How to Form an LLC in Louisiana
Introduction
You’ve decided to start a business, but you don’t want to be responsible for the debts of your company. You need limited liability protection, and that’s where an LLC (or limited liability company) comes in. You can form an LLC in Louisiana online or by mail. In either case, you’ll need to fill out some paperwork with the state government and pay a small fee. After that, it’s time to start operating as an independent entity!
Determine your Louisiana LLC name
You will be required to select a name for your LLC. This can be done through the Louisiana Secretary of State, or you can use a naming service.
Before choosing your LLC’s name, find out what is legally permitted and prohibited by using this interactive tool from the SOS: https://www.sos.la.gov/business/search-available-company-name/.
You should also check for availability at the UCC: https://ecclegalnamesearch.com/. You can also check with your county clerk’s office if there are any known conflicts with other businesses in your area (such as an existing business that may cause confusion).
Search for existing LLC names
The state of Louisiana has an online database of existing LLC names that you can search to see if any other entities with the name you want are already in existence. You’ll need to know what type of business you’re starting and what its trade name is. The search functionality on this site allows you to perform a variety of searches by:
- Company Name
- City
- State (or country)
- Letter or Number
- Word(s)
- Phrase(s)
The result will be a list of all available LLC names that match your search parameters. If there are any gaps left in your desired combination, simply add another word or two until it’s unique enough for you!
Reserve your Louisiana LLC name
Now that you have decided to form an LLC, it’s time to reserve your Louisiana LLC name. To reserve your Louisiana business name, you can:
- Reserve your Louisiana LLC name up to 120 days before filing by filing a Certificate of Assumed Name (CANN) with the Secretary of State.
- Reserve your Louisiana business name on the Secretary of State website
- Reserving a business name by mail or fax
- Reserving a business name for free
Form your LLC Articles of Organization
The second step in the process of forming an LLC is to file your Articles of Organization. To do this, you’ll need to sign and date two copies of the Articles of Organization and send them to the Louisiana Secretary of State’s office in Baton Rouge. One copy will be kept on file at their office and the other will be returned to you with a postcard that confirms receipt by their office.
When sending in your Articles, also make sure that you include a copy of your organizing document (the document which shows how many members are involved with the business). This can be attached as an email or mailed separately from the rest of your paperwork.
File your Articles of Organization with the state
Once you have your Articles of Organization, you’ll need to file them with the Secretary of State. To do that, head over to their website and search for “Articles of Organization” (or something similar). You can then print out the document and fill it out by hand or use their online submission form.
Once you’ve done that, it’s time to pay up! The filing fee is currently $50 per year as of publication date (July 2018). You will also need to provide the Secretary of State with a Certificate of Good Standing from your LLC’s home state. That certificate should include:
- The name and address of your LLC
- Its registered agent’s name, address and signature
- A statement saying whether the company has been dissolved or not
Create an operating agreement
The next step is to create an operating agreement. The operating agreement is a contract between the members of your LLC, setting out how the company will operate. It should be signed by all members and filed with the state. If you don’t have an attorney, there are templates available online that you can use for free. The operating agreement should also be kept in a safe place—not just for recordkeeping purposes but also because it provides another layer of protection against lawsuits if something goes wrong with your business.
Appoint a registered agent
The registered agent is a person or business that accepts legal documents on behalf of your LLC. The law requires that the registered agent be available to accept legal papers in the state where your LLC is registered and also be a resident of that state. You can appoint anyone you want as your registered agent, but it’s best if they’re located near where you do business so they can easily handle paperwork for you.
Get an EIN from the IRS
Obtaining an Employer Identification Number, or EIN, is highly recommended as it allows you to open up a bank account in your company’s name. An EIN also helps with tax reporting and tracking—it’s important that you don’t skip this step!
You can get an EIN by filling out Form SS-4 and submitting it through the mail or online at [https://www.irs.gov/charities-non-profits/guidance-on-obtaining-an-employer]. If you want a fast turnaround time (a few days), then go through the mail; otherwise, you can expect to wait about three weeks for your application to be processed.
Once you’ve received your tax ID number from the IRS, make sure that it’s listed on all of your company’s documents as well as in any business correspondence with clients or vendors because this information will identify which legal identity should be held accountable for any actions taken on behalf of the LLC.
Open a business bank account
The business bank account is the lifeblood of your LLC, and it needs to be opened with a local bank before you can start accepting payments for services rendered. If you’ve got other funds saved up in an existing savings or checking account, these can be transferred easily over to your new company’s name. But if this is the first time you’ve opened a business bank account, there are some things you should know about how they work:
- What’s the difference between a checking and savings account? For starters, most banks offer both accounts with relatively low minimum balance requirements—usually $25 or less. A checking account will typically come with two debit cards (one for each signature holder), whereas a savings account requires only one signature per card (and thus fewer monthly service fees). You’ll also have access to online banking features such as bill pay and transfers between accounts through either type of banking platform (though sometimes only one type per institution).
Takeaway:
- Choose your LLC’s name.
- File the Certificate of Formation, along with the $60 filing fee and any other required documents with the Louisiana Secretary of State.
Conclusion
You now have the information you need to form an LLC in Louisiana. We hope this article has been helpful, but if it has not, please do not hesitate to contact us at [email protected] or give us a call at (888) 890-0080.
