LLC stands for Limited Liability Company. This is a complex business system with a more flexible inner structure than the conventional corporation, which has many benefits to the owner. This article discloses why this document is worthwhile if you plan to administer a company in Louisiana. Please do get acquainted with the current LLC-related laws, basic creation algorithm, and peculiarities of acquiring and completing Operating Agreement forms in this guide.
The LLC Operating Agreement form is a crucial official document to complete and sign if you start a limited liability company. Running an LLC company has various advantages over corporations and other legal entities. These include reduced paperwork, more protection against claims in the courts, paying a single company tax (instead of disbursing the amount twice), and broader access to credits and business loans. Moreover, an LLC generally increases your clients’ and creditors’ credibility.
LLC entities may have one or more owners. An LLC with one holder is defined as a single-member LLC, while an LLC with more than one holder is considered a multi-member company.
Existing LLC agreement forms keep your assets, such as a house, vehicle, aircraft, or any other real estate safe by providing additional liability security ensured by the crossing taxation mechanisms of a partnership or a single proprietorship. The agreement form is also generally legal proof of the entity’s existence; it discloses the company’s proprietors and outlines its administration policies.
In most cases, this form should cover in detail the following aspects:
Filling out the agreement form is relatively easy and requires minimum effort and a few steps. If you are wondering where to get the proper Louisiana LLC Operating Agreement Template, just use our downloadable and straightforward template from our form-building software.
Below is a comprehensive guide on how to initiate a company with limited liability in Louisiana.
As defined above, an LLC is an enterprise with extra liability security if the business is sued. This type of arrangement is considered more formal and rigid than a partnership or a sole proprietorship but is much easier to set up, manage, and maintain than a corporation.
The government of Louisiana does not impose strict rules demanding that any enterprise must possess such a document to administer the business legally in the state. However, you should own one to elevate reliability and assurance.
Suppose you plan to start a company with several members. In that case, it is essential to know that it may be either commanded by all its members (member-managed LLC) or run by a single holder appointed by the company’s members (manager-managed LLC).
Among the most popular types of LLCs in Louisiana are the following ones:
If you are conducting your enterprise in the same state where it was initially established, your LLC type is called Domestic LLC (the most common type). The majority of Louisiana-based LLC owners run this type of enterprise. In case you plan to develop your business further and either open the company’s offices or somehow broaden your physical presence in another state, you are expected to register in that state as a Foreign LLC. For instance, your Louisiana establishment will have to form a Foreign LLC in the neighboring Mississippi and other states.
A Professional LLC is a more specific establishment aimed at those providing a professional-related service, usually requiring particular state licenses or proof of specific professional qualifications. For instance, an LLC specializing in medical or juridical practice can be considered a Professional LLC. In such cases, the personal liability limitation does not extend to the lawsuits related to professional misconduct. So, as it is a more complex business entity, we strongly recommend gaining counsel’s advice before organizing such an LLC.
For more information on Louisiana’s associations and corporations-related laws, refer to Title 12 of Louisiana Revised Statutes (Section 1306).
Once you are on your way to fulfilling a challenging life goal—authorizing your business in Louisiana—take the following steps to do so.
Create a Proper Company Name
Before picking up a business name for your future entity, make sure it is unique, easy to remember, distinguishable, and coincides with the law. For example, if you plan to start an LLC, the abbreviations “LLC” (most common) or “L.L.C.” must feature in your entity’s name one way or another.
Choose a Proper Registered Agent
Once you are done with an original name, you need to look for a decent LLC’s Registered Agent. This means selecting a particular person or a company that would further be in charge of all your legal correspondence, paperwork, and other official communication matters on behalf of your LLC (especially if your entity ever gets sued).
A Registered Agent in Louisiana must also keep in touch during business hours (mainly from 9 AM till 5 PM) in case Service of Process is delivered. Service of Process may come in various forms, such as subpoenas, complaints, summons, and so on. Keep in mind that this responsible person has to be a Louisiana resident and needs to provide a valid street address in the same state.
Basically, in Louisiana, you might choose an agent from these three options:
File the Articles of Organization Online or Offline
Arranging the Articles of Organization Limited Liability Company Form with the Secretary of State’s office’s help is a compulsory procedure that can be performed both online and offline.
Before submitting your documents, make sure once again that your papers include:
Mind that the online procedure is usually swift and takes about one or two business days, while the second option may take an average of five business days to a week.
Develop a Louisiana Operating Agreement
You are strongly advised to create an operating contract after the necessary papers are filed to the Secretary of State’s office. The form provides an official guarantee that the assets gained by the LLC are entirely separate from the administering members’ earnings, which is an essential condition for leading an enterprise efficiently in the long run. Although this paper is not an official State’s demand, it is always reasonable for parties to keep it for future reference.
Mind that the template of such a form varies depending on whether it is a multi-member or a single-member operating agreement.
Acquire an EIN for your future enterprise
Once you complete the previous step and get a confirmation that your LLC has been officially approved, proceed to your EIN application. All new establishments are expected to apply for an Employer Identification Number (EIN).
This number is also called Federal Tax Number, Federal Employer ID Number, and so on. All these names are equal in their meaning. The US Internal Revenue Service is responsible for issuing the EIN to identify an enterprise for tax purposes. While the whole procedure is entirely free in the state of Louisiana, an EIN will significantly broaden your advantages. First, it will allow your enterprise to pay its future workers legally, and then it will let you obtain loans from various financial institutions, gain the company’s credit cards in the future, and much more. To do it properly, one has to complete and file the official Form SS-4 offline or fill in the Online Application.
Now, once the formal process is complete, you may proceed to gain further knowledge on your company’s annual reports, as each Louisiana enterprise prepares and submits those every year to prove the ongoing business activity.