Louisiana LLC Costs – A Quick Summary

Before we dive in and explain about the required and possible expenses, here is a quick review of the main costs you’ll need to know before starting your Louisiana LLC:

Fee Type	Cost	Details
LLC Articles of Organization	$100	One-time fee to officially register your LLC with the Louisiana Secretary of State.
Name Reservation (optional)	$25	Optional but allows you to reserve a business name for 120 days before filing.
Annual Report Filing	$30	Due every year by the anniversary date of your LLC’s formation.
Registered Agent Service (optional)	Varies ($100–$400)	If you use a third-party service to act as your registered agent.
Operating Agreement (optional)	Free or Varies	Not required by the state, but recommended for internal structure.
EIN Registration	Free	Issued by the IRS for tax purposes; no cost if filed directly.
Business License or Permit Fees	Varies	Depends on your business type and location within Louisiana.

Launching a new LLC involves navigating both initial formation costs and ongoing compliance expenses. If you’re considering forming an LLC in Louisiana, it’s crucial to understand the full scope of required LLC fees and annual costs. This allows you to realistically budget and plan for a successful business launch.

In this comprehensive guide, we’ll outline the typical expenses involved in establishing and maintaining an LLC in Louisiana year after year. Whether you decide to file your LLC yourself or use a formation service, use this as your cost checklist and reference.

General Steps and Costs When Forming a Louisiana LLC

The process of registering an LLC in Louisiana entails several key steps, each with their own associated costs. Here’s an overview:

Naming Your Louisiana LLC

Choosing the perfect name for your Louisiana LLC is the first exciting step! You’ll want to pick a name that aligns with your brand vision and complies with Louisiana’s naming guidelines.

You can conduct a free name search using the Secretary of State’s database before deciding on your LLC name. However, if you find an amazing business name, you may opt to reserve it for a $25 fee by filing an Application for Reservation of Name. This reserves the name for 120 days.

Additionally, you have the option to register a “Doing Business As” (DBA) name or trademark for $25, which allows you to conduct business using a name different than your LLC’s official name.

Estimated Cost for Naming Your Kentucky LLC: $0 – $35

Filing Articles of Organization in Louisiana

To formally establish your business, you must file Articles of Organization with the Secretary of State in Louisiana. The filing fee for articles of organization is $100.

You’ll also submit an Initial Report detailing your registered office and registered agent (no added fee). Any amendments down the road will incur a $100 filing fee.

Appointing a Registered Agent in Louisiana

While an operating agreement is not explicitly required in Louisiana, it’s highly recommended in order to outline ownership structure, rules, voting procedures, financial rights, and more within your LLC.

You can opt to write your own basic agreement, hire an attorney to draft a customized one for $300 to $1,000, or use an online service to create an operating agreement for $99 to $200. Taking the time to create this document now can prevent disputes later down the road.

Other Ongoing and Annual Costs for Louisiana LLCs

In addition to initial formation requirements and fees, your Louisiana LLC will also incur a number of annual and recurring expenses:

Louisiana Franchise Tax

Louisiana does not levy an annual franchise tax specifically targeting LLCs; this tax mainly applies to incorporated entities like corporations within the state. Most LLCs are exempt.

Business Licenses and Permits in Louisiana

The licenses and permits your LLC will need to operate legally in Louisiana can vary widely based on your exact business activities and locations. Be prepared to budget for expenses like:

New businesses should plan on paying an LLET tax of $175 initially, and most will only pay this amount. It’s only if your business grows a lot that you’ll need to pay a percent of receipts or profits.

Estimated Annual Limited Liability Entity Tax: $175

• Sales tax ID: Free
• Local business license: $10 to $100 annually depending on the parish
• Liquor license: Approximately $500 to $2,000 annually
• Food service permits: $75 to $300 annually
• Professional licenses: $50 to $500 or more for regulated occupations

Remember to account for renewal fees as well, which may be charged annually or biennially.

Filing Louisiana Annual Reports

In order to remain active and compliant, all Louisiana LLCs must file an Annual Report each year with the Secretary of State. The current fee for filing your annual report is $30 in Louisiana. Failure to file this mandatory report can lead to involuntary termination of your LLC.

Paying Louisiana Annual LLC Fees

In addition to the annual report, Louisiana levies an annual LLC fee each year based on the gross revenue your business earns within the state:

• $0 to $49,999 annual gross revenue: $25
• $50,000 to $199,999: $75
• $200,000 to $999,999: $200
• $1,000,000 to $4,999,999: $500
• Over $5,000,000: $1,000

This annual LLC fee cannot be waived and ensures your LLC maintains active compliance status. You must file and pay both your annual report and annual LLC fee to the state each year.

Tax Write-Offs for Your Louisiana LLC Expenses

Fortunately, the majority of initial and recurring LLC costs in Louisiana do qualify as tax-deductible business expenses on your federal income taxes.

This includes expenses like:

• Filing fees for articles of organization and amendments
• Registered agent services
• Legal, attorney, and accounting fees
• Costs for business licenses, permits, and registrations
• Expenses related to drafting operating agreements
• Annual state fees and taxes

Be sure to maintain detailed records and documentation of all LLC-related expenses to maximize eligible tax write-offs. Consulting a tax professional can help identify qualifying deductions.

Recap: main costs

Here’s an overview of typical costs related to forming and maintaining an LLC in Louisiana each year:

• Articles of Organization filing fee: $100
• Filing for a DBA name: $25
• Registered agent services: $100 to $400 per year
• Drafting an operating agreement: $0 to $1,000
• Annual report filing fee: $30
• Annual LLC fee: $25 to $1,000 based on revenue
• Business licenses and permits: $0 to $500 or more depending on industry and location

Conclusion

Forming a compliant LLC in Louisiana does come with numerous upfront and recurring expenses to be aware of. However, the liability protection and tax advantages an LLC structure provides often make the investment well worth it for small business owners and entrepreneurs.

Carefully planning, budgeting, and tracking LLC costs from the start can keep your business in good standing. Partnering with a streamlined LLC formation service like Tailor Brands also simplifies the process.

Use this comprehensive guide to understand the typical fees and requirements involved in smoothly launching and running your Louisiana LLC for years to come. Please reach out with any additional questions – we’re always happy to help get your business journey started on the right foot!

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