How to start a small business in Louisiana?
The process of starting a Louisiana business can be difficult. In order to pursue your entrepreneurial dreams successfully, you will need time, funding, professional and personal support. Making a decision about the type of business you want to start is the first step in becoming a business owner. Your goals, interests, and abilities should all guide your choice of an idea. Maintaining your motivation in tough times will greatly increase your odds of success. To help you get started, here is a guide on how to start a small business in Louisiana.
Decide on your business structure
If you register your Louisiana business as a business entity, such as a corporation, LLC, or nonprofit, you will enjoy the following benefits:
- Enhanced credibility;
- Liability protection if your business is sued.
Form a Limited liability company (LLC)
A limited liability company (LLC) offers the protection of a corporation while offering the flexibility of a partnership or sole proprietorship. The LLC structure is preferred by most small firms due to its ease of administration and advantageous tax status. Read on to learn if you should create an LLC for your business.
Make a business registration in Louisiana
The next stage is to form your company after you have decided on a business structure. There are a few basic steps to follow no matter what formal business structure you choose.
In five simple steps, you may simply incorporate an LLC with less paperwork than other business arrangements.
- Choose a business name;
- Select a registered agent and register your Limited Liability Company with the state;
- Obtain an Employer Identification Number (EIN): an EIN is a number that the Internal; Revenue Service (IRS) assigns to businesses to help them be identified for tax purposes
- Make an operating agreement for your LLC;
- Documents for formation should be filed to the state.
To file the Articles of Organization for an LLC in Louisiana, you must submit the formation paperwork, along with the $100 filing fee, to the Secretary of State online, by mail, by fax, or in person.
Aside from these processes, each business structure has its own set of needs that are specific to it.
Create a business bank account, credit cards, and accounting
Personal asset protection necessitates the use of distinct business banking and credit accounts.
When your personal and corporate accounts are intermingled, your personal assets (such as your car, home, and other possessions) are put in danger if your company issued. This is referred to as piercing your corporation veil in business law.
Get insured
Business insurance in Louisiana helps you control risks so you can focus on building your company. The following are the most typical types of company insurance to consider:
- Insurance for General Liability;
- Insurance for Professional Liability;
- Insurance for Workers’ Compensation.
A general liability policy is recommended for all small enterprises, including home-based businesses. Professional liability insurance is often recommended for businesses that provide professional advice or services, such as consulting and accounting firms.
Louisiana law mandates workers’ compensation insurance for businesses with one or more employees, including LLC members and officers.
Obtain licenses and permits
You must follow federal, state, and local government requirements in order to legally operate your new organization. This frequently necessitates the acquisition of one or more business permits and/or licenses. A restaurant, for example, will almost certainly require health permissions, construction permits, etc.
You’ll find the most up-to-date information about obtaining a Louisiana business license on our page. Make sure you meet all the requirements. You can apply for your license after conducting thorough research. The license will be your key to entering the business world.
