How to Get an LLC in Louisiana in 7 Steps
Louisiana has often ranked in the top 10 states for best places to open a business. Here, we’ll explore how to get an LLC in Louisiana so you can join in on the advantages the state offers.
What Is an LLC?
A limited liability company (LLC) is a business structure that protects its owners or members from personal liability for the company’s legal obligations and debts. LLCs are easy to organize and offer tax benefits and management flexibility. Let this step-by-step guide help you get started forming your LLC today.
Step-by-Step Guide: LLC Formation
Forming an LLC can be as easy as following a few straightforward steps, which our expert team outlines below.
1. Choose a Name for Your LLC
Part of the fun of starting a business is choosing a name. A unique name can help your company stand out with brand recognition and personality. While you’ll want to choose a catchy name, you need to keep some things in mind.
First, run a search on the Louisiana Secretary of State LLC name database. This will let you know whether your preferred name is already in use. You should also check federal databases, like the U.S. Patent and Trademark Office, and even do an internet search to see if your name is taken.
Your name must include one of the following three terms:
- Limited Liability Company
- L.L.C.
- L.C.
If you form a nonprofit LLC, you must include one of the following terms in the name:
- Low-Profit Limited Liability Company
- L3C
- l3c
In addition, your LLC’s name can’t contain certain words used to name government agencies. For example, you would not be able to name your business “Pelican’s U.S. Environmental Protection Agency, LLC” or “NASA Space Gumbo, L.C.”
If you can’t decide on a business name immediately, you can place a name on hold. Filling out a Name Reservation Form allows you to retain the name for 60 days for $25. This is a great option if you’re not yet sure how to get an LLC in Louisiana, but you have a winning name that you want to save for future use.
2. Select a Registered Agent
Next, when determining how to get an LLC in Louisiana, you should give some thought to how you will receive service of process. A registered agent is required to accept legal papers, business information and any lawsuit notifications on the LLC’s behalf.
In Louisiana, a registered agent must be:
- A person, at least 18, who resides in the state
- A Louisiana attorney or partnership
- A registered agent service that has a Louisiana address
- Available to accept documents during regular business hours
3. Obtain EIN
If you plan on filing the paperwork for your LLC online, Louisiana requires you to first obtain an employment identification number (EIN). The EIN is a tax identification number provided by the IRS for LLCs that have more than one employee.
If you have a single-member LLC, it does not generally require an EIN. However, if the LLC has employees or is taxed as a corporation, you will need an EIN.
You can file for an EIN online for free.
4. File Articles of Organization
The most important step to consider when thinking about how to get an LLC in Louisiana is filing the articles of organization. The purpose of this step is learning how to register a business in Louisiana. By registering your business, you’re making it a legal entity. The cost to file your articles is $100.
Your Louisiana LLC will register with the Louisiana Secretary of State, since that’s where your LLC conducts business activities. You can file online, by mail, fax or in person. Typically, LLCs are considered to be conducting business activities when:
- Your business has a physical presence in the state
- Most of your company’s revenue comes from the state
- Your employees work in the state
- You conduct in-person business meetings in the state
Inside Scoop: Louisiana LLC filing requirements mandate that residents of certain parishes file online. For example, if you live in Bossier, East Baton Rouge, Jefferson, Livingston, or Terrebonne, you must file your articles online. If you need to know how to find a complete list of parishes, the Secretary of State LLC page can help.
If you live in a parish that doesn’t require online filing, you have the option of mailing in a paper copy of your articles. If you choose the mail option, you must also include an LLC Louisiana Initial Report. Don’t forget to get the Initial Report notarized!
Inside Scoop: In Louisiana, notaries public must pass a rigorous exam before they can be commissioned and have broad powers such as preparing legal documents and executing affidavits.
