If you’ve ever wondered how to get an LLC in Louisiana, you’re not alone. Small businesses make up over 99 percent of all Louisiana businesses. The Pelican State is a hotbed for independent entrepreneurs looking for success.
Are you ready to jump into the mix, but wondering how to form an LLC in Louisiana? Read on to learn about everything from costs to laws. And you can download a Louisiana LLC Operating Agreement template to get you started.
Is an LLC Operating Agreement Required in Louisiana?
Louisiana doesn’t legally require operating agreements for LLCs. But it’s good business practice to create one for internal use. The operating agreement can outline:
- Ownership distribution
- Profit-sharing guidelines
- Company structure and restructuring procedures
- Company goals and ethics
- Member obligations
- Decision-making systems
- 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.
Louisiana Operating Agreement Laws
You can find the Louisiana operating agreement laws in the Revised Statutes for Corporations and Associations – RS 12:1319. Below you’ll find some of the main points you need to be aware of:
Types of LLCs
Louisiana laws allow for the registration of two types of limited liability companies:
- Single-member liability company (SMLLC)
- Multi-member liability company (MMLLC)
If you choose to set up an SMLLC, you will be the sole founding member. An MMLLC requires at least two founding members for approval. Both types of companies have pros and cons, but your choice should depend on your goals.
Naming your company is an important decision, both for branding and legality. Ensure that the chosen name contains one of the following phrases:
- Limited liability company
Additionally, if your goal is a low-profit SMLLC, it must contain one of the following:
- Low-Profit Limited Liability Company
The name must be clearly different from any other company registered in the state. We recommend running a name search on the Louisiana Secretary of State’s website. It’ll help you avoid the hassle of rejection due to improper company naming.
A registered agent is a requirement for every company created in Louisiana. An agent may be any of the following:
- A resident of Louisiana
- An attorney or partnership in Louisiana
- An authorized domestic or foreign corporation
The agent acts as a representative for the LLC. Their role means that the agent must have a physical address and be of legal age in Louisiana.
Once your application is complete, you can officially file the paperwork. The articles of organization is the required form and must be submitted to the Louisiana Secretary of State. If you choose to file in person, you must also include an Initial Report Form.
Your LLC must submit an Annual Report every year to maintain good standing with the state government. The filing date occurs before your company’s formation date each year. You can choose to complete this process online or in person.
How Much Does it Cost to Form an LLC in Louisiana?
Take a look at the breakdown of basic LLC formation costs:
- Domestic Filing Fee: $100
- Foreign Filing Fee: $150
- Annual Report and Tax Fee: $30
The costs are the same whether you file online or in person. 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?
Wondering how to form an LLC in Louisiana? All it takes is five easy steps, a few forms, and you’re on your way.
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
This is the official beginning of your new LLC. Once the articles of organization submission is approved, you’ll be recognized and able to operate as a limited liability company.
If you choose to file by mail, remember to include the Initial Report Form. The cost is the same as online, and the processing time is three to seven business days. You can send your application to:
- O. 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
The Annual Report is a process that reoccurs every year. 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.
Louisiana LLC Operating Agreement Template
Below you can find a Louisiana LLC operating agreement template: