Here are the steps you need to take to start a limited liability company (LLC) in Louisiana.
A limited liability company ( LLC for short ) is a way to legally structure a business. It combines the limited liability of a corporation with the flexibility and lack of formalities provided by a partnership or sole proprietorship. Any business owner who seeks to limit his or her personal indebtedness for business debts and lawsuits should consider forming an LLC .
here are the steps you need to take to form an LLC in Louisiana. For more data on how to form an LLC in any express, see Nolo ‘s article on How to Form an LLC .
1. Choose a Name for Your LLC
Under Louisiana jurisprudence, an LLC mention must contain the words “ circumscribed liability company ” or the abbreviation “ L.L.C. ” or “ L.C. ” ( The name of a low-profit SMLLC must contain the words “ Low-Profit Limited Liability Company, ” the abbreviation “ L3C ”, or the abbreviation “ l3c. ” )
Your LLC ‘s list must be distinguishable from the names of other commercial enterprise entities already on file with the Louisiana Secretary of State. Names may be checked for handiness on-line. You may reserve a name for up to 60 days by filing a name Reservation form ( Form # 398 ) with the Secretary of State. The mental reservation may be filed by mail or on-line. If the Articles of Organization are filed on-line, the LLC ‘s IRS Employer Identification Number ( EIN ) must be provided. It ‘s fresh to reserve the name before obtaining the EIN to ensure the appoint is available .
Using a Trade Name
You do n’t have to use your LLC ‘s official legal name registered in your Articles of Organization when you do business out in the real universe. alternatively, you can use a trade name, besides called an assume diagnose, “ DBA “ ( short for doing business as ), or assumed identify. To do so in Louisiana, you must register your trade name with the Louisiana Secretary of State. You may register on-line, or by postal mail by filing an application to Register Trade Name Trademark or Service Mark ( Form # 309 ). Online filing is required in for LLC ‘s located in the pursue parishes : ascension, Bossier, Caddo, Calcasieu, East Baton Rouge, Jefferson, Lafayette, Livingston, Orleans, Ouachita, Rapides, St. Tammany, Tangipahoa and Terrebonne. The filing tip is $ 75 .
2. Appoint a Registered Agent
Every Louisiana LLC must have an agent for service of process in the submit. This is an person or business entity that agrees to accept legal papers on the LLC ‘s behalf if it is sued. A register agent may be ( 1 ) an individual who resides in Louisiana, ( 2 ) a Louisiana individual lawyer or a partnership, or ( 3 ) a domestic or foreign corporation authorized to act cross-file agentive role for other organizations. The record agent must have a physical street savoir-faire in Louisiana .
3. File Articles of Organization
A Louisiana LLC is created by filing Articles of Organization Limited Liability Company ( Form # 365 ) with the Louisiana Secretary of State. The articles and initial report may be filed on-line. Online file is required for LLC ‘s located in the succeed parishes : ascension, Bossier, Caddo, Calcasieu, East Baton Rouge, Jefferson, Lafayette, Livingston, Orleans, Ouachita, Rapides, St. Tammany, Tangipahoa and Terrebonne. For LLCs not located in these parishes, composition copies may be filed by postal mail, e-mail, or facsimile. If newspaper copies are filed, the organizers ‘ signatures on the Articles of Organization and the register agent ‘s touch on the initial Report must be notarized .
If you file on-line, the articles must include :
- the type of LLC tax treatment—sole proprietor, corporation, or partnership
- the LLC’s name
- the LLC’s purpose–any lawful activity or another purpose
- the street address of the LLC’s office
- the LLC’s mailing address, if different from street address
- the name and addresses of the LLC’s registered agents
- whether the LLC is member managed or manager-managed
- the name and street address of the LLC’s members or managers
- an electronic signature of a member, manager, or organizer
- a description of the LLC’s business, including NAICS Code
- the federal EIN (see item 5 below).
If you file a composition application, the articles must include
- the LLC’s name
- the LLC’s purpose
- the LLC’s duration–perpetual or limited, and
- the signature of the organizers.
The paper articles must be accompanied by an initial Report ( Form # 973 ) which must include :
- the LLC’s name
- the LLC’s street address
- the names and street addresses of each of the LLC’s registered agents
- the names and street addresses of each of the LLC’s initial managers or members
- the signature of each person who signed the Articles of Organization, and
- the signature of the LLC’s registered agent.
4. Prepare an Operating Agreement
An LLC operating agreement is not required in Louisiana, but is highly advisable. This is an inner document that establishes how your LLC will be run. It sets out the rights and responsibilities of the members and managers, including how the LLC will be managed. It can besides help preserve your limited indebtedness by showing that your LLC is in truth a separate business entity. In the absence of an operate agreement, state of matter LLC law will govern how your LLC operates .
