A Limited Liability Corporation (LLC) is a convenient and affordable business structure for entrepreneurs. It is a hybrid entity that provides the benefits of a corporation with fewer formalities as compared to other business structures.
Registering an LLC in Louisiana can be complex, particularly if you don’t know how to go about it. However, fear not. The procedures are straightforward and can be done online.
This article will break down the basic steps on how to start an LLC in Louisiana and the costs you will incur. Read on.
|LLC Filing Fee||$100||$300||$50||$45||$130.38|
|LLC Annual/Biennial Fee||$35 (every year)||$0 for most LLCs (however a No Tax Due Report and Public Information Report must be filed every year)||$0 (however, an information report must be filed every year)||$150 (every year)||$89.34 (every year)|
|Corporate Tax Rate||3.5-7.5%||0%*||4.00%||1-5.9%*||5.60%|
|Nominal GDP per capita||$55,213||$67,235||$42,411||$47,770||$64, 773.08|
|Overall Rating for Starting an LLC||4/5||4/5|
Before You Set Up An LLC In Louisiana
Before you set up an LLC in Louisiana, you need to understand the process of forming an LLC. To create an LLC in the state, several requirements must be met. They include:
- A name that can’t be identical to another business already registered with the Louisiana Secretary of State‘s office.
- An operating agreement that states how much authority each member has over the company’s affairs.
- All LLC members must be 18 years or older.
- The LLC must have at least one member. There is no limit to how many members it can have.
- There are legal steps that need to be taken to set up an LLC.
How Much Does It Cost To Start An LLC In Louisiana?
To start an LLC in Louisiana, you must file Articles of Organization with the Secretary of State.
How much to start an LLC in Louisiana is a question with varying answers.
For instance, it will cost differently if you complete the process by yourself as opposed to when you work with a professional LLC formation service like LegalZoom or ZenBusiness. Here are the standard costs.
- The filing fee for the Articles of Organization in Louisiana is $100. The price can be raised to $130 for 24-hour processing. Priority Expedite costs $50 more, and it takes 2-4 hours to register your LLC, regardless of the number of members or location. There are three different types of fillings depending on the desired LLC structure; single member, series LLC, or multi-member LLC. The cost for each may vary depending on the number of members, time in business (if it’s an existing business), and location.
- If you want to have an existing name and would like to reserve it during the LLC formation process, it’ll cost you $30. The Louisiana Secretary of State’s website can guide you on how to reserve the name. This reservation will last for 180 days or until your formation documents are approved. It can take as long as 6 weeks to receive your certificate, so be sure to file early!
The filing fee for your LLC is a one-time charge and is non-refundable. In addition, you need to consider the capital needed for starting a new business. Depending on how you plan on financing your venture, your up-front costs may be more or less.
Moreover, there are other costs to keep in mind, such as accounting services, legal counsel, advertising fees, and any special permits or licenses you might need, as well as any state taxes you’ll have to pay.
Steps To Start An LLC In Louisiana
Unfortunately, it is not always easy to get started in the business. Luckily, there are several steps you can take to make things run smoothly and legally. Below are the steps to start an LLC in Louisiana.
Pick A Name For Your LLC
You have decided it is time for your own business. Now, the first thing you must do is choose a name for your LLC according to Louisiana state regulations.
For instance, your chosen name should not be too generic or obvious to avoid confusing the public and increase your company’s marketability.
Find A Registered Agent In Louisiana
A registered agent is your contact point with the state. You can be your own registered against, but it’s usually better if you hire someone that specializes in the job.
Working with a registered agent is not required by law. However, it is recommended to find one to make work more manageable for you. Reputable registered agents can help you move through the process faster.
|ZenBusiness – $49 + state fees to register your LLC (read review)|
|Incfile – $0 + $50 state fees to register your LLC (read review)|
Articles Of Organization
The Articles of Organization is sometimes referred to as Certificate of Formation. This is the document you need to file to officially create an LLC. It includes information about your business name, physical address, and contact information for you and any other members.
After filling out the Articles of Organization, you can file it with Louisiana’s Secretary of State office by mail or in person. The mailing address is:
State of Louisiana Secretary of State
P.O. Box 94125
Baton Rouge, LA 70804
Once filled, you will receive a certificate from the state which approves that the LLC has been formed. You will use this form to obtain the EIN number, bank account, and business licenses.
When your LLC is formed, the next step is to decide how you and the other members will run it. Hence, you need to create an operating agreement to state the duties and positions of the members.
