How to Start a Business in Louisiana

Introduction

Louisiana is one of the best states in the country to start a business. Our low taxes, pro-business climate, and friendly regulations make it easy to create a new corporation or LLC. But before you can put your company on paper, there are several steps you must take to ensure that everything goes smoothly from the beginning.

Write a Business Plan

Before you start your business, you should write a business plan. A well-written business plan will help you define your goals and objectives, estimate how much it will cost to get your business up and running and keep it going until it’s profitable, determine the best way to reach customers, gauge how much money you’ll need to borrow or raise from investors (if any), and figure out how long it will take before you see any profit.

Register your Business

Louisiana requires that before you start your business, you register it with the state, city, and county, which may be done separately or together. The federal government also requires the registration of a fictitious name (or “doing business as” or “DBA”) with the IRS. This is separate from registering your business name with the Louisiana Secretary of State.

Form an LLC

An LLC, or limited liability company, is a business structure that protects its owners from any personal liability for the actions of their company. An LLC can be operated by one person or as many people as you like and still enjoy limited liability protection.

To form an LLC in Louisiana, you will need:

• Articles of Organization with the Secretary of State’s office. Forms are available online at sos.la.gov/BusinessEntities/Forms/. The fee is $200 per year and must be renewed annually on January 1st or within 60 days after your business begins operation (whichever comes sooner).
• Registered Agent Information with the Secretary of State’s office. This information is required for all businesses operating in Louisiana. However, it does not have to be filed until after filing the Articles of Organization with the Secretary of State’s office (see above).

Get a Tax ID

To establish a business in Louisiana, you need a Tax Identification Number (TIN). This is similar to an Employer Identification Number (EIN) for businesses that are incorporated.

Here’s how you get one:

• Go to https://www.irs.gov/businesses/small-businesses-self-employed/get-a-taxpayer-identification-number-(till) and fill out the form on that page to apply for your TIN online.

Open a Business Bank Account

If you’re going to start a business in Louisiana, then it’s important to open a business bank account. You can use this account for your company expenses and income. In addition, if you have an existing personal checking account that has your business name on it and will be used for company expenses and income transfers from your personal accounts, you can transfer the funds from one account to another electronically through the internet or phone banking system. This is advantageous because it allows all of your financial information relating to both personal and professional matters to be kept in one location so that all aspects of financial management are consolidated into one single system.

Workers’ Compensation

Workers’ compensation insurance is a type of coverage that protects you, your employees, and your business from liability for workplace injuries. While there are other types of insurance, such as general liability and property insurance, workers’ compensation is unique because it’s the only kind that’s required by law in most states.

If an employee gets hurt at work and files a claim against your company for damages like pain and suffering or lost wages, workers’ compensation will cover those costs. If you don’t have this type of insurance, you’ll be responsible for paying out-of-pocket any expenses related to an injury on the job—and if you don’t have enough money available to pay out all claims immediately (not likely), they can come back to haunt you later when injured employees sue in court instead.[1]

Business Licenses & Permits

Before you can do anything, you will need to register your business with the state. To do this, you will need to fill out an application and pay a fee.

You may also be required to apply for other licenses or permits from organizations such as the city or county government, federal government, and even various agencies within the state of Louisiana. For example:

• In New Orleans (where we’re based), anyone who wants to run a food truck must obtain a permit from the city first!

Takeaway

If you’re considering starting a business, you may be worried about the time and money required to get it off the ground. But it’s not as hard as you think. In fact, you can start your own business in less than a day with the right tools and support.

You don’t need to be an expert or have years of experience under your belt—all that matters is that you’re ready to commit yourself to work hard at something new! And since this is your passion project, there’s no reason why it has to take place outside of your home office space (or wherever else feels comfortable).

Conclusion

The great thing about starting a business in Louisiana is that it’s pretty easy. You can get started with as little as $100 and begin operating within days of filing your paperwork. If you have an idea for a business and want to know how to make it happen, we hope this article has been useful in helping you understand the process. If not, feel free to reach out today so we can guide you along the way!