Creating a Limited Liability Corporation in Louisiana
Forming a business can be an exciting time for all involved. However, business owners should keep in mind that depending on the nature of the business and the current business savvy of the owners, the process can be quite arduous.
For some owners, one of the hardest decisions they’ll have to make concerns the type of business entity they need to form. Many owners form sole proprietorships, some chose to incorporate, while others seek to form what’s known as a limited liability corporation, which comes with its own set of advantages.
What is an LLC?
Today, the LLC business structure combines various aspects of both corporations and partnerships by offering individuals protection from personal liability for business-related debts, much like a corporation, and having profit and losses pass through to its owners who will ultimately report them on their personal tax returns, just like in the case of a partnership.
The steps to forming a Louisiana LLC
In Louisiana, there are a number of steps that must be followed in order to form an LLC. First, business owners must select a name for the LLC, and under state law, the name must include the words “limited liability company” or the abbreviation “LLC” or “LC.” Additionally, the name must be different than one that is already on file with the Secretary of State.
Next, articles of organization must be filed with Louisiana’s Secretary of State, and they must include information such as the name and address of the LLC, its purpose and its duration. Moreover, a registered agent needs to be appointed. This is a person who will have legal authority to receive all types of legal documents that the LLC might get if it is sued for some reason.
Even though an operating agreement is not required for Louisiana LLCs, it is always a good idea to have one in place. It should be filed at the same time as the articles of organization. The agreement sets forth the rules and regulations with regard to ownership and operation of the business. The LLC will also need to obtain all necessary permits and licenses that it will need to have in order to legally operate.
Getting help and advice
Given the amount of information and level of detail it takes to get an LLC started, those interested in forming a business should seek the legal advice of a skilled attorney who can walk them through the process step by step to ensure that the formation goes as smoothly as possible.