How to Start a Business in Louisiana

Louisiana offers six ways of forming your business, which we cover in detail below. Review these closely and pick the one that fits your business best.

Look up what the naming rules for your chosen business structure are. For example, if you are creating an LLC, Lousiana LLC naming rules require your business name to include the phrase "limited liability company" or the abbreviations "LLC" or "LC."

Once you've brainstormed some name ideas and tested your top choices, you'll need to verify that your preferred name is distinct from the names of other businesses already registered and available for you to use. Start by doing a state business name search then perform a federal trademark search.

Once you've made a final choice, you can reserve the name before registering your business under that name. A business name can be reserved for 120 days. This costs $25.00 for an LLC. You can reserve your business name by mailing a name reservation form or by going online to reserve at the geauxBIZ website.

If you want to operate under a name that differs from your business's legal name (the name on the formation documents), you will also have to file a DBA. In Louisiana, you have to be using a trade name already before you can register it. You can, however, reserve the name if you haven't started using it yet.

How to register a trade name:

Nearly all businesses will need to register for federal taxes by applying for an employer identification number.

Most business registrations in Louisiana require a registered agent, by law. The registered agent must be of legal age and have a physical address in Louisiana. You can either make use of a registered agent service or designate an individual, such as the organizer of the business, an employee of the business, an attorney, or an accountant, as your registered agent.

To register a business in Louisiana, you will have to obtain the application forms for the type of business you want to form. These are available to download from the Louisiana SOS website.

The completed application forms, along with supporting documentation, must be submitted to the state department’s commercial division, including the applicable filing fee. Submissions can be made by mail, fax, or in person. You will have to schedule an appointment if you wish to submit your business filings in person.

You can also register your business online using the geauxBIZ.com portal:

While the state of Louisiana does not have general business license requirements, many cities in Louisiana do. Whether you require business licenses and permits also depends on the type of business you plan to run.

For example, to open a restaurant a Class A-R (Restaurant) permit issued by the Louisiana Office of Alcohol and Tobacco Control is required. You may also require a signage permit, an alarm permit, a zoning permit, and others. To find out whether you require federal and/or state licenses and permits, go to geauxBiz.com and create a business license checklist.

Before you sell goods or provide taxable services in Louisiana, you will need to register with the Department of Revenue (LDR) for a sales tax license and file a monthly or quarterly tax return. To register for sales tax, you will need to provide the date your business plans to begin sales operations.

You can register for sales taxes when you register your business with the Louisiana Department of Revenue. You will need to complete form R-16019 (Application for Louisiana Tax Number CR-1) available to download on the Louisiana Department of Revenue website and mail the signed and dated application to the Louisiana Department of Revenue Taxpayer Services Division.

Alternatively, you can register for sales tax when you register your business with the State of Louisiana online through the geauxBiz.com portal or register online for the Lousiana Department of Revenue Taxpayer Access Point (LaTAP) where you can register your business with the Louisiana Department of Revenue and apply for the tax accounts you require.

Every business in Louisiana that has one or more employees must register for a withholding tax account.

You can register for withholding tax when you register your business with the Louisiana Department of Revenue as outlined in the step above. You will have to indicate the date when your business will be liable for withholding tax and select the filing frequency which is determined by the total monthly amount of income withholdings from all your employees.

• If your total monthly income withholdings are less than $500, select quarterly.
• If your total monthly income withholdings are at least $500 but less than $5,000, select monthly.
• If your total monthly income withholdings are at least $5,000 or more, select semi-monthly.

Corporations and business entities that are taxed as corporations must register for corporate income and franchise tax.

You can register for corporate income and franchise tax when you register your business with the Louisiana Department of Revenue as indicated above. You will have to provide the date you filed the charter with the Louisiana Secretary of State and indicate whether your corporation is domestic or foreign.

Every business operating in Louisiana that has employees must complete and submit an unemployment tax account application and will be notified whether they are liable for unemployment tax under the Lousiana Employment Security Law.

Employers liable for unemployment tax will receive an unemployment tax Employer Account Number (EAN) to use when filing unemployment taxes and making payments. If applicants are informed that they are officially determined as not liable for unemployment taxes, they will not receive an EAN.

You can apply for a Louisiana Unemployment Employer Account online the Louisiana Workforce Commission's LASTARS portal. You should apply within the first quarter of having your first employee wages.

You will need the following information to complete the application:

• Employer's name, address, and contact details.
• Name and telephone number of the person responsible for payroll.
• Business type and details.
• Number of employees working in Louisiana.
• Federal Employer Identification Number (EIN).
• Name, EIN, and date of the contract of PEOs, if applicable.
• Date company started having employees in Louisiana (must be present or past date).
• Company officers/owner details, including SSN.

Once you have submitted the application and it has been processed, you will receive a notification informing you whether you are liable for unemployment tax. This will take approximately two to four weeks.

By law, employers are required to report new hires and returning employees to the Louisiana Directory of New Hires within 20 days of the employee's first day. This process is mandatory every time you hire a new employee.

To file an online report, you can visit the Louisiana State Directory of New Hires website.

You also have the option to fax or mail the W-4 or equivalent form. Mailing information is available on the new-hire form.

Any business owner who hires one or more employees, whether full or part-time, must carry workers' compensation insurance. Domestic workers are exempt. Other exemptions may also apply. For more information, contact the Louisiana Office of Workers' Compensation Administration.

In addition, Louisiana law requires that all drivers carry minimum automobile insurance.