Starting an LLC in Louisiana can be an exciting adventure for entrepreneurs. This article aims to help you through the process, from choosing a business name to understanding the costs and benefits involved. Whether you’re an experienced business owner or new to entrepreneurship, knowing how to form an LLC is important.
As we go through the steps of starting a business, remember that forming an LLC involves more than just paperwork. Like any business, it’s about building a solid and successful venture.
Step 1: Name your Louisiana LLC
Step 2: Choose a Registered Agent
Step 3: File an Articles of Organization
Step 4: Received a Certificate From the State
Step 5: Create an Operating Agreement
Step 6: Get an Employer Identification Number
Step 1: Name your Louisiana LLC
You’ll need a unique business name when starting an LLC in Louisiana. Your business name is essential because it tells customers what you do and makes you stand out from other businesses. Louisiana has some rules for choosing your LLC name:
- It must be different from other Louisiana businesses.
- Include “limited liability company,” “L.L.C.,” or “L.C.” in the name.
- If it’s a low-profit LLC, add “low-profit limited liability company,” “L3C,” or “l3c.”
- Avoid using “doing business as” or “d/b/a.”
- You need permission to use specific words related to engineering or banking.
Review Louisiana’s guidelines for naming businesses in their statutes for more information.
Additional considerations:
Reserve your Name: To secure your LLC’s name in Louisiana, you can reserve it by submitting a form. This reservation is valid for 120 days, giving you enough time to complete the necessary steps. The standard filing fee is $25, but you can choose expedited service for $30 or priority processing for $50, which takes two to four hours. You can send payments, along with the completed documents, to the Commercial Division at P.O. Box 94125, Baton Rouge, LA 70804-9125, in the form of checks or money orders.
You must file a name reservation online using the state’s website. The fee is $25, and you must also pay a $5 electronic commerce fee.
Website Domain: Getting your domain name is wise, even if you need more time to create a website. Before you pick your LLC name, check if the web address you want is free and matches your business.
Step 2: Choose a Registered Agent
Every LLC in Louisiana needs a registered agent, a person that agrees to receive legal documents for the LLC. Your registered agent must be available during regular business operations and have a physical address in Louisiana. Forming an LLC in the state is a legal requirement.
Step 3: File an Articles of Organization
When starting a Louisiana LLC, complete Form #365 and send it to the Secretary of State. You can do this online or by mail, depending on the location of your LLC. If you file online, include information like your LLC’s name, address, and who’s in charge. If you file by mail, provide similar details and include signatures. Also, send an Initial Report (Form #973) with basic information about your LLC.
When submitting articles of organization, make sure your articles include the following:
- Type of LLC tax treatment (sole proprietor, corporation, or partnership)
- LLC’s name
- LLC’s purpose
- The street address of the LLC’s office
- LLC’s mailing address, if different
- Name and addresses of the registered agents
- Whether the LLC is member-managed or manager-managed
- Name and street address of the LLC’s members or managers
- Electronic signature of a member and manager
- Description of the LLC’s business
- Federal EIN
Step 4: Received a Certificate From the State
Once the state approves your LLC formation documents, they’ll give you a certificate confirming your LLC’s existence. With this certificate, you can get an Employer Identification Number (EIN), business licenses, and open a business bank account.
Step 5: Create an Operating Agreement
While Louisiana doesn’t mandate an operating agreement for your LLC, it’s crucial for your business. It lays out how your LLC operates, which helps settle disputes and potential legal issues. With one, state laws govern, which may be ideal for your LLC.
Here’s what your operating agreement can cover:
- LLC’s name and address
- Members’ percentage interests
- Members’ rights and responsibilities
- Voting powers
- Meeting rules
- LLC’s duration
- Registered agent details
- Certificate of organization information
- Business purpose
- Member contributions
- Profit and loss division
- Adding or removing members
- LLC management
- Indemnification and liability clauses
Step 6: Get an Employer Identification Number
Obtaining an Employer Identification Number s essential for hiring people, opening bank accounts, and paying taxes. You can’t start an LLC without one, no matter where you are.
First, go to the IRS to get your EIN. It’s free, and you can do it online or by mail. Once you have your EIN, make sure you know what taxes you have to pay. As an LLC owner in Louisiana, you must pay a 15.3% self-employed tax (12.4% for social security and 2.9% for Medicare). For more details, check out the Louisiana Department of Revenue website.
LLC State Guides
FAQs
What is the cost of starting an LLC in Louisiana?
The fee to file for LLC registration with the Secretary of State’s office is $100. Additionally, there’s an annual report fee of $25 that needs to be submitted each year. Businesses must also pay a fee for publishing the organization’s articles in their local newspaper, which can vary from $25 to $150, depending on the newspaper.
When is the deadline for filing the Louisiana Annual Report?
In Arizona LLC, you must submit annual reports during the company’s anniversary month. For example, if a business started in March 2018, you should submit the Annual Report by the end of March every year.
What’s the approval time for an LLC application?
The approval process can take up to five days. Louisiana provides owners with the option to pay for expedited reviews. For instance, you can pay $50 to process your application within two to four hours.
