A 16-Step Checklist for Starting a Business in Louisiana

1) Write a Business Plan

Jumping into this endeavor without goals, directives, or a sense of direction can lead to a scattered, unproductive business.

A business plan lays the groundwork for your future success. It helps you analyze key elements of your business and forge pathways to achieve your goals. Here are a few things you should consider including in your business plan:

• Executive Summary (a separate document that gives a complete overview of your business’ purpose, plans, goals, competition, opportunities, etc.)
• Company description
• Market Analysis (opportunities, competition, etc.)
• Managerial or organizational structure
• Products and/or services
• Marketing strategies
• Funding goals
• Financial projections

Business plans aren’t just great for internal operations, but they give your business legitimacy in front of potential investors, customers, partners, and more. Need help? Check out this guide from the U.S. Small Business Administration.

2) Decide on a Business Name

You might’ve come up with the perfect name right away. If so, consider yourself lucky.

Sometimes, deciding on a business can be difficult, requiring brainstorming meetings and late-night rap sessions. That’s because your name is your business’ identity and reputation. It should be something that’s unique and memorable but also defines your business purpose.

Keep in mind that your business structure will place certain restrictions on your name. Every LLC, for example, must use the words “Limited Liability Company,” or an abbreviation like “L.L.C.” in their names. You can find a few additional requirements in Louisiana Revised Statutes  §1306.

Perhaps most important is making sure you don’t use someone else’s name. Before you print your desired name all over business cards and advertisements, perform a name search to see if it’s already taken. If not, you’re free to reserve it or use it on your formation documents.

3) Decide on a Legal Structure

There are only a few types of business structures, but each one dictates some important parts of how your business will run.

The most popular types are the sole proprietorship, general partnership, limited liability company (LLC), S corporation, and C corporation. Most small businesses go with the LLC because of its unique blend of flexibility and personal asset protection.

However, you shouldn’t make this decision without reading up on all of your options. We’ve done plenty of research on each business type and developed side-by-side comparisons. Check out our LLC vs. Corporation and LLC vs. Sole Proprietorship comparison guides for a closer look.

4) Choose a Registered Agent

The Secretary of State needs a point of contact for your business, someone who will be available at your registered office address during typical business hours – 9am to 5pm.

This person is called a registered agent, and they serve as an intermediary with the state, receiving all of your company’s important legal communications and relaying them on to you. The Louisiana registered agent ensures that no important state documents, deadlines, or payments fall through the cracks, so you’ll want to choose a person or company you trust.

You can choose either an individual or a business entity as your registered agent in Louisiana, but they must:

• Be a Louisiana resident or a business entity authorized to do business in the state.
• Have a physical address in Louisiana.
• Have a mailing address in Louisiana  (no P.O. boxes allowed).
• Not be the LLC or corporation itself. Louisiana businesses are not allowed to serve as their own registered agents.

If you want to appoint an individual, we recommend using someone who understands the nuances of business maintenance, like an attorney, manager, or other professional. Family members and friends, however, are equally viable options.

Or, you can choose a registered agent service instead. These companies take care of all your registered agent responsibilities, and some will even handle your business formation and annual reporting as well.

Important: You must continuously maintain a registered agent on file with the Secretary of State. If your agent resigns or you appoint a new one, you’ll need to notify them by filing the appropriate documents.

5) Register Your Business

This is the big one, the step that officially creates your business. No matter which business type you choose, you’ll need to register it with the Secretary of State.

LLCs: When you’ve settled on an LLC, you can make it official by filing an Articles of Organization and paying the requisite $100 filing fee.

You can submit this Louisiana LLC filing online, by mail, in person, or via fax. However, if your business is in one of the following parishes, you must file online: Ascension, Bossier, Caddo, Calcasieu, East Baton Rouge, Jefferson, Lafayette, Livingston, Orleans, Ouachita, Rapides, St. Tammany, Tangipahoa, and Terrebonne.

Corporations: The filing process is the same as LLCs, but you’ll use a corporation-specific Articles of Incorporation instead.

