How to Start an LLC in Louisiana: If you’re looking to start an LLC in Louisiana, you’ve come to the right page. Setting up an LLC is easy and cost-effective. To form an LLC, you must follow a few steps that include naming your LLC, hiring a registered agent, filing your formation documents, doing the operating agreement, and finally obtaining the EIN. You can easily set up your LLC at a very low cost in Louisiana. Though, you must pay the mandatory state filing fee. These fees and charges can be tax deductible, making the LLC formation cost almost negligible.
On this page, You’ll find all the steps that must be taken to ensure that your Louisiana LLC has been correctly formed. We recommend you read the whole article very carefully, word by word, don’t miss anything 🙂
On this page, you’ll learn about the following:
- How to Start an LLC in Louisiana
- After Starting Your Louisiana LLC
- Louisiana Foreign LLC
- Louisiana LLC Formation Review
How to Start an LLC in Louisiana
An LLC (aka 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. For an LLC, members’ personal assets are not affected by business debts. However, in some cases, if the LLC is sued for business debts, courts might pierce the corporate veil and use the owner’s personal assets to meet their corporate liabilities.
If you wish to start an LLC in Louisiana, you must file your Articles of Organization with the State and pay a filing fee of $100. While it’s the most important step, it’s not the only one. There are 4 other crucial steps to follow to get your LLC formed in Louisiana. Below are all 5 steps that explain everything you need to do to start a Louisiana LLC in 2023. Let’s get started! You can always hire a professional LLC formation service in Louisiana to set up your LLC instead of doing it alone; a Pro service will ensure everything is done properly.
Step 1: Decide a Name for Your Louisiana LLC
The first step while forming a limited liability company in Louisiana is to give a proper name to your LLC. Before you name your business, you must know that the name should be easy to remember, available in the state, and follows all the LLC naming guidelines.
Louisiana LLC Naming Guidelines
There are a few specific requirements all the LLCs in Louisiana have to follow while naming their Company. Some of the most important requirements are as follows:
- Your business name should be available and no other existing business in Louisiana can have the same name. LegalZoom offers unlimited business name searches without any hassle.
- “Limited Liability Company”, “LLC”, and “L.L.C.” – any one of these has to be used as a suffix in your business name.
- You cannot use any name for your business that is confusing or misleading. Terms such as “Treasury”, “State Department”, “FBI”, “CIA”, etc. shouldn’t be included.
- Terms like “Bank“, “University“, “Attorney“, “Doctor“, etc can be added only after the additional requirements by Louisiana State Government are fulfilled.
- (Optional) It’s better to name your business something for which your desired domain is available.
|Important Links –||Submit Offline Form to –|
|Louisiana Business Entity Search – Online Search|
Name Reservation Form – PDF
Name Availability Standards – Guidelines
Louisiana LLC Name Search – Instructions
P.O. Box 94125
Baton Rouge, LA 70804-9125
Reserve Business Name for Future
If you do not wish to file your LLC right now but want to hold the name you have decided on, then you can reserve your LLC name for 60 days. To keep the name, you must file a name reservation application and pay $25 to reserve your name with the Louisiana Secretary of State.
Doing Business As (DBA) or Trade Name
Once you have a legal name for your LLC, you can register it. However, it is not mandatory. You can, instead, use DBA, Fictitious Name, or Trade Name. In that case, you must register your name with the Louisiana Secretary of State by submitting an Application for Reservation of Trade Name in Louisiana, along with the filing fee of $75.
Recommended: You can do name search, Trademark search, Trademark registration, copyright registration, and a lot more in one place by hiring a professional service. We recommend using –
LegalZoom – (Worry-free LLC Formation)
Apart from LLC formation, LegalZoom offers Trademark search, trademark registration, copyright registration, and etc. at a very reasonable price. If you plan to get a website, then it is wise to have a “.com” domain for your business, but these days you can also use other TLDs like “.io”, “.company”, “.xyz,” etc.
It is not legally mandatory to use the word LLC in your domain name or email. If you want, you can use it. However, it is recommended not to use LLC in the domain name. A domain name should be short and easy to remember.
