Sections of this topic
Welcome to our step-by-step guide on how to start an LLC in Louisiana!Limited Liability Companies, or LLCs, are popular corporate structures due to their versatility and risk protection for owners. If you’re considering starting an LLC in Louisiana, you’re in the right place.
In this guide, we’ll take you through the seven essential steps on how to start LLC in Louisiana and get your business up and running in no time. From choosing a name to registering with the state and getting your tax ID number, we’ll cover everything you need to know on how to start your LLC with confidence.
Best Business Registration Services in Louisiana
Software
Price
Business Formation
Annual Reports
Customer Support
Registered Agent Service
From $49 plus state fees
Can file for an LLC or Corporation
Prepare annual reports with expert help and automated technology
Solid customer support team
From $99 per year
$0 plus state fees
Can file for an LLC or Corporation
Annual report planning to help file correctly
Expert customer service, limited hours
Included free for the first year
From $59 plus state fees
Can file for an LLC, Corporation, or a DBA
Report filing services available
Unlimited phone/email support during business hours
$99 per year or included in higher tier plans
From $0 plus state fees
Form an LLC, Corporation, or nonprofit
Facilitate annual report filing
Limited to weekdays during normal business hours
Included free for the first year
Free to 100 plus state fees
Form an LLC, Corporation, or nonprofit
Annual report reminders, document storage
Knowledgeable and easy to access customer service team
$125 per year
From $79 plus state fees
Can file for an LLC, Corporation, Nonprofit, or a DBA
Create an annual report from a few simple questions
Customer support team can’t always keep up with demand
$299 per year
$39.99 per month or $99.99 flat rate
Form an LLC, Corporation, or nonprofit
Generate and maintain corporate records
Available during business hours, on-call lawyers for legal questions
$112.50 to $149.99
Pros of Starting LLC in Louisiana
Easy to Form and Affordable
Setting an LLC in Louisiana is simple and affordable. You must submit Articles of Organization to the Secretary of State’s office and pay a $100 fee. This procedure can be carried out either online or by mail. Also, Louisiana has some of the lowest filing fees in the country, making it a cost-effective option for business owners. Furthermore, the process is relatively straightforward, and you can complete it without the assistance of an attorney or a registered agent.
Personal Liability Protection
Another obvious benefit of forming an LLC in Louisiana is the liability coverage protection it provides. As a business owner, you are protected from personal liability for the LLC’s obligations and actions. This implies that if the business is prosecuted or owes money, your personal assets, such as your home or vehicle, are safeguarded. This function serves as a safety net for businesses, providing them with confidence that their personal money is not jeopardized.
Tax Benefits
Louisiana has a relatively low corporate tax rate of 4%, and LLCs are only taxed on their net income. Furthermore, LLCs are not required to pay a separate franchise tax, another significant advantage. By structuring your business as an LLC, you can take advantage of tax benefits that other entities, such as sole proprietorships, do not enjoy.
Less Paperwork
Another advantage of forming an LLC in Louisiana is that it requires less paperwork than other entities. For instance, LLCs are not required to hold annual meetings or keep minutes of those meetings. Also, LLCs are not required to file a yearly report with the state, reducing the paperwork burden for business owners.
Ownership Credibility
Forming an LLC can enhance your business’s credibility and help you establish a professional reputation. It demonstrates to clients, vendors, and other stakeholders that your business is a separate legal entity, which can improve their confidence in your company. This feature can be particularly beneficial if you are starting and want to establish a solid foundation for your business.
Management Flexibility
LLCs offer greater management flexibility than other types of entities. In an LLC, you can choose a member-managed or manager-managed structure, allowing you to tailor the management structure to your business needs. Also, LLCs can have unlimited members, allowing you to bring in additional partners or investors as your business grows.
Cons of Starting LLC in Louisiana
Self-employment taxes
Unlike other business structures, such as S corporations, LLCs are not exempt from self-employment taxes. This means that LLC owners may have to pay a larger percentage of their earnings in taxes.his means that LLC owners may be required to pay a higher percentage of their income in taxes.
7 Steps How to Start LLC in Louisiana
Follow these steps to learn how to open LLC in Louisiana:
1. Chose to File Online or Paper Forms
The first thing to do when forming your LLC in Louisiana is to decide if to submit your paperwork online or by mail. Both options are available, and either method’s process is relatively straightforward. Filing online is generally faster and more convenient, as you can complete the process anywhere with internet access.
However, filing by mail may be preferred for those who prefer a physical paper trail or need to pay by check. Whichever option you choose, carefully review the instructions and requirements for filing to ensure that you submit all necessary information and documentation.
2. Check your LLC Name Availability
When establishing an LLC in Louisiana, be sure your chosen name is available. This assures that your business name is not currently in use and does not violate any current trademarks or intellectual property rights.
Here are the steps to check your LLC name availability in Louisiana:
- Visit the Business Services section on the Louisiana Secretary of State’s website.
