LLC Cost in Louisiana | How Much Does It Cost to Start an LLC

LLC Costs in Louisiana

Forming a Limited Liability Company (LLC) in Louisiana is a popular choice for entrepreneurs and small business owners who want to protect their personal assets and enjoy flexibility in their business operations. LLC formation costs vary from state to state, and it is essential to understand the costs involved in forming and maintaining an LLC in Louisiana.

If you would like to know more about the Louisiana LLC Cost, read the whole article until the end. Webinarcare Editorial Team will help you gain knowledge on how much an LLC Costs in Louisiana. You must be guided by all the factors gathered in this article.

How to Start an LLC?

Before we dive into the LLC Cost in Louisiana, you should know the step-by-step process of starting an LLC, including selecting a unique business name, appointing a Resident Agent, filing the necessary documents, and fulfilling any additional requirements, such as obtaining licenses or permits that are specific to your industry or location.

Here are the steps in starting an LLC in Louisiana:

  • Step 1: Choose a Unique Business Name
    The first step in starting an LLC in Louisiana is to select a unique business name for your company. The name should be distinguishable from any other registered businesses in the state. You can check the availability of your desired business name by searching the state’s business name database. Once you’ve found an available name, you may need to include “LLC” or “Limited Liability Company” at the end of the name to comply with state requirements.
  • Step 2: Appoint a Resident Agent
    A Resident Agent is someone who will receive official legal and tax documents on behalf of your LLC. The Resident Agent must have a physical address in Louisiana and be available during normal business hours. You have the option to appoint yourself as the registered agent or hire a professional registered agent service.
  • Step 3: File the Articles of Organization
    To officially form your LLC, you need to file the Articles of Organization with the Louisiana Secretary of State or the appropriate state agency. The Articles of Organization typically requires basic information about your LLC, such as its name, address, Resident Agent details, and the name and address of the LLC’s members or managers.
  • Step 4: Create an Operating Agreement
    Once your LLC is formed, it’s highly recommended to create an operating agreement in Louisiana. Although not required by Louisiana law, an operating agreement is a crucial internal document that outlines the ownership, management, and operating procedures of your LLC. It helps establish clear guidelines and expectations among members, and it can be especially useful in the event of disputes or disagreements in the future. The operating agreement can be customized to fit the specific needs and goals of your LLC.
  • Step 5: Obtain Required Licenses and Permits
    Depending on the nature of your business, you may need to obtain specific licenses or permits at the federal, state, or local level. Research the licensing requirements in Louisiana and apply for business licenses in Louisiana related to your industry or activities. Common examples include professional licenses, health or safety permits, and sales tax permits.
  • Step 6: File for an Employer Identification Number (EIN)
    An Employer Identification Number (EIN) is a unique nine-digit number issued by the Internal Revenue Service (IRS) that is used to identify your LLC for tax purposes. Even if you don’t have employees, obtaining an EIN is typically required if you plan to open a business bank account, hire contractors, or file certain tax forms. You can easily apply for an EIN in Louisiana through the IRS website.
  • Step 7: Comply with Ongoing Requirements
    Once your LLC is established in Louisiana, it’s important to stay in compliance with any ongoing requirements. This may include filing periodic reports, paying Annual Report fees, and renewing licenses or permits. Familiarize yourself with the specific obligations for maintaining your LLC’s good standing in Louisiana.

Remember, starting an LLC in Louisiana involves some specific steps and requirements that may differ from other states. It’s advisable to hire an LLC Services in Louisiana that specializes in business formation to ensure that you follow all the necessary procedures accurately and efficiently. We reviewed the Best LLC Services for you to check out.

LLC Cost in Louisiana

It is crucial to consider the costs associated with the formation and maintenance of your business. The costs of establishing and operating an LLC in Louisiana can vary based on several factors, including the initial formation fees, ongoing compliance requirements, and optional expenses.

Initial LLC Costs

When starting a limited liability company (LLC), knowing the initial costs associated with forming and registering your new business entity is essential. Understanding and preparing for these expenses can help you budget effectively and set your Louisiana business on a path to success. Some common initial costs associated with forming an LLC include Articles of Organization filing fees, Resident Agent fees, and additional services, such as business name reservation fees.

Articles of Organization Filing Fee

The first step in forming an LLC in Louisiana is to file the Louisiana Articles of Organization with the Louisiana Secretary of State. This document officially creates the LLC and includes essential information about the business, such as its name, address, and Resident Agent.

