How to form an LLC in Louisiana

Louisiana Secretary of State charges $100 to file Articles of Organization through geauxBIZ. The annual report is $35, due in the LLC's anniversary month. Realistic year-one cost: $100. Ongoing yearly cost: $35.

Online filings through geauxBIZ approve in 1–3 business days. Expedited 24-hour processing is $30 extra; 2–4 hour processing is $50 extra. Mail filings take 7–10 business days.

No franchise tax for LLCs taxed as pass-through (the default). LLCs that elect C-corporation taxation are subject to Louisiana's corporate franchise tax, which is being phased out (set to be eliminated entirely by 2026).

Louisiana moved to a flat 3% individual income tax in 2025 — one of the largest cuts in state history. Sales tax is 5% statewide plus parish and municipal rates that can push combined rates above 11.5% (the highest in the U.S.). LLCs taxed as pass-through don't owe state-level entity tax — owners pay 3% on their share of profits.

In the LLC's anniversary month each year. The fee is $35. File through geauxBIZ. Late filings incur a $25 penalty and can lead to administrative dissolution.

Yes. Louisiana has no residency requirement for LLC members or managers. You only need a Louisiana-based registered agent. Out-of-state owners commonly use a commercial registered agent service.

For Louisiana residents and businesses tied to oil/gas, petrochemicals, ports/maritime, hospitality, or seafood industries: yes. The recent tax cuts (3% flat income tax) help. The civil law system is genuinely different — multi-state founders should work with a Louisiana-licensed attorney for any complex contracts. The high combined sales tax is a real cost for retail.

Louisiana is the only U.S. state with a civil law system (inherited from French Napoleonic Code), while all 49 other states use common law. The differences mostly affect contracts, property rights, inheritance, and some commercial concepts. For LLC formation, the practical impact is small — but for substantial business contracts, real estate, or estate planning involving Louisiana, work with a Louisiana attorney.

Louisiana does not issue a single statewide general business license, but most LLCs will need licenses or permits depending on their industry and location. Regulated professions such as contractors, healthcare providers, and food service businesses must obtain state-level licenses through the Louisiana Department of Revenue or the relevant licensing board. Additionally, parishes and municipalities — including New Orleans, Baton Rouge, and Shreveport — require their own local occupational licenses, which typically cost between $50 and $200 per year. Check with your local parish government and the Louisiana Secretary of State's geauxBIZ portal to identify every license that applies to your specific business activity.

By default, a single-member Louisiana LLC is taxed as a disregarded entity and a multi-member LLC as a partnership, meaning profits pass through to members who report them on their federal and Louisiana personal income tax returns. Louisiana imposes a state income tax on individuals with rates ranging from 1.85% to 4.25% for tax year 2025, so members will owe state tax on their share of LLC profits. Louisiana also levies a state sales tax of 4.45%, and parishes add their own sales taxes on top of that, so LLCs selling taxable goods or services must register for a Louisiana sales tax account with the Department of Revenue. LLCs that elect to be taxed as a corporation will face Louisiana's corporate income tax, which has a flat rate of 5.5% as of 2025.

Yes, non-residents and foreign nationals can form an LLC in Louisiana without any residency requirement — the Articles of Organization filed with the Louisiana Secretary of State do not require members or managers to be Louisiana residents. However, non-resident owners will still need to designate a Louisiana registered agent with a physical street address in the state to receive legal documents on the LLC's behalf. If you form a Louisiana LLC but operate primarily in another state, that other state may require you to foreign-qualify your Louisiana LLC and pay its fees, effectively making you pay in two states. Non-residents should also be aware that any Louisiana-sourced income passed through the LLC is subject to Louisiana state income tax and may require filing a Louisiana non-resident return.

A sole proprietorship is the simplest structure in Louisiana — there is nothing to file and no ongoing fees — but it offers zero liability protection, meaning your personal assets are at risk if your business is sued or takes on debt. Forming a Louisiana LLC costs $100 to file and requires a $35 annual report each year, but it creates a legal separation between you and the business that protects your personal savings, home, and other assets from most business liabilities. For anyone earning more than a few thousand dollars or dealing with customers, contracts, or physical goods, the LLC's liability shield is almost always worth the modest cost. Sole proprietorships also make it harder to open a dedicated business bank account or establish business credit, both of which are straightforward once you have an LLC's EIN and operating agreement in hand.

To dissolve a Louisiana LLC, you must first vote to dissolve according to your operating agreement, then file Articles of Dissolution with the Louisiana Secretary of State, either online through the geauxBIZ portal or by mail. As of 2025, the filing fee for Articles of Dissolution is $100. Before or after filing, you should wind up the business by settling outstanding debts, liquidating assets, distributing remaining funds to members, and canceling any local business licenses or permits. You will also need to file a final Louisiana state tax return with the Department of Revenue and close your sales tax account if you had one. Failing to properly dissolve means annual report fees and potential penalties will continue to accrue even though the business is no longer operating.