When it comes to business it’s better to have a clear knowledge of the one you really would like to venture into. Every business is a step by step process, it not something that you will just sit down at your home and decide what to do and it will come to pass without hard work and stress.
Every successful business you see today started somewhere and truly, some of the business owners now can really boast that their business has gone far and wide. So, you too can be like them, if you really want to make a positive change in your business.
Do you know that forming an LLC is the simplest way of structuring your business to protect your personal assets in case your business is sued?
Now, you have an idea of why you should start an LLC in Louisiana.
A limited liability company (LLC) is a business entity that offers certain legal protections and rights to its owners. An LLC is either a corporation or a sole proprietorship/partnership.
Louisiana LLC Information
Forming LLCs in Louisiana is affordable and easy. Unlike other states, the State of Louisiana has some unique LLC requirements.
Interested parties must register with the Louisiana Secretary of State by filing the necessary forms, paying the necessary fees and meeting all naming and formation requirements.
The specifications required of a Louisiana LLC are:
1. Name Your Louisiana LLC
Choosing a company name is the first and most important step of starting an LLC in Louisiana. Be sure to choose a name that complies with Louisiana naming requirements and is easily searchable by potential clients.
1. Follow The Naming Guidelines:
- Your name must include the phrase “limited liability company” or one of its abbreviations (LLC or L.L.C.).
- Your name cannot include words that could confuse your LLC with a government agency (FBI, Treasury, State Department, etc.).
- Restricted words (e.g. Bank, Attorney, University) may require additional paperwork and a licensed individual, such as a doctor or lawyer, to be part of your LLC.
- For a complete list of naming rules in Louisiana, you can read the State Legislature’s naming conventions.
2. Choose A Registered Agent In Louisiana
You are required to nominate a Louisiana registered agent for your Louisiana LLC.
What Is A Registered Agent?
A registered agent is an individual or business entity responsible for receiving important legal documents on behalf of your business. Think of your registered agent as your business’ point of contact with the state.
Who Can Be A Registered Agent?
A registered agent must be a resident of Louisiana or a corporation, such as a registered agent service, authorized to transact business in Louisiana. You may elect an individual within the company including yourself.
FAQ: Nominating A Registered Agent
Can I Be My Own Registered Agent?
Yes. You or anyone else in your company can serve as the registered agent for your LLC.
Is A Registered Agent Service Worth It?
Using a professional Registered Agent service is an affordable way to manage government filings for your LLC. For most businesses, the advantages of using a professional service significantly outweigh the annual costs.
3. File The Louisiana LLC Articles Of Organization
To register your Louisiana LLC, you will need to file the Articles of Organization with the Secretary of State. This can be done by mail.
Now is a good time to consider whether your Louisiana LLC will be member-managed or manager-managed.
The Louisiana LLC Articles of Organization form asks for the names and municipal addresses of the first managers and members of your LLC.
The instructions state that if you don’t know who your first managers or members are, you have until your first annual report is due to name them (in accordance with R.S. 12: 1305 (E)4.)
FAQ: Filing Louisiana LLC Documents
How Long Does It Take To Get An LLC In Louisiana?
Filing the Articles of Organization typically takes 2 to 3 business days, but can be expedited for an additional fee.
What Is The Difference Between A Domestic Louisiana LLC And Foreign LLC?
An LLC is referred to as a “domestic LLC” when it conducts business in the state where it was formed. Normally when we refer to an LLC we are actually referring to a domestic LLC. A foreign LLC must be formed when an existing LLC wishes to expand its business to another state.
4. Create A Louisiana LLC Operating Agreement
An operating agreement is not required in Louisiana, but it’s a good practice to have one.
What is an operating agreement? An operating agreement is a legal document outlining the ownership and operating procedures of an LLC.
Why are operating agreements important? A comprehensive operating agreement ensures that all business owners are on the same page and reduces the risk of future conflict.
5. Get An EIN
What Is An EIN?
The Employer Identification Number (EIN), or Federal Tax Identification Number, is used to identify a business entity. It is essentially a social security number for the company.
Why Do I Need An EIN? An EIN Is Required For The Following:
- To open a business bank account for the company
- For Federal and State tax purposes
- To hire employees for the company
Where Do I Get An EIN?
An EIN is obtained from the IRS (free of charge) by the business owner after forming the company. This can be done online or by mail.
FOR INTERNATIONAL APPLICANTS: You do not need an SSN to obtain an EIN.
FAQ: Getting An EIN
How Do I Get An EIN If I Don’t Have A Social Security Number?
An SSN is not required to get an EIN. You can simply fill out IRS Form SS-4 and leave section 7b blank. Then call the IRS at 267-941-1099 to complete your application.
What Tax Structure Should I Choose For My LLC?
When you get an EIN, you will be informed of the different tax classification options that are available. Most LLCs elect the default tax status.
However, some LLCs can reduce their federal tax obligation by choosing S corporation status. We recommend consulting with a local accountant to find out which option is best for you.
6. Cost To Form An LLC In Louisiana
To start an LLC in Louisiana, you will need to file the Articles of Organization with the Louisiana Secretary of State, which costs $100. You can apply online or by mail. The Articles of Organization is the legal document that officially creates your Louisiana Limited Liability Company.
7. Louisiana LLC Annual Fee
It’s better to know the annual fee of how the State Corporation Commission in Virginia charged. This alone will make you budget for everything at a time which will help reduce the stress of thinking much.
The annual report is due on or before the anniversary date of your LLC’s formation. The current filing fee is $30.