How Much Does an LLC Cost in Louisiana (All the Fees)
Forming an LLC in Louisiana is ideal if you want to reap the tax benefits of this business structure.
Before you go through with the Louisiana LLC formation process, you need to know how much it will cost to register this business entity with the Louisiana Secretary of State.
Through my experience as a Mergers and Acquisitions specialist and after consulting business experts in the state, we’ll provide our insights on the filing fees and costs to start an LLC in Louisiana.
If you're contemplating establishing an LLC, you might want to consider engaging a professional Louisiana LLC service to prevent errors that could delay the formation of your LLC.
Quick Summary
- It costs \$100 to file the Articles of Organization for your LLC in Louisiana,
- Upon approval of the business, additional expenses you may have to shoulder include licenses and permits, annual reports, insurance, taxes, and other documents.
- Louisiana's standard state sales tax is 4.45% of business income, according to the Louisiana Department of Revenue.
- When I opened an LLC in the state, I learned that all businesses are required to avail of business insurance, even for companies with single employees.
Cost to Start an LLC in Louisiana
1. LLC Formation Filing Fee (\$100 - Mandatory)
The Louisiana LLC filing fee is \$100, covering the Articles of Organization. These founding documents contain all the essential details about your Louisiana LLC [1].
The Louisiana Secretary of State will process and approve your Articles of Organization within two to three weeks.
It's a good thing that I availed of the expedited service that costs an extra \$30 for one business day turnaround.
Also, if you submit the documents in person and can't wait that long, you can pay an extra \$50 and have your Articles of Organization approved on the same day, within 4-6 hours of submission.
Read more about LLC processing time in Louisiana.
2. Registered Agent Service Fee (\$80-\$300 – Optional)
Your registered agent is responsible for accepting all legal notices, correspondence, and documents on behalf of the LLC. You can act as your own registered agent service for \$0 or appoint a trusted party.
Hiring a professional agent is recommended, given the importance of your statutory agent's obligations and duties. The Louisiana registered agent fee ranges between \$80-\$300 per year.
3. Name Reservation Fee (\$25 - Optional)
You must submit an Application for Reservation of a Limited Liability Company Name and pay a \$25 filing fee to secure your LLC name in Louisiana for 120 days.
Before filing, ensure that your preferred name is compliant with state regulations and not in use by another business entity. To check the availability of Louisiana LLC names, I use the Business Filings Search.
Expenses Following the Approval of Your LLC
Here is a list of additional LLC costs and fees you may incur while starting an LLC in Louisiana.
1. Business License (Depending on the Line of Business - Mandatory)
Depending on the type of industry, there are specific licenses, certifications, and permits that you must obtain to legally operate in the state. The costs vary depending on the nature of the business.
I had a client who was required to take an exam in order to obtain a license, so that they could operate their business as a landscape artist. The license fee cost \$100.
2. Annual Reports Fee (\$30 - Mandatory)
In Louisiana, annual reports cost \$30. You must submit this report on or before the anniversary of your company's formation.
The day that the Louisiana Secretary of State first authorizes your Articles of Organization is the day that marks your anniversary of incorporation [2].
According to the Louisiana Secretary of State's annual report filing instructions, businesses must file their annual reports within 30 days of this date, a requirement that ensures over 90% of LLCs in Louisiana maintain good standing by adhering to this timeline.
3. Taxes (Depending on Income Bracket - Mandatory)
Louisiana LLCs are subject to different taxes, including the following:
- Sales Taxes: Louisiana business dealers include people involved in transactions like rental properties, hotel services, and property distribution. The standard state sales tax for Louisiana is 4.45% of your business income, according to the Louisiana Department of Revenue [3].
- Employment Taxes: If you recruit staff for your LLC or sole proprietorship, you must withhold and contribute to income taxes. The total employment tax you must pay fluctuates, and regardless of whether you made the necessary withholdings or not, you must submit the Employer's Quarterly Report of Louisiana Withholding Tax (Form L-1).
4. Business Insurance Premium (\$1.49-\$100 - Mandatory)
Even if a Louisiana LLC only has one employee, it is legally required for all LLCs to have workers' compensation insurance. Either you must obtain insurance from a private insurance company, or you may apply to become self-insured.
Employers in Louisiana typically contribute between \$1.49 and \$100 every payroll cycle.
Now that you know what an LLC costs, let's find out how much a foreign LLC would cost.
5. Operating Agreement (\$100 - \$200 - Optional, but Recommended)
While you and your members can draft an operating agreement for yourselves for free (\$0), hiring an attorney or a professional service to create one for you is advisable to avoid costly mistakes.
If you outsource online formation services, you can expect to pay \$100-\$200, depending on the company you hire. To ensure the document's legality, I advise clients to employ an attorney to draft the operating agreement.
6. DBA (\$75 - Optional)
The purpose of registering a "Doing As Business" or DBA name is to notify the public that your limited liability company is operating under a name different from its registered title.
Registering a DBA name online or in person costs \$75.
If you want your online request to be handled faster, within 24 hours, you may pay an additional \$30. And if you wish your in-person request to be processed within a few hours, you can pay an additional \$50.
7. Certificate of Good Standing (\$20 - Optional but Recommended)
You'll have to spend up to \$50 for expedited shipping and \$20 for standard postage to obtain your Louisiana LLC Certificate of Good Standing.
You can submit an online, in-person, or fax request for your Louisiana Certificate of Good Standing.
When clients ask the importance of obtaining the document, I tell them it demonstrates that an LLC complies with state legislation, yearly reporting, and tax requirements. This way, you could pursue potential investors and obtain loans.
8. Certified Document Copies (\$15 - Optional but Recommended)
Louisiana has a set price of \$15 to receive a copy of any certified document, or \$25 if you ask for multiple copies of the same file.
When filing for a company bank account, applying for a bank card or dealing with prospective contractors, you'll need verified copies of official documentation like your certificate of good standing or annual report.
9. Employer Identification Number (\$0 - Optional but Recommended)
In the United States, each LLC must have a distinct Employer Identification Number (EIN).
Because the IRS issues the EIN, you can directly register for it on their website for free. Alternatively, you can hire an LLC formation service provider to register one for you for \$50-\$100.
I advise clients to obtain an EIN since it is necessary for submitting state and federal taxes, opening a business bank account, and hiring employees.
"Most businesses need to acquire a free Employer Identification Number (EIN) from the IRS website, but single-member LLCs can use their owners' Social Security numbers instead of an EIN."
- Jon Morgan, CEO, Co-Founder & Editor-in-Chief of Venture Smarter
FAQs
Is There A Penalty For Paying My Taxes Late In Louisiana?
There is a penalty for paying your taxes late in Louisiana. The penalty is 5% of the amount due for each month.
What Is The Cheapest Way To Get an LLC in Louisiana?
The cheapest way to get an LLC in Louisiana is to do everything independently. You can file your articles of incorporation, draft an operating agreement, be your own registered agent, and get an EIN from the IRS.
References:
- https://www.sos.la.gov/BusinessServices/FileBusinessDocuments/GetFormsAndFeeSchedule/Pages/default.aspx
- https://www.sos.la.gov/BusinessServices/HTMLPages/AnnualReportFilingInstructions.htm
- https://revenue.louisiana.gov/LawsPolicies/Report
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