Sole Proprietorship/General Partnership: There are no official forms or fees to register as a sole proprietor or general partnership. Simply start doing business and that’s it! While this is obviously faster and easier, we recommend incorporating your business because of the personal asset protection LLCs and corporations provide.

Foreign Entities: Instead of starting fresh in Louisiana, you might be bringing your business from another state. In this case, it would be considered a foreign entity rather than a domestic one, and you would need to apply for foreign qualification before conducting business. This means submitting an Application for Authority online or on paper. If you’re caught doing business without foreign qualifying, you could face some severe consequences.

6) Get an EIN

The Employer Identification Number (EIN) is your ticket to doing state and federal taxes. It’s a nine-digit number, much like a Social Security Number, that identifies your business on tax documents.

If you’re forming an LLC, it will be considered a “pass-through” entity, so the business itself won’t pay federal income taxes. Instead, you and the other members will report income and losses on your personal tax returns.

But this doesn’t mean you can go without an EIN. If your LLC pays any type of business taxes – like Sales, Use, or Unemployment Taxes – or hires employees, you’ll need to get one.

Unsure if you need one? The IRS provides a useful “Do I need an EIN?” link on this page, where you can also apply for an EIN. If you go through the online application process, you’ll receive your number immediately.

Otherwise, you can submit a Form SS-4 by fax to (855) 641-6935 or by mail to :

Internal Revenue Service Operation

Attn: EIN Operation

Cincinnati, OH 45999

7) Open a Business Bank Account

LLC and corporation owners are required to keep their personal and business finances completely separate, or they risk losing their personal asset protection. To do so, you’ll need a business bank account.

The good news is that opening a business bank account is pretty simple. Just pay a visit to your bank’s local branch and sit down with one of the bankers there. You will need to present your formation documents, an EIN number, and some personal information. Then, you can direct all of your business income and expenses to that account instead of a personal one.

It doesn’t really matter which bank you choose, whether it’s a national giant like Chase or Bank of America or a small, local bank. However, it’s usually easiest to go with the one where you have existing accounts.

8) Handle Any Tax Obligations

Ah, taxes. They’re always part of the picture, especially when you run a business.

Familiarizing yourself with your business’ tax requirements will help you establish a solid financial plan going forward. LLCs don’t need to file a corporate tax return and pay federal income taxes, so you’ll handle these taxes as part of your personal return.

Corporations, on the other hand, will need to file a Corporate Income Tax Return, while sole proprietorships/general partnerships will need to pay self-employment taxes.

Here are a few of the most common taxes your business may owe in Louisiana, depending on its circumstances:

Corporation Franchise Tax: This tax is only required for corporations, not LLCs. It consists of “$1.50 for each $1,000 or major fraction thereof up to $300,000 of capital employed in Louisiana, and $3 for each $1,000 or major fraction thereof in excess of $300,000.”

Sales and Use Taxes: Any business that sells goods and/or services in Louisiana is subject to Sales and Use Taxes at a rate of 4.45%. This rate often changes, so be sure to keep an eye on Sales Tax requirements here.

Withholding and Unemployment Taxes: A business that hires employees must also pay a Withholding Tax through the Department of Revenue and an Unemployment Insurance Tax through the Louisiana Workforce Commission.

This isn’t an exhaustive list, just a few of the most common business taxes. Check the Department of Revenue’s “Businesses” page to see a comprehensive list of potential business taxes. It might also be a wise choice to consult an accountant or tax attorney, especially if your business activities are complicated.

9) Find an Accountant

Sometimes it’s easier to hand off your financial responsibilities to a professional. Not only will an accountant ensures that your taxes are filed and paid correctly, but they might also find a few ways to save your business money.

Bookkeeping and tax procedures are time-consuming and require some specialized knowledge. Balance sheets, financial reports, cash flow, audits, and much more – an accountant can ensure that your company operates smoothly and streamlines its expenses.