This document includes essential information about your LLC, such as:

  • The name of your LLC
  • The address of your LLC’s principal office
  • The name and address of your Resident Agent
  • The purpose of your LLC (optional in some states)

You can typically file the Articles of Organization online, by mail, or in person. A filing fee is associated with this process, which costs around $100. You can also file by mailing it to Louisiana Secretary of State, which is located at State of Louisiana Secretary of State, P.O. Box 94125, Baton Rouge, LA 70804.

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Resident Agent Fee

An LLC in Louisiana must designate a Resident Agent who will be responsible for receiving legal and government documents on behalf of the business. You can act as your own Resident Agent or appoint someone you know. Professional Resident Agent in Louisiana typically charge an annual fee ranging from $50 – $150.

In Louisiana, your Resident Agent must:

  • Be a resident of Louisiana or a business entity authorized to do business in the state.
  • Have a physical address in Louisiana (P.O. boxes are not acceptable)

Choosing a reliable and responsible Resident Agent is essential, as failure to receive and respond to legal documents can seriously affect your business.

We reviewed some of the Best Registered Agent Services in Louisiana and provided features as an add-on with their packages for you to check out.

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Business Name Reservation Fee

If you have a specific business name in mind and want to ensure it is available when you are ready to file your Articles of Organization, you can reserve the business name with the Louisiana Secretary of State.

In Louisiana, your LLC name must:

  • Include the words “Limited Liability Company,” “LLC,” or “L.L.C.
  • Not contain any words or phrases that are prohibited by state law
  • Be distinguishable from the names of other businesses registered in the state

However, 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 the Louisiana Secretary of State to keep the name.

The online name reservation fee is $25, while the mail name reservation fee is $25. 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 a DBA (doing business as). 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 Louisiana DBA, you should know that you need to renew your DBA for up to ten years, which cost $75 Filing Fee and $300 for 24-hour Expedited fiiling.

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Ongoing LLC Costs

After you know the initial costs of forming an LLC in Louisiana, you should also know the ongoing costs once you have filed for an LLC. Here are the involved costs that you need to know.

Annual Report Filing Fee

To keep your LLC in good standing, you must file Annual Report with the Louisiana Secretary of State. The Annual Report provides updated information about your LLC, such as changes in address, members, or Resident Agent.

In Louisiana, the Annual Report fee costs $30 which can be paid every 1 year (anniversary date).

Franchise Tax or Annual LLC Tax

Some states require LLCs to pay an annual franchise or LLC tax, separate from the Annual Report filing fee. Franchise tax, or annual tax, is a fee imposed by Louisiana on businesses, including LLCs and Louisiana Corporations, for the privilege of operating within their jurisdiction. This tax is separate from income taxes and is usually based on factors such as the company’s net worth, assets, capital, or a fixed dollar amount, depending on the Louisiana’s specific tax regulations.

Louisiana LLC Taxes To Be Paid

The State of Louisiana is one of those rarest states in the United States that does not levy any personal income tax on businesses. However, the business LLCs must file other taxes with the State authorities.

  • Sales Tax: A sales tax is a government-imposed tax on the sale of goods and services. It is generally added to the price of a product or service at the point of sale and paid by the consumer. The tax is collected by the retailer or service provider, who then remits the collected tax amount to the relevant government authority. In Louisiana, the sales tax rate is 4.45%.
  • State Income Tax: Considering other taxes in Louisiana, you should pay for the state income tax, with a rate of 4-8%.
  • LLC Federal Self-Employment Tax: Federal self-employment tax rates are the same across all states. Self-employment taxes are imposed on self-employed individuals or members of a Limited Liability Company (LLC) taxed as a sole proprietorship or partnership.
  • Property Tax: The property tax is fixed at 0.51% of industrial, commercial, residential, agricultural, and all other properties.

Business Licenses and Permits

Depending on the nature of your Louisiana business and the location of your operations, you may need to obtain permits and business licenses in Louisiana. The costs of these licenses and permits will vary based on your specific business and location. In Louisiana, the business license ranges from $50 – $300. However, research the requirements for your LLC in Louisiana and budget for these expenses accordingly.

Optional LLC Costs

Here are the optional costs you must consider if you will form an operating agreement or hire a professional service.

