How To Set Up A Louisiana LLC

If you’re considering starting a business in Louisiana, you’ll need to choose between the different types of business structures available. One popular option is the LLC (Limited Liability Company). The LLC provides personal asset protection and has the potential to save money on taxes. Our guide teaches you how to form an LLC in Louisiana without an attorney.

Related: Starting A Business In Louisiana Checklist

Steps to Form a Louisiana LLC

Step 1: Choose a Name for the LLC

The first step in forming a Louisiana Limited Liability Company is to make sure the name you want is available. This step ensures the name you want is available, as the name of each LLC must be distinguishable from other entity names registered in the state of Louisiana. Fortunately, the Louisiana Secretary of State makes it easy to do a Louisiana LLC name search, so you can quickly check to see that your name is available.

In addition to finding a unique name, there are a few additional requirements that are referenced in Louisiana Revised Statute § 12:1306

• The name of the LLC must include an approved entity designator at the end of the business name. The approved entity designators include:
  
  • Limited Liability Company
  • LLC
  • L.L.C.
  • LC
  • L.C.

• A comma may be used after the business name and before the designator.  “Cajun City Crafts L.L.C.” and “Cajun City Crafts, L.L.C.” are acceptable.
  
• The LLC name can’t contain any word or phrase that indicates or implies that it is organized for an unlawful purpose or is different from what is indicated in the Articles of Organization.
  
• The name of the LLC can’t imply that the company is an administrative agency of any parish of this state or the United States.
  
• An LLC name can’t include any words in its name that would deceptively or falsely suggest a charitable or nonprofit nature.
  
• In order to use the words “engineer,” “engineering,” “surveyor,” or “surveying” in an LLC, the Secretary of State requires written notice of approval from the Louisiana Professional Engineering and Land Surveying Board.
  
• If an LLC in Louisiana includes the words “bank,” “banker,” “banking,” “savings,” “safe deposit,” “trust,” “trustee,” “building and loan,” “homestead,” or “credit union,” in its name, the Secretary of State requires written approval from the Commissioner of the Office of Financial Institutions

If you find a name you want to use but are not ready to form the LLC, you can file the Application for Reservation of Trade Name (Form 398) to reserve the name for up to 120 days. 

Step 2: Appoint a Louisiana Registered Agent

In Louisiana, every LLC must designate a registered agent. A registered agent is simply an individual or company with a Louisiana street address who is responsible for any legal correspondence. This commonly includes receiving legal documents, such as lawsuit notifications, on behalf of the business.

While many LLC owners opt to fulfill this role themselves, some hire a registered agent service. Utilizing a registered agent service ensures that your LLC adheres to state requirements while offering a layer of convenience and confidentiality since the owner’s personal address isn’t disclosed in public records.

Related: How To Appoint A Louisiana Registered Agent?

Note – The registered agent must agree to serve as the LLC’s agent by clicking on a link emailed from the Secretary of State. The LLC will not be filed if the Registered Agent does not accept it. 

Step 3: File the Louisiana LLC Articles of Organization

The paperwork to officially create an LLC in Louisiana is called the Articles of Organization. To submit the paperwork, file online or download the Articles of Organization through the Louisiana GeauxBiz website.

Related: How To Fill Out The Louisiana Articles of Organization

Online filing may be the only option, depending on the parish where the LLC will be located. LLCs with a registered office address in the Ascension, Bossier, Caddo, Calcasieu, East Baton Rouge, Jefferson, Lafayette, Livingston, Orleans, Ouachita, Rapides, St. Tammany, Tangipahoa, or Terrebonne parish will have to fill out the online application.

If filing by mail, also file Form 973, Initial Report with the Louisiana Articles of Organization. The mailing address for the forms is:
State of Louisiana Secretary of State
P.O. Box 94125
Baton Rouge, LA 70804

Both forms will also need to be notarized. If filing online, the Initial Report will be filed at the same time.

A few sections in the Articles of Organization can be a little confusing when filling this form out for the first time. Let’s review a few sections to help you get your LLC started right.

Select entity: The Articles of Organization ask you to select the type of business entity you intend to form. In this instance, we are looking at how to form an LLC.

The following question asks whether the entity is a “Domestic LLC” or “Foreign LLC.” In this instance, a foreign entity is one filed in another state that intends to do business in Louisiana physically (open another branch, hire employees, etc.). Most people on our site want to start their first business in Louisiana and would choose “Domestic.”

