How to Start an LLC in Louisiana | 2024 Guide

Start a LLC in Louisiana

How to Start an LLC in Louisiana: If you’re looking to launch a business in Louisiana, starting a Limited Liability Company (LLC) may be the right choice for you. An LLC provides personal liability protection for its owners while giving them flexibility in managing and taxing the business. This guide provides a step-by-step process for starting an LLC in Louisiana. From choosing a unique name to registering with the state and obtaining necessary licenses and permits, Webinarcare Editorial Team will walk you through setting up your new business entity. So grab a pen and paper, and let’s get started!

What is a Limited Liability Company?

A Limited Liability Company (LLC) is a type of business entity that combines a corporation’s limited liability protection with a partnership’s tax benefits. LLCs are popular among small business owners for their flexibility and ease of formation. In Louisiana, an LLC must have a unique name and file Articles of Organization with the Secretary of State. Depending on their business needs, LLCs may also elect to be taxed as a corporation or an S-corp. Owners of an LLC, called members, are not personally liable for the company’s debts and losses, and the company’s profits and losses are passed through to the member’s personal tax returns. This makes an LLC an attractive option for those seeking personal liability protection and simplified taxation.

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Steps on How to Start an LLC in Louisiana

To form an LLC for your business, you must follow the guidelines that include naming your LLC, hiring a Resident Agent, filing your Articles of Organization, creating your LLC operating agreement, getting an employer identification number, opening a bank account and getting business licenses and permits.

Step 1: Name your LLC in Louisiana

After you have decided on the idea to form an LLC in Louisiana, deciding the name for your LLC is significant. There is a complete guide on LLC name guidelines for you to have a proper LLC business name. Here are some regulations you must follow while naming your LLC,

  • The name should not be confused with a government entity.
  • The name should be unique.
  • The name should be available to use.
  • Any other business does not use the name.
  • The new name must include “LLC” if it is a limited liability company.

In Louisiana, if you do not wish to file your LLC right away but want to hold the name that you have decided on, then you can reserve your LLC name for 60 days. You must file a name reservation application in Louisiana Secretary of State to keep the name.

Recommended: We recommend a professional service that can offer you unlimited name search, trademark and copyright registration at a reasonable price. We recommend using –

LegalZoom($0 + State Fees for LLC Formation)

You can register your business under a different legal name if your preferred name isn’t available. Once you have chosen a name, you can submit an application for filing Louisiana DBA (doing business as). In this manner, you can choose any name you desire for your business. A DBA allows a company to operate under the name of the person or entity who owns it. If you have decided to file for a DBA, you can file it in three methods, online, by mail, and in person filing. However, before filing a DBA, you should know that you need to renew your DBA from up to ten years, which costs around $75 Filing Fee and $300 for 24-hour Expedited fiiling.

Step 2: Hire a Resident Agent in Louisiana

Hiring a Resident Agent in Louisiana is a must since a Resident Agent is a person or business entity responsible for receiving important legal documents on behalf of your Louisiana LLC. Most states require you to designate a Resident Agent when forming your LLC.

The qualifications of a Resident Agent vary depending on the jurisdiction. Still, generally, a Resident Agent must meet the following criteria:

  • Availability: A Resident Agent must be available during regular business hours to receive and process legal documents and official correspondence.
  • Physical Address: A Resident Agent must have a physical street address within the state where the LLC is registered. This address, known as the registered office, cannot be a P.O. Box.
  • Residency or Authorization: For individuals serving as Resident Agent, they must be residents of the Louisiana where the LLC was formed. A business entity acting as a Resident Agent must be authorized to do business within that state.
  • Age: A Resident Agent must be at least 18 years old.
  • Good standing: A Resident Agent should not have any legal or financial issues that impede their ability to fulfill their duties.

Choosing a reliable and responsible Resident Agent is essential, as failure to receive and respond to legal documents can seriously affect your business. Some businesses use professional Resident Agent services to ensure compliance and proper handling of legal matters.

However, if you would like to have an easier process in filing the necessary documents, you can get Louisiana Resident Agent Services.

Step 3: File your Articles of Organization in Louisiana

The Articles of Organization for an LLC is an important document to start your limited liability company (LLC). Louisiana Articles of Organization is a simple document that contains the business name and address as well as the name and address of the person who received lawsuits on behalf of the organization.