Operating Agreement

Although not required by law, it is highly recommended that LLCs create an operating agreement in Louisiana. This document outlines the LLC’s ownership structure, management, and operating procedures. Hiring a business attorney to draft an operating agreement can cost anywhere from $500 to $2,000, or you can use online resources and templates to create one yourself.

Professional Services

You may hire professionals such as attorneys, accountants, or business consultants to help you establish and run your Louisiana LLC. These services can provide valuable expertise and guidance but come at an additional cost. Consider the potential benefits and weigh them against the costs when hiring professional assistance.

You may check out the Best Business Attorney Services in Louisiana that offer their professional services to form your business.

Can I Set Up an LLC For Free?

It’s impossible to set up an LLC entirely for free, as state filing fees and other costs are associated with establishing an LLC. However, you can save money by handling the formation process instead of hiring a professional service. Here are some steps to help you minimize the cost of setting up an LLC:

  • Choose your LLC’s name and check for availability in your state. This can generally be done through the Secretary of State’s website.
  • Prepare and file the Articles of Organization yourself. Louisiana offer an online filing option or downloadable forms on their websites. By completing this process independently, you can avoid paying additional fees for a professional service.
  • Act as your own Resident Agent if permitted within Louisiana. It allows the business owner to serve as the Resident Agent, saving you the cost of hiring a professional registered agent service.
  • Create your own Operating Agreement using online resources and templates. Although not required in every state, an Operating Agreement is highly recommended to outline your LLC’s ownership structure and management. By drafting this document yourself, you can save on legal fees.
  • Research and apply for any required licenses and permits on your own. Depending on your business type and location, you may need specific permits or licenses. These costs can vary, but handling the application process yourself can save you the expense of hiring a professional service.

While you can’t set up an LLC for free, taking a do-it-yourself approach and minimizing the use of professional services can help you save money during the formation process. However, handling these tasks requires time and effort, and there may be additional legal or financial risks if mistakes occur.

FAQs

What is the cost to form an LLC in Louisiana?
The cost to form an LLC in Louisiana is $100.
Can I file the paperwork myself to form an LLC in Louisiana?
Yes, you can download the forms and file yourself or use an online filing service.
How long does it take to form an LLC in Louisiana?
It takes around 2-3 business days for the State to process LLC formation paperwork filed online.
What is the annual fee for an LLC in Louisiana?
The annual fee for an LLC in Louisiana is $35.
How often do I have to file an Annual Report for my Louisiana LLC?
Annual Reports for LLCs in Louisiana are due every year by the anniversary month of your company formation.
What are the late fees for the Annual Report for a Louisiana LLC?
The late fees can be up to $60 but the exact fee depends on how late the Annual Report is.
When is the Franchise Tax due in Louisiana?
The Franchise Tax for Louisiana LLCs is due on or before May 1st each year.
How much is the Franchise Tax for a Louisiana LLC?
The Franchise Tax in Louisiana for LLC is a flat $110 fee.
Does Louisiana require LLC to have corporate kits?
No, Louisiana does not require LLC to have corporate kits.
What is the estimated cost for obtaining a LLC operating agreement in Louisiana?
The estimated cost for obtaining a LLC operating agreement in Louisiana is around $50 to $500 depending on complexity.
How frequently do you need to hold meetings for a Louisiana LLC?
Louisiana LLCs are not required to hold meetings however general activities need to be MINUTES captured verbally or through email.
Is the registered agent required to be a Louisiana resident?
No, not necessarily. However, the registered agent must have a physical street address in Louisiana to receive service of process.
Can I act as my LLC’s registered agent in Louisiana?
Yes, but keeping compliance is recommended consistent.
What does a registered agent do for a Louisiana LLC?
The registered agent in Louisiana receives legal and tax notices, and gets to reflect them with the respective owner or representative.
How much does it cost to have a registered agent in Louisiana?
The cost may vary, starting at $49/year up to $2,000/year or more depending on the agent
Can I change my LLC’s registered office to a different address in Louisiana?
Yes, you can change an LLC’s registered office address by filing an Amendment form with LDOL.
Can I change my LLC’s registered agent in Louisiana?
Yes, you can change LLC’s registered agent in Louisiana using designated forms and small fee.
Can a foreign business entity form an LLC in Louisiana?
Yes, provided the foreign and its subsidiaries have no registration issues arranged with LDOL.
Are there any special requirements for LLC owned by foreigners and out-of-state residents?
No, all LLC situations are treated the same regardless the citizenship and/or residency.
Can LLCs have different classes of member ownership in Louisiana?
Yes, LLCs in Louisiana can have different classes of members like shareholders; however, one member LLCs enjoys the “disregarded entity”, treated like sole proprietorships.
Are there any annual or bi-annual reports that LLCs file with Louisiana?
Yes, Louisiana LLCs are required to file NoReports with LH/CRI with no filling due requirement.
Can a member be held responsible for business debt- collections in Louisiana LLCs?
No, members are protected from personal liability when LLC assets are not working.
What is the Articles of Organization requirements in Louisiana?
Articles of Organization contains basic information about the LLC filed with LDOL.
Are there apps/bots/third-party tools available in Louisiana for LLC formation filings?
Certainly, multiple website providers which are both DIY or start-up LLC offer support with minimal costs.
Which paperwork is required to dissolve a Louisiana LLC?
LLc goals can be terminated by filing The proper Certificate of Dissolution/Liquidation with LDOL.
What is the fee associated with dissolving a Louisiana LLC?
The fee for dissolving the LLC is $25.
Must registered agents be appointed at the time that you initially on a Delaware LLC?
Yes, A registered agent must have Physical And Monetary Organization set with the owner or respective company director.
What is the filing fee for converting your Louisiana LLC into another business entity?
There is the potential for an additional formation fee dependent on the entity you’re converting to.
Do Louisiana LLCs require a publishing requirement or notice of formation?
No, Louisiana LLCs do not require publishing or notice for formation unlike in some states.
Are foreign LLCs permitted to obtain Permits or Licenses in Louisiana?
YES, as absolutely long the dedicated permits or let’s than state ordinances are obtained.