Business purpose: The first option lists “Engaging in any lawful activity” and is what most LLCs enter. The other option is to enter information about what the business does. It’s usually recommended to stay with the first option because if you list a specific business activity and decide to change later, additional filings will be needed to update the Articles of Organization.

Duration of the LLC: Most businesses intend to exist forever, and if so, would choose “perpetual.” If you have a specific end date in mind (typically used for investment-related businesses), choose “Indefinite, dissolves on {specific date}” and enter the closing date.

Other provisions: If there are other operational rules for the LLC to follow that you would like to include in the Articles, add them here. Most LLCs skip this step.

Title: This section asks you to enter “Member,” “Manager,” or “Organizer.”

• A member is an owner of the LLC.
• A manager is an individual hired by the members to run the LLC, similar to a CEO of a corporation.
• An LLC organizer is someone helping form the LLC, sometimes an attorney or accountant.
  Click the “Next” button to continue.

Registered office location: In this section, enter the street address, city, state, and zip code of the initial registered office. This address must be located in Louisiana, which can be the Louisiana Limited Liability Company’s physical address, the address where the business records are stored, or the registered agent’s address. A PO Box may not be used.

Describe your business activity: This optional section classifies the business’s industry. If you choose to list your industry, select a NAICS Code from the drop-down menu.

The NAICS (North American Industry Classification System) code is a six-digit number that classifies and categorizes different types of businesses.  This information is used to report statistical data for each industry in the U.S.  Remember this number, as you will need it when filing annual tax returns.  Find your NAICS number here.

What To Do After Starting A Louisiana LLC

Once the LLC has been formed, there are a few additional steps to take. Below is a list of the most common tasks.

Prepare a Louisiana LLC Operating Agreement

The LLC operating agreement is a document that governs the framework of an LLC and covers items like ownership rights, LLC member responsibilities, how profits and losses are distributed, and more.

Most states (Louisiana included) do not require an LLC to have an operating agreement, but it is still worth considering. Without an operating agreement:

• The LLC could be subject to generic state rules that may be detrimental in the event of a lawsuit.
• Member’s personal liability protection may be diminished.
• Members may not fully understand their roles and responsibilities, which could lead to costly disputes in the future.

Obtain an EIN

If the LLC will hire employees or is owned by more than one member, an EIN is required. 

The EIN or Employer Identification Number (also referred to as a Federal Employer Identification Number, FEIN, or Federal Tax ID Number) is a unique 9-digit tax identification number assigned to a business by the Internal Revenue Service (IRS). Similar to an individual’s social security number, the EIN identifies business entities for tax purposes.

Related: How To Register For An EIN

Open an LLC Bank Account

Opening a bank account for your LLC is important for liability protection as the account separates the business’s funds from the member’s personal funds.

Several documents will be needed to open a business bank account, such as:

• A banking resolution is a document that authorizes the members to open a business bank account on behalf of the LLC.
• Copies of the original Louisiana LLC formation paperwork from the state showing the official creation of the LLC.
• Government ID of the members.
• In some circumstances, a Louisiana Certificate of Good Standing may be needed to prove the LLC is active and in good standing with the state.

Apply for Business Licenses and Permits

Depending on what your business does and where it is located, various business licenses and permits will likely be needed before starting. Some common registrations include:

• Business licenses: The state of Louisiana doesn’t have a general business license; however, many cities require one to operate.
• State sales tax license: Businesses selling products and certain services will register for a Louisiana Business Tax License with the Louisiana Department of Revenue. More information about business licenses can also be found on the geauxBIZ website.
• Occupational license: Some services in Louisiana, such as physical therapists, interior designers, detectives, cosmetologists, barbers, architects, and massage therapists, require licensing to operate legally in the state.  

Related: How To Register A Business In Louisiana

File Louisiana LLC Annual Reports

LLCs are required to file an annual report with the Louisiana Secretary of State to stay in compliance with the state. The report costs $35 each year and updates ownership information and other details.

Related: How To File A Louisiana LLC Annual Report

File the Beneficial Owner Information Report

Beginning in 2024, any individual who owns at least 25% or has “substantial control” of an LLC or corporation in Louisiana or any other state must file the Beneficial Ownership Information (BOI) form with the Financial Crimes Enforcement Network (FinCEN). BOI reports are filed electronically through FinCEN’s website.

Louisiana LLC FAQs