Here are the guidelines and specific requirements in filing your Articles of Organization in Louisiana.

1. Obtain the Necessary Forms: Visit the Louisiana’s business filing office website, usually the Louisiana Secretary of State’s office, to download the required forms or file online.

2. Provide the Required Information: Fill in the necessary details in the form, which typically include:

  • The name of your LLC (must include an LLC designator such as “LLC,” “L.L.C.,” or “Limited Liability Company”)
  • The purpose of your LLC (a general statement or specific business activities)
  • The address of your LLC’s principal place of business
  • The name and address of your registered agent (the person or business entity responsible for receiving legal documents on behalf of your LLC)
  • The management structure of your LLC (member-managed or manager-managed)
  • The duration of your LLC, if not perpetual
  • The names and addresses of the LLC’s organizers or members

3. Sign and File the Form: Submit the completed form in the {state} state office, either by mail, in person, or online. You may mail it at State of Louisiana Secretary of State, P.O. Box 94125, Baton Rouge, LA 70804.

4. Pay the Filing Fee: When you submit your Articles of Organization, you’ll need to pay a filing fee of $100. Make sure to check and include the correct payment with your submission.

5. Receive Confirmation: After your Articles of Organization have been filed and processed, you’ll receive a confirmation from Louisiana, typically a stamped and approved copy of the document or a Articles of Organization.

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Once you have successfully filed your Articles of Organization and it has been approved, your Louisiana LLC is officially formed. However, remember to complete additional steps, such as creating an Operating Agreement, obtaining an EIN, and registering for any required licenses and permits.

Step 4: Create Your Louisiana Operating Agreement

An operating agreement is a document that contains all of your company’s organizational details. Drafting an operating agreement in most states is not required. Yet, having one as an internal document is strongly advised. An operating agreement includes information like-

  • About Business
  • Members and management
  • Capital contribution
  • Profit Distribution
  • Change of membership
  • Dissolution

To understand how an operating agreement works, you should check out how to create an operating agreement in Louisiana.

Recommended: Get oprating agreement drafts ready on your table with a help of a professional service. We recommend using –

LegalZoom($0 + State Fee for LLC formation)

Step 5: Get an EIN

After documenting the operating agreement, you should get or request an Employer Identification Number (EIN) in Louisiana. An EIN will serve as the tax ID for your professional corporation. EIN can be obtained from the Internal Revenue Service (IRS). It is a 9-digit number similar to Social Security Number. EIN, however, is distinct from SSN. It is only used for business-related activities, particularly for submitting general taxes. The form must be completed and uploaded to the IRS website.

The application of an EIN in Louisiana can be through the following:

  • Apply Online- The online EIN application is the preferred method for customers to apply for and obtain an EIN.
  • Apply by Fax- Taxpayers can fax the completed Form SS-4 application to the appropriate fax number), after ensuring that the Form SS-4 contains all of the required information.
  • Apply by Mail- The EIN application Form SS-4 can be filed via mail. The processing time frame to receive the mail is four weeks.
  • Apply by Telephone-International Applicants – International applicants may call 267-941-1099 (not a toll-free number) from 6 a.m. to 11 p.m. (Eastern Time) Monday through Friday to obtain their EIN.

In obtaining an EIN for your LLC, you should be aware to ensure that your LLC is eligible for an EIN. You need an EIN if you have employees, operate as a corporation or partnership, or meet other specific IRS criteria. Before applying, gather the required information, including your LLC’s name, mailing address, and the responsible party’s Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). Also, you can apply for an EIN through various methods, including online, by fax, mail, or telephone (for international applicants).

Recommended: Professional services have the EIN included in their LLC formation package. We recommend using –

LegalZoom($0 + State Fee for LLC formation)

Step 6: Open a Bank Account and Prepare for Taxes

After you have filed for and received your Employer Identification Number, you should open a bank account because you will use this account for yourself, your clients, and your employees.

Your business dealings in Louisiana might be simpler with a US business bank account because it boosts your company’s legitimacy and liquidity. Most banks demand an EIN to create a business bank account for firms other than sole proprietorships. Also, having an EIN makes tax preparation easier. You can anticipate paying employment and corporate taxes with Louisiana LLC.

