Start a Louisiana LLC

Step 1: Name your Louisiana LLC

Begin by giving your LLC a name. When you start an LLC in Louisiana, you have to let the government and the public know who you are. Your LLC’s name must go on your business formation paperwork before you submit it.

When choosing a name, your LLC must comply with Louisiana naming rules for LLCs. Otherwise, your Louisiana LLC filing will be rejected. 

Official Naming Requirements for Louisiana LLCs

Let’s start with the rules you must follow when naming a Louisiana LLC. Your official LLC name must comply with the following:

• The name must be different from the other entity names on record with the Louisiana SOS. To cut down on the likelihood of choosing a duplicate name before you file, take a look at our Louisiana Business Entity Search page. 
• The name must contain a “designator” indicating that the business is an LLC. You can choose from the following: “limited liability company” or the initials “L.L.C.,” “LLC,” “LC,” or “L.C.” 
• The name can’t contain words that indicate an unlawful purpose or a purpose that’s against your LLC’s Articles of Organization.
• The name can’t contain the phrase “doing business as” or the initials “d/b/a.”
• The name can’t imply that your LLC is a local, state, or federal government agency. 
• The name can’t have words or phrases that are considered deceptive, immoral, or scandalous.
• The name cannot use the words or derivatives of the words “engineer,” “engineering,” “surveyor,” or “surveying,” and it can’t use the words “insurance,” “bank,” “banker,” “banking,” “savings,” “safe deposit,” “trust,” “trustee,” “building and loan,” “homestead,” or “credit union” unless your LLC fulfills specific requirements. 

For a complete list of Louisiana naming rules, see Louisiana RS §12:1306. Despite these regulations, you still have plenty of freedom to be creative when naming your new venture.

Reserve a business name in Louisiana

Once you have a business name you like, most states give you the option to reserve it for a set amount of time for a small fee. This is ideal if you’ve found the perfect name but aren’t quite ready to file the rest of your LLC paperwork.

Louisiana is different, though. If you’re filing online, you’re required to reserve your name before completing your Articles of Organization. You’ll do this through “geauxBIZ,” Louisiana’s online system for registering new businesses.

You’ll first need to create a geauxBIZ account. From there, you’ll follow the online instructions to reserve a business name. The reservation is good for 120 days and costs a small fee. The reservation can be expedited for an additional fee.

The upside to this is that this system allows you to know for certain that your desired LLC name is available before you file your Articles of Organization, thus eliminating the possibility of the filing being rejected for having an unacceptable name.

Before you make a final decision on your business name, though, you still have more factors to consider.

Getting a Domain Name

Few things happen today without the internet. The success of your business can hang on an attractive and easy-to-find website. If your domain name doesn’t mesh well with your LLC’s name, patrons will likely have trouble finding you online, and that means less money. These are factors to think about when naming your business and choosing available domains.

Is your Louisiana LLC name available as a web domain?

Your LLC’s online presence is vital. That’s why you want to make sure that you choose an LLC name that matches an available domain name for your business. If there’s no connection between your domain name and your official name, you’re likely to have patrons who either can’t find you online or can’t find your storefront. 

What’s the best way to make sure that you have a good domain name and official LLC name combination ready for your business? Preparation is key. We can help you prepare with our Domain Name Search Tool. Once you find a good name, our domain name service can help you secure your domain name. We can also help you build your business’s website.

Federal and State Trademarks

Even if the SOS approves your business name, that’s no guarantee that someone else hasn’t already claimed it with a federal or state trademark. To truly check to see if your business name isn’t trademarked is difficult because there’s no one central place to check. Some businesses even employ an attorney specializing in trademarks to see if they’re in the clear.

You can take some measures yourself, like searching the trademark database on the United States Patent and Trademark Office website. This can help you determine if someone’s already claimed a federal trademark on the name you want.

State trademarks are applicable only within the borders of a state. To find out if your desired name has been trademarked at the state level, contact the Louisiana SOS. If you want, you can also apply for your own state trademark.

In addition to checking these databases, it’s wise to do extensive internet searches for your business name, including checking domain names, social media sites, and even phone directories.

Filing for a Trade Name in Louisiana

Your LLC can have only one official name, but that doesn’t mean you can’t use multiple names for your business. Multiple names can help you market your LLC’s different products and services separately. Any business name you use that’s different from your official business name is a “doing business as” (DBA) name. Louisiana calls a DBA a “trade name,” and you need to register your trade names with the SOS.

