How Much Does an LLC Cost in Louisiana
Think starting an LLC has to break the bank? Louisiana might just change your mind. Form an LLC in Louisiana for as little as $100.
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Here are the following fees to consider:
- Articles of Organization: $100
- Foreign LLC Application: $150
- Supplemental Initial Report: $25
- Annual Report: $30
- Permits and Licenses: Typically $50 or more
- Taxes: 1.85% to 4.25% of taxable income
- Registered Agent: $0, or $100-$300/yr
- Operating Agreement: $0, or up to $500+
- Employer Identification Number: $0, or $50 to $99
- BOI Report: $0, or $25 to $149
- Optional Fees: Up to $3,000+
Louisiana continues to offer a business-friendly environment despite some economic challenges. Incentives, cost-saving solutions, and economic development strategies still make it an attractive location for businesses.
Additionally, forming an LLC in Louisiana is cheaper than in other states. See how much it costs, starting with the one-time formation fee.
Set Up Your LLC - $0 + State Fees
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- Lifetime compliance alerts
- Comprehensive name check
- Lifetime customer support via email and phone
Articles of Organization
One-Time Fee: $100[1]
To form an LLC in Louisiana, you must submit the Articles of Organization to the Secretary of State. Once the documents are approved, your LLC will be recognized as a separate legal entity.
A Louisiana LLC's Articles of Organization contain the following information, among other details:[2]
- Limited liability company name
- Parish or county location
- Business purpose
An Initial Report must also be attached to it, which contains the following information, among other details:[3]
- Registered office address
- Registered agent name and address
- Managers and members names and addresses
There is no separate filing fee for the initial report. However, both the Articles of Organization and Initial Report must be notarized before you file it with the Secretary of State.[2]
Credit card payments have an additional $5 convenience fee.[1]
- Ascension
- Bossier
- Caddo
- Calcasieu
- East Baton Rouge
- Jefferson
- Lafayette
- Livingston
- Orleans
- Ouachita
- Rapides
- St. Tammany
- Tangipahoa
- Terrebonne
Application of Foreign LLC
One-Time Fee: $150[1]
If you already have an LLC in another state and want to expand your business to Louisiana, register it as a foreign LLC.
To create a foreign LLC, submit a notarized Application of a Foreign LLC to the Secretary of State.[4] Don't forget to attach a Certificate of Existence from your domestic state
.
You can't form an LLC in Louisiana for free. At a minimum, you must pay $100 for the Articles of Organization, plus the notarization fee.[1][2]
Supplemental Initial Report
One-time Fee: $25[1]
In Louisiana, the Articles of Organization include an initial report section. You can still file it even if your LLC lacks managers or members at the time of filing.
Just submit a Supplemental Initial Report and the one-time fee after appointing them. This contains the names and addresses of the managers and members who were not named when you filed the Articles of Organization and Initial Report.[5]
Annual Report
Annual Fee: $30[1]
Louisiana LLCs must submit annual reports to the Secretary of State. This report shows any changes to the LLC's address, registered agent, and other details.
Annual reports are due on the anniversary date of your LLC. For example, if you filed the Articles of Organization on March 4, 2024, you must submit an annual report every 4th of March in the succeeding years. Annual reports can be filed up to 30 days before the due date.[6]
Ask your new registered agent to approve the changes relating to their details in the annual report. The report will not be processed without their approval via email.[6]
Business Permits and Licenses
Cost: Typically $50 or more[7][8]
Louisiana does not have a state-level general business license. Instead, the state prefers leaving business licensing requirements to local jurisdictions and specific industries.
An occupational license in Baton Rouge, the capital of Louisiana costs $50 for businesses that open between January 1 and June 30 or $25 for openings between July 1 and December 31. It is renewable yearly.[7]
In New Orleans, a temporary occupational license also costs $50. Home-based businesses in the city must also pay $190 for a Certificate of Occupancy fee.[8]
The number of permits and licenses your LLC needs depends on its business purpose. Some businesses may be regulated by various governmental offices simultaneously. The fees may also vary per city and could be renewable yearly.
Business Taxes
Cost: 1.85% to 4.25% of taxable income[9]
The profits and losses of an LLC are passed through to the LLC owner by default. In Louisiana, the state income tax rate depends on your taxable income.
2024 Louisiana State Income Tax Rates:[9]
| Tax Rate | Single or Filing Separate | Married Filing Jointly |
|---|---|---|
| 1.85% | First $12,500 | First $25,000 |
| 3.50% | Next $37,500 | Next $75,000 |
| 4.25% | Over $50,000 | Over $100,000 |
On top of that, you must also pay federal income taxes.
2024 Federal Income Tax Rates:[10]
| Tax Rate | Taxable Income |
|---|---|
| 10% | $0 to $11,000 |
| 12% | $11,001 to $44,725 |
| 22% | $44,726 to $95,375 |
| 24% | $95,376 to $182,100 |
| 32% | $182,101 to $231,250 |
| 35% | $231,251 to $578,125 |
| 37% | $578,126 and up |
Don't forget the 15.3% federal self-employment tax.[11] This tax covers Social Security and Medicare contributions.
The fees that you'll incur when forming an LLC can be claimed as tax deductions. You can write off the following expenses:
- Articles of Organization: $100 (plus notarization fee)
- Business permits and licenses: At least $50
- Name reservation: $25
- Trade name: $75
- Registered agent services: Up to $400+
Optional Fees
While the fees below are generally optional, some are unavoidable depending on your business needs.
| Louisiana LLC Optional Fees | Cost | Expedited Services | $30 or $50 |
|---|---|
| Registered Agent Services | Up to $300+ |
| Change of Agent or Office | $25 |
| Operating Agreement | Up to $500+ |
| Employer Identification Number | $50 to $99 |
| BOI Report | $25 to $149 |
| LLC Name Reservation | $25 |
| LLC Trade Name | $75 |
| Certificate of Correction | $100 |
| Amended Articles | $25 or $100 |
| Certificate of Good Standing | $15 |
| Certified Copy of Documents | $15 to $25 |
| Website Domain | $10 to $20 |
| Business Insurance Premiums | Varies |
For example, obtaining a Certificate of Existence is often necessary when opening an LLC bank account.
Expedited Services
Cost: $30 or $50[1]
Most LLC forms and fees, including the Articles of Organization, can be processed online. But if you file in person or by mail, you could pay for expedited services.
Fees vary depending on how fast your documents are processed:[1]
- $50: Processed while you wait
- $30: Processed within 24 hours
Credit card payments are subject to an additional $5 convenience fee.[1]
Processing times for LLC applications in Louisiana vary based on the volume of applications and the method of filing. Online applications could take 3 to 5 business days Or you could walk in and pay an additional $50 to have it processed while you wait.[1]
Registered Agent Services
Annual Cost: $0, or $100-$300/yr
In Louisiana, you must have a registered agent to receive business and legal documents for your LLC. This includes government notices, tax forms, and annual reporting forms.
You can technically be your LLC's registered agent—as long as you're at least 18 and have a physical street address in Louisiana. You must also be available to receive documents during business hours.
However, your address will be public record. So many LLCs like to hire a registered agent service to keep their personal details private. These services usually charge $100-$300 per year to be your registered agent.
No, you don't need an attorney to form an LLC in Louisiana. You can form on your own or hire a formation service to help you.
Change of Office or Agent
Cost: $25[1]
An LLC can change its registered agent's details anytime. If this happens, you must submit a Notice of Change to the Secretary of State immediately. Changes include the registered agent's name and address.
Registered Agent Service - $125/year
- Business address included
- Free mail forwarding
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In Louisiana, the Articles of Amendment are used to change the business name, address, and other details. The Notice of Change is focused solely on changes regarding the registered agent.
Operating Agreement
Cost: $0, or up to $500+
LLCs in Louisiana are not required to have an operating agreement. However, it's recommended because it defines important rules and regulations that all members must follow.
An LLC operating agreement contains the following:
- The roles and responsibilities of each member
- How new or departing members will be treated
- How business profits and losses will be divided
Ideally, you should already have a signed Operating Agreement before forming an LLC in Louisiana. But if your LLC is already formed, you can always draft it yourself after.
Alternatively, an LLC attorney might charge you a $500 flat fee for a standard operating agreement. If you have more complex details, the cost could be higher.
You can write your own with free online operating agreement templates. If you want a professional to create it for you, LLC services usually offer this as a part of their packages for much less than attorney costs.
Employer Identification Number
Cost: $0, or $50 to $99
Any LLC with more than one member or with employees must have an EIN, regardless of how it's taxed. This is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to identify a business entity for tax-related purposes.
You can just apply for an EIN for free on the IRS website. But if you'd like an LLC service to process it for you, you can do so for a small fee. Here are some providers that do this and their pricing:
- Northwest Registered Agent: $50
- Bizee: $70
- ZenBusiness: $99
Single-member LLCs in Louisiana don't require an EIN, but it's almost essential in practice. For instance, you'll need one if you hire employees or want to open a business bank account.
Yes. Separating your LLC's finances from personal assets is a requirement of liability shielding. Use a separate bank account to accept payments and pay business expenses to prevent piercing the corporate veil .
BOI Report
One-Time Cost: $0, or up to $149
The Beneficial Ownership Information (BOI) is a one-time report that must be submitted to the Financial Crimes Enforcement Network (FinCEN) within 90 calendar days of your LLC's formation.[12]
It includes information about the LLC's beneficial owners, including name, birth date, and address.
FinCEN doesn't charge a fee to submit your BOI report. But you can pay an LLC service to process it for you and save yourself the hassle:
- Northwest Registered Agent: $25
- LegalZoom: $149
- ZenBusiness: $149
You're considered a beneficial owner if you own 25% or more of the ownership interests in your LLC. Or if you exercise substantial control over the LLC.
LLC Name Reservation
Cost: $25[1]
If you've already got a business name but aren't ready to form an LLC, you can reserve your desired name first. It will prevent others from using that name for 120 days.[13]
Name reservations made online will be charged an additional $5 convenience fee.[1]
Trade Name
Cost: $75[1]
A trade name (also known as "Doing Business As" or DBA) allows your LLC to operate under a name different from its legal name registered with the state.
Some LLCs use a DBA for branding purposes. It's also ideal if you want to use a name without "LLC" at the end.
To do this, you must register a DBA name in every parish where your LLC does business. Prices may vary. Then, file a trade name application and the $75 filing fee with the Secretary of State to protect it at the state level.[1]
A trade name allows a business to operate under a name different from its legal name. Meanwhile, a trademark is an intellectual property protection that legally protects your brand name, logo, or slogan at the national level.
Certificate of Correction
Cost: $100[1]
After your Louisiana LLC application is approved, review all the details of the Articles of Organization carefully.
If there are errors, like a misspelled business name or incorrect address, correct them as soon as possible by filing a Certificate of Correction.
Amended Articles
Cost: $25 or $100[1]
Your Louisiana LLC's Articles of Organization contains specific details about your business. Should these details change, you must file the Amended Articles to the Secretary of State.
File the Articles of Amendment if you:
- Change the LLC name
- Update the business purpose
- Move to a new address
If you only want to change the managers or members, file a separate form with the $25 fee.[1]
The Articles of Correction are for fixing mistakes in initial filings. Meanwhile, the Articles of Amendment update key details as the LLC evolves.
Certificate of Good Standing
Cost: $15[1]
A Certificate of Good Standing is an official document by the Secretary of State. It verifies that your LLC is updated with all state filings and has paid all its fees and taxes.
You might need a Certificate of Status to:
- Open a bank account
- Apply for business loans
- Qualify for business insurance
- Conduct business as a foreign LLC
Contact the Secretary of State to ask why your LLC is in bad standing. The most common reasons include:
- Failure to file the annual report
- Failure to renew annual permits and licenses
- Not having a registered agent in Louisiana
Certified Copy of Documents
Cost: $15 to $25[1]
Certified copies of documents verify that your LLC is legitimate and that its details are accurate. You might need these for circumstances like opening a business bank account or expanding your LLC in another state.
Additionally, some LLCs keep certified copies of their initial Articles of Organization and Articles of Amendment (if any) for recordkeeping purposes.
A single document copy costs $15. If you need multiple documents or the LLC's entire file, the fee is $25.[1]
Business Website Domain
Annual Fee: $10 to $20
A website domain and social media presence provide dedicated online spaces for your business. It's essential for marketing, customer engagement, and brand visibility in today's digital world.
Even if you aren't planning to build a business website now, you could still buy the domain name. This will prevent others from using your LLC's name as a web address.
Domain squatters often monitor newly registered LLC names. They purchase corresponding website domains and then resell them at significantly higher prices.
Workers Compensation Insurance
Cost: Varies
Most businesses with one or more employees in Louisiana must have workers' compensation insurance.[15]
You can self-insure or purchase from an insurance carrier. The cost depends on factors like the number of employees, the risk level of your industry, and your past insurance claims.
You might also be required to get other types of insurance:
- General liability insurance
- Commercial property insurance
- Professional liability insurance
- Cyber liability insurance
Bottom Line
In summary, the Articles of Organization fee costs $100 in Louisiana. Then, you must pay the $30 annual report fee.
The total cost will increase depending on the additional services, documents, and licenses your LLC needs. Ultimately, it's never a bad idea to set aside an extra budget for unexpected fees.
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References
- ^ Louisiana Secretary of State. Get Forms & Fee Schedule, Retrieved 07/29/2024
- ^ Louisiana Secretary of State. Articles of Organization, Retrieved 07/29/2024
- ^ Louisiana Secretary of State. Limited Liability Company Initial Report, Retrieved 07/29/2024
- ^ Louisiana Secretary of State. Application for Authority to Transact Business in Louisiana, Retrieved 07/29/2024
- ^ Louisiana Secretary of State. Limited Liability Company Supplemental Initial Report, Retrieved 07/29/2024
- ^ Louisiana Secretary of State. Annual Report Filing Instructions, Retrieved 07/29/2024
- ^ City of Baton Rouge. Occupational License Tax, Retrieved 07/29/2024
- ^ City of New Orleans. Occupational License Guide, Retrieved 07/29/2024
- ^ Louisiana Department of Revenue. Individual Income Tax, Retrieved 07/29/2024
- ^ IRS. Federal Income Tax Rates and Brackets, Retrieved 07/29/2024
- ^ IRS. Self-employment Tax (Social Security and Medicare Taxes, Retrieved 07/29/2024
- ^ Financial Crimes Enforcement Network. Beneficial Ownership Information, Retrieved 10/02/2024
- ^ Louisiana Secretary of State. Reservation of Corporate/Limited Liability Company/L3C/Partnership Name, Retrieved 07/29/2024
- ^ Louisiana Secretary of State. Articles of Reinstatement, Retrieved 07/29/2024
- ^ Louisiana Workforce Commission. Frequently Asked Questions From Employers about Coverage, Retrieved 07/29/2024
Nicole King is a research analyst at CreditDonkey, a business formation services comparison and reviews website. Write to Nicole King at nicole.king@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.
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