Opening a bank account is necessary for Louisiana business. If you are still wondering where to open an account in your Louisiana, you should check the Best Bank for Small Business in Louisiana.

Step 7: Get a Business and License Permit

You must get a business license in Louisiana before establishing your LLC. A business license is a legal document granted by a state government body that permits you to conduct business within the area under its jurisdiction. The price of business licenses and permits in Louisiana ranges from $50 – $300. If there is a requirement for a specific license or city-based permit, you must inquire with the Louisiana Secretary of State.

Cost to Form an LLC in Louisiana

Even if you have a business name and structure in mind, you should consider whether you can afford the costs of forming an LLC in Louisiana. Articles of Organization costs around $100. The initial filing fee is $100, and the annual fee is $30.

If you forget to pay the annual fee for your Louisiana LLC, you will have a penalty of $50. However, you can check the Louisiana LLC Cost for additional information.

Advantages of Creating Louisiana LLC

Even though some people decide on what to do with their businesses, some choose to put it in their own individual name, while others still choose to set it up via LLC in Louisiana. Important benefits will help you set up an LLC in Louisiana.

  • Pass-Through Taxation: The pass-through structure will make the company not pay twice the tax. Most start-ups and entrepreneurs in Louisiana apply for an LLC because of this structure. Pass-through taxation refers to how income and losses from an LLC (Limited Liability Company) are passed through to its members (owners) for tax purposes rather than being taxed at the business entity level. This means the LLC does not pay federal income taxes; the members’ profits and losses are allocated based on their interests. Each member then reports their share of the LLC’s income or losses on their personal tax returns and pays taxes at their individual tax rates.
  • Ownership Flexibility: If you need sole and primary control over your company’s operations, a sole proprietorship will allow you to do so. If you apply for an LLC in Louisiana with flexibility, you will have default rules set by law and need an operating agreement.
  • Personal Liability Protection: Personal Liability Protection protects your business from damage, debts, or legal obligations. In personal liability protection, the company’s profits and earnings will stay as is even if your company is about to be sued. This protection of having an LLC in Louisiana can also be extended to the company’s properties and assets. Many start-up companies will benefit from this since most are starting to build a company. Even if liability exists, the LLC in Louisiana will protect its assets.

FAQs

What is an LLC in Louisiana?
LLC stands for Limited Liability Company. It’s a kind of business entity that provides personal liability protection for its owners.
Do I need a lawyer to form an LLC in Louisiana?
No, you do not need a lawyer to form an LLC in Louisiana. However, it’s a good idea to consult with a lawyer to make sure you’re complying with all the legal requirements of Louisiana.
What are the benefits of forming an LLC in Louisiana?
An LLC in Louisiana offers personal liability protection, tax savings, and fewer regulations than a corporation.
How do I form an LLC in Louisiana?
To form an LLC in Louisiana, you need to file the Articles of Organization with the Louisiana Secretary of State’s office.
How much does it cost to form an LLC in Louisiana?
It costs $100 to form an LLC in Louisiana.
Can I form an LLC online in Louisiana?
Yes, you can form an LLC online in Louisiana.
How long does it take to form an LLC in Louisiana?
It takes about 5-10 business days for the LLC formation to be processed in Louisiana.
Can non-US citizens form an LLC in Louisiana?
Yes, non-US citizens can form an LLC in Louisiana.
Do I need a business plan to form an LLC in Louisiana?
No, you do not need a business plan to form an LLC in Louisiana. But it’s considered as a best practice to have a business plan and strategy.
Do I need a business license to form an LLC in Louisiana?
In Louisiana, certain professions and businesses require licenses and permits, but not every one of them. Check with your local municipality for specifics.
Do I need an Operating Agreement for my LLC in Louisiana?
It is not necessary to have an operating agreement in Louisiana, but highly recommended to have a written agreement signed by all owners in it.
Can I be the only member of my LLC in Louisiana?
Yes, you can be the only member of your LLC in Louisiana.
How many members can an LLC have in Louisiana?
An LLC can have one or more members in Louisiana.
What are the taxes for an LLC in Louisiana?
An LLC in Louisiana can file as a single-member, partnership, or corporation, each of which have different filing and tax responsibilities.
Where do I get an EIN for my LLC in Louisiana?
You can get the EIN by applying for it online through the IRS website or by mail.
What is a sales tax exemption in Louisiana?
A sales tax exemption allows the business to not pay the sales and use tax on eligible products.
Is Louisiana an expensive state to form an LLC in compared to other states?
Louisiana LLC filing fees are slightly less expensive than most other states, but your ongoing tax and regulatory expenses will depend on the industries you operate in.
Do I need to publish, an LLC formation in the Louisiana register?
No, you don’t need to publish your LLC formation notice in the Franklin Parish or state publication.
Can my LLC in Louisiana own property?
Yes, LLC’s in Louisiana can own property, including real estate and other assets.
Can I transfer my LLC from another state to Louisiana?
Yes, you can transfer your LLC from another state to Louisiana.
Can I register a foreign LLC in Louisiana?
Yes, you can register a foreign LLC in Louisiana to conduct business.
What are state business taxes for LLC?
Further discussing the answer need more details whether its sales tax, property or income tax, please let me know.
Is good credit necessary to form an LLC in Louisiana?
No, it is not necessary to have good credit to form an LLC, however
Can I file my Articles of Organization myself in Louisiana?
Yes, you can file articles of organization in Louisiana with 100$ filing fees.
Do I need an attorney to file my initial report in Louisiana?
No, an attorney is not necessary to file annual reports for your LLC in Louisiana.
When is Louisiana LLC annual report due?
In Louisiana, all LLCs are required to file an annual report with the secretary of state by April 1.
Can I operate a LLC in Louisiana using my personal bank account?
You should open a separate business account to avoid piercings of the corporate shield – separate LLCfrom the Members (past that line, it depends on the characteristics of individual LLC and how it’s operating structure is used).
Do you need a registered agent of the LLC to be in-state in Louisiana?
Yes, the registered agent for LLC’s in Louisiana has to be physically present in the state all the times, associated with the primary options.
Can I dissolve an LLC in Louisiana?
Yes, you can dissolve an LLC in Louisiana by filing articles of dissolution with the Louisiana secretary of state.

