How to Start a Business in Louisiana in 11 Easy Steps

Southern charm and exceptional natural beauty aside, Louisiana has much to offer those hoping to start a business.  If you are thinking about starting a business in Louisiana, you’ll benefit from having the following steps and guidance by your side.

Why choose Louisiana? Let’s take a closer look at what you can expect here.

Louisiana has one of the lowest costs of living in the United States, and that translates to low-cost business startup and management. The state is a very pro-business environment. There are numerous incentives for various industries and ample support from the cities and states to support new businesses opening their doors here.

Some of the most important factors to consider include:

• About 4.6 million people call Louisiana home (as of 2023), with some areas showing steady growth. The area has a strong diversity of ethnic groups.
• The economy is driven by numerous industries, including oil and gas extraction, agribusiness, and manufacturing. Some areas have a strong tourism and service industry. Emerging industries include logistics, technology, and life sciences.
• A pro-business government policy exists here. More so, employers can tap into numerous incentives, including performance-based awards and tax abatement programs.
• A growing and strong labor force exists here, with about a 4.4% unemployment rate and over 2 million people in the civilian labor force.
• Louisiana’s business tax climate includes flat corporate income tax rates of 5.5%.  The sales tax rate is 5%.
• It’s home to one of the fastest-growing IT sectors in the country.

With a skilled workforce and abundant resources, Louisiana offers a promising opportunity for building a business. Noted for its strong culture in providing support and community, this is an area that thrives on welcoming small, medium, and large corporations with open arms.

Ready to get started? Here are the 11 steps to opening a business in Louisiana you should be following:

The steps:

1. Fine-tune your business idea
2. Create a business plan 
3. Choose a business name
4. Choose a business structure
5. Set up Banking, Credit Cards, & Accounting
6. Get Funding for your [Louisiana] business
7. Get Insured
8. Obtain Permits & Licenses
9. Find your team
10. Market & Grow Your Business
11. Open the doors!

Step 1. Fine-tune your business idea

Before going any further, start by creating a business idea. Louisiana is at the heart of business creation. It’s easy to share time-tested recipes and deliver a jazz-infused experience to create a Mardi Gras destination. Yet, before you can actually build your business, you need to have clear objectives.

To develop your business idea, focus on these areas:

• Choose a product or service you’re passionate about and knowledgeable about. Products, which are manufactured or sold, and services, both online and offline, can be profitable businesses here. Choose what is best for you, based on your experience and interests.
• Play to your strengths. You certainly can learn new skills. But playing to your strengths means you’ll be ready to use that knowledge ahead of the competition. What drives you? How can you turn that into a profitable business model?
• Determine the problem you will solve. In a highly competitive environment, you need to stand out. Consider what specific problem your business will solve. Consider what keeps you up at night. How can you offer a solution to others facing the same problem?
• What’s frustrating about what’s on the market now? Perhaps there are other products on the market that solve your problem, but they have their limits. What can you do to improve that?
• What does your community need? Focus on your local abilities and cultural influences. You may wish to create a product that ties to the region’s Cajun or Zydeco music influences. Alternatively, you may want to offer a service to help youth explore the history of French and Spanish art influences in the region.

There’s no bad idea. The problem comes from not investing enough time in building out that idea to make sure it meets the community’s needs and has a profitable foundation.

What types of businesses are popular in Louisiana?

There’s no limit to the types of businesses you can open in Louisiana. If you’re looking to jumpstart some ideas, focus on these areas:

• Service businesses with skilled contractors and licensed professionals
• Food and beverage businesses, including food trucks
• Artisan bakeries
• Culturally infused coffee shops
• Art galleries
• Bed and breakfasts
• Personal training
• Boutique clothing outlets
• App development companies
• Catering services
• Digital marketing agencies

There are options – and lots of them. Spend your first few hours working out a plan that plays into your local interests and what you know Louisiana’s communities need.