Step 2: Appoint a registered agent in Louisiana

You must select a Louisiana registered agent for your LLC. In fact, you must name your registered agent on your LLC formation documents. 

So what does a registered agent do? A registered agent, also known as an agent for service of process, is responsible for receiving service of process and other official notices for your LLC. Your registered agent must always be available at your LLC’s registered office in Louisiana during normal business hours. The registered office must be a physical address in Louisiana and not a P.O. box mailing address because some notices need to be delivered in person.

Who can be a registered agent in Louisiana?

Your registered agent must be a Louisiana citizen and resident or a company authorized to conduct business in Louisiana. If you choose a business to be your registered agent, that business’s governing documents have to authorize its registered agent role. A business that acts as a registered agent must also identify two people at its address who can fulfill the registered agent duties. 

The registered agent must accept their appointment in a signed and notarized statement on your formation documents. If filing online, the registered agent must consent to the appointment within seven days.

What if a process server can’t find my registered agent?

Some business owners think that serving as their own registered agent is the simplest way to meet Louisiana’s agent requirement. But consider what could happen if a process server is unable to find you.

This can occur if you aren’t in the office (for example, out of town, on vacation, sick, etc.) when someone needs to reach the agent. It can also happen if you move and forget to update your paperwork with the state.

In addition to legal penalties for being out of compliance, failing to maintain an agent could mean that a process server can’t find you to notify you of a lawsuit. In that scenario, a court case against you could go forward without your knowledge, meaning you wouldn’t even have a chance to defend yourself.

Should I be my own registered agent? 

The choice is yours, but being your own registered agent often leads to more complications than it’s worth.

One drawback of being your own registered agent is the increased likelihood of receiving embarrassing legal documents in front of patrons. Not only can this be humiliating, but it might also damage confidence in your business. Using a separate registered agent at another location can help you avoid these risks.

Another drawback to being your own registered agent is that it takes the flexibility out of your day. Registered agents need to be constantly present at the registered office during normal business hours.

If you’re tethered to the office, this means you have less time to take business meetings, attend working events, scope out opportunities, etc. A separate registered agent frees you from this responsibility.

Consider using a registered agent service for your LA LLC

Does having a separate registered agent sound good to you? Are you unsure where you can find a registered agent that suits your needs? Well, you can look to us. Our Registered Agent Service helps you locate and appoint a registered agent that meets your LLC’s needs and fulfills your legal obligations.

Step 3: File Louisiana Articles of Organization

To start your LLC, file Articles of Organization and an Initial Report with the Louisiana Secretary of State. Once you pay the accompanying filing fee and the state approves these documents, your LLC will be official. 

If you’re nervous about filing your formation documents correctly, we can do it for you. Our Business Formation Service files the proper LLC formation paperwork on your behalf. With the time and worry you save using our professional services, you can focus on putting the other pieces of your business together for opening day.

Although we have you covered, let’s go over the basic filing steps below.

As we mentioned, Louisiana’s filing process is considerably more complex than most states. For starters, not all parishes have the same filing options. If you’re starting your LLC in any of the following parishes, you’re required to do an online filing through the geauxBIZ system: Ascension, Bossier, Caddo, Calcasieu, East Baton Rouge, Jefferson, Lafayette, Livingston, Orleans, Ouachita, Rapides, St. Tammany, Tangipahoa, or Terrebonne.

If you’re not in one of the parishes listed above, you also have the option of filing by postal mail. However, you’ll need to have both the Articles of Organization and the Initial Report notarized if you go that route. You’ll also need your registered agent to sign the Initial Report.

Filing by mail is slower, but Louisiana does give you the option to have your filing processed in 24 hours for an extra fee or in two to four hours for a higher fee.

Filing with geauxBIZ

Filing online is generally faster than mail, but the geauxBIZ system can be more confusing. One reason for this is that the system also wants you to register with the Louisiana Workforce Commission (if you have employees) and the Louisiana Department of Revenue at the same time you’re filing the Articles of Organization.

The reason this can be so problematic is that, although the SOS doesn’t ask for it, the Louisiana Department of Revenue may ask for your Employer Identification Number (EIN). This is a federal number you get from the IRS for the purpose of paying taxes, hiring employees, etc. 

Other states don’t require you to have your EIN until after your LLC is approved by the state, which eliminates the problem of getting an EIN only to have your LLC possibly rejected by the state. But, Louisiana is different, so you may have to have your EIN before you start the process with geauzBIZ. We cover getting an EIN later in Step 5.

