How to Start an LLC in Louisiana

How to Form an LLC in Louisiana | Complete Guide
A Step-by-Step Guide

How to Form an LLC in Louisiana

Forming an LLC in Louisiana provides a wonderful means of safeguarding your personal assets while establishing your business. The process is fairly simple but can be lengthy and complex for new entrepreneurs. This guide will take you through each critical step to form your Louisiana LLC, from naming your company to filing with the state.

Key Benefits

1

Personal Asset Protection

An LLC provides a legal barrier between your personal assets and business liabilities, protecting your savings, home, and other personal property from business debts and lawsuits.

2

Tax Flexibility

LLCs offer pass-through taxation by default, meaning business income passes through to your personal tax return, avoiding double taxation while providing options for how you're taxed.

3

Management Freedom

Louisiana LLCs provide flexibility in management structure, allowing you to choose between member-managed or manager-managed operations to suit your business needs.

Steps to Form Your LLC in Louisiana

Choose a Unique Name for Your Louisiana LLC

The first step to creating your LLC in Louisiana is choosing a name that is unique and not currently being used by another business in the state. You'll need to check that the name is available through the Louisiana Secretary of State's online database.

  • Required Words: Your LLC name should contain "Limited Liability Company" or an abbreviation such as "LLC," "L.L.C.," "Ltd.," or "Company."
  • Prohibited Words: Some words, including "Agency," "Board," "Bureau," "Commission," "Department," and "Municipal," cannot be used in LLC names.
  • Restricted Terms: Your name may not sound or suggest a relation with any government agency, including words like "State Department" or "FBI."
  • Domain Name: It's also advisable to look at the availability of a corresponding domain name for your site, although you may not intend to construct one right now.

Select a Registered Agent in Louisiana

Louisiana statutory law mandates all LLCs to have a registered agent. The registered agent collects significant legal paperwork, such as tax returns and service of process notices, for the business.

Registered Agent Requirements

This position can be served by you, another owner of your LLC, or by a third-party registered agent business. Although you may serve as your own registered agent, it's usually a good idea to have a professional service handle the matter to allow for compliance and convenience.

Professional Service Benefits

A professional registered agent service ensures that all legal documents are properly received and processed, helping you maintain compliance with state requirements and avoid missing important deadlines.

Best Registered Agent Services for Louisiana

ZenBusiness

ZenBusiness is a great option for someone who wants to create an LLC fast and inexpensively. They charge $199 a year for registered agent service and include an easy-to-use online dashboard to monitor critical documents and stay compliant.

  • Rapid LLC formation.
  • Convenient compliance services.
  • Very good customer ratings and reviews.

Cons: No nonprofit formations.

Northwest Registered Agent

Northwest Registered Agent has a great reputation for their individualized customer support and good security measures. Their registered agent service is $125 per year and offers access to a secure online database to store documents.

  • Secure document access.
  • A+ Better Business Bureau ranking.
  • Low-cost and reliable.

Disadvantages: Higher upfront filing fees for LLC creation.

File Your LLC with the State

Once you have selected your LLC name and registered agent, the next thing to do is to formally create your LLC by filing your Articles of Organization with the Louisiana Secretary of State.

Filing Fee

The filing fee for filing your LLC is $100, whether you file online, by mail, or in person.

Processing Time

Online filings are processed promptly, usually within a few business days. Mail filings may take longer, generally up to 2 weeks. Expedited options are available for faster processing: $30 for 24-hour service or $50 for 2-4 hour service.

Filing Options

  • Online Filing: This is the quickest method of filing. You can file through the Louisiana Secretary of State's website, which is easy to use and efficient.
  • Mail Filing: Alternatively, you can send your documents to:
    Louisiana Secretary of State, Commercial Division, P.O. Box 94125, Baton Rouge, LA 70804-9125
  • In-Person Filing: You may deliver your documents to:
    Louisiana Secretary of State, Commercial Division, 8585 Archives Ave., Baton Rouge, LA 70809

What to Do After Your LLC is Registered

Once your LLC is officially formed, there are several steps to ensure that your business runs smoothly:

Separate Personal and Business Finances

Keep your business and personal finances separate. Set up a specific business bank account to avoid co-mingling business and personal funds.

Hire a Professional Accountant

A professional accountant will assist you in managing taxes, bookkeeping, and financial reporting so that your LLC remains in compliance with state and federal law.

Get Business Insurance

Obtain general liability insurance to cover your LLC in the event of being sued or alleged in connection with business operations. If you are hiring employees, you will also need workers' compensation insurance.

Create an Operating Agreement

Although Louisiana does not require an operating agreement, it is highly advised. An operating agreement establishes the ownership and management structure of your LLC and prevents disputes between members.

Frequently Asked Questions (FAQs)

What is the Louisiana LLC registration fee?

The registration fee for an LLC in Louisiana is $100.

Do I require a DBA (Doing Business As) for my Louisiana LLC?

A DBA is not typically necessary for most LLCs in Louisiana unless they want to conduct business under a name other than the official LLC name. However, it's a good idea to apply for a DBA if you wish to use a different name from your LLC's official name.

How soon are the Articles of Organization for an LLC processed in Louisiana?

Online submissions are usually processed within a few business days, but mail-in filings take 1 to 2 weeks. You can have them expedited by paying an extra fee of $30 for 24-hour processing or $50 for 2-4 hour processing.

Do I need to be my own registered agent in Louisiana?

Yes, you can serve as your own registered agent, provided that you maintain a physical address in Louisiana and are available during normal business hours to accept documents.

Do I need an Employer Identification Number (EIN) for my LLC?

Yes, if your LLC has employees or if you are going to have a business bank account, you will need to obtain an EIN from the IRS. Even if you don't have employees, it's advisable to obtain an EIN for business and tax purposes.

Are there any yearly requirements for LLCs in Louisiana?

Louisiana does not require LLCs to file annual reports, but it's important to maintain accurate business records and stay compliant with other state tax and legal requirements.

What is the process for making changes to my LLC?

If you have to make changes to your LLC's information, like changing the name or bringing in new members, you'll need to submit the right forms with the Louisiana Secretary of State. These changes might have added filing charges.

Ready to Start Your Louisiana LLC?

By doing so, you will be able to create your LLC in Louisiana effectively and have your business well protected. Your efforts to learn the requirements and establish the correct structures will serve you well when running a successful business.

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