This includes the investment of each member, how to divide profits and losses, and how the company can be dissolved, and so on. Find templates online to helo you create your operating agreement.
Be aware that an operating agreement isn’t mandatory for Louisiana LLCs, but it is strongly recommended that you have one.
Get An EIN
The IRS assigns a tax ID number to businesses so that they can be classified and tracked for tax reasons. You must apply for one if you do not yet have an Employer Identification Number (EIN).
You can learn more about applying for EIN for your LLC on the IRS website.
The Forms You Need To Register An LLC In Louisiana
Every LLC must register with the Secretary of State’s Office in Louisiana. The necessary forms can be found on the Secretary of State‘s website.
These include Articles of Organization for both domestic and foreign LLCs, operating agreement (not mandatory), and certificate of good standing for foreign LLCs.
You must also file your name with the county clerk within ten days after making formation documents available for public inspection.
The business name must be available for use in Louisiana for at least 60 days before filing. It must be distinguishable from any other corporation doing business in Louisiana.
|Did You Know? |
Did you know Louisiana LLCs don’t need a physical office for doing business in that state? There are hundreds of ways to structure an LLC, the type of entity you choose will largely depend on your personal circumstances and business needs.
LLC Taxes In Louisiana
The taxes paid by LLCs differ depending on the industry. Nearly all industries in Louisiana are eligible for an income tax credit. The credit is calculated based on the number of employees and a percentage of wages, with certain limitations.
State taxes are collected by state authorities and vary based on where your business is incorporated, and federal taxes are collected by the federal government and depend on location and revenue.
LLCs in Louisiana have to pay a state corporate income tax that ranges between 3.5% and 7.5%. The tax is based on LLC net income. The amount of federal taxes for LLCs in Louisiana depends on several factors, including how much of their income is considered business profits and losses or net income.
How Long To Form An LLC In Louisiana
It takes about 7 to 20 business days LLC in Louisiana.
You can pay the fee to expedite the process and have your LLC registered within 24 hours.
How Much Does It Cost To Run An LLC In Louisiana?
Forming an LLC in Louisiana will cost you $100 for filing with the Secretary of State. If you want to reserve the business name of your existing business for 180 days, you will pay $30.
After starting an LLC in Louisiana, the cost of running it will depend on the size and location.
What To Do After Formation?
Forming an LLC in Louisiana is only the beginning. There are several things you need to do after your LLC is registered. These include:
Create a logo – One way to make your business unique to customers is by creating a logo that represents your company.
Build a website/eCommerce store – It’s essential to consider your web presence because customers will want to learn more about your company and what services/products you offer.
Bank account – Even if you’re not yet ready to begin making transactions, opening a business bank account will give you access to your funds and help you keep records of all transactions.
Business Insurance – Business insurance helps protect your assets from liability and property damage claims made by people or businesses who may suffer because of your company’s actions.
Annual reports – In Louisiana, all LLCs must file an annual report detailing member information and a list of members with their percentage ownership.
After forming your business, it’s essential not to forget to stay updated with the required paperwork to run the business smoothly.
Resources To Start A Successful LLC In Louisiana
Forming an LLC is one of the best ways to set up a business. To start an LLC in Louisiana, you must register your business with the state.
It’s important to know that you will have certain obligations as a business owner. Below are links to information and resources on how to start.
Start Marketing Your LLC In Louisiana
As an entrepreneur, you’re undoubtedly aware of how important marketing is to your brand. You can start by reading our ultimate guide to business marketing.
You will get a lot of information that will help you plan and execute a smart marketing strategy for your new business.
Make sure you invest the time (and money) into your marketing strategy to ensure you reach your target market.
How To Dissolve An LLC In Louisiana?
If you and the other members would want to dissolve the LLC for any reason, in the future, you can do so according to your drafted operating agreement.
Therefore, it is important to have in-depth guidelines on how you can close the business. You need to do this legally and in a timely manner to avoid penalties.
The first thing you need to do is close all your business tax accounts. After this, you need to file the Article of Dissolution. You can hand deliver to the Secretary of State’s office or mail it. The filing fee for this document is $100.
Louisiana is one of seven states that doesn’t tax LLCs, making it a great place to create an LLC in Louisiana.
What’s more, starting an LLC involves less paperwork than other business structures like corporations or partnerships. The process of setting up an LLC in Louisiana is reasonably straightforward.