Also Read

How Fast Can I Form an LLC in Louisiana

The process of forming an LLC in Louisiana is relatively straightforward, but the timeline for completion can vary depending on several factors. It is important for entrepreneurs to understand the steps involved in forming an LLC in order to have realistic expectations about the time it may take to complete the process.

The first step in forming an LLC in Louisiana is choosing a name for the business. The name must be unique and not already in use by another business entity in the state. Entrepreneurs can conduct a name search through the Louisiana Secretary of State website to check the availability of their desired business name.

Once a name has been chosen, the next step is to file Articles of Organization with the Louisiana Secretary of State. This document officially establishes the LLC and includes important information such as the business name, principal place of business, registered agent, and the names of the LLC’s members. The Articles of Organization can be filed online or by mail, and the filing fee must be paid at the time of submission.

After the Articles of Organization have been filed and the filing fee has been paid, the next step is to create an operating agreement for the LLC. While not required by law, an operating agreement is a crucial document that outlines the management structure and operational guidelines for the business. This document should be carefully drafted to ensure that all members of the LLC are on the same page regarding their roles and responsibilities.

Once the operating agreement has been created, the final step in forming an LLC in Louisiana is to obtain any necessary business licenses and permits. Depending on the nature of the business, entrepreneurs may need to obtain federal, state, or local licenses in order to legally operate. It is important to research and understand the licensing requirements for the specific industry in which the LLC will be operating.

In conclusion, the timeline for forming an LLC in Louisiana can vary depending on factors such as the availability of the desired business name, the speed of processing at the Louisiana Secretary of State’s office, and the time it takes to create an operating agreement and obtain necessary licenses. By understanding the steps involved in forming an LLC and being proactive in completing them, entrepreneurs can typically establish their business entity in a timely manner.

Conclusion

In conclusion, starting an LLC in Louisiana is a strategic choice for entrepreneurs seeking a flexible, straightforward business structure with limited liability protection. By following the essential steps, including choosing a business name, filing Articles of Organization, appointing a Resident Agent, creating an Operating Agreement, obtaining an EIN, and securing the necessary licenses and permits, you can successfully establish your LLC. This business structure offers numerous advantages, such as pass-through taxation and ownership flexibility, making it an attractive option for small business owners looking to grow and protect their ventures. As always, consult legal and business professionals for guidance specific to your situation and state requirements.

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