LLC Cost In Louisiana - How Much To Pay In Fees & Taxes in LA
If you are planning to start a business in Louisiana, it is essential to figure out how much money you will need at the outset. A business should be profitable, so it's critical to be aware of how much is an LLC in Louisiana.
In this article we will cover these issues:
- What is the cost of starting an LLC in Louisiana?
- What is the annual LLC fee Louisiana?
- What taxes and other Louisiana LLC fees will you pay?
- What fees are charged for additional services?
If you've already decided to form a limited liability company, you can also read our step-by-step guide on forming an LLC in Louisiana.
How Much Does an LLC Cost in Louisiana?
So, let's take a look at the LLC cost in Louisiana. In this state, you can either establish a local cost or expand your business by registering a foreign LLC.
The cost of registration and the application form will vary slightly depending on your choice.
Cost to start an LLC in Louisiana:
| Service | Cost |
|---|---|
| Louisiana LLC filing fee | $100 |
| Foreign LLC registration | $150 |
| Annual Report | $30 |
| LLC Name Reservation | $25 |
| “Doing Business As” (DBA) Name | $75 |
| Certified Document Copies | $15 |
| Certificate of Good Standing | $20 |
You can fill out an LLC registration application on the Louisiana Secretary of State's website or download a PDF, fill it out, and mail it in:
State of Louisiana Secretary of State
P.O. Box 94125
Baton Rouge, LA 70804.
Let's take a closer look at the various fees, taxes, and other required costs.
Louisiana LLC Online Filing Fee: $100
You will need to register your company in Louisiana to make it legal. This is done by filling out Louisiana Form 365 (Articles of Organization).
The easiest way to make it online is through the Secretary of State's website. You will need to fill out the basic information:
- Company name;
- Registered agent's info;
- Founders and managers’ info;
- Type of business;
- Other important information.
In the last step, you will be asked to pay the Louisiana state filing fee for LLCs, which is $100.
Once the application is processed, your company is eligible to begin operations.
Louisiana Annual Report Fee: $30
In Louisiana, every company is required to file an annual report on or before the anniversary of its registration.
The Louisiana LLC annual fee is $30
If you miss the deadline for filing your report or paying the state fee, the authorities can revoke your LLC. If this happens, you will have to file a reinstatement form, which will cost you much more than the annual report fee.
Registered Agent (Agent of Process, Resident Agent) Fee
Under Louisiana state law, every LLC is required to appoint a registered agent who will receive important correspondence for the company and serve the process if you are sued.
Moreover, until you choose a registered agent, you cannot file the Articles of Organization because this section is mandatory in the document.
A registered agent may be:
- An individual of legal age who has a permanent physical address within the state of Louisiana;
- An entity that has an office in the state and is registered with the state as a company providing related services.
You can also become a registered agent for your company. State laws permit you to do so. Budding business people often choose this option, as it is the cheapest way to start an LLC in Louisiana.
On the other hand, the cost of a professional company's services is not overly high. Usually, it is from $49 to $300 a year. And you get a lot of benefits:
- Privacy. Your registered agent's information will be in the public domain. Your name, address, and phone number won't be available to anyone else;
- Time savings. Traditionally, addresses and phone numbers provided publicly are used for marketing spam. You won't be distracted by it;
- Schedule. A registered agent should be available year-round five days a week;
- Reliability. A professional company will receive, scan, and upload documents to the repository in a timely manner and notify you;
- Assistance from professionals. Most companies include reminders to send reports and other helpful perks.
Many companies that offer business registration assistance will include a free year of registered agent coverage as part of their service package. The cost of business registration services can range from $40 to $300.
So, if you are choosing an agent, study the companies' credibility ratings, service packages, and customer reviews.
It is crucial that the company turns out to be reliable because otherwise, you run the risk of not receiving correspondence on time and even losing credibility from the state government's perspective.
If you are suspected of operating without a registered agent, the LLC can be dissolved by administrative decision.
