desired name is available or not. If the name is available then the business owner has to fill up a name reservation form and send it to the Secretary of State, Louisiana. To do the name search, one has to visit the Business Entity Search page on the official Secretary of State website. Send the name reservation form to the below address by mail to reserve your LLC name in Louisiana. The cost of a name reservation is $25 (additional charges apply for filing within 24-hours or less than that).
Important Quick Links:
P.O. Box 94125
Baton Rouge, LA 70804-9125
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Step 2: Assign a Registered Agent Service in Louisiana
A registered agent for service is your authorized person or business entity that will act or work on your behalf. This person or business will receive significant tax forms, legal documents, a notice of lawsuits, and other official government correspondence in Louisiana. Choosing a Louisiana registered agent for your LLC is required.
Make sure your registered agents are residents of Louisiana. It could also be a business. Here are the recommended agents:
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Note that availing of the services of professional registered agents would be your best option since you are guaranteed that whoever is handling your legal affairs knows their stuff well. You will enjoy peace of mind and focus only on running your business, as the ‘professionals’ take care of all legal matters.
These LLC formation services are recommended registered agent services as they are authorized to conduct business in Louisiana. Compare them to check the best yet cheapest option for you. Besides, they can guarantee you professional service because they have been in the business for years.
Step 3: File Articles of Organization in Louisiana
A Certificate of Name Reservation is needed to file Articles of Organization, as other states call it. You need to make reports of this certificate with the Louisiana Secretary of State, which costs $100. You may file them online or by mail.
This Louisiana Articles of Organization is a legal document needed to form your business officially. It will indicate details about your Louisiana LLC, like if it is a member-managed or managers-managed. LLCs with employees need to check the Louisiana government portal for requirements before they hire employees.
Before you start filing your forms, you must already have your LLC name and registered agents or employees. You will attach a copy of your Name Reservation Certificate along with a list of the services that your Louisiana LLC will offer.
How to File Online
For online filing, go to the Louisiana GeauxBiz page. Create an account and follow the steps of filling out the forms. Check out the simple steps to follow to file a Louisiana Certificate of Formation online.
How to File by Mail
If you prefer filing real-life forms for your Louisiana LLC registration, then you can download the Louisiana Limited Company Certificate of Formation, fill it out, and mail it to the given address.
Mail To: State of Louisiana Secretary of State
P.O. Box 94125
Baton Rouge, LA 70804
Step 4: Create Your Louisiana LLC Operating Agreement
An operating agreement is a document that legally outlines the proprietorship and operating procedures of your LLC This document is vital as it ensures that all business owners are on the same page regarding how they operate, thus reducing future conflicts.
When it comes to an LLC operating agreement Louisiana does not require you to have a comprehensive operating agreement, but it is ideal to have one that contains all your details of business operation. This document would be useful if you decide to dissolve Louisiana LLC later.
Step 5: Filing a Louisiana LLC EIN
The Employer Identification Number or, simply, the E.I.N. is a nine-digit number given by the Internal Revenue Service (IRS) to make it easier to identify types of business for tax purposes and taxes in general. It is like a Social Security number dedicated to a business’ taxes. The EIN is necessary for any active business or any form of business for that matter.
To obtain EIN (aka FEIN) one has to fill up a form (Online or by mail) and submit it to the IRS. Before sending the form, ask for EIN Assistant. Enter details of your LLC, and finally complete the form and send it to the address given.
Mail to: Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999
Fax: (855) 641-6935 | Fee: Free
Note: You don’t need a Social Security number when getting an EIN. You can proceed to fill out I.R.S. Form SS-4 and leave section 7b blank. You must then call the IRS at (267) 941-1099 to complete your application. Agents or employees will help you with that.
And that’s all! Congratulation, you are now done with all the necessary steps to form your Louisiana LLC. If you still haven’t used a professional service from here, I strongly recommend having one to handle the remaining tasks.
After Starting your Louisiana LLC
After forming your LLC, there are still some things that you will need. Take note of the following:
- Get a company business bank account
- File Louisiana business permits & licenses
- Get liability for business and professional liability insurance with coverage for employees
- File a Louisiana LLC annual report or biennial report
- Already existing LLCs that wish to operate in Louisiana must register as Louisiana foreign LLC.
This page has provided you with steps to LLC formation and filing processes. You now have to remember upcoming filing deadlines and filing fees or filing costs, including fees for late filings to make sure your LLC is up-to-date.
Louisiana Foreign LLC
To register a Louisiana foreign LLC, one has to file the foreign LLC formation certificate with the Secretary of State, Louisiana. Forming a foreign LLC allows you to operate your business in more than one state in the USA as a single business entity. Check Louisiana Foreign LLC to know more about having a foreign LLC.
Why an LLC in Louisiana
The benefits of Louisiana LLC can be many, which may vary from business to business. Exports in this state have contributed $65 billion in their GDP. For every business, the state has something to offer, which is attracting the LLC. Some of the benefits are discussed below.
