Launching a new LLC in Louisiana involves navigating both initial formation costs and ongoing compliance expenses. If you’re considering forming an LLC, it’s crucial to understand the full scope of required LLC fees and annual costs. This allows you to realistically budget and plan for a successful business launch.
In this comprehensive guide, we’ll outline the typical expenses involved in establishing and maintaining an LLC in Louisiana year after year. Whether you decide to form your Louisiana LLC yourself or use a streamlined formation service, use this as your cost checklist and reference.
The process of registering an LLC in Louisiana entails several key steps, each with their own associated costs. Here’s an overview:
Choosing the perfect name for your Louisiana LLC is the first exciting step! You’ll want to pick a name that aligns with your brand vision and complies with Louisiana’s naming guidelines.
You can conduct a free name search using the Secretary of State’s database before deciding on your LLC name. However, if you find an amazing business name, you may opt to reserve it for a $25 fee by filing an Application for Reservation of Name. This reserves the name for 120 days.
Additionally, you have the option to register a “Doing Business As” (DBA) name or trademark for $25, which allows you to conduct business using a name different than your LLC’s official name.
Estimated Cost for Naming Your Kentucky LLC: $0 – $35
To formally establish your business, you must file Articles of Organization with the Secretary of State in Louisiana. The filing fee for articles of organization is $100.
You’ll also submit an Initial Report detailing your registered office and registered agent (no added fee). Any amendments down the road will incur a $100 filing fee.
While an operating agreement is not explicitly required in Louisiana, it’s highly recommended in order to outline ownership structure, rules, voting procedures, financial rights, and more within your LLC.
You can opt to write your own basic agreement, hire an attorney to draft a customized one for $300 to $1,000, or use an online service to create an operating agreement for $99 to $200. Taking the time to create this document now can prevent disputes later down the road.
In addition to initial formation requirements and fees, your Louisiana LLC will also incur a number of annual and recurring expenses:
Louisiana does not levy an annual franchise tax specifically targeting LLCs; this tax mainly applies to incorporated entities like corporations within the state. Most LLCs are exempt.
The licenses and permits your LLC will need to operate legally in Louisiana can vary widely based on your exact business activities and locations. Be prepared to budget for expenses like:
New businesses should plan on paying an LLET tax of $175 initially, and most will only pay this amount. It’s only if your business grows a lot that you’ll need to pay a percent of receipts or profits.
Estimated Annual Limited Liability Entity Tax: $175
Remember to account for renewal fees as well, which may be charged annually or biennially.
In order to remain active and compliant, all Louisiana LLCs must file an Annual Report each year with the Secretary of State. The current fee for filing your annual report is $30 in Louisiana. Failure to file this mandatory report can lead to involuntary termination of your LLC.
In addition to the annual report, Louisiana levies an annual LLC fee each year based on the gross revenue your business earns within the state:
This annual LLC fee cannot be waived and ensures your LLC maintains active compliance status. You must file and pay both your annual report and annual LLC fee to the state each year.
Fortunately, the majority of initial and recurring LLC costs in Louisiana do qualify as tax-deductible business expenses on your federal income taxes.
This includes expenses like:
Be sure to maintain detailed records and documentation of all LLC-related expenses to maximize eligible tax write-offs. Consulting a tax professional can help identify qualifying deductions.
Here’s an overview of typical costs related to forming and maintaining an LLC in Louisiana each year:
Forming a compliant LLC in Louisiana does come with numerous upfront and recurring expenses to be aware of. However, the liability protection and tax advantages an LLC structure provides often make the investment well worth it for small business owners and entrepreneurs.
Carefully planning, budgeting, and tracking LLC costs from the start can keep your business in good standing. Partnering with a streamlined LLC formation service like Tailor Brands also simplifies the process.
Use this comprehensive guide to understand the typical fees and requirements involved in smoothly launching and running your Louisiana LLC for years to come. Please reach out with any additional questions – we’re always happy to help get your business journey started on the right foot!
The total initial costs for forming a Louisiana LLC normally range from $200 to $600 when you include the $100 filing fee, registered agent service, and any required licenses or permits. Operating agreement and DBA filing costs can vary.
Common ongoing annual costs include the $30 annual report fee, registered agent renewal, and the $25 or higher annual LLC fee based on gross revenue. Individual license and permit renewals may also apply each year.
Most Louisiana LLCs require at least a sales tax ID, local parish business license, and any applicable professional or industry-specific licenses. Your precise requirements are dictated by your specific business activities and locations.
Yes, the IRS allows you to deduct most initial filing fees, registered agent service fees, legal fees, and other direct startup costs associated with forming a Louisiana LLC. Maintaining detailed records is key.
The key steps to establishing an LLC in Louisiana include: choosing a business name, filing articles of organization, appointing a registered agent, creating an operating agreement (optional), obtaining necessary licenses, applying for an EIN, and registering for taxes.
You must submit an annual report, pay the annual LLC fee, and renew any required business licenses and permits with the Secretary of State annually or biennially in order to maintain your Louisiana LLC. Staying organized and filing taxes are also critical.
Missing important deadlines for annual reports and renewal fees can lead to administrative dissolution of your LLC. You would then need to apply for reinstatement and pay any outstanding taxes, dues, or penalties.
The average initial costs for establishing a Louisiana LLC range from $200-$600. This includes the $100 LLC filing fee, $125+ for a registered agent service, $25 for a DBA filing, and costs for licenses, permits, and operating agreement.
This portion of our website is for informational purposes only. Tailor Brands is not a law firm, and none of the information on this website constitutes or is intended to convey legal advice. All statements, opinions, recommendations, and conclusions are solely the expression of the author and provided on an as-is basis. Accordingly, Tailor Brands is not responsible for the information and/or its accuracy or completeness. It also does not indicate any affiliation between Tailor Brands and any other brands, services or logos.
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