- Choose “Business Filings Database” and type the name of the LLC you want to create in the search field.
- Check the search results to see if any other companies use the same or similar names.
- You may continue with the creation procedure if your selected LLC name is available. In the absence of such a request, you must either select a different name or select another name.
For LLCs, Louisiana has certain name guidelines. Your Limited Liability Corporation’s name must contain the words “Limited Liability Company” or an acronym like “LLC” or “L.L.C.” Also, without specific permission, your name cannot contain some prohibited terms like “bank” or “insurance.”
3. Assign a Registered Agent
You need a registered agent in Louisiana if you want to form an LLC. A person or company named as the LLC’s registered agent will receive court filings and other necessary correspondence on its behalf. The registered agent must have a physical address in Louisiana, which is required.
Having a registered agent can help your LLC in several ways. For instance, it may guarantee that crucial legal paperwork is immediately sent to the right people, preventing you from missing deadlines or facing legal problems.
When choosing a registered agent, be sure they are dependable and trustworthy. During normal business hours, this individual should be ready to receive papers and send them to the proper parties. You can nominate yourself or another LLC member as the registered agent or employ a professional registered agent service.
4. Get an EIN
Another vital step in Louisiana LLC formation is obtaining an Employer Identification Number (EIN) from the Federal Tax Service (IRS). An EIN is a nine-digit number uniquely identifying your LLC for tax and financial purposes. Consider it your business’s social security number.
An EIN is required so that your LLC may create a business bank account, hire staff, and submit taxes. It is also necessary to apply for specific business licenses or permits. Getting an EIN is a straightforward process that may be completed online via the IRS website.
You must submit some basic information about your LLC, such as its name, address, and accountable party’s name. You will receive your EIN as soon as your application is complete and processed.
5. Submit Your Louisiana LLC Documents
Filing and submitting your Louisiana LLC documents are essential to the LLC formation process. You must submit the relevant forms to the Louisiana Secretary of State’s office, either online or by mail, once you have completed them.
Create an account on the Louisiana Secretary of State’s website and fill out the relevant papers to file your LLC documents online. You will then be invited to submit the necessary papers and pay the filing fees using a credit or debit card.
If you want to file by mail, you must print off the completed papers and submit them to the Secretary of State’s office, along with the filing fee, in the form of a check or money order. Before mailing the forms, double-check that they are filled out correctly and thoroughly.
6. Get a Business Bank Account
Opening a business bank account is another important thing to do in order to manage your Louisiana LLC’s finances. It lets you keep your personal and business finances separate, which can help you manage your cash flow, track expenses, and simplify your tax reporting.
To open a business account for your LLC, you must provide the bank with some documentation, including your LLC’s Certificate of Organization, EIN, and operating agreement. You may also need to provide personal identification and proof of address for each LLC member.
When choosing a business bank for your LLC, it is important to consider factors such as fees, interest rates, and account features. Evaluate several banks and compare their offers to discover the best fit for your business needs.
After deciding on a bank, you may visit a branch in person or apply for an online account. Before finishing your account, please read the terms and conditions and ask any questions.
7. Create an Operating Agreement
An LLC operating agreement establishes the company’s name, ownership, member responsibilities, and other structural aspects. It helps establish the roles and responsibilities of each member, provides guidelines for decision-making and dispute resolution, and sets forth the rules for distributing profits and losses.
To develop an operating agreement, you must include many essential parts, such as the goal of the LLC, each member’s rights and obligations, how profits and losses will be divided, and how the LLC will be governed. Consider including provisions for adding or removing members, how to handle member disputes, and what happens if the LLC is dissolved.
There are several free online templates available to assist you in creating an operating agreement for your LLC. You can modify these forms to meet your specific requirements or engage a business attorney for a customs agreement.
Once your operating agreement is complete, you should ensure that all LLC members review and sign it. Keeping a copy of the operating agreement in your LLC’s records and any other important documents is an excellent practice.
Cost To Set Up LLC in Louisiana
The cost to set up an LLC in Louisiana can vary depending on a few factors, such as whether you choose to file online or by mail and whether you need to apply for additional licenses or permits.
Breakdown of the costs you can expect:
- Louisiana Articles of Organization filing fee: $100 (if filing online) or $105 (filing by mail).
- Optional expedited filing fee: $30 for 24-hour processing or $50 for same-day processing.
- Louisiana business licenses and permits : Licenses and permits depends on the type of your business and location.
- Registered Agent fee (if using a professional service): Varies depending on the provider.
FAQs on Starting LLC in Louisiana
Conclusion
Forming an LLC in Louisiana can be a straightforward and affordable way to start a business while providing personal liability protection and potential tax benefits. By following the seven steps outlined in this guide, including filing your articles of organization, choosing a registered agent, obtaining licenses and permits, and creating an operating agreement, you can successfully set up your LLC in Louisiana.
Remember that while the process may seem daunting at first, plenty of resources are available to help guide you through the process, including online templates, professional services, and legal and financial experts.