Step 2. Create a business plan 

With your idea in hand, it’s time to build a business plan. You can create a traditional, long-form business plan or a simpler one-page form. Either way, there are several factors that need to be considered and incorporated into your business plan:

Market research

Your business cannot succeed unless you have completed marketing research. With market research, you’ll have a better understanding of:

• Who your target audience is (that’s your most likely customer)
• Where can you find that audience
• The types of strategies and pain points those customers have
• How do they make informed decisions
• How to meet the expectations of your customer

Financial plan

The next step is to bring together the math. To do that, you’ll need to have some financial objectives. The low cost of operation in Louisiana makes it an attractive place to get started, but that’s not the only factor to think about here. Work out the following within your business plan:

• Expected revenue
• Expenditures related to your business
• Cash flow objectives and goals

You’ll need to understand the money you are bringing into your business. You then need to know what it will cost to operate your business. Pricing your products needs to fall into this area as well.

Marketing plan

Your marketing plan incorporates how you will connect with your customer base and reach them. You’ll outline the types of advertising you plan to do and start working on clarifying what your brand is.

Choose a location

Where you build your business matters. Location makes or breaks a business. That’s especially true if your customer base must visit your location. Consider some of the factors that go into choosing a location.

Where are your customers? When your business relies on customers to walk in the door, you need to position it in an area that enables customers to see you, park, and come inside. Busy commercial corridors make a difference here.

If your business targets tourists, you need to position it where tourists are most likely to visit. That’s likely in the French Quarter for Mardi Gras or Baton Rouge if you’re targeting museum and art-infused businesses. If your business is targeting those who visit or come to the area for casinos, being in the downtown area of Lake Charles is beneficial.

For those building a tech business or needing to be surrounded by larger investment firms, operating in the heart of New Orleans could prove valuable. Conversely, some regions have limitations on what can be built in them. Manufacturing businesses are hubbed in areas of Baton Rouge and Shreveport.

Always consider the following when it comes to choosing a location:

• Local regulations and zoning laws
• Where your customers are
• The type and amount of space you need
• Proximity to your resources
• Suitable access to highways and roadways, depending on your business
• Access to the utilities that you need within the necessary scope
• Access to waterways
• Ability to attract customers driving by

All of these factors allow you to choose the best place to start a business in Louisiana. To help you get started in narrowing down your options, check out the state’s zoning ordinances that play a role in site location.

Decide if you’re an online-only business

Not all businesses need a physical storefront or warehouse to operate in. Many companies are online-only. That’s one way to minimize risks associated with zoning laws. Determine if you have a product or service to sell that is specifically able to be sold online without the need for a brick-and-mortar business location. If so, you’ll need to build an online business in Louisiana that still complies with laws and connects with customers. Here’s what online businesses in Louisiana typically need:

• A website: When you create a website, it should be your digital storefront. It’s going to set the tone for your business, encourage customers to interact, and build your brand. Your business’s website should promote your products, offer a way to collect users’ emails, and demonstrate your competitive advantage.
• Social media presence: Today’s businesses need to be online in multiple ways. Know where your target customers are. If they are typically found on social media sites like Instagram, you need a presence there. Consider options such as Facebook and LinkedIn (especially for a business-to-business company).
• Supply and distribution plans: How will you move product from a purchase to the buyer? Product sellers must work to develop a supply and distribution plan that ensures they do not run out of product, but do not have too much inventory on hand.
• Tax laws: Ensure you research the specific tax laws for the state as well as for the community you are based in. Regulations range widely for online businesses. Overall, the state’s sales tax rate is 5%, but local rates range from 0% to 7%.
• Louisiana-specific regulations: Online businesses are treated the same as brick-and-mortar businesses for sales tax collection. Note that some cities also have regulations related to operations in residential areas. All businesses must register with the Louisiana Secretary of State.

Step 3: Choose a business name

Are you ready to launch? Not yet. Before you do, you need to carefully consider the business name you select. This is a name that’s critical to get right. You want people to remember it easily and be able to recognize what you offer. Branding allows that to happen.

