Forming an LLC (Limited Liability Company) in Louisiana is easy and affordable. The following are few easy steps on how to start an LLC in Louisiana. LLCs form in two ways, domestic or foreign. Suppose you plan to set up an LLC in states other than Louisiana; visit How to Start an LLC for a quick list of the states.
On this page, you’ll learn about the following:
- How to Start a Louisiana LLC
- After Starting your Louisiana LLC
- Why an LLC in Louisiana
- 3 Best Businesses in Louisiana
- Louisiana LLC Formation Review
How to Start a Louisiana LLC
Suppose you’re planning to invest in some profitable business where you won’t have to put your personal assets at risk. Maybe you have a prospective business or corporation that you want to set up in Louisiana. In that case, forming an LLC in Louisiana is the simplest option for you.
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
If you are to start an LLC in Louisiana, the first thing you do is decide on a business or company name, and how to name your LLC may be tricky. Take note, however, that any successful business started with coming up with a name. Thus, you have the option to choose a name that complies with the Louisiana business naming requirements. It must also be easily searchable for potential clients.
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
What are the requirements when deciding a name for your LLC?
A name search is vital to make sure your business’ name is unique. Check the availability of your name with Business Entity Search on the Louisiana Secretary of State website. Reserve the name online through GeauxBiz.
- Don’t include words that could confuse people about your company. Words like ‘treasury, state department.’
- You should also avoid restricted words like ‘bank, attorney, university,’ because they may require a lawyer and more paperwork.
- As for a business website and your URL name, check if your name is still available for domain use with NameCheap.
Reserve a business domain
Even if you don’t have plans to set up a website today, it will help if you buy a domain to avoid others from using your name for their website, so do visit NameCheap for your domain name and Kinsta for web hosting.
If you have decided on your URL name and have reserved it, set up a professional email account with Google GSuite.
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 Louisiana-registered agents 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:
Our Rating & Pricing
#1 TOP PICK
$49 + State Fees
$299 + State Fees
$399 + State Fees
These LLC formation services are recommended agents’ registered 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 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.
How to File by Mail
If you prefer filing real-life forms for your Indiana LLC registration, then you can download the Louisiana Limited Company Certificate of Formation, fill it out, and mail it to P. O. Box 94125, Baton Rouge, LA * 70804-9125.
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.
Starting an LLC in Delaware 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 our 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.
It is also called a Federal Employer Identification Number (FEIN) or a Federal Tax Identification Number (FTIN). You will need this number for tax filing and to determine tax classification options.
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999
Fax: (855) 641-6935
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 account
- File Louisiana business permits & licenses
- Get liability for business 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 a foreign Louisiana 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.
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: 1 hour and 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 include the phrase “limited liability company,” or one of its abbreviations (LLC or L.L.C.).
- 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.
A “domestic LLC” is one that conducts business in a state where it was formed. Meanwhile, a “foreign LLC” is an existing LLC that extended business to another state.
For Domestic LLCs, it is vital to have a Certificate of Name Reservation and Certificate of Formation. For the foreign LLCs, you must have a Certificate of Good Standing.
The cost to form an LLC varies per state.
Seldom do L.L.C.s use D.B.A. or a ‘Doing Business As’ name nor a fictitious business name. However, if you want to have one, you make read more about DBAs here.
This document is vital as it ensures that all business owners are on the same page regarding how they operate, thus reducing future conflicts.
>Your name should have “L.L.C. or LLC” or the phrase “limited liability the business.”
>Do not include words that could create confusion between your LLC and any government business.
>Words like ‘bank, attorney, university’ are restricted as well.
>Lastly, your name should distinguish from other limited liability corporations, limited partnerships, or registered limited liability partnerships.
Typically, you can file your LLC name online or by mail. Check with the state where you will set up your LLC name. Take note that the fees for business names may also vary per state.
As for a website and your URL name, check if your name is still available for URL use with NameCheap to see if your name is available as a web domain. Even if you don’t have plans to set up a website today, it will help if you buy a URL. Buying it can help to prevent others from getting your name; check out WPEngine, Kinsta, and GoDaddy for hosting and building your website.
No. Never mail these documents or payments to the Secretary of State directly.
The reason you might need an E.I.N. is that it would help for three reasons:
>Opening a business bank account
>Filing and managing federal and state taxes
>Hiring employees or agents
You are not required 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.
International EIN applicants do not need an SSN to get an EIN.