Step 2: Assign a Registered Agent in Louisiana
The second step to forming an LLC in Louisiana is to appoint a Registered Agent. A registered agent is a person or business entity working on your LLC’s behalf. This person or business will receive important tax forms, legal documents, all notices of lawsuits, and other official government correspondence in Louisiana. Hence, hiring a competent Louisiana Registered Agent for your LLC is necessary.
Make sure your registered agent is a resident of Louisiana or has a physical street address. This address will be used as the principal address of your LLC to receive any legal documents. Most LLC formation companies also provide registered agent services. Below are two great LLC formation services; even if you buy their cheapest plan (normally $0), you also get registered agent service and other services at a very reasonable price.
These two are our top recommendations for registered agent service, as they are competent and authorized to conduct business in Louisiana. Some LLC formation services also offer standalone Louisiana registered agent services. You can purchase only Registered Agent services without purchasing any other LLC formation services. This standalone service might become handy if you are doing it yourself and don’t want to disclose your home address or you don’t want to pierce the corporate veil.
A person above 18 years of age and has a physical address in the state of Louisiana can be a Registered Agent. A Registered Agent can be an independent person or can be a business entity. One is responsible for handling all the legal documents on the LLCs behalf.
Yes, you can be your own registered agent if you are a resident of the state of Louisiana and you are above 18 years of age. To become a registered agent, you must have the authority to conduct any type of business in Louisiana.
There are a few reasons why you shouldn’t be your own registered agent. The address of the registered agent is used to communicate with the SOS or for any legal activities. If you are your own registered agent, you might have to upload your personal address to the public forum. Besides, the registered agent must be at the address during business hours. It won’t be easy for you as you also have to take care of other things in your LLC. Hence, it is wiser to appoint a separate entity as your registered agent.
If an LLC is sued in Louisiana, in some cases, courts might decide to lift the corporate veil, which means the owners of the LLC will be personally liable for their business debts. They might have to forgo their personal assets to repay their business debts. This is called piercing the corporate veil, where personal and business assets are not separated anymore. Your personal assets can be protected if you have enough capital and all your LLC documents are properly filed.
Registered Agent Consent Application
In Louisiana, there is no separate Consent Letter to be produced to the Secretary of State. At the time of change of Registered Agent (or the name or address), the new Registered Agent has to sign the consent letter. It comes with the Application form to Change the Registered Agent. The filing fee of $25 should be paid for it. For more information on the same, read our guide on Louisiana Registered Agent.
Step 3: File Articles of Organization in Louisiana
The third and most important step in forming a Louisiana LLC is to file the Articles of Organization. This Louisiana Articles of Organization is a legal document that is required to register your business with the Louisiana Secretary of State. It costs $100 (by mail and online) to file your formation certificate in Louisiana.
The Articles of Organization include details like the name of the LLC, the registered agent’s name, address, employees’ details, and the company’s structure (member-managed or manager-managed). Before hiring employees in Louisiana LLC, one should know about the rules and regulations thoroughly. Also, if you are expanding your existing business (an LLC) in other states to Louisiana, you must register as a Louisiana Foreign LLC.
How to File Online
Go to the Secretary of State Online Service. You will get the online service page. If you are already a subscriber then click on the “log in to Subscribe Account” option and log in with your credentials. If you’re not subscribed, then you sign-up by clicking on the “Sign-up for Online Filing” button below. Read more about the Louisiana Articles of Organization for online registration.
How to File by Mail
If you prefer filing real-life forms for your Louisiana LLC registration, then you can download Domestic LLC Formation Form. Read the form thoroughly, fill it out, and mail it to the following address,
State of Louisiana Secretary of State
P.O. Box 94125
Baton Rouge, LA 70804
Processing Time: Normally, it takes around 3 business days (approx) to get your LLC formed in Louisiana. The processing time for online filing might be a little faster than offline filing. With an additional cost, you can get expedited filing as well. However, the document processing time can be changed due to various factors.
