How To Form an LLC In Louisiana (LA)?

Whether you are a new or existing entrepreneur or have just turned a passion into a side gig, you probably looking want to find out how to form an LLC in Louisiana.

The task can seem daunting at first, but don’t be put off. In reality, forming an LLC in Louisiana is pretty straightforward. And it’s made even easier by reading this guide. We’ll explain exactly what you need to do to get your company off the ground, including what forms you need to fill in and whose help you need to enlist.

So if you’re ready to launch your Louisiana business, then let’s begin.

Give Your Louisiana LLC a Name

The first and most critical step in forming an LLC in Louisiana is choosing a name. It is a good practice to choose a name that relates to your business activities and one that is easy to pronounce and remember.

The chosen LLC name should comply with the general LLC naming requirements and guidelines in the US and specifically the State of Louisiana:

• The chosen LLC name must include the words: “Limited Liability Company,” “LLC,” or “L.L.C.”
• Your chosen Louisiana LLC name should be unique and distinguishable from other LLC names
• The chosen name for your Louisiana LLC must not include words that confuse it with government agencies, like treasury, FBI, State Departments, etc.
• Restricted words, such as names of universities, banks, and attorneys, must have additional paperwork or a licensed person, like a lawyer or doctor, to be part of your Louisiana LLC

You can read the complete list of Louisiana’s LLC naming requirements on the state website.

After choosing a name for your Louisiana LLC, we recommend checking if the name is already taken by another business. You can do this through the LLC name search page on the Louisiana Secretary of State website.

Hire a Registered Agent

All LLCs in Louisiana are required by the Louisiana Secretary of State to appoint a registered agent.

A registered agent is an entity or individual assigned to receive official notices, legal documents, tax forms, and any other correspondence or documents from the State on your behalf. A registered agent must have a permanent physical address in Louisiana (a P.O. Box address may not be enough). They must also be available during regular business hours to accept official documents.

You can appoint yourself, another member of your LLC, or a family or friend to act as a registered agent for your Louisiana LLC. Or you can do what most businesses do and hire one of the following registered agent service providers:

Northwest

Northwest is a highly regarded registered agent. They are simultaneously efficient and affordable, providing the following services:

• Mail forwarding
• Compliance notifications
• Online document storage
• Annual report reminders
• Scanned documents
• Pre-filed state forms

You get all this for just $125. And you can even get a small discount if you hire their registered agent services in more than four states.

Northwest also offers other LLC formation services like virtual office, foreign qualification, trademarking, phone service, mail forwarding, and payment processing.

ZenBusiness

ZenBusiness is another top Louisiana registered agent service provider ranked  #1 on Investopedia, Forbes, and MarketWatch. They provide outstanding registered agent features that help keep your business compliant:

• Access to a tailored dashboard
• Document scans
• Fast turnaround
• Mail forwarding
• Email alerts

Their annual registered agent services will cost you $199. You can upgrade it to include additional features like two free filing amendments per year and annual support reminders. ZenBusiness also offers more LLC formation services like incorporation, domain name and website, taxes and accounting, business license report, EIN, worry-free compliance, operating agreement, and annual reports.

IncFile

IncFile is another top recommendation for Louisiana registered agent service providers. It offers a free first year of registered agent services if you buy its LLC formation package. Their registered agent services include:

• Automatic email forwarding
• Tailored dashboard
• Personalized SMS and email reminders

Its annual registered agent services cost $119, making IncFile a perfect option for individuals who want to hire a professional registered agent with a limited budget.

File Articles of Organization

After choosing a name for your Louisiana LLC and hiring a registered agent, it is now time to file an Article of Organization for your LLC with the Louisiana Secretary of State. Filing this document officially registers your Louisiana business as a separate legal entity.

The simplest method to file your LLC Article of Organization is online via the Louisiana geauxBIZ portal. You will be required to include the following details in your Article of Organization:

• Name of your LLC
• Purpose of your business
• Address of your LLC
• Email address, phone number, and names of LLC members
• Address, name, and signature of the registered agent
• The management structure of your LLC, etc.

You can also decide to file your Article of Organization by mail. All you have to do is download the Louisiana Articles of Organization, fill in the relevant details accurately, and send a copy plus a check for the filing fee of $100 to the following address:

Louisiana Secretary of State – Commercial Division
P.O. Box 94125
Baton Rouge, LA 70804-9125

Draw Up an Operating Agreement

An Operating Agreement is an official legal document outlining how your LLC will conduct its business operations in Louisiana.

You do not need to create a detailed Operating Agreement for your Louisiana LLC by law. However, that doesn’t mean that you should skip this step. Having one is a good idea as it protects all LLC members from potential disputes and litigations.

A well-created operating agreement should have all updated information about your Louisiana LLC, including the following:

• The responsibilities and rights of each member
• Rules for admitting and removing members
• Ownership percentage of each member
• Rules of sharing profits and losses
• Duration of your LLC
• The management structure

Obtain Licenses and Permits

Louisiana’s primary state-level business license and permit is the seller’s permit, also known as the sales tax certificate. To obtain this permit, you must be engaged in business activities in Louisiana with the extension to lease or sell goods or services that would otherwise be taxed if sold in a retail context.

