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LLC In Louisiana Cost

LLC In Louisiana Cost: 2024 Costing In Details

Louisiana is an incredibly supportive state for small businesses. Those struggling with sole proprietorship businesses and wanting some ease in Louisiana should go for an LLC. 

LLC in Louisiana costs $100 initially. The additional cost will depend on the annual report fee, articles of organization publication, operating agreement, and other taxes. 

If you are new to all these, I can guide you through the details of LLC in Louisiana cost. 

How Much Does An LLC Cost In Louisiana Initially?

The initial cost of an LLC is $100, which is basically the registration fee. The Louisiana State Corporation Commission will charge $100 as a registration fee to form an LLC there. 

This is required to file articles of organization for the LLC. Another cost you have to go through is name reservation. To form an LLC, you have to secure a unique name in the state corporation. This might take around $25 to secure your name. 

LLC Louisiana Cost In Details

Louisiana LLC costing includes a few important things to consider. All these steps are not considerable for all types of businesses. Take a quick look below to learn about the approximate costing before LLC formation:

Field of Costing

Average Costing

Name Reservation

$200

Name Filing

$100+

Registered Agent

$35

Filing Cost

$50 to $200

Operating Agreement

$90

EIN (Employer Identification Number)

Depends upon

Certified Copies of Business Documents

$15 each

Name Reservation & Filing Of Your LLC

All the LLCs require an individual and distinct name to be reserved. Louisiana state corporation would require you to search your name and register it to be unique. In Louisiana, you can reserve your name for 120 days at $25. 

You just have to check the availability of your name and apply for a reservation. Reserving your name is not enough. You have to file for a trade name to secure a trademark or service mark. This will boost your business reputation in the market. 

The Registered Agent Of Your LLC

In Louisiana, you can call it a registered agent or agent. A registered agent is required to be held responsible for regulating your business. You will get several companies offering registered agent help for $100 to $300. 

It varies from agent to agent and also depends upon your business. It is important to choose a reliable and experienced registered agent to ensure that important legal documents are received in a timely manner and that your LLC remains in good standing with the state.

Many prefer being their own registered agent to cut the cost. However, this is not recommended for all as being your own registered agent requires a lot of knowledge about your business as well as Louisiana law. 

In case you want to designate a new registered agent, it will cost you $25. Here, you have to file a “notice of change” to the Louisiana SOS. 

Filing Cost Of Your LLC

In Louisiana, the filing cost for forming an LLC is $100. This fee is payable to the Louisiana Secretary of State when submitting the Articles of Organization for your LLC. If you are filing it online, you have to pay an extra $5. 

You have to get a firm from the SOS office/ website of Louisiana. Here, you have to provide details like tax information, LLC type, and ownership type. Transmittal details, registered agent details, purpose, and duration.

Whatever information you have to provide on this form will be kept as a public record. 

Draft Of Your LLC Operating Agreement

The cost of creating an LLC operating agreement in Louisiana can vary depending on the complexity of the agreement and the attorney or online service provider you choose to work with. 

On average, the cost of creating an LLC operating agreement in Louisiana can range from $100 to $500. It is recommended to consult with an attorney or legal service provider to get a more accurate estimate based on your specific needs and circumstances.

For guidelines, you can check the LLC operating agreement template.

Certified Copies of Business Documents

In Louisiana, LLC members and managers can request certified copies of certain business documents from the Secretary of State’s office. Some of the documents that can be certified include:

  • The Articles of Organization
  • Certificate of Good Standing
  • Operating Agreement
  • Amendments to the Articles of Organization. 

Each copy of the document will require you to pay $15

LLC Tax Requirement In Louisiana

Forming your LLC is not the only cost. You have to maintain it as well. And, taxation is an important part to hold up the legal rights of your LLC and keep your business secure. 

These are the common types of taxation you should know to save costing of LLCs in Louisiana:

State Business Tax

In Louisiana, it has a rate of 1.85 % to 4.25 %, depending on your business.  

State Employer Tax

In Louisiana, the minimum taxable wage is $7,700. It also depends upon employer’s  experience. 

Self-Employment Taxes

Members of an LLC taxed as a partnership or sole proprietorship must pay self-employment taxes on their share of the profits.

Sales and Use Tax

If the LLC sells goods or services subject to sales tax, it must register with the Louisiana Department of Revenue (LDR) and collect and remit sales tax. The state and local tax rate of Louisiana is on average 9.54% to more than 12%. 

Franchise Tax

LLCs taxed as corporations in Louisiana must also pay a franchise tax, which is based on the company’s capital employed in the state. Generally, Louisiana franchise tax is $2.75 for each $1000. 

Withholding Tax

If the LLC has employees, it must withhold state income tax from their wages and remit it to the LDR. The costing rate is 1.85% to 4.25%.

Wrap Up

In Louisiana, LLC is one of the safest business entities to grab. If you are forming a business and already own a business in Louisiana, learn the ins and outs of the cost. This can guide you in saving bucks. 

In addition, obtaining a business license in Louisiana involves several steps depending on the type of business and its location. The cost will also depend from business to business. Here, the article mentions the average cost you should keep ready to secure your LLC. 

Key Points

  • LLC in Louisiana is safe and secure for your small business.
  • The cost of your LLC will depend upon a few steps.
  • Not all businesses are bound to pay for each step.
  • The filing cost is $100, and for online, you have to pay an extra $5
  • There are other costs related to the operating agreement, such as registered agent, certification, and taxation.
  • Consult a lawyer to learn about LLC costs.
  • If you are an expert yourself, be your own registered agent to save costs.

Frequently Asked Questions

Foreign LLCs must comply with both federal and state tax obligations when operating in Louisiana. For detailed guidance, consulting with a tax professional or the Louisiana Department of Revenue would be beneficial.

The time it takes to obtain a business license in Louisiana can vary widely depending on the type of business. The whole procedure can take 1-3 business days if done online, while mail-in applications may take a maximum of 4 weeks.

Yes, you have to pay $35 as an annual report fee for your LLC in Louisiana. The annual report must be filed each year on or before the anniversary date of the LLC’s formation or registration in Louisiana.

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