How to Start your LLC in Louisiana

Louisiana has an easy formation procedure, good liability coverage, and a centralized web portal geauxBIZ- which eases most of the state filings. This will guide you through all the necessary steps, as well as selecting a legally accepted name, and filling your Articles of Organization, getting an EIN, licenses, and maintaining compliance, all the way into your second year.

1. Name Your Louisiana LLC

The name of your LLC is another one of the initial steps that should be considered. The name of your business acts as your brand, it helps to win the customer trust, and it should comply with the Louisiana law. This means that the name must be strong; it must be memorable and must also match with your products or services.

To ensure you are settling on a name that will be used in the long run, it is useful to define your business idea and objectives. By knowing what your company is and where it will expand in future, you may not need to rebrand the company in future. Entrepreneurs also seek feedback of other trusted friends, mentors or colleagues so that the name is not ambiguous and attractive.

After making a few name ideas, make a general online search to find out whether other businesses with similar names already exist. This prevents the confusion of the brand and emphasizes possible domain name possibilities. Although business name generators can come in handy online, they need to be viewed as a brainstorming resource but not decision-makers.

Availability of Check names in Louisiana

After filtering your list, make an official search of business name at the Louisiana Secretary of State. website. This will confirm the presence or too similarity to name with an existing business in Louisiana.

Louisiana LLC Naming Rules

Check Federal Trademarks

You also need to research the database at the US Patent and Trademark Office (USPTO) to make sure that your desired name is not registered as a federal trademark. This is particularly relevant in case you intend to do business beyond Louisiana or develop a national brand.

Name Reservation Louisiana LLC

In case you are not prepared to register your LLC at the moment, Louisiana will give you an opportunity to reserve the business name. In order to accomplish this, go through the business services portal of the state, make an account and fill in the online name reservation form. You can also mail in a paper form in case you want.

Doing Business As (DBA) in Louisiana

You can also change to brand or market under another name after registering your LLC. It is generally referred to as a Doing Business As (DBA) and in Louisiana a trade name.

As an example, in case your LLC is called JJ waffles, LLC and you want to extend your business to baked goods under the name JJ muffins, you can apply JJ muffins as a trade name without creating a new LLC. This will enable you to receive payments, advertise and open bank accounts using the alternative name without forming a separate legal entity.

Registration of trade names in Louisiana is done online on business services portal. Once you have logged in into your account, choose the option of registering a trade name and fill the application.

The fee of registration of the trade name (DBA) is 75.

2. Select a Registered Agent

All Louisiana LLCs must nominate a registered agent. This is the official place of contact with whom legal documents, tax notices and state correspondence can be received in this individual or business entity.

The registered agent is very essential in ensuring that your LLC is compliant and well-informed. In Louisiana, the registered agent can either be an LLC member, a different person or a business organization that is permitted to conduct business within the state.

Requirements of Registered Agents

In order to be eligible, the registered agent should:

• Be at least 18 years old
• Physical street address in Louisiana (P.O. Boxes are prohibited)
• Having to be present within regular working hours
• In case the registered agent is a business, it should be registered to transact business in Louisiana accordingly

Although you may do the work of your own registered agent, a lot of business owners prefer to use the services of a registered agent. These services allow protecting privacy and minimizing the chances of lateness, avoiding missed deadlines, and giving the owners a chance to run and grow a business instead of spending time on compliance specifics.

3. Choose Your Managerial Structure

The Louisiana LLCs may be member-managed or manager-managed and the structure to use depends on the way the owners would wish to be involved in the day-to-day running of the organization.

Member-Managed LLC

In the member-managed LLC, all members are involved in the running of the business. It is a typical structure of small businesses where owners take an active desire to control.

Manager-Managed LLC

In a manager-managed LLC, day-to-day operations are done by one or more managers, and the other members play the role of passive investors. A member can be a manager but he or she must be accompanied by at least one non-member manager.

