All small businesses in Louisiana must abide by the state’s license and permit requirements, as well as any local or federal ones that apply. If you’re starting a business, make sure you’re aware of which ones your business needs. Here’s a guide on Louisiana business licenses and permits to help.
Small business licenses and permits are a means of regulating businesses, so they operate in responsible ways. Licenses and permits can help ensure the general health and safety of the public. Some are also for collecting and remitting taxes, or other purposes. Even something as basic as a local zoning permit can protect a community’s ethos.
You’ll want to obtain any that your business is required to have, and do so before the first day of opening.
There’s some overlap between business licenses and business permits, and the two are used interchangeably at times. Nonetheless, you’ll find a general distinction broadly holds true:
One industry where both of these are frequently needed is commercial transport. Drivers need commercial licenses so they can operate trucks. Companies might also need permits specifically for oversized loads or hazardous materials, and they might have to get a permit each time they’re transporting something like this.
What small business licenses and permits your business needs will depend on its location, operations and industry. You might be subject to state, local or federal requirements.
State business licenses and permits in Louisiana
Louisiana doesn’t have a statewide general business license that every business needs. Your business might need certain state licenses because of its industry or activities, though. You may also need to register with the Louisiana Secretary of State, Louisiana Workforce Commission, and Louisiana Department of Revenue.
All of this can be done through the Louisiana Secretary of State’s GeauxBIZ portal. It has a streamlined process for setting up a new business, including registering with the appropriate departments and applying for any needed state licenses. The Business License Checklist is step one.
There are two state tax certificates that your business may need. Businesses that sell goods or services need a sales tax certificate, which allows them to collect and remit sales tax. Businesses that resell goods can get a resale certificate, which lets them avoid paying sales tax on inventory purchases that will be resold.
Both of these tax certificates are obtained from the Louisiana Department of Revenue. Apply for a sales tax certificate through the department’s Louisiana Taxpayer Access Point (LaTAP). Applications for resale tax certificates are also submitted through the LaTAP portal.
A sales tax certificate is commonly referred to as a “seller’s permit.”
In addition to state requirements, you’ll need to check with your parish and city for local licenses and permits.
These may include general business licenses, zoning permits, and specific licenses for activities like food service or locksmith service. Some localities have a general business license that all businesses within the jurisdiction are subject to.
The easiest way to check local small business license and permit requirements is through the clerks. Contact the town or city clerk where your business operates, to learn about any municipal requirements. Contact the parish clerk to learn about any parish requirements.
You may find some information about local licenses and permits on your municipality’s and parish’s websites. These can be out of date, though, so it’s best to check directly with the respective clerks.
Additionally, you should check with any municipality or parish where your business operates. In addition to your business’s main location, also check if you have locations or offer services elsewhere.
Certain business activities are nationally regulated, and require federal business licenses or permits.
Your business might be subject to federal requirements if you operate in any of the following industries: aviation, agricultural production, alcoholic beverages, firearms, explosives and ammunition, commercial fisheries, fish and wildlife, maritime transportation, nuclear energy, mining and drilling, television and radio broadcasting, or logistics and transportation.
The Small Business Administration (SBA) maintains a fairly comprehensive list of what industries can have federal license and permit requirements.
If your business is subject to any federal requirements, these business licenses and permits you’ll apply with the overseeing agency. Of course, you can also contact the agency directly if there’s anything that’s unclear.
You’ll first need to determine what licenses and permits your business needs to have. Be sure to check local, state and federal requirements, even if you don’t think you need to. It doesn’t take long to check, and missing one could have serious consequences.
You’ll want to check with the town or city clerk, parish clerk, Louisiana Secretary of State, Louisiana Department of Revenue, and SBA’s list of federally regulated industries.
You’ll find that each small business license and permit has its own application documents. These will request some common information about your business, such as location, contact information, etc. Each will ask for other details that are specific to it.
Complete and submit each form. Many applications can be submitted online, but some could require a paper application to be mailed in.
Most applications will have a fee associated with them. This can vary from just a few dollars, to more than a thousand in some cases. Expect relatively small fees when applying for local and some state licenses. Other state licenses (e.g. a liquor license) and federal licenses can cost much more. Permits and basic local licenses may be free in some cases.
Processing times for licenses and permits vary. Check the relevant agency’s website or contact them directly for estimated processing times. Many applications can now be tracked online, but some local and some more involved applications might require emailing or calling.
Typical processing times can take anywhere from minutes to weeks. State applications often can be expedited for a fee, but the fee can be quite expensive.
Many licenses and permits require renewal. Keep track of expiration dates and renew on time to avoid penalties. Renewal procedures vary, so check with the issuing agency for specific instructions.
Should you accidentally allow a license to lapse, renew it as quickly as you’re able to. This is one situation where paying an expedited fee might be wise, as penalties can compound each day your business isn’t properly licensed.
Before your business actually opens, make sure any required small business licenses and permits are in place. You’ll need these to comply with all local, state, and federal requirements that apply to your business. And if you’re also exploring how to start an LLC in Louisiana, understanding these licensing requirements early will help you stay fully compliant from day one.
Operating without required licenses and permits can result in fines, penalties, legal action, and even business closure in select cases. It’s important that your business complies with all license and permit requirements.
Sole proprietors are generally subject to the same licensing and permit requirements as other similar businesses.
There’s not any one general business license that all businesses in Louisiana need, but working in certain industries might require obtaining state licenses. Many municipalities and some parishes also have general business license requirements, or requirements for working in certain industries.
Keep in mind that sole proprietors who sell goods or services to the public likely need a sales tax certificate. A resale tax certificate might also be needed if reselling goods.
Many small business licenses must be renewed, usually annually but the interval can be different. Permits also might need to be renewed, but it’s more likely that a new permit application gets submitted each time a permit is needed.
The most common state issuances do need to be renewed annually. Sales tax certificates and resale tax certificates must be renewed with the Louisiana Department of Revenue before they expire. Renewal applications can be submitted within 45 days of the certificate’s expiration.