Also Read

How to Save Money While Starting Your Business LLC in Louisiana

One of the first steps to consider is setting up your LLC. While it may be tempting to hire a lawyer to help you with this process, there are many online resources available that can assist you for a fraction of the cost. Websites like LegalZoom and Nolo offer DIY LLC formation services that can save you hundreds, if not thousands, of dollars in legal fees. Additionally, Louisiana has relatively low filing fees for LLC registration, so you can save money by handling the paperwork yourself.

When it comes to office space, consider alternatives to traditional leases. Renting a commercial space can be costly, so look for creative solutions like coworking spaces or shared office arrangements. These options can provide you with a professional setting to conduct business at a much lower cost. You can also consider setting up a home office to save on overhead expenses.

Another way to save money while starting your business LLC in Louisiana is to take advantage of available resources and incentives. The state of Louisiana offers various programs to support small businesses, including tax credits, grants, and funding opportunities. By researching these programs and seeing if your business qualifies, you can potentially save a significant amount of money on startup costs.

When it comes to hiring employees, consider outsourcing certain tasks to freelancers or independent contractors instead of hiring full-time staff. This can save you money on payroll taxes, benefits, and other expenses associated with full-time employees. Websites like Upwork and Freelancer offer a pool of talented professionals who can help you with everything from marketing to bookkeeping.

Marketing your business can also be a significant expense, but there are cost-effective ways to get the word out about your new LLC. Utilize social media platforms like Facebook, Instagram, and Twitter to reach your target audience for little to no cost. You can also create a website for your business using free or low-cost website builders like WordPress or Wix. By leveraging these tools, you can market your business effectively without breaking the bank.

Lastly, be sure to carefully manage your cash flow as you start your business. Keep track of your expenses and revenue to ensure that you are staying within your budget. Look for areas where you can cut costs or increase revenue to keep your business afloat. By being mindful of your finances from the beginning, you can set your business up for long-term success.

Starting a business LLC in Louisiana doesn’t have to break the bank. By taking advantage of cost-saving opportunities, utilizing available resources, and carefully managing your finances, you can launch your business successfully while saving money along the way. With a bit of creativity and careful planning, you can set your new venture up for success without draining your bank account.

Conclusion

Forming and maintaining an LLC in Louisiana involves various costs, including initial filing fees, ongoing annual report fees, and taxes. Understanding and planning for these costs is essential when establishing your LLC. Additionally, consider any optional expenses, such as hiring professional services or drafting an operating agreement, to ensure the success and longevity of your LLC in Louisiana.

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