You should include the following information about your LLC in your articles of organization:
- Name, purpose and street address
- Description of LLC’s business according to NAICS Code
- Name and address of registered agent
- Management style (manager-managed or member-managed)
- Name and address of each member or manager
- EIN
- How you want your LLC to be taxed (either as a pass-through entity or an S-Corporation)
- Electronic signature of member or manager with authority to file
As you figure out how to get an LLC in Louisiana, you’ll have to reflect on the management style or LLC ownership type. Louisiana has a default member-managed structure. The difference between the two is:
- Member-managed. The members listed in the articles of organization jointly run the company’s operations and can make ordinary business decisions
- Manager-managed. The members will appoint one or more managers to handle the day-to-day operations of the LLC and vote on extraordinary business decisions (dissolving, adding a member)
Foreign LLCs
Are you wondering how to get an LLC in Louisiana if your business is based in another state? If you formed your LLC out of state, Louisiana considers it “foreign.” You will need to register it with the Louisiana Secretary of State in order to conduct business there.
To officially register your LLC in Louisiana, you will need:
- Application of Foreign Limited Liability Company
- Registered agent located in Louisiana
- Application for Authority to Transact Business in Louisiana (included with the application of foreign LLC)
- Certificate of Good Standing from home state (can’t be dated more than 90 days prior to filing for foreign LLC status)
Keep in mind that if your foreign LLC conducts business in a specific parish (like the ones mentioned above), you must file online. The filing fee is $150.
5. Draft Operating Agreement
Next up for how to start an LLC in Louisiana is to consider an operating agreement. It’s not a requirement, but it’s good business practice to have one. The operating agreement will detail how to handle business operations. Your agreement can lay out the rights and responsibilities of each member and manager, how the day-to-day responsibilities will be conducted, voting rights and other important details.
An operating agreement is also a good idea because it can help establish that your LLC in Louisiana is a separate entity. You’ll also want to make sure that you keep your personal finances separate from your LLC’s.
6. Register With the Louisiana Department of Revenue
If your LLC sells goods or services and collects sales tax, you will need to register with the Department of Revenue. The nature of your business will require a seller’s permit, more formally known as a sales tax certificate. You’ll also need this certificate if your LLC has employees.
If your LLC does have employees, you’ll also have to register for unemployment insurance tax. This can be done through the Louisiana Workforce Commission. Additionally, you need to get employee withholding tax through the Department of Revenue.
The tax classification in Louisiana can get tricky. In Louisiana, LLCs are taxed by the state the same way they are taxed by the federal government. So, if you elect your LLC to be treated as a corporation, you will need to pay a franchise tax. The exception is if you elect to have your LLC classified as an S-corporation and therefore have pass-through taxation.
The classification of your business may also affect your taxes. Certain parishes require different business licenses, so you’ll need to check for the specific documents your LLC must have.
The Department of Revenue has more information about business taxes. It may also be helpful to speak with a tax expert.
7. File Annual Report
When figuring out how to get an LLC in Louisiana, you’ll need to learn how to keep your business in compliance with state law. So, don’t forget to file an annual report with the Secretary of State.
To do this, create an account so that you can file online. The cost of the annual report is $30.
Frequently Asked Questions
How much does it cost to form an LLC in Louisiana?
The cost to form an LLC in Louisiana is $100.
What if a business is already using the name I want?
If the name you want is already taken, you’ll have to select another one. That’s one reason why it’s important to conduct a Louisiana LLC search for any name you might be interested in.
Can I be my own registered agent?
Yes, you can designate anyone who is 18 or older and lives in Louisiana to be the registered agent.
Do I have to file my articles of organization online?
Yes, if you live in Ascension, Bossier, Caddo, Calcasieu, East Baton Rouge, Jefferson, Lafayette, Livingston, Orleans, Ouachita, Rapides, St. Tammany, Tangipahoa or Terrebonne parish, you will need to file online. Otherwise, you can file either online or with a paper copy by mail or fax.
What happens if I don't file an annual report?
If you don’t file an annual report, you won’t be in compliance with Louisiana regulations, and you could lose good standing with the Secretary of State. If you fail to file an annual report for three years, your LLC may be dissolved or revoked by the state.
Start Your Business Today in the Bayou State
If you’re ready to find out more about how to get an LLC in Louisiana, you can get help from an expert.
Legal Disclaimer: This article contains general legal information but does not constitute professional legal advice for your particular situation and should not be interpreted as creating an attorney-client relationship. If you have legal questions, you should seek the advice of an attorney licensed in your jurisdiction.