Cost to Form a Foreign LLC in Louisiana: $150
If you already have a business in another state but want to expand, you can register a foreign LLC in Louisiana.
Here's what you need to do:
- Fill out the application form online or download it from the Secretary of State's website;
- Note that the application form is slightly different compared to a form for registering a local LLC;
- Pay the fee. For a foreign LLC in Louisiana, the charge is $150.
After receiving confirmation of successful registration, you can launch your business.
Cost to Form a Series LLC in Louisiana
There is no such type of business as a Series LLC in the state of Louisiana. Therefore, if you want to register this entity type, you can choose any other state where Series LLCs are accessible.
Next, you simply form a foreign LLC in Louisiana. Check out the instructions and Louisiana LLC costs above.
Cost to Form a PLLC (Professional LLC) in Louisiana: $100
Under Louisiana LLC law, you can form a regular LLC to conduct any lawful business unless a more circumscribed purpose is specified in the Articles of Organization. The only exception is insurance underwriting, which Louisiana LLCs cannot practice.
Professionals in these fields most often resort to opening a PLLC in Louisiana:
- Legal services;
- Pharmacy and drug manufacturing;
- Dentistry;
- Professional nursing;
- Accounting;
- Optometry;
- Chiropractic;
- Architecture;
- Psychology;
- Veterinary Medicine;
- Occupational therapy and corporate social work.
To form a PLLC in Louisiana, you should:
- Have an appropriate license for each specialist;
- Consult with the state licensing board to see if your company requires its approval;
- If approval is needed, get the necessary documentation;
- Submit the Articles of Organization to the Secretary of State.
PLLC Articles of Organization can be filed online at the Secretary of State's website or mailed. The cost to form it in Louisiana is $100.
Business Entity Income Tax
Louisiana LLCs are pass-through entities and do not file tax returns. However, some fees still need to be paid. They may vary from county to county.
Louisiana State Income Tax
You will have to pay this state tax as an individual on any income you pay to yourself. The rate varies from 2% to 6%, depending on the total amount of taxable income.
Louisiana Sales Tax
The standard rate of this tax in Louisiana is 6.25%. But it varies from county to county. Be sure to check with your county authorities for this information.
Federal Self-Employment Tax
All types of profits that Louisiana company members make are subject to the self-employment tax. The standard rate is 15.3%.
Payroll Tax
If you have salaried employees, you are required to withhold payroll tax from them. The standard withholding rate is 7.65% of employees' taxable wages.
Business License Renewal Fee
In Louisiana, you can obtain a business license by contacting the appropriate licensing or regulatory agency. Licensing requirements depend on the type and location of your business.
The main types of licenses and permits are:
- State;
- Local;
- Federal.
The primary business license in the state is a sales tax certificate (salesman's license). You can get it online from the state Department of Revenue website. There are no LLC fees in Louisiana to obtain this license.
In addition, certain professionals require individual licenses. Find more information about business licenses on the state's geauxBIZ website.
Franchise Tax
Every legal entity in Louisiana taxed as a corporation should pay an annual corporate franchise tax.
In this case, Louisiana's annual LLC fee is $110.
Other LLC Filing Costs
If you've studied this article carefully, you already have a rough idea of how much you'll need to pay and what steps you need to take to register a company.
But that's not the bottom line. Want to know exactly how much does LLC cost in Louisiana? Then consider the additional non-mandatory costs as well.
LLC Name Reservation
You can reserve the name for your company before you create it. To do this, fill out an application (Form 398) and pay a $25 fee.
"Doing Business As (DBA) Name
To apply for a DBA, you need to fill out an application (Form 397) and pay a $75 application fee.
Certified Document Copies
Certified Document Copies can be obtained at any time by visiting the Secretary of State's website. It will cost you $15.
Certificate of Good Standing
A Certificate of Good Standing is often required by banks and other lending institutions. You can order one from the Secretary of State’s website after paying a $20 fee.