Recommended: Online LLC Formation service can fill up and submit all these documents on your behalf in much lesser time along with lifetime customer support and 100% accuracy. We recommend using –
LegalZoom – ($0 + State Fees) Online LLC Setup
Every LLC owner has to pay the filing fees to register their business in Louisiana. This fee is mandatory but also tax deductible. If you’re doing it yourself (filing on your own), it will not cost you any additional service fee. However, it is not feasible to do that as the DIY process might be delayed, complicated, and messy, especially if you’re a novice entrepreneur. Hence, it is recommended to get professional guidance to get your LLC formed in Louisiana.
Step 4: Create Your Louisiana LLC Operating Agreement
Moving on to the fourth step, filing your 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 filing a Louisiana LLC Operating Agreement, the state does not require you to have a comprehensive operating agreement, but it is ideal to have one that contains all the details of your business operation that helps in taking future business decisions, especially if you decide to dissolve Louisiana LLC later. Hence, having an operating agreement may not be necessary but it is surely ideal.
Recommended: You can get operating agreement templates at a reasonable price with LLC formation service. You don’t need to worry about drafting it as they will take care of it on your behalf. We recommend using –
LegalZoom – ($0 + State Fees) Online LLC Setup
The operating agreement draft can be created for free if you don’t hire a professional. However, there is an advantage to appointing a proficient person/service. You will get a businesslike quality operating agreement at a very cheap fee, which will help you in the future. Hiring a professional service means you can sleep well at night 🙂
Step 5: Filing a Louisiana LLC EIN
The Employer Identification Number (aka EIN) is a nine-digit number given by the Internal Revenue Service (IRS) to make it easier to identify the type of business for tax purposes and taxes in general. The EIN is necessary for any active business or any form of business.
EIN is needed when the LLC hires employees. Hiring employees in Louisiana LLC requires following specific rules and regulations. On the other side, EIN for Louisiana foreign LLC should be obtained if your LLC is based in other states.
To obtain EIN (aka FEIN), one must fill up a form (Online or by mail) and submit it to the IRS. Enter details of your LLC, and finally, complete the form and send it to the address given. You can also get an EIN Assistant to help you with the process.
Mail to: Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999
Fax: (855) 641-6935 | Fee: Free
Recommended: This hassle will be reduced when you hire an LLC formation service. They take care of obtaining EIN and all other things for your LLC. We recommend using –
LegalZoom – ($0 + State Fees) Online LLC Setup
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.
Congratulation, you are now done with all the necessary steps to form your Limited Liability Company in Louisiana. If you do it yourself, it should take you a long time to understand and do all the steps properly.
However, if you use LegalZoom, it should be way faster. You will always have a live chat option and phone support with experts for any help you need. Their worry-free service will make things easier for you.
After Starting Your Louisiana LLC
After forming your LLC, there are still some things that you will need. The most important thing is to separate your business and personal assets. LLCs have limited liability protection that protects your personal assets from business liability. This is called a corporate veil. However, the corporate veil can be lifted or pierced by the court if the LLC is sued. In that case, the owners of the LLC become personally liable for their corporate debts. A few things like appointing a legit registered agent, having enough capital, and filing all the major documents with the state can save the LLCs from being pierced into the corporate veil.
Apart from that, there are a few things you need to take note of,
- Get a company business bank account
- File Louisiana business permits & licenses
- Get general liability insurance and professional liability insurance with coverage for employees.
- File a Louisiana LLC annual report or biennial report
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.
Cost of Louisiana LLC
LLCs can be formed by spending less price. Apart from the mandatory state filing fees, you don’t have to bear additional service charges if you do it yourself. Following are the fees and taxes LLCs in Louisiana must pay to register and run a business in the state. Forming an LLC is no doubt cost-effective compared to other business structures. However, the fees and charges (tax-deductible) that you must pay to the state, such as name reservation fee, name filing fee, LLC filing fee, and Franchise Tax & Sales Tax (If applicable). Here are the main fees and taxes you must pay while forming your limited liability company in Louisiana,
|Fees/Tax||Amount to be Paid|
|Name Reservation Fee||$25|
|Name Reservation Fee (within 24-hours)||$30|
|Name Reservation Fee (within 2-4 hours)||$50|
|Articles of Organization Fee||$100|
|LLC Annual Fee||$30|
In Louisiana, an LLC name reservation is not mandatory. You can register your LLC name at the time of registering your LLC. If you wish to hold the name for some time without registering your LLC, then you can do that online. Your LLC name will be reserved for 60 days without registering your LLC. It can be renewed by paying $25 for another 30 days (2 times).