There’s a great deal that goes into choosing a business name, but here are some of the most important initial factors to consider:

• Brand your business. Your business name is the core of your brand. You absolutely need to brand to fit your audience, product, and business mission or goals.
• Memorability. Get it right and your business name will be remembered (for the right reasons) for years to come. When choosing, make sure to select a name that’s easy to pronounce. It should have some distinctive element for you. You can also choose something that’s emotionally inviting.
• Domain name: As you consider your name, determine what domain name may still be available for that business. Look up the availability of domain names.

In addition to this, you also have to meet a few business and legal rules and regulations in the state of Louisiana.  Here are some of the rules set by the Louisiana Secretary of State:

• Include identifiers. That may include “limited liability company” for example, if applicable to your business, or “corp” if you are operating a corporation.
• No deception. Your name cannot imply a false purpose. For example, you cannot use a word that makes it seem like it is a charity if it is not.
• Distinguishable. Choose a name that’s easy to distinguish. On the Secretary of State website, you can perform a simple search using the tool to identify any other businesses with the same name in your state.
• Do not use restricted words. This includes words that imply professionalism. For example, you cannot use the word “doctor” unless you are a licensed doctor in the state.

Once you’re confident you have a great name, you will need to complete several steps to register it. First, you need to check if your name is available using a Louisiana business entity search. Then, you need to alert the Secretary of State of your goals. Using the GeauxBIX tool, you will create an account and reserve your business name, and then complete the necessary steps to register.

If you plan to operate your business under a name different from your legal business name, you’ll also need to file a DBA (Doing Business As). Knowing how to file a DBA in Louisiana is essential for ensuring your trade name is properly registered. The process allows sole proprietors, partnerships, LLCs, or corporations to use an alternate name for marketing and branding purposes while maintaining compliance with state regulations.

You must register your business through:

• Louisiana Secretary of State
• Louisiana Department of Revenue
• Louisiana Workforce Commission

Note that you will need to appoint a registered agent to be available to receive official mail for you. You can file all business documents on the GeauxBix website, including annual reports and articles of incorporation.

Step 4: Choose a business structure

Your business structure is an integral part of building your business in Louisiana. The state’s laws in this area are much like those of many other states, but there are a few factors you need to think about before you choose to open a business here.

The common types of business structure

As you establish your business in Louisiana, you will need to choose a business structure that best aligns with your objectives and goals. In Louisiana, you can choose from the following business structures:

• Sole proprietorship: This type of business is owned by one person. There’s no legal distinction between a sole proprietorship and a business. It’s considered a pass-through business structure. That means your business income will be reported on your personal income tax return. You, as the owner, hold all liability and responsibility.
• Partnership: You can form a partnership with the same basic steps. What makes this different is that it is owned by two or more people. The business’s general partners have unlimited personal liability. And the earnings are handled the same way as in a sole proprietorship.
• Limited Liability Company: An LLC in Louisiana is a popular option because it separates your personal and business efforts. The result is that you have personal liability protection. This can protect your personal assets from seizures. It is one of the most common types of business structures.
• Corporation: As your business grows, you may wish to establish it as a corporation. This is a more complex structure, but it allows for your business to be managed by a group of stockholders.

It helps to have insight into the legal and tax implications of each strategy based on the size and type of business you plan to operate. Don’t be afraid to reach out to a tax professional for guidance.

Tax advantages of each option

• Sole proprietorship: You’ll report your income on your personal taxes each year. There’s no separate business tax filing process. You can deduct your business expenses from your income, reducing your business’s financial liabilities.
• Partnerships: This offers the same type of pass-through taxation model. Partnerships can also allocate profits and losses in line with your partnership structure. It does not have to be even.
• LLCs: In an LLC, there are benefits because this is a pass-through entity solution. You will not have to pay taxes on the same money twice.
• Corporations: Depending on the type of corporation expected, taxes are more complex. Note that you’ll share income and tax information with shareholders.

Step 5: Set up banking, credit cards, and accounting

Let’s get to funding your business in the most basic forms. Setting up accounts lets you start processing purchases and managing your money. You have a wide range of options to consider.

Set up business bank accounts

You can choose any bank you want to work with that provides business banking accounts. This typically includes a checking account that is completely separate from your personal income. This single account should track your income and expenses. Creating a business bank account, even if you operate as a sole proprietorship, allows you to be professional, and that’s important for most customers.

