Starting a business in Louisiana can be a great idea and can help you break away from your 9 to 5 job. Louisiana has a rich history of entrepreneurs and it is relatively easy to start a business on your own. However, there are a few things you must do before your business is considered legitimate and legal. You will want to take your time and do the proper paperwork to make sure you set up your business correctly so that you can run it without issues for years to come.
Benefits of Starting Your Own Business.
Starting your own business in Louisiana can open up many doors for you and your family and can provide you with tons of opportunities. Business owners are able to break away from the 9 to 5 routine and build something bigger than themselves. You can hire people and grow at your own pace. While many small business owners end up working more in the beginning than they ever did working for someone else, the benefits often outweigh the cons.
Register with the Louisiana Secretary of State’s Office.
To start a business in Louisiana, you need to register with the Louisiana Secretary of State’s office. You can go to https://geauxbiz.sos.la.gov/ to begin the process. This will allow them to keep track of your business activities and ensure that you comply with state laws.
The process of starting a new business in Louisiana is fairly simple. You must first file an application form with the secretary of state’s office. Once you receive approval from the secretary of state, you then need to pay a small fee. After that, you will be issued a certificate of incorporation. Finally, you will need to file a statement of organization with the secretary of state. This document includes information such as the name of the corporation, the address where it will operate, the date of formation, and the names of the incorporators.
If you plan to incorporate a business in Louisiana, you should know that there are several different types of corporations available. For example, if you want to create a limited liability company (LLC), you will need to register with the secretary of state before filing your articles of organization. However, if you want to incorporate a general partnership, you will need to register as a domestic non-profit corporation. In addition, you will need to obtain a federal tax ID number before incorporating. It’s always a good idea to speak with a business attorney to determine what type of business entity you need to create such as an LLC, corporation, or partnership.
If you want to incorporate a business in New Orleans, you should contact the secretary of state‘s office at 1-800-332-0404. The office is open Monday through Friday between 8 am and 5 pm CST.
You must register your company name with the secretary of state before opening for business. Once registered, you will be able to file articles of incorporation, obtain licenses, pay taxes, and apply for permits.
Create a Business License Checklist.
You will want to create a business license checklist if your business requires certain business licenses. You may need to apply for licenses in order to operate your business and will want to calculate those timeframes before you announce to the public that you are open for business.
Obtain a Tax ID Number.
To obtain a tax ID number, you will need to complete Form SS-4, Application for Employer Identification Number. This form requires you to provide your name, address, Social Security number, and other personal information. Once you submit the application, you will receive a letter confirming receipt of the application.
You must file Form SS-4 every year if you want to keep your employer identification number (EIN). If you fail to file, you could be subject to penalties and interest charges. The IRS has strict rules regarding EIN numbers. For example, you cannot use your EIN to open a business bank account or credit card unless you first apply for and receive a new EIN.
File an Employer Identification Number (EIN).
If you plan to hire employees, you must file an employer identification number (EIN) with the IRS. An EIN is required by law for any company that has at least $1 million in annual gross receipts.
The IRS requires employers to obtain an EIN if they have at least one employee who works at least 40 hours per week. You can apply for an EIN online at irs.gov/ein. Once you receive your EIN, you can use it to file taxes each year.
If you work for yourself, you don’t need an employer identification number (EIN) to file taxes. However, if you have employees, you must register them with the Internal Revenue Service (IRS) before you can deduct business expenses from your personal income tax return. To get started, visit www.irs.gov.
Apply for a Sales Tax Permit.
If you plan to sell products or services in Louisiana, you must first apply for a sales tax permit. You can find out more about how to apply by visiting the Department of Revenue website.
The application process is simple and straightforward. You simply fill out the form online, attach copies of your business license, federal income tax return, and proof of insurance, and submit it to the department. Once approved, you will receive a sales tax permit number and instructions on how to use it.
Speak with a Louisiana Business Attorney.
It is also very important to speak with an attorney before opening a new business. In fact, this should be the first thing you do once you decide to start a business in Louisiana. You don’t want to file for the wrong type of business entity and find out later that you would benefit more from a different type. Speaking with an attorney ahead of time will ensure that you understand the legal requirements and liabilities associated with operating a business.
Your attorney will walk you through the process of setting up your business and will give you tips on how to succeed. They can provide you with a checklist of actions you will need to take to properly set up your business.
The Louisiana Small Business Development Center (SBDC) offers free legal advice to entrepreneurs who want to open a new business. The SBDC provides information on licensing, permits, taxes, insurance, and other issues related to starting a business.
The SBDC has offices throughout the state, including Lafayette, Baton Rouge, New Orleans, Shreveport, Monroe, Alexandria, Lake Charles, Houma, Metairie, Kenner, and Slidell. To find the nearest office, visit www.louisianasbdc.org.
If you would like to learn more about the services offered at the SBDC, please call 1-800-832-0494 or visit www.louislaw.net/sbdc.