How Much Does a Business License Cost in Louisiana?  

Starting a business in Louisiana is an exciting decision that can open the door to lots of future opportunities. But there are also rules you need to follow, especially when it comes to making sure you have the documentation you need to operate your business legally. This includes obtaining a proper business license in Louisiana.

So, how much is a business license in Louisiana? The short answer is it depends, as the state of Louisiana doesn’t have a single statewide business license option that applies to everyone. Actual business license costs vary by state and between counties and in Louisiana can range anywhere from $50 to $500 or more, depending on variables like the type of business you’re opening, what industry it occupies, and where exactly in the state you plan to run it.

In most cases, local city and parish governments handle the licensing process. But some industries require prospective business owners to obtain specialized state licenses or even federal permits.

In this guide, we’ll cover everything you need to know about business license requirements in Louisiana, including likely cost information, renewal requirements, and types of licenses available.

Do you need a business license in Louisiana?

Some states issue single statewide licenses, but things work a bit differently in Louisiana. Business licensing, in particular, involves multiple levels, including local, state, and occasionally even federal. So, whether you actually need a license (and what kind) depends entirely on your industry, how you structure your business, and where you’ll be operating.

When is a license required?

Here’s a breakdown of some of the most common scenarios that definitely require a license:

• Local operations: Most Louisiana cities and parishes require occupational licenses or local business licenses if you’ll be operating within their particular jurisdiction.
• Industry-specific requirements: State-issued licenses are required across the board for certain professions. Examples include contractors, cosmetologists, and real estate brokers.
• Sales tax collection: If you’ll be selling tangible goods or offering taxable services as part of your business model, you’ll need to register for a sales tax permit (also sometimes called a seller’s permit).

Louisiana’s unique approach

Louisiana’s parish-based system sets it apart from other states when it comes to business licenses. (Most other states deal strictly within cities and counties.) In fact, state parishes play a critical role, so you may actually need to square up with both your city government and your parish government for your business to be fully compliant.

How much does a business license cost in Louisiana?

The Louisiana business license cost involved can vary quite a bit. Many basic licenses are fairly inexpensive, but professional licenses or industry-regulated alternatives can cost several hundred dollars. Let’s break down the details.

General cost ranges:

• Local licenses: Expect to pay $50-100, on average, depending on business type, as well as your city and parish.
• State licenses: Expect to pay at least $100-500, if not more, depending on your industry. (Professional, occupational, or specialized permits may be required.)
• Sales tax permit: This doesn’t cost anything to apply for, but you will have to register with the Louisiana Department of Revenue.
• Federal licenses: Fees vary greatly from one industry to the next. However, these are generally only required in regulated industries like firearms, alcohol, broadcasting, or aviation.

Additional factors can further affect your final Louisiana business license cost. Here are some examples to keep in mind:

• Location: Smaller towns and parishes often have much different fee structures than larger cities like New Orleans, Lafayette, or Baton Rouge, so be sure to investigate current setups where you live.
• Business structure: Limited liability companies (LLCs) or corporations will likely face different filing fees than sole proprietors or those pursuing a small business license in Louisiana.
• Industry: If you’re going into a regulated industry like construction, food service, healthcare, or alcohol, expect to pay higher costs overall.
• Renewals: Many types of Louisiana business licenses require annual renewal, which can come attached to applicable fees.

Types of business licenses in Louisiana and their cost

Need a comprehensive overview of the types of licenses available when you start a business in Louisiana? Here’s a breakdown of the most common types you’ll encounter, as well as the details of what you need to know about each.

City business licenses

In most Louisiana cities, you’ll need at least a business or other occupational license to operate legally and stay compliant. Again, costs can vary quite a bit from one area to the next. Your projected revenue can affect the total cost you’ll pay, as well.

Let’s take a look at a few key examples:

• New Orleans: In New Orleans, expect basic business license fees to start at around $50, with increases based on gross receipts.
• Baton Rouge: Depending on overall business activity, you can expect fees here to range from $50 to around $150 or so.
• Smaller towns and parishes: Many small towns and parishes in Louisiana charge a flat fee for a business license, usually ranging from $25 to $100.

Parish (county) business licenses

In most cases, parish business license fees mirror those associated with city fees, with costs of $50-150 or so. Parishes also often issue occupational licenses where needed or applicable, so be sure to check local protocol.

State-level permits

As is the case with many states, Louisiana does regulate multiple industries at the state level. Key examples to be aware of include (but may not be limited to) the following:

• Contractors: Around $100-400, depending on the license class you’re pursuing.
• Real estate brokers: Expect to pay a $120 application fee, in addition to a $50 exam fee.
• Cosmetology/barbering: Around $100, depending on the applicable license type.
• Alcohol or tobacco: Around $150-500, depending on your distribution level and sales numbers.

Sales tax permit (seller’s permit)

If you’ll be selling taxable goods and services (or plan to in the future), you’ll need to approach the Louisiana Department of Revenue and register for a sales tax permit. There’s no fee to apply, but it’s essential that you obtain this permit before collecting any sales tax.

Federal licenses

Certain industries do require federal approval before you can legally go into business. Here are a few to know:

• Alcohol and tobacco sales: Requires Alcohol and Tobacco Tax and Trade Bureau (TTB) permits.
• Firearms/ammunition: You’ll need Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) licensing.
• Transportation: Calls for Federal Motor Carrier Safety Administration (FMCSA) permits.

License Type	Governing Body	Typical Cost
City business license (New Orleans)	City of New Orleans	$50-150+ (depending on revenue)
Parish business license	Local parish government	$50-100
State contractor license	Louisiana State Licensing Board for Contractors	$100-400
Real estate broker license	Louisiana Real Estate Commission	$120 + $50 exam fee
Cosmetology license	Louisiana State Board of Cosmetology	$100+
Alcohol permit	Louisiana Office of Alcohol and Tobacco Control	$150-500
Sales tax permit	Louisiana Department of Revenue	Free

Examples of different industries and their licensing in Louisiana

Now, let’s shine a spotlight on some industry-specific examples to give you a more nuanced idea of your potential total Louisiana business license cost.

Restaurants and food service

Going into this industry naturally requires a local business license and sales tax permit. But you’ll also need a health department permit, as well as an alcohol permit if you’ll be serving drinks.

Estimated cost: $300-700 in total

Construction and contracting

If going into contracting, you’ll need to apply for your license via the Louisiana State Licensing Board for Contractors. Costs for this will vary, but you can expect to pay around $100-400. Additional local licenses could add $50-100.

Estimated cost: $150-500 total

E-commerce and other home-based businesses

These likely require parish and city occupational licensing, but check with your local jurisdiction. You’ll also need a free sales tax permit if you’ll be selling taxable goods and services over the internet.

Estimated cost: $50-150 total

Professional services (e.g., cosmetology, law, or accounting)

You’ll need a local business license, plus a state-level professional license.

Estimated cost: $200-600 total

Renewing your business license in Louisiana

A Louisiana state business license isn’t a one-and-done type of deal. They require regular renewal to keep them active. For example, most local business licenses and state-level permits require annual renewal.

Renewal fees for licenses typically match the original application fees involved. For example, $50-100 for local licenses, $100-400 for state licenses, etc. Be sure to keep careful track of renewal deadlines to avoid fines and late fees.

Getting help with your Louisiana business license

Ultimately, the total cost of a business license in Louisiana will depend on variable factors like where you live, what industry you’re going into, and how your business will be structured.

Be sure to check with the Louisiana Secretary of State, as well as your local city hall and parish clerk, for current fees and requirements. You can also get help with the application to obtain a business license from a professional service like Tailor Brands. Reach out today, and let us know how we can help!

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