Business credit cards

To manage your company’s expenses, sign up for a business credit card. This card will serve as a way to purchase inventory and materials, cover marketing costs, or meet other demands. You can then pay it off with the funds that come in from your business.

Look for a business credit card that is affordable and easy to obtain for a new company. That can be hard to do if you are just starting out.

Business accounting

Your next step is to have business accounting. Even a small business must have a way to manage income coming in and money going out. There are numerous accounting tools and apps you can choose from. Many of these accounts will handle the invoicing, tax collection, and payroll services you need.

Step 6: Get funding for your Louisiana business

Business funding in Louisiana allows you to secure the funds you need to build your business. The Louisiana Economic Development organization offers a variety of tools to help you find available income sources. That includes grants, loans, and tax incentives that may be applicable to your business. There are also programs designed for small businesses. This is the best place to start when choosing funding options. Virtually all options are available here, but you can also turn to local banks and private investors to help you get set up as well.

You have various ways to fund your business. Some examples include:

• Borrowing from friends and family: If you don’t have the cash you need on hand, consider turning to friends and family through fundraising efforts. But be warned that mixing business and personal relationships isn’t always a good thing.
• Crowdfunding: A newer concept, this type of program allows you to turn to the community for help in funding your business.
• Small business loans: These loans may be available. Local financial institutions and credit unions provide the best access to smaller startup loans.
• Grants: Grants are exceptional because they are funds you can obtain to do the work you desire, but they do not get paid back. Like all states, grants in Louisiana are competitive and require a formal application.
• Angel investors: You could turn to venture capital and angel investors for funding. That’s important when you are established and need funding for larger purchases and growth.

Carefully analyze all costs associated with each funding option. Know the obligations to these as well.

Note that the US Small Business Administration and the Louisiana Nonprofit & Small Business Assistance Program are available to help small companies pave the way to financial success.

Step 7: Get insured

Protecting what you worked for is a must. That’s where small business insurance comes in. The Louisiana Department of Insurance outlines the requirements for obtaining insurance that meets the state’s requirements.

• Property insurance: Business owners need to protect their property from liability claims and from losses due to fire, theft, and vandalism. Commercial property insurance should cover the risks associated with your business type.
• Liability insurance: Liability insurance should fit the risks you face. This could include general liability for most businesses, product liability insurance if you sell products or manufacture them, and professional liability if you are a licensed professional.
• Commercial auto insurance: If you operate a business using a car or truck, you need auto insurance that represents the type of losses you could face.
• Workers’ compensation insurance: If your business falls into the requirements of having workers’ compensation, you must obtain a mandated policy that covers workers.
• Contractors’ insurance: Contractors must carry specific coverage to meet the type of work they engage in.

Work with an insurance agent who has experience in the type of business you operate. That helps them better understand the risks you face and the type and level of coverage best suited for your business.

Step 8: Obtain permits & licenses

As noted, to do business in the state, you must first register your company with the Louisiana Secretary of State. You may need additional a Louisiana business license or permits to operate based on the work you do. Here are some examples:

• Professional service providers: If you operate as a teacher, contractor, doctor, nurse, cosmetologist, or other specifically skilled professional, you may need to apply with the state to obtain a business license.
• Federal licenses: There are some industries governed by the federal government. You need a specific license from the appropriate organization if you operate in aviation, commercial fishing, the manufacture of firearms, or the sale of alcohol or tobacco.
• Local licensing: Some cities may require you to register your business with them, often for tax purposes.
• Sales tax permits: The Louisiana Department of Revenue requires that you register with them if you are collecting taxes from your customers.

Federal income tax and Louisiana local tax

You will need to register your business with the Internal Revenue Service as a starting point. You can do this online and obtain an Employer Identification Number when you do. In Louisiana, the Louisiana Department of Revenue also requires you to register to collect taxes.

Louisiana specific regulations

We encourage you to consult with a local tax accountant to ensure you remain in alignment with changing tax codes.

