Louisiana corporations: How to form and maintain your Louisiana corporation

Should you form your corporation in Louisiana? We've collected the relevant information that will help you make this decision.

Pros

• Low cost of doing business
• Reasonable cost of living

Cons

• Tax rate of 4-8%
• Owner disclosure

Cost of doing business

• $75 filing fee / $35 periodic report

Privacy

• Owner disclosure in periodic report

Forming your corporation in Louisiana

The name
In order to communicate to the public that your new business is incorporated, its official name will need to end with one of the following signifiers (or a relevant abbreviation): “incorporated”, “Corporation”, or “Limited”. “Company” or “Co.” can be used, as long as it is not followed by any form of the word “and.” In addition, it is required that the name of your business is not intentionally misleading to consumers, for any reason. Your company’s new name must also be completely unique, and not deceptively similar to any other organizations name or trademarks. There are also certain naming restrictions and limitations placed on financial service providers. Do a FREE name search now.

Board of directors requirements
You will need to form an official board of directors when incorporating in Louisiana. Here are the states explicit regulations regarding these directors:

• Required number of directors
  Louisiana corporations must have at least one director listed in their incorporation documents.
• Age restrictions
  Directors of corporations located in Louisiana can be of any age.
• Residence restrictions
  Directors of corporations in Louisiana must have and list a physical address that is not a PO box during the filing process.
• What information needs to be included in the Articles of Incorporation?
  Louisiana does not require the names or addresses of directors to be disclosed in incorporation documents.

Requirements for the Articles of Incorporation

The Articles of Incorporation is a document that must be filed during the incorporation process in every state. Here is the information that must be included in this document when filing in Louisiana:

Stock information
Louisiana requires the number of initial shares outstanding, and their par value, to be disclosed during the incorporation process. The number of outstanding shares does not affect initial state filing fees.

Officer information
The state of Louisiana does not require officer information to be disclosed during the filing process.

Registered agent information
All Louisiana corporations must have a registered agent on file, and submit their name and address (which cannot be a PO box). This agent will be required to be accessible during standard business hours, and act as the state’s point of contact with the company. Learn more about registered agents.

Additional Louisiana filing requirements

Many states have steps in the incorporation process that are unique to that state. These can also vary at the municipality or county level as well. Here are the steps required throughout all of Louisiana:

Initial report deadlines
All corporations in Louisiana must file an initial report at the time of incorporating.

County-level formalities
All corporations on Louisiana are subject to some county-level filing, in the county in which they are located. If the company has “foreign qualified” to operate in Louisiana, they must file with the county in which their registered agent lives.   

If your business is a professional practice
Professional service corporations are permitted to form under the professional corporation (PC) structure.

Corporate record keeping requirements

Corporations are required to keep formal documentation regarding several of their operations. These are the explicit record keeping formalities required by Louisiana:

• Records that detail the owners, class, and transaction dates of all outstanding stock shares
• Formal, in-depth documentation of all accounting information
• Formal documentation of all director, committee, and shareholder decisions, regardless of if they were made during a meeting or not.

Louisiana corporate taxation and fee requirements

There are several tax and fee requirements that must be addressed by corporations in Louisiana. They are as follows:

Taxation
All states have complex taxation requirements. For more information regarding taxes in Louisiana, it is advised that you visit the state’s official business related website. 

Annual report requirements
Corporations in Louisiana are required to file an annual report each year by their anniversary date. This filing carries a $25 fee. They must also pay a franchise tax by this date each year, which is calculated by analyzing a variety of factors including outstanding stock, surplus cash on hand, and undivided profits. Learn more about annual reports.

Tax identification numbers
Louisiana requires an EIN