The growth is invincible
The per capita income of the members of any LLC is higher than in many other states. The reason behind this is the growing nature of the industries which cater proper opportunities to LLC. This growth is beneficial for many LLCs and job seekers, which makes it very easy for the LLC to find competitive staff for their companies.
The Law of personal liability is framed appropriately
We have seen that in the LLC, the member’s personal assets are not at all affected. But if you will see the Louisiana LLC, then the laws are much better framed. It states that the member is not personally liable for any losses, but there are three conditions in which he/she has to pay for the losses. They are:-
- If any member is committing a mistake out of his/her carelessness and it costs a huge loss in the LLC. Then the member is liable to pay for it.
- If the member is not following the rules that are laid under their duty of loyalty, then also they are liable for the losses.
- If there is an intentional fraud committed from the side of a member partner, in that case, they have to pay for the losses.
Small Business Loans and guarantee program
For small businesses, the Louisiana government is taking some major steps and protects them by leveraging loan programs. This way, forming a Louisiana LLC will be easier for businesses with less capital. Moreover, they have also started a guarantee program in which they help out the small businesses in every possible way to let them thrive well in the state.
Louisiana Industrial Ad Valorem Tax Exemption Program
The ITEP program of the Louisiana state government is providing a 100% return on property tax during the initial period of a business. This period is generally for 5 years but can also extend more if required by an LLC.
3 Best Businesses in Louisiana
Are you all set to form an LLC in Louisiana? If yes, then it can be a life turning decision. But wait before starting a new business in the state; you need to have complete knowledge regarding the state’s present industries and are well functional. If you don’t know, then you should read the list of top businesses in the state.
Oil Refineries and Natural Gas Production
The oil refineries present in the Louisiana state are the maximum in the whole country. Louisiana caters for 1/5th of the country’s total oil consumption by producing 3 million oil barrels in a day. The revenue generated by the oil industry has accounted for more than 7.5%of the total state GDP.
Natural gas production is also increasing in the state, the proof to which is growing networks of pipelines. Fulfilling 1/4th of the country’s natural gas demand, the pipeline of natural gas in the state has now increased to around 112,000 miles which is pretty huge.
Out of the total seafood that people consume in the USA, 25% is supplied by Louisiana. The Gulf of Mexico in the state has made the fishing industry a major part of the state’s economy. The fishing and seafood businesses have now started contributed $331 million every year as their revenue.
Sugarcane and Sweet Potato Production
If you look at Louisiana’s agriculture sector, the two major crops named sugarcane and sweet potato, are primarily grown in the state. Both of the crops rank second in the country in terms of both quantity of production and quality. Out of 60% of the state’s total cropping portion of agriculture, around 40% comes from these two crops. Other crops and livestock provide the rest of the income.
Some small businesses that can be profitable according to the business environment of the state are mentioned below.
- Transcription related business
- Digital marketing agency
- Pet photography business
Louisiana LLC Formation Review
Time needed: 5 minutes.
Just to recap, here are the easy steps again when forming an LLC in Louisiana. Click on the simple steps in this list to read the full detail.
- Name your Louisiana LLC
The first thing you must do is to choose a company name, which should be unique, easy to find, and available in the state.
- Choose a registered agent
In Louisiana, it is mandatory to select a registered agent for your LLC. You can check out our list of our 5 Best LLC Services in the United States.
- File a formation certificate
Filing a formation certificate is necessary when forming an LLC. Depending on the state, it could be called any of the following: Certificate of Formation, Articles of Organization, or Certificate of Organization.
- Create operating agreement
An operating agreement is not a strict requirement but something encouraged when you start an LLC.
- Get an EIN
The Employer Identification Number (EIN), also called Federal Tax Identification Number, serves to identify a business entity like a social security number but for a company.
If you are a resident of Louisiana, then you can file your LLC by yourself. However, it is always worth having a professional than doing it yourself to handle legal complexities, paperwork, and other documentation.
Apart from the formation fee of $100 (domestic LLC) and $150 (foreign LLC), LLC costs in Louisiana include $30 for Annual Reports every year. LLCs are liable to pay sales tax of 4.45% every year
It takes 2 to 3 business days to get an LLC in Louisiana. With an additional fee, it can be sooner.
Every year all the LLC have to submit an Annual Report and pay $30 to the Louisiana Secretary of State and renew the LLC. It is mandatory to renew your LLC every year.
Generally, for the LLCs, it is a default tax structure. Once you will obtain the EIN, you will get the various tax structure options to select. Sometimes LLCs choose S Corp to reduce federal tax burdens.
LLCs are easier to establish than other business structures. Small businesses, especially start-ups can easily start their LLC in Louisiana at a bare minimum cost. LLCs have a ‘pass-through taxation’ advantage for which they are excluded from certain taxes. The formation of limited liability companies requires much lesser documents and legal processes. Share your queries with us, leave a comment below.