Perhaps you are hoping to form an LLC in Louisiana. People assume that starting an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in Louisiana.
Louisiana LLC Cost of Filing
Here are the costs involved in forming an LLC in Louisiana.
Cost of Filing Formation Certificates
The Louisiana Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the Louisiana Secretary of State.
Louisiana Domestic LLC
- Online filing costs $100
- Annual Report filing costs $30
- Name Reservation costs $25
- By mail: Fill out the Application Form PDF, and submit it to the following address: State of Louisiana Secretary of State P.O. Box 94125 Baton Rouge, LA 70804.
Louisiana Foreign LLC
- Online filing costs $150
- Annual Report filing costs $30
- Name Reservation costs $25
- By mail: Fill out the Application Form PDF, and submit it to the following address: State of Louisiana Secretary of State P.O. Box 94125 Baton Rouge, LA 70804.
You can visit the Louisiana Secretary of State website to learn more about the forms and fees.
Note that filing online is ideal, not only because you need to go to the Secretary of State office, but also it would be faster. You won’t have to wait in a queue in doing so.
Louisiana LLC Formation Service or Registered Agent Fee
You need a registered agent to form an LLC in Louisiana, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.
Business Permits and Licenses
The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the Louisiana Department of Revenue for regulatory boards or agencies requiring licensing.
Louisiana Taxes to be Paid
The business LLCs in the State of Louisiana are subject to different State tax filing obligations. Though the fees may vary from county to county.
Louisiana State Income Tax
This is the State Tax levied on any income you pay to yourself. The tax rate in the State varies between 2% to 6% depending on the total amount of taxable income.
Louisiana Sales tax
The standard rate of sales tax applicable is at the rate of 6.25%. Though the taxes may vary depending on the county and city.
Louisiana Federal Self-Employment Tax
Any profit that Louisiana LLC Business members draw out from the business is liable to pay self-employment tax. The standard tax rate is 15.3%.
Louisiana Payroll tax withholding
If you hire employees in Louisiana, you must withhold payroll tax from their salaries. The standard rate of withholding is 7.65% of the taxable salary of the employees.
Cost Comparison among States
Every state has different costs of filing for an LLC to their respective State Authorities. If you wish to gain a better understanding of the costs of opening an LLC in a different state in comparison to Louisiana, read the table below:
State | Filing Fee | Annual Fee/Biennial Fee | Sales tax |
Louisiana LLC | $100 | $30 (annual) | 6.25% |
Arkansas LLC | $45 | $150 (annual) | 6.50% |
Mississippi LLC | $50 | $0 | 7.00% |
Texas LLC | $300 | $0 | 6.25% |
Oklahoma LLC | $100 | $25 | 4.25% |
Louisiana is a strategically located state with a higher growth rate. The major contributing industries in the State are natural resource production and agriculture, commercial fishing, natural gas, and petroleum.
Other Costs
- Louisiana Name Reservation: $25 for online fillings or by mail
- Doing Business As (DBA): $75 for online filling or if filing by mail
- Certified Document Copies: $15 per document.
- Certified of Good Standing: $20
- Business Domain Name and Website: depend on your preference, but domain name could be as low as $2.99/yr at NameCheap, and web hosting is at least $30/mo at Kinsta.
- Online workspace: at least $4.20/mo for GSuite.
- Business Insurance: would vary depending on insurance type–whether general liability insurance or professional liability insurance–and coverage.
- Dissolution of Louisiana LLC: $75
F.A.Qs
It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.
It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.
The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.
How Much Does It Cost to Maintain an LLC in Louisiana
To maintain an LLC in Louisiana you will need to pay an annual fee of $30 along with sales tax at 6.25%, income tax at 2% to 6% and federal taxes.
One of the primary expenses that LLC owners in Louisiana need to consider is the initial formation fee. When setting up an LLC in the state, entrepreneurs are required to pay a filing fee to the Secretary of State’s office. This fee can vary depending on the type of business and its structure, but it serves as the first financial hurdle for individuals looking to establish their LLC.
In addition to the initial formation fee, Louisiana requires LLC owners to file an annual report with the Secretary of State. This report includes information about the company’s members and managers, as well as its registered agent. While the annual report fee is not exorbitant, it is another expense that LLC owners need to account for in their operational budget.
Another cost that LLC owners in Louisiana should be prepared for is the cost of maintaining a registered agent. A registered agent is an individual or entity designated to receive legal documents on behalf of the LLC. While some business owners may choose to act as their own registered agent, others may opt to hire a professional service to fulfill this role. In either case, there will be associated fees that need to be factored into the overall cost of maintaining the LLC.
LLC owners in Louisiana should also be aware of any potential franchise taxes that may be applicable to their business. While not all LLCs are subject to franchise taxes in Louisiana, certain companies may be required to pay this additional levy based on their income or the nature of their business activities. It is important for LLC owners to understand their tax obligations in order to avoid penalties or fines.
Lastly, LLC owners in Louisiana should budget for any other miscellaneous costs that may arise during the course of operating their business. These expenses could include legal fees, accounting services, business licensing fees, or other operational costs that are unique to their specific industry or circumstances. By planning ahead and setting aside funds for contingencies, LLC owners can ensure that they are prepared for any unexpected financial challenges that may arise.
In conclusion, while the benefits of forming an LLC in Louisiana are numerous, it is essential for business owners to have a clear understanding of the costs associated with maintaining their LLC. By accounting for expenses such as initial formation fees, annual report costs, registered agent fees, franchise taxes, and other miscellaneous expenses, entrepreneurs can better position themselves for financial success and sustainable growth.
In Conclusion
The cost of Louisiana is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the price of professional LLC services and choose the most affordable one.