The Louisiana LLCs are in default mode to member-managed unless stated in the Articles of Organization. Selecting the right structure assists in making authority clear, internal conflict is minimized, as well as fostering long-term growth.

4. Submit Articles of Organization

You need to provide your Articles of Organization with the Louisiana Secretary of State in order to register your LLC officially. This is done via geauxBIZ online portal.

Once logged in, using the account, make a selection of Register a Louisiana business just starting up, then choose Start New Business Filing, and finally LLC and Domestic.

Information Required

The Articles of Organization must have the following information:

• LLC's legal name
• Principal office address
• Information about registered agents
• Registered office address
• Contact information of the organizer

Some tax-related questions will also be asked before payment.

Contact Information of Louisiana Secretary of State

Louisiana Secretary of State
8585 Archives Avenue
Baton Rouge, LA 70809

Phone: 225-922-2880
Fax: 225-922-2003

5. Write up an Operating Agreement

An Operating Agreement is a legal document that is internal and describes how your LLC is to be owned and run. Even though the state of Louisiana does not impose an operating agreement as a legal requirement on LLCs, it is highly encouraged despite the fact that the single-member LLCs are also encouraged.

This document assists in setting up a management authority rule, voting rights, profit and loss distribution, dispute sorting methods and processes of adding or dissolving members. It also enhances your liability protection in that it demonstrates that the LLC is a separate legal entity.

Although templates exist online, most business owners have their operating agreement drafted or reviewed by an attorney in order to make sure that the agreement meets their business requirements.

6. Register Your Employer Identification Number (EIN)

The IRS issues an Employer Identification Number (EIN) that serves as a Social Security number to your business. It is mandatory when your LLC belongs to more than one member, employs workers or opens a business bank account.

Application of an EIN is free at the IRS site. As part of the application, you need to appoint a responsible party i.e. the person with authority of finances and operations of LLC.

7. Get Business licenses and Permits

Your Louisiana LLC might require licenses or permits on federal, state or local level depending on your industry and location. Some of the industries that have industry-specific licenses include construction, childcare, food service, healthcare, finance, and professional services.

Using the geauxBIZ portal, you can create a tailored list of licenses and permits which can potentially be applicable to your business. You will also be required to apply a sales tax license in case you sell taxable goods or services.

Lack of the necessary licenses may result in fines, penalties or closure of the business, and thus one should ensure that all the requirements are met before it even starts.

8. Determine Your Tax Status

LCCs are pass-throughs in federal taxation by default. This implies that the LLC pay no income taxes. Rather, these gains and losses are transferred to the personal tax returns of the members.

Default Tax Treatment

The LLC which has single members is taxed just similar to sole proprietorship whereas the multi-member LLC is taxed as partnership unless it is elected otherwise. Based on their financial approach, LLC can elect either to be taxed as C-Corporation or S-Corporation by submitting respective IRS forms.

The members of LLC in Louisiana are taxed at the personal income level on their portion of the profits. By 2025 the corporate franchise tax and a rate of 5.5% on corporate income will be eliminated and businesses subject to corporate tax will be taxed as corporations.

Additional Louisiana LLCs Continuous Requirements

Open a Business Bank Account

Once it is established, a specific bank account in which personal and business money are separate should be opened. Combining funds may undermine the protection of your liability, as well as make it more difficult to report taxes.

Apply to a Business Credit Card

Business credit is also established and expenses are controlled by many LLCs applying to opening business credit cards.

Get Business Insurance

Business insurance, which includes general liability, professional liability, workers compensation, and commercial auto insurance is also a way of insuring your company against financial risks.

Maintain LLC Records

Proper record keeping, such as the formation documents, operating agreement, contracts and financial statements are essential in compliance and long term success.

Annual Reporting Requirement in Louisiana

To be in good standing Louisiana LLCs are required to file an annual report. The price will be 30 dollars and the report will be submitted annually on the same day as the date of the formation of the LLC. The filing of reports is done via geauxBIZ portal.

Louisiana LLC FAQs