The other issue with geauzBIZ is that you might be faced with a lot of questions you don’t yet know how to answer without the advice of an accountant. Plus, as we mentioned in Step 1, you’re required to reserve your business name when filing online.

Information Needed for Louisiana Articles of Organization

Here’s a quick roundup of the information you’ll need to provide in your Louisiana Articles of Organization. Bear in mind that, once submitted, this information becomes public knowledge.

• Your LLC’s official name
• Your LLC’s purpose (if you want some flexibility, you can say its purpose is to engage in any activities that are lawful for LLCs)
• The duration of the LLC (this can be perpetual)
• The signature(s) of whoever submits the document

The state of Louisiana doesn’t give them a specific name, but many states call the individuals who sign and submit Articles of Organization “organizers.” For more information on organizers, visit our LLC organizer information page. 

The above list is the bare minimum that your Articles must contain. Louisiana law allows you to add more information to your Articles of Organization. And, depending on the nature of your LLC’s business, you might need to include other information. 

If you don’t have your first managers or members selected when the Initial Report and Articles of Organization are filed, you’ll need to later file a Supplemental Report listing their names and addresses.

Information Needed for a Louisiana Initial Report

When you create an LLC in Louisiana, You have to file an Initial Report at the same time you file your Articles of Organization. An Initial Report must include:

• The address (not just a P.O. box) of your LLC’s registered office
• The name and address (not just a P.O. box) of each registered agent
• A signed and notarized affidavit from each registered agent that states they accept the position
• The names and addresses (not just P.O. boxes) of your managers or members
• The signature(s) of whoever signed the Articles of Organization

How to Amend Your Articles of Organization

You need only file your Articles of Organization once. But if any of the original Articles of Organization information needs to be updated, altered, or expanded, your business is required to inform the state about the changes.

You would report these changes by filing Louisiana Articles of Amendment and paying a filing fee. If your Articles of Organization isn’t current, it could affect your ability to get a Louisiana Certificate of Good Standing. A Louisiana LLC Certificate of Good Standing isn’t required to conduct business, but it can be important for business accounts, members, and potential investors. Basically, failing to keep your business up to date with state requirements can limit your LLC’s potential future growth.

Do you need help amending your Articles of Organization? We have an amendment filing service that can handle it for you, as well as our Worry-Free Compliance service, which includes two amendment filings every year.

Keep your Louisiana LLC paperwork digitally organized

If we help you file Articles of Organization, once the state approves your LLC, your paperwork will be available from your ZenBusiness dashboard. In the dashboard, you can keep this and other important paperwork digitally organized. 

Once you get your physical paperwork back from the state approving your new LLC, you’ll want to keep it in a safe location along with your other important documents, such as your operating agreement, member certificates, contracts, compliance checklists, transfer ledger, legal documents, etc. We offer a customized business kit to help you keep these important documents organized and looking professional.

Step 4: Create an operating agreement

Write your own LLC operations rules in an operating agreement. Operating agreements outline the rules and procedures for the management of the LLC and establish ownership percentages, how profits are divided among members, and much more. 

Louisiana law doesn’t legally require you to write an operating agreement, but it’s still considered an essential step in forming an LLC in Louisiana. However, you will have to conduct your business according to the state’s default rules if you don’t write an operating agreement. Louisiana’s default rules might not gel with your business needs, so it’s best to write as many of your own rules as you can.

Benefits of LA LLC Operating Agreements

Writing a Louisiana operating agreement is a way to maximize your control over your business. A comprehensive operating agreement can also provide the following benefits:

• Sets clear expectations and boundaries for management of the business
• Helps members and managers end conflicts peacefully by laying out detailed protocols for resolving disagreements
• Establishes the percentage of ownership each member holds
• Determines how profits will be divided among members
• Puts in place procedures for admitting or removing LLC members
• Sets clear rules about when you can and can’t dissolve the business

Do I need an operating agreement even if I’m the only owner?

It seems like most of the things in your operating agreement are intended to avoid disputes among the LLC members, so we understand why you might think a single-member LLC doesn’t need one. But potential investors, future business partners, and others may want to see your operating agreement regardless.

Your operating agreement can also spell out what you want to happen to the business and its assets if you die or become incapacitated.

One more thing: Occasionally, someone takes an LLC owner to court to try to prove that the owner and the LLC are the same entity so that they can go after the owner’s personal assets. If that happens, having an operating agreement in place is one more thing to further demonstrate to the court that the business owner and the LLC truly are separate.