This can be expensive depending on the complexity of your finances, but the benefits an accountant offers can be well worth it.

10) Create an Operating Agreement

An operating agreement constructs a framework of procedures and standards for your business. This is where you can lay out processes for member conduct, asset allocation, compensation policies, voting procedures, dissolution, and much more.

While operating agreements aren’t technically required in Louisiana, they are essential to your business’ stability and success. They provide a safety net in legal disputes and legitimacy in front of banks, courts, government agencies, and other businesses.

You can either draft one yourself using an online template, or you can hire an attorney or an incorporation service to take care of it for you.

Once you’ve drafted your agreement, it must be approved by each of your LLC’s members, then filed with the rest of your business documents. You do not need to submit it to the Secretary of State.

11) Acquire the Necessary Licenses

After filing your formation documents, your business is legitimate, but it might still need specific licenses before opening its doors in Louisiana. This depends entirely on your business activities, but you should still be aware of a few different license types:

Professional/Occupational Licenses: Certain state boards regulate the actions of various vocations in Louisiana through special licenses and permits. Landscape architects, for example, must obtain a license through the Horticulture Commission. You can find a complete list of state-licensed professions here.

Environmental Permits: Your business might require permits related to land, air, and water use if your activities require them. You can file for these permits through the Louisiana Department of Environmental Quality.

Building/Zoning Permits: If you plan on building or renovating structures, your business will need to acquire the appropriate permits through your parish.

Local Licenses: Your specific city or parish might have its own licensure requirements. Take a look at your local government’s website to find out.

Louisiana’s geauxBIZ portal makes it incredibly easy to find out which licenses and/or permits your business needs. On your business page, click “Getting Started,” then select “Produce a list of possible federal, state and local licenses and permits required for your business,” and it will show you everything you need.

12) Consider Business Insurance

Even though it’s not pleasant to consider, there’s always a chance that unforeseen events might take a toll on your assets.

While forming an LLC or corporation offers some personal asset protection, additional business insurance can also protect your business assets in cases of lawsuits, damages, etc. You can acquire insurance for your business products, vehicles, specific occupations and much more.

If you hire employees, you’ll also need to get workers’ compensation insurance. SBA.gov has a useful guide for determining which forms of insurance your new business might need.

13) Build a Website

Your company’s digital presence is just as important as its physical one. Like it or not, most potential customers will find your business online, and if you don’t exist online, you’re missing out.

But don’t worry, you don’t need to be an HTML or web design expert to build a website. Sites like WordPress and Squarespace make it easy to construct an elegant and responsive website, no coding necessary. But if you’re not comfortable or confident doing it on your own, you can always hire a professional web designer to take care of it for you.

14) Launch Social Media Accounts

Making your mark on the digital landscape doesn’t start and end with your website. Most successful businesses also have a robust social media presence on multiple platforms. Facebook, Twitter, and Instagram are all great ways to connect organically with potential customers and develop your brand voice.

Just don’t forget to publish consistent social media content, or you’ll have trouble building a base of followers.

15) Understand Ongoing Louisiana Requirements

After you’ve launched your business, things will likely be moving at 100 miles per hour as you evolve and grow. But in all of the excitement, you can’t forget your state’s ongoing compliance requirements. Every state has its own annual or biennial business requirements.

As part of your business maintenance requirements, you must file an Annual Report every year by your business’ anniversary date (the day that you originally formed it). The filing fee is $30 and you can submit your report online or using a paper form (printed through your business information page). Fail to file on time and your business will lose its good standing with the state. Fail to file for three years in a row and it will be administratively dissolved.

16) Check Out Louisiana Small Business Resources

You’re not on this journey alone. There are plenty of free resources available to make starting and growing your business a smoother, easier process.

A little support can go a long way, and there are a ton of resources available to your budding business if you know where to look. SBA.gov can point you in the right direction. Check out Louisiana’s district office page, which includes this resource publication, for information on business development centers, loan opportunities, financial advising, networking opportunities, and more. You’re bound to find the right resources to elevate your business.