Forming an LLC in Louisiana is ideal if you want to reap the tax benefits of this business structure.
But 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.
That's why, working with our business specialists team, we've researched the formation process and necessary documents and compiled this Louisiana cost guide.
Below, you'll learn every filing fee Louisiana LLCs have to pay according to the Secretary of State's regulations.
Quick Summary
- It costs $105 to file an LLC’s Articles of Organization in Louisiana.
- All Louisiana LLC owners must submit an annual report to the SOS on the anniversary date.
- If an LLC owner hires employees, they must have a business insurance premium plan.
How Much Does an LLC Cost in Louisiana?
An LLC costs $105 in Louisiana to file the Articles of Organization. However, this is not the only cost you’ll incur, as there are other filing fees you must pay, including LLC taxes, annual report fees, name registration, and registered agent service.
Louisiana LLC Filing Fee
The Louisiana LLC filing fee is $105, 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 there's an expedited processing option 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.
Louisiana Registered Agent Service Fee
Every LLC business owner must appoint a registered agent who must complete an acceptance form to accept the role properly.
Your registered agent is responsible for accepting all legal notices, correspondence, and documents on behalf of the LLC and informing the business entity of their arrival.
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 $100-$300 per year.
Louisiana Business Tax
Louisiana LLCs are subject to different taxes, including the following:
- Sales Taxes: Business owners that meet the criteria to be considered dealers are subject to sales tax regulations in Louisiana. 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 [2].Â
- Employment Taxes: If your 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).
Other LLC Filing Costs
Here is a list of additional LLC costs and fees you may incur while starting an LLC in Louisiana.
1. Business Name Reservation
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.
To hold your name for 120 days, you must pay this charge to the Commercial Division of the Louisiana Secretary of State.
Use the Business Filings Search to check the availability of Louisiana LLC names since you can only reserve already taken names.
2. DBA Name Registration
You must submit a DBA name application if you decide to run your LLC under a name other than the LLC's legal name.
Registering a DBA name online or in person in Louisiana 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 more quickly within a few hours, you can pay an additional $50.
3. Louisiana Annual Reports Fee
An annual report certifies all updated information for your company once submitted to the Louisiana Secretary of State.
The SOS also uses an annual report to keep track of information on enterprises across the state to know which ones are still operating and which have closed.
In Louisiana, annual reports cost $30. You must submit this report on or before the anniversary of your company's formation after submitting your Articles of Organization to the state.
The day that the Louisiana Secretary of State first authorizes your Articles of Organization is the day that marks your anniversary of incorporation.
For instance, if your LLC was established in January 2022, you must submit your annual report by January 2023 [3].
The filing cost must be paid using a credit card if you submit the Louisiana Annual Report online.
And all credit card transactions will incur an extra $5 convenience charge. If you decide to mail your annual reports, you must attach the checks or money orders.
You won't be penalized for filing a Louisiana Annual Report late, but it will jeopardize your excellent standing with the state.
Also, if you default for three or more years, your company will be forcibly disbanded or canceled.
4. LLC Operating Agreements
An LLC operating agreement constitutes a legally binding arrangement between the members of the LLC.
This legal document contains specific information regarding the LLC's management structure, who owns the firm, and how the enterprise is handled.
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 operating agreements services, you can expect to pay $100-$250, depending on the company you hire.
5. Certificate of Good Standing
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.
A Certificate of Good Standing may be required to demonstrate that your LLC complies with state LLC legislation, yearly reporting, and tax requirements.
6. Certified Document Copies
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.
7. Employer Identification Number
In the United States, each LLC must have a distinct Employer Identification Number (EIN). This nine-digit code is only issued to each business by the Internal Revenue Service.
An EIN is essential for submitting state and federal taxes, creating a business bank account, and paying your staff.
Because the IRS gives 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.
8. Business Insurance Premium
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.
Your insurance costs will vary depending on the insurance options you select and other elements like the employee headcount.
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.
Foreign LLC Registration in Louisiana
Foreign LLC registration is when your LLC, incorporated in a domestic state like Texas, wants to expand its transactions to Louisiana.
To register your Louisiana foreign LLC, you must submit an Application for a Certificate of Authority to Transact Business in Louisiana and pay $150 to the Louisiana Secretary of State's Commercial Division.
Also, upon the approval of your foreign LLC in Louisiana, you'll need to apply for any necessary municipal business licenses and permits.
FAQs
Can A Foreigner Have an LLC in Louisiana?
Yes, a foreigner can have an LLC in Louisiana, as there are no citizenship or residence rules for LLC registration in Louisiana.
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.
Do You Need Professional Help with Your Louisiana LLC?
The business climate in Louisiana has been improving every year, encouraging an increasing number of people to register enterprises there and start their journeys toward successful entrepreneurship.
If you're thinking of starting an LLC in Louisiana, consider hiring one of the professional Louisiana LLC services to avoid making the costly mistake of doing everything on your own.
For a reasonable cost, these companies that provide formation and business filing services may register your Louisiana LLC correctly and guarantee that all necessary LLC formation documents are submitted according to the law.
Moreover, they will handle all post-formation processes to ensure your company is lawfully registered and compliant with Louisiana law.
References:
- https://www.sos.la.gov/BusinessServices/FileBusinessDocuments/GetFormsAndFeeSchedule/Pages/default.aspx
- https://revenue.louisiana.gov/LawsPolicies/Report%20-%20Designation%20of%20Centralized%20State%20and%20Local%20Return%20and%20Processor.pdf
- https://www.sos.la.gov/BusinessServices/HTMLPages/AnnualReportFilingInstructions.htm