What should I include in my LLC operating agreement?

You can customize as much or as little about your business operations as you want in your operating agreement. However, you might want your agreement to address:

• Rules for accepting new members. Under the default rules, there must be unanimous, written consent from all LLC members before a new individual can become a member. If this is too stringent for your business, an operating agreement can change it. 
• Rules for sharing profits among members. Without a provision in your operating agreement, members have to share profits equally.
• Rules for how to manage the LLC. Your operating agreement can dictate what kind of powers and responsibilities each person in management will have.
• Rules for dissolving and winding up your LLC. With your operating agreement, you can identify specific events that will trigger the termination of your LLC. You can also spell out how the remaining assets will be divided.

Unsure as to how to create an operating agreement for your LLC? We offer a customizable template to help get you started.

Step 5: Apply for an EIN

Prepare your LLC to pay its federal taxes by getting an Employer Identification Number (EIN). An EIN comes from the IRS, and it’s the identification number LLCs must use for paying their taxes at the federal level if they have more than one member, have employees, or are otherwise required to do so by the IRS.

Even if you run a single-member LLC without employees, having an EIN is likely in your best interest. Your EIN is like a Social Security number for your business. It prevents you from having to put your own Social Security number on tax and business filings and other paperwork, thus lowering your risk for identity theft. You’ll also likely need an EIN to open a business bank account.

Of course, obtaining your EIN involves filling out more paperwork, but that’s another task you can hand off to us. Our Employer ID Number Service quickly handles obtaining an EIN for your LLC so you can comply with your federal tax obligations.

Register for Louisiana business taxes

There’s a good chance your LLC will need to pay a number of local and state business taxes. Common state business taxes and fees include:

• Sales taxes
• Unemployment insurance
• Withholding taxes

You can set up state tax account and unemployment insurance account numbers through the Louisiana geauxBIZ portal.

Can filing as an S corp lower my taxes?

The LLC business structure gives you more flexibility than a corporation. One of those flexibilities is how you can choose to have your LLC taxed.

The default tax status of an LLC is pass-through taxation. This appeals to most owners of LLCs because it avoids “double taxation,” in which a corporation pays taxes at both the business level and again when the income is paid to the individual owners. But some LLCs opt to be taxed as a C corporation or an S corporation because, in their case, it works to their advantage.

Being taxed as a C corporation does mean you get double taxation, but, for certain LLCs, the pros can sometimes outweigh the cons. One benefit is that C corporations have the widest range of tax deductions, which could be an advantage in some scenarios, especially for more profitable LLCs. For example, employee health insurance premiums can be written off as a business expense.

S corp is short for “Subchapter S Corporation” and is a tax status geared toward small businesses. Having your LLC taxed as an S corp has pass-through taxation like a standard LLC, but there’s another potential advantage for some LLCs: It could reduce your self-employment taxes. 

Self-employment taxes are the portion of your taxes that pay for Social Security and Medicare. In a typical LLC, you would pay these on all of your profits.

But filing as an S corp allows you to be an “employee-owner” and split your income into your salary and your share of the company’s profits. In this way, you pay employment taxes on your salary, but not self-employment taxes on your profits. (You’ll still pay the other applicable taxes on your LLC profits, of course.)

The drawback is that the Internal Revenue Service scrutinizes S corps more closely, meaning you’re more likely to get audited. S corps also have more restrictions for qualifying.

While it’s possible that one of the above options could work better for your LLC, remember that business taxes are very, very complicated. They’re also very specific to your situation. That’s why you truly need to consult a tax professional to see which taxing method works best for your Louisiana business.

If you decide to form your LLC with an S corp status, our S corp service can help you do that.

Post-Formation Steps

Once you’ve secured an EIN, you’ll be able to open a business bank account. Having separate accounts for your business and your personal banking is critical for sorting out your finances at tax time. It also helps you avoid commingling funds.

Commingling funds makes your taxes more difficult to sort out, and it could also be used against you if someone takes you to court to challenge whether you and your LLC are truly separate entities (i.e., they want to sue you for not just your business assets, but also your own assets).

You may also want to get business credit cards to make small purchases and start establishing your company’s credit score.

We offer a discounted bank account for your new business. This allows for unlimited transactions, online banking, a debit card, and more. When you want to authorize others in your business to use the account, we offer a banking resolution template to simplify the process.

For further help managing your new business’s finances, try ZenBusiness Money. It can help you create invoices, receive payments, keep track of deductible expenses, transfer money, and manage clients all in one place.