How to Form an LLC in Louisiana | 2025 Guide

With nearly half a million small businesses¹, Louisiana offers access to a thriving entrepreneurial ecosystem, competitive startup costs, and a unique legal structure rooted in civil law. If you're considering launching a company in the state, forming a Limited Liability Company (LLC) is one of the most effective ways to protect your personal assets while maintaining operational flexibility.

This step-by-step guide on how to form an LLC in Louisiana walks you through every stage of the LLC formation process, from filing your Articles of Organization with the Louisiana Secretary of State to setting up a business bank account, registering with the IRS, and complying with annual requirements.

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How to Start an LLC in Louisiana (Step-by-Step)

Step 1: Choose a Name for Your Louisiana LLC

Your business name must be distinguishable from other entities registered with the Louisiana Secretary of State. It must include a designator such as "Limited Liability Company," "L.L.C.," or "LLC."

To ensure your preferred name is available, search the business database² on the Louisiana Secretary of State’s website. You can optionally reserve a name for 120 days by filing a name reservation form with a $25 fee.

Step 2: Appoint a Registered Agent

Every Louisiana LLC must designate a registered agent—a person or business entity responsible for receiving legal documents on behalf of the company. The agent must have a physical street address in Louisiana and be available during regular business hours. You can act as your own registered agent, assign an individual, or hire a registered agent service.

Step 3: File Articles of Organization with the Louisiana Secretary

To formally create your LLC, submit Articles of Organization to the Louisiana Secretary of State. You can file online via the state’s geauxBIZ portal or by mail. The Articles must include:

• LLC name and purpose.
• Registered agent’s name and address.
• Duration of the LLC (if not perpetual).
• Management structure (member-managed or manager-managed).

You’ll also be required to submit an initial report, which lists the names and addresses of all members/managers and the registered office.

Step 4: Create an Operating Agreement

Although not legally required, drafting an Operating Agreement is highly recommended. This internal document outlines the ownership percentages, responsibilities of members, profit-sharing, and protocols for resolving disputes or dissolving the business.

A well-drafted Operating Agreement helps reinforce your business structure and prevents future misunderstandings, especially in multi-member LLCs.

Step 5: Obtain an EIN from the IRS

The IRS requires all LLCs with more than one member or those that hire employees to obtain an Employer Identification Number (EIN). Even single-member LLCs need one if they choose to be taxed as a corporation or plan to open a business bank account.

You can apply for an EIN for free directly through the IRS website³.

Step 6: Register for State and Local Licenses

Depending on your type of business and location, you may need to obtain specific business licenses or permits. Use the Louisiana Department's geauxBIZ portal⁴ to identify applicable requirements based on your NAICS code.

If your LLC will collect sales tax, conduct retail sales, or sell taxable services, you must register with the Louisiana Department of Revenue.

Step 7: Open a Business Bank Account

A separate business bank account is essential for maintaining liability protection. It ensures that your LLC’s finances remain distinct from your personal funds, which helps preserve your business entity’s legal standing.

To open a business bank account, most banks will ask for:

• Your EIN.
• A copy of your Articles of Organization.
• Your Operating Agreement.

Step 8: Comply with Ongoing Filing Requirements

Louisiana requires all LLCs to file an Annual Report each year by the anniversary of their formation. The annual report filing fee is $30, and the report can be submitted through the geauxBIZ portal.

If you have employees, you’ll also need to register with the Louisiana Workforce Commission⁵ and comply with all applicable employer regulations.

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What Are the Business Requirements for a Louisiana LLC?

To maintain your business entity in good standing, you must:

• File your Annual Report every year.
• Maintain a registered agent in Louisiana.
• Keep accurate financial and membership records.
• Comply with all tax and license obligations at the local, state, and federal levels.
• Separate business and personal finances.

Failure to meet these obligations may lead to administrative dissolution by the Louisiana Secretary of State.

What Are the Benefits of Starting an LLC in Louisiana?

What are the benefits of forming an LLC in Louisiana instead of another state? Here’s a breakdown.

• Limited Personal Liability: Protects your personal assets from business debts or lawsuits.
• Flexible Taxation: By default, LLCs are treated as pass-through entities for federal tax purposes. You can also elect to be taxed as an S or C corporation through the IRS.
• Ease of Formation: Louisiana's LLC formation process is straightforward, with online filing and fast processing.
• Privacy Options: Louisiana allows for some degree of member privacy, depending on how the LLC is structured.
• Support for Entrepreneurs: State initiatives and resources like the Louisiana Economic Development Agency help foster small business growth.