You can get a sales tax certificate (seller’s permit) online via the Louisiana Department of Revenue.

Municipalities and counties may have their own unique licensing requirements and fees. Therefore, we recommend checking with the local, State, and federal permit and license online checklist to determine the licenses and permits you need.

Sign Up for Federal and State Tax IDs

A Federal and State ID for your Louisiana LLC is a nine-digit employer identification number (EIN) used by the IRS to identify your LLC for tax purposes. You can think of it as an SSN (Social Security Number) for your LLC.

All multi-member LLCs in Louisiana must acquire a Federal and State Tax ID. You will need it for the following reasons:

• To open a business bank and credit account
• To hire employees
• To file tax returns

Single-member LLCs are not required to obtain a Federal and State Tax ID. They will only need it if they plan to hire employees or file taxes as a corporation. You will also need it to file your Article of Organization.

Acquiring a Federal and State Tax ID is free and straightforward. You only need to go to the IRS (Internal Revenue Service) and apply for it.

Open a Business Bank Account

After acquiring the Federal and State Tax ID, you should open a business bank and credit account for your LLC.

This is an essential step as it helps separate personal and business finances to protect yourself from liability and ensures that you comply with tax and legal requirements. It also helps maintain accurate financial records, track your LLC transactions, and demonstrate your LLC’s legitimacy to financial institutions, suppliers, and clients.

When opening your business bank and credit account, you should ask the bank about their monthly fees, interest rates, and additional fees.

Opening a business bank and credit account in Louisiana is easy and free. You only need to visit your nearest bank with the following documents:

• Your LLC’s operating agreement
• Your Federal and State Tax ID
• Your LLC’s Article of Organization

You may want to open an account with the following banks:

• First Federal Bank of Louisiana
• Louisiana National Bank
• South Louisiana Bank

Purchase Business Insurance

Purchasing the relevant business insurance for your Louisiana LLC is essential when forming your company.

There are several insurance policies you should purchase depending on your business and goal. The standard insurance policies for Louisiana LLCs include:

• Workers’ compensation insurance: All LLCs in Louisiana, except single-member LLCs, must obtain this insurance as it covers medical expenses associated with illnesses and injuries sustained on the job.
• Business owner’s insurance: It covers general liability, income, and property insurance in one plan.
• Commercial flood insurance: Some parts of Louisiana are prone to flooding and hurricanes. Therefore, you should purchase commercial flooding insurance to cover your LLC against water damage and flood costs.

You can get a range of competitive quotes for all your insurance needs by visiting a comparison website like Insureon.

Buy an LLC Formation Package to Speed Up the Process

Forming an LLC in Louisiana can be daunting and time-consuming, and you may need some help with the steps discussed above. Fortunately, many companies offer LLC formation packages, some of which are free.

ZenBusiness is one of the best LLC formation companies offering free and paid packages. Their Starter LLC formation package is entirely free, but you will need to pay the state filing fee. You can expect your LLC in Louisiana to be formed in two to three weeks.

They also have two more paid LLC formation packages: Pro ($199 per year) and Premium ($349 per year). These packages make the LLC formation process easier and quicker by offering services like operating agreement, EIN, article of organization, registered agent, worry-free compliance, domain name, and expedited filing process.

Northwest and IncFile are two other companies that offer LLC formation packages. At an annual cost of $125 and $119, respectively, these companies promise to handle all the basic Louisiana LLC formation tasks, such as:

• EIN
• Expedited filing process
• Registered Agent
• Article of organization
• Domain name, etc

FAQs About Forming an LLC in Louisiana

How Long Will It Take to Form My Louisiana LLC?

It will take three to five business days to form an LLC in Louisiana if you file your Article of Organization online or two to three weeks if you file by mail. If you want your LLC in Louisiana to be formed faster, you can pay for the expedited filing.

How Much Does It Cost to Set Up an LLC in Louisiana?

You must pay a filing fee of $100 to form your LLC in Louisiana. You will also be required to pay an additional fee ($25) to reserve your Louisiana LLC’s name. You will also need to pay for the relevant licenses and permits.

Can I Act as my Own Registered Agent in Louisiana?

Yes. Louisiana LLC formation legislation allows you to appoint yourself the registered agent of your LLC. However, there are specific requirements that you must meet. For instance, you must be at least 18 years old, a Louisiana resident with a permanent street address, and be available to receive official documents during all business hours in Louisiana.

Can I Form a Single-Member LLC in Louisiana?

Yes. You can form a single-member LLC in Louisiana. The steps of forming it are similar to what we have discussed in this article.

Start Your Louisiana Business Today

As you can see, it’s pretty easy to form an LLC in Louisiana. Just follow the steps above, and you’ll have your business set up in a matter of weeks. The Louisiana state provides a wealth of resources and materials, including sample forms and how-to manuals that you can use to streamline the process.

If it all gets too much, though, remember that you can use an LLC formation company to expedite the process. They’ll handle all the paperwork, so you won’t have to lift a finger.

Also see:

• Louisiana (LA) Secretary of State (SOS) LLC & Business Search
• Louisiana (LA) Registered Agent Services
• How To Find Louisiana Bookkeepers