Step 9: Find your team

Bringing in your people to work for you is a big step in launching a business in the state. There are numerous specific rules you need to know and follow when it comes to hiring people. People are the backbone of your business. You need to hire those who can perform the tasks you need. You then need to treat them well.

People are the backbone of the business

Surround yourself with the right people to support your business growth and development. The people around you are a direct reflection of your business. You need to have skilled professionals to advise and guide you through the process. This includes an accountant and a lawyer in most situations.

People are also those who complete tasks and meet customer demands. Invest in the local Chamber of Commerce to help find employees in a tight labor market. Remember that these are people who will handle and build your business, communicate with the company, and become the face of your business.

Comply with Louisiana payroll regulations

If you have not done so, read up on Labor and Employment laws in the state. These laws require you to maintain regular paydays, pay final wages, and post a notice for the Louisiana Workforce Commission that informs employees of their wage rate, payment method, and payment frequency. Employers must:

• Withhold state income taxes from employee wages and send them to the Department of Revenue
• Quarterly returns: Submit quarterly returns to document earnings with all applicable taxes paid
• Abide by minimum wage laws and overtime laws

Working with a good payroll software or tax accountant can be an important step in building your business’s success.

Hire contractors

As a business, even if you’re a “one-person show,” you are not really operating alone. You may need to hire contractors to support you with specific tasks. That could include your accountant or having an attorney on retainer, for example, to offer guidance. You may need a range of professionals to help you build your business.

Step 10: Market & grow your business

Now it’s time to start building your customer base. Check out these individual steps that allow you to build your business’s success.

Invite customers to opt in to a mailing list or newsletter

Having software that collects email addresses and allows you to create a newsletter to send to your customers is critical. This will bring them in time and time again to work for you. They will remember your business more readily with these email reminders.

Consider special offers to attract your first customers

As you build your customer base, consider strategies to create intentional interactions. For example, you may want to use social media to launch your company’s loyalty program or set up a buy-one, get-one promo to try out new products and services.

Look for local businesses or brands to collaborate with

Get to know the community and find partners you can collaborate with on marketing. For example, if you’re a fine dining establishment in the heart of the French Quarter, work with a local fine pastry chef to offer their delicious treats. Both can market each business to their customers.

Invest in word of mouth (happy customers attract each other)

Happy customers attract each other. Offer promotional codes or special offers that help to encourage people to recommend your business to others.

Encourage shares on social media and ask your customers to recommend your service to their friends.

Pay attention to online reviews, ask happy customers to review you!

Reviews on Google and third-party websites like Yelp can help you build your customer base in a meaningful way. The key here is to ask happy customers to recommend you to their friends and family. A formal invite makes all the difference.

Create unique, helpful content to showcase your activity

Build your social media following and engage with people online. Create contests or encourage customers to follow you for special offers.

Encourage shares on social media and ask your customers to recommend your service to their friends.

11. Open the doors!

After all your preparation, planning, and hard work, it’s finally time to bring your Louisiana business to life and share it with the community.

Plan a successful launch event

Once all your preparations are complete, it’s time to open your business to the public. Many entrepreneurs in Louisiana choose to start with a “soft opening” before hosting a larger grand opening. A soft opening allows you to test your systems, train your team, and gather feedback from a smaller group of guests.

When you’re ready for your grand opening, make it memorable. Consider inviting local community members, nearby businesses, and even local media. Offer special discounts or samples, provide live entertainment or giveaways, and celebrate your launch Louisiana-style — with hospitality and enthusiasm. A well-planned launch event builds excitement, strengthens brand awareness, and helps you start building long-term customer relationships.

Land your first sale

Your first sale is more than just a transaction, it’s a milestone that validates your hard work and vision. Whether it’s from a walk-in customer, an online order, or a client contract, make sure to celebrate it. Keep detailed records, follow up with your new customer, and use their feedback to refine your operations.

In Louisiana’s tight-knit communities, word-of-mouth is powerful. Deliver a great experience from the start so your first customers can become loyal advocates who spread the word about your business.

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Conclusion

Now that you’ve completed all the steps, all that is left is to open the doors and start managing your dream Louisiana business.

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