How to Start a Business in Louisiana
Everything you need to form your Louisiana LLC, corporation, or sole proprietorship, with exact fees, timelines, and step-by-step instructions.
Louisiana has low tax rates and affordable LLC formation. Individual income tax is a flat 3%, corporation income tax is a flat 5.5%, and filing an LLC costs $100 with a yearly annual report fee of $30, one of the lower ongoing state maintenance costs in the country.
This guide covers every step of starting an LLC in Louisiana, from selecting your business structure to obtaining the licenses and permits your industry requires.
Choosing Your Louisiana Business Structure
This is the first decision and it affects everything: taxes, liability, paperwork. If you are unsure, an LLC is the right default for most Louisiana small businesses.
| Entity Type | Liability Protection | Taxation | Louisiana Filing Fee | Annual Cost | Best For |
|---|---|---|---|---|---|
| LLC | Yes | Pass-through | $100 | $30 Annual Report | Most small businesses |
| Corporation | Yes | Double (C-Corp) or pass-through (S-Corp) | $75 | $30 Annual Report | Raising investment, stock options |
| Sole Proprietorship | No | Pass-through | $0 | $0 | Freelancers, side hustles |
| Partnership | No | Pass-through | $0 | $0 | 2+ owners (consider an LLC instead) |
8 Steps to Start Your Louisiana Business
- 1
Choose your business structure
LLC, corporation, or sole proprietorship. Each has different costs, tax treatment, and liability protection.
- 2
Pick and reserve your business name
Search the Louisiana Secretary of State, Commercial Division database. Reserve for $25 (120 days).
- 3
Appoint a registered agent
Must have a physical Louisiana street address. Can be yourself (free) or a service ($100 to $300 per year).
- 4
File your formation documents
Articles of Organization, Louisiana Limited Liability Company (Form #365) ($100) or Articles of Incorporation, Louisiana Business Corporation (Form #399) ($75) with the Louisiana Secretary of State, Commercial Division.
- 5
Get your EIN from the IRS
Free, online, takes about 5 minutes. Do not pay anyone for this.
- 6
Register for a sales tax permit if you sell goods
Through the Louisiana Department of Revenue. State sales tax rate: 5%.
- 7
Get required licenses and permits
Louisiana does not issue a single general statewide business license.
- 8
Register for Louisiana taxes
Personal income tax: Flat 3% for taxable periods beginning on or after January 1, 2025.
How Much Does It Cost to Start a Business in Louisiana?
| Item | Cost | Notes |
|---|---|---|
| LLC filing fee (Louisiana Secretary of State, Commercial Division) Required | $100 | The Secretary of State does not publish a standard turnaround. |
| Corporation filing fee Required | $75 | If forming a corporation instead |
| Annual Report Required | $30 | On or before the anniversary date of organization, every year (La. R.S. 12:1308.1). |
| Name reservation | $25 | 120 days |
| Registered agent service | $0 to $300/yr | Free if you serve as your own |
| EIN (IRS) Required | $0 | Always free |
| Business license | Varies | Louisiana does not issue a single general statewide business license. |
| Operating agreement | $0 to $500+ | Free template or attorney-drafted |
| Realistic LLC total (year 1) | $100 to $430 |
Start a Specific Business in Louisiana
Louisiana Business Guides
- How to Start an LLC in Louisiana
- How to Start a Corporation in Louisiana
- Sole Proprietorship in Louisiana: How to Start One
- Louisiana Business License: What You Need and How to Get It
- Louisiana Home-Based Business Laws: Zoning, Permits and Rules
- How to Get an EIN in Louisiana
- Louisiana Business Name Search: How to Check and Reserve a Name
- How to Get a Resale Certificate in Louisiana
- Louisiana Registered Agent: Requirements and How to Choose One
- Best LLC Services in Louisiana
- Louisiana Business Taxes Explained for New Owners
- How Much Does It Cost to Start a Business in Louisiana
Why Start a Business in Louisiana?
- Louisiana's total economy was $340.1 billion in current-dollar GDP in 2025, ranking 27th among the 50 states.
- The state population was 4,618,189 as of the July 1, 2025 Census Bureau estimate.
- Individual income tax is a flat 3% for taxable periods beginning on or after January 1, 2025, replacing the former 1.85% to 4.25% graduated brackets.
- Corporation income tax is a flat 5.5%, and the corporation franchise tax is repealed for franchise tax periods beginning on or after January 1, 2026.
- Filing LLC Articles of Organization costs $100, and the yearly annual report costs $30, one of the lower ongoing state maintenance costs in the country.
- The state sales tax rate is 5% and is scheduled to stay at 5% through December 31, 2029 before dropping to 4.75%.
Louisiana Business Resources
Frequently Asked Questions
- How long does it take to form an LLC in Louisiana?
- The Secretary of State does not publish a standard processing time. You can pay $30 for an expedited filing processed within 24 hours, or $50 for a priority filing processed while you wait at the Baton Rouge office.
- What does it cost to start an LLC in Louisiana in the first year?
- The filing fee is $100 and the annual report fee is $30, totaling $130 in your first year.
- Can I form an LLC in Louisiana if I don't live there?
- Yes. You can file online through geauxBIZ, Louisiana's online filing portal, from anywhere in the country.
- What is the cheapest way to start a business in Louisiana?
- A corporation has a lower filing fee of $75 compared to an LLC's $100 fee. However, both require a $30 annual report each year.
- Is an operating agreement required for an LLC in Louisiana?
- No. Louisiana law does not require an operating agreement for an LLC.