How Much Does It Cost to Start an LLC in Louisiana?

These will be the typical formation and maintenance costs for your Louisiana LLC:

Item	Cost
Name Reservation (optional)	$25
Articles of Organization	$100
Initial Report (filed with Articles)	Included
Registered Agent Service (optional)	$100–$300/year
Annual Report Filing Fee	$30/year
Operating Agreement (optional but recommended)	Varies
Business Licenses/Permits	Varies

Expedited processing is available through the Louisiana Secretary of State for additional fees.

Can I Open an LLC in Louisiana Without Living There?

Yes. Louisiana does not require LLC owners to reside in the state. However, you must still appoint a registered agent with a physical Louisiana address. This makes Louisiana a suitable option for remote business owners, digital nomads, and entrepreneurs managing businesses from out of state.

Can a Nonresident Open a Company in Louisiana?

Absolutely. Non-U.S. residents can form a Louisiana LLC without any residency requirements. However, you must:

• Appoint a registered agent located in Louisiana.
• Obtain an EIN from the IRS (which can require an ITIN if applying by mail).
• Comply with federal regulations if you plan to hire U.S.-based employees or open a U.S. bank account.

Professional help from a U.S.-based attorney or formation service may be helpful to ensure compliance.

Louisiana vs Nearby States: LLC Comparison

Here’s how Louisiana compares to three neighboring states—Texas, Mississippi, and Arkansas—when it comes to LLC formation:

Feature	Louisiana	Texas	Mississippi	Arkansas
Formation Fee	$100	$300	$50	$45
Annual Report Filing Fee	$30	None	$25	$150 (Franchise Tax)
Processing Time (Online)	1–2 business days	2–3 business days	3–5 business days	3–5 business days
State Sales Tax Rate	4.45%	6.25%	7%	6.5%
Foreign Ownership Allowed?	Yes	Yes	Yes	Yes

Louisiana offers fast processing and affordable filing fees, making it an ideal choice for budget-conscious startups that want quick turnaround and strong legal protection.

Texas, while having no annual report fee, comes with a steep $300 formation cost, which may be better suited for larger ventures willing to invest more upfront.

Mississippi features the lowest formation fee, but its slower processing times and more limited online tools might be less appealing for efficiency-focused business owners.

Arkansas combines low startup costs with a high $150 annual franchise tax, which can become burdensome for smaller businesses over time.

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Conclusion

The LLC formation process in Louisiana is both accessible and affordable, making it a popular choice for entrepreneurs and small business owners. From choosing a name and filing your Articles of Organization to opening a business bank account and complying with annual report filing requirements, each step is clearly outlined through the Louisiana Secretary of State and geauxBIZ portals.

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FAQs About Louisiana LLCs

Are There Privacy Protections for Louisiana LLCs?

Louisiana does not require member names to be publicly listed in the Articles of Organization, offering a degree of privacy. However, the names of the members or managers must be disclosed in the initial report.

Why Do People Use Louisiana for LLCs?

Entrepreneurs choose Louisiana for its low formation fees, accessible online filing system, and no residency requirements. It’s especially attractive to small business owners looking to minimize overhead while maintaining legal protections.

Is a Louisiana LLC Tax-Free?

No. While Louisiana has moderate state taxes, including a 4.45% state sales tax, LLCs may still be responsible for franchise tax (in certain cases), federal income tax, and local business taxes. LLCs treated as pass-through entities typically do not pay income tax at the entity level.

What Are the Disadvantages of a Louisiana LLC?

Some challenges of forming an LLC in Louisiana include:

• No centralized portal for all license and tax registrations.
• Sales tax and state income tax may apply depending on business activity.
• The initial report must be filed immediately with the Articles of Organization.
• Processing times can vary based on the filing method.

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Sources:

1. Small Business Profile: Louisiana (2024) – SBA Office of Advocacy
2. Louisiana Business Info | Secretary of State
3. Employer Identification Number | IRS
4. GeauxBiz Business Registration Portal | Louisiana Secretary of State
5. Louisiana Workforce Commission – LWC