5. Obtain an EIN
If your LLC has more than one extremity, it must obtain its own IRS Employer Identification Number ( EIN ), even if it has no employees. If you form a uninominal LLC, you must obtain an EIN for it only if it will have employees or you elect to have it taxed as a pot alternatively of a exclusive proprietorship ( neglect entity ). If you file the LLC ‘s Articles of Organization on-line, an EIN is required. You may obtain an EIN by completing an EIN on-line lotion on the IRS web site. There is no file tip.
6. File Annual Reports
All LLCs doing business in Louisiana must file an annual report with the Secretary of State every year on or before the anniversary date of organizing or qualifying in Louisiana. The annual report must be filed on-line with the Secretary of State. For more data on Louisiana LLC annual report requirements, see Nolo ‘s article Louisiana LLC Annual Filing Requirements .
Should I form an LLC in Louisiana? If you are barely starting your commercial enterprise or have already been operating as a exclusive owner, you should consider forming an LLC. LLCs limit an owner ‘s personal indebtedness for business debts and lawsuits and offer a set of tractability when it comes to ownership, management, and tax of the business. To learn more about LLCs and decide if it is the right business structure for you, see What is a circumscribed Liability Company ( LLC ) ?
How do I know if my LLC name is available? It is important to make certain that your LLC ‘s name is distinct from the names of other existing businesses on file with the Louisiana State Corporations Commission. You can conduct a name research for barren on their web site to make sure your proposed diagnose is available .
How much does it cost to form an LLC in Louisiana?
- The Louisiana State Corporations Commission charges $100 to file the Articles of Organization.
- You can reserve your LLC name with the Louisiana State Corporations Commission for $25.
Filing on your own is frequently the cheapest option, but completing all of the forms and filing them yourself can be complicated. Hiring a lawyer is another choice, but will often cost you hundreds, if not thousands, of dollars in the work. Nolo ‘s Online LLC formation overhaul can complete all of the paperwork and filings for you, with packages starting at just $ 49.00. To learn more about the costs associated with shape and running an LLC, see How much Does It Cost to Form an LLC ?
Do I need an operating agreement for my Louisiana LLC? Louisiana does not require LLCs to have operational agreements, but it is highly advisable to have one. An operating agreement will help protect your specify liability status, prevent fiscal and managerial misunderstandings, and ensure that you decide on the rules governing your commercial enterprise alternatively of state law by default. For more information, see The LLC Operating Agreement .
Do I need a business license in Louisiana? Depending on its type of business and where it is located, your LLC may need to obtain other local and country business licenses. For local licenses, check with the clerk for the city where the LLC ‘s primary invest of occupation is located ( or county or parish if it is in an unincorporated area ). For state license data, check the Secretary of State ‘s geauxbiz web site. You can create an on-line account and then sign in to create a business license checklist. For more data, see Nolo ‘s article How to Get a Small Business License in Louisiana .
Can a foreign LLC do business in Louisiana? To do business in Louisiana, all LLCs organized outside of the state must register with the Louisiana Secretary of State by filing an lotion of Foreign Limited Liability Company ( Form 972 ). The application can be filed in unvoiced transcript or on-line. Online file is required for foreign LLCs with offices in the pursue parishes : scension, Bossier, Caddo, Calcasieu, East Baton Rouge, Jefferson, Lafayette, Livingston, Orleans, Ouachita, Rapides, St. Tammany, Tangipahoa and Terrebonne .
Foreign LLCs must appoint a registered agent for service of process physically located in Louisiana. To register, file an application for Authority to Transact Business In Louisiana. The completed application must be accompanied by a Certificate of Good Standing from the alien LLC ‘s home state of matter, dated no more than 90 days prior to the filing of the certificate. ( In Texas and Alabama, obtain a certificate of universe from the repository of state, not a commodity stand certificate from the Comptroller/Department of Revenue. )
Can I form a single-member LLC in Louisiana? For most formation purposes, a Louisiana single-member LLC is considered the lapp as a multi-member LLC. The steps to form a single-member LLC in Louisiana are the like as those listed above .
Single-member LLCs do have extra tractability when it comes to filing a tax return. To learn more, see Nolo ‘s article, How Single-Member LLCs Pay Federal Income Tax.
Read more: How to Apply for FAFSA – College Ave
Can I form a professional LLC in Louisiana? If you provide a license professional service in Louisiana and want to form an LLC, you will be required to form a master restrict liability company ( PLLC ). Examples of professional services include architects, attorneys, dentists, certified public accountants, and more. broadly, if you provide a overhaul that requires you to obtain a Louisiana state license before drill, then you are a professional serve. Under Louisiana jurisprudence, LLCs can be formed to provide professional services. however, merely one specific type of service may be provided and all the owners of the LLC must be licensed or registered to perform the professional service for which the LLC was organized .
To learn more about forming a Louisiana PLLC, see our article, How to Form a Professional LLC in Louisiana .
How do I dissolve my LLC when I’m done? If you reach the point where it is meter to close your occupation and cease all operations, then you will want to properly dissolve your LLC to limit your liability for lawsuits and politics fees. Learn about the steps you will need to take .