In Louisiana, an Annual Report has to be produced every year. It costs $30. Also, the State of Louisiana requires to pay a Sales Tax of 6.25%. Read our guide on LLC costs in Louisiana for more information.
Louisiana Foreign LLC
If you are interested in forming a Foreign LLC in Louisiana then you need to file the Certificate of Foreign LLC to the Louisiana Secretary of State. Foreign LLCs allow you to operate your business in more than one state. Along with the Certificate of Foreign LLC, you need to submit some more documents like the Certificate of Good Standing, etc. to the Louisiana SOS to form your foreign LLC in Louisiana. To know more in detail, check out our guide on Louisiana Foreign LLC.
Reasons to Start 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 to their GDP. For every business, the state has something to offer, which is attracting the LLCs. Some of the benefits are discussed below.
The growth is invincible
The per capita income of the members of an LLC is higher than in many other states. The reason behind this is the growing nature of the industries which cater proper opportunities to LLCs. 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 protecting 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. Read more on the Louisiana classification of LLC tax.
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 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. Get a professional Registered Agent from LLC formation services to get things done hassle-free.
- File a Formation Certificate
Filing a formation certificate is necessary when forming an LLC in Louisiana. Depending on the state, it could be called any of the following: Certificate of Formation, Articles of Organization, or Certificate of Organization.
- Create an Operating Agreement
An operating agreement is not a strict requirement in Louisiana but something encouraged when you start an LLC to avoid future conflicts.
- 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.
How Fast Can I Form an LLC in Louisiana
The filing process can take up to 2-3 business days for Louisiana LLC. This procedure can be expedited by paying additional payment to the state.
In recent years, more and more entrepreneurs looking to start a business in Louisiana have been turning to forming a Limited Liability Company (LLC). LLCs are popular business entities due to their flexibility, pass-through taxation, and protection of personal assets from company debts and lawsuits. Additionally, forming an LLC in Louisiana is a relatively simple and straightforward process.
However, the sheer number of steps involved in forming an LLC in Louisiana can be overwhelming for first-time business owners. These steps include choosing a unique name for the company, filing Articles of Organization, obtaining an Employer Identification Number (EIN), and registering for state and local taxes. Furthermore, any errors made during the process can result in costly delays or even rejection of the LLC formation application.
The key factor in determining how fast an LLC can be formed in Louisiana largely depends on the amount of preparation that is done before beginning the process. Setting realistic timelines and deadlines for each step of the process is crucial. It is recommended that entrepreneurs research LLC formation online resources, including the Louisiana Secretary of State’s website, for detailed steps and instructions before beginning the registration process.
Choosing an LLC name is usually the first step, as it will be needed for filing the Articles of Organization. Business owners should choose a name that is unique and not already registered with the state. It is also recommended to perform a thorough internet search to ensure that the name does not conflict with any existing trademarks.
The next step is completing and filing the Articles of Organization. This document outlines the basic information about the LLC, such as its name, purpose, structure, and the name and address of its registered agent.
Obtaining an EIN is another important step in the LLC formation process. This is a tax identification number assigned by the IRS that is required to open a business bank account, file taxes, and hire employees. The EIN can be obtained online from the IRS website or by mail.
Once the LLC is registered with the state and has its EIN, it is necessary to register for state and local taxes. This includes sales and use tax, withholding tax for employee wages, and a variety of other taxes based on the nature of the business.
Though the LLC formation process may seem daunting initially, conducting adequate research and gathering information before commencement can make the application process less stressful and may reduce the potential for costly delays. After the initial process has been successfully completed, entrepreneurs who choose to form an LLC in Louisiana can move towards achieving their dream of owning a successful business.
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. If you hire a professional LLC service, then it might take less than that. We recommend TailorBrands which has impeccable turnaround time.
Every year all the LLCs 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. Read more on the Louisiana Classification of LLC Tax.
LLCs are easier to establish than other business structures. Small businesses, especially start-ups can easily start an 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, and leave a comment below.