A Louisiana LLC operating agreement is a document that outlines ownership distribution, company structure, restructuring procedures, member obligations, company goals and ethics, and bankruptcy procedures.
Multi-member LLCs will find an operating agreement indispensable when legal issues occur. But even if you’re the sole owner of your company, an operating agreement can protect you in court.
Is an LLC Operating Agreement Required in Louisiana?
NO, Louisiana doesn’t legally require operating agreements for LLCs. But it’s good business practice to create one for internal use.
By Type
Single-Member LLC Operating Agreement
Provides a framework for operating a limited liability company with a single owner and manager.
Multi-Member LLC Operating Agreement
Set out the essential guidelines and procedures for running an LLC.
Laws
You can find the Louisiana LLC operating agreement laws in the Title 12. Corporations and Associations. Below you’ll find some of the main statutes you need to be aware of:
- §1315: Limitation of liability and indemnification of members and managers.
- §1319: Records and information.
- §1325: Distributions upon withdrawal.
- §1332: Right of assignee to become a member.
- §1334: Dissolution.
Costs and Fees
LLC formation costs in Louisiana include:
- Articles of organization filing fee – $100 ($150 for foreign LLCs).
- Name reservation fee – $25.
- Annual Report Fee – $30.
Unlike some states, Louisiana has no late filing fee for the Annual Report. But be aware that filing late may remove your good-standing status.
How to Form an LLC in Louisiana
Make sure to follow the steps below to help you get started with your LLC in Louisiana.
Step 1 – Name Your Company
If you’ve got an idea for a great name, you can officially reserve it through the Secretary of State’s website. This process will hold the name for 120 days while you gather your documents to file for an LLC. Reserving is an optional step, but it can help protect your name.
If you’re ready to file without the 120-day reservation, simply choose your name and move on to the next step. You can formally submit your business name when you file the articles of organization.
Step 2 – Appoint a Registered Agent
Using the above-mentioned guidelines, nominate your registered agent. You, or a member of your team, can also volunteer as the registered agent for your LLC. But be aware that the agent’s information will be on public display on the Secretary of State’s website.
Step 3 – File the Articles of Organization
Once the articles of organization submission is approved, you’ll be recognized and able to operate as a limited liability company. Remember to include the Initial Report Form if you choose to file by mail. The cost is the same as online; the processing time is three to seven business days. You can send your application to the Commercial Division, PO Box 94125, Baton Rouge, LA 70804-9125.
You can file online at the geauxBIZ website by creating an account and filling out the digital form. The processing time is usually one or two days, and the procedure is simple.
Step 4 – Draw Up an Operating Agreement
Louisiana doesn’t require an operating agreement, which means you have the freedom to create your own. If you’re unsure of what to include, we’ve created an easy Louisiana LLC operating agreement template to follow below. The agreement will need to be approved and signed by all owners of the business.
Step 5 – File Annual Report
Filing your Annual Report is simple through the government website. Once again, head to the geauxBIZ site to access your account and submit the form and payment.
Sample
Below you can find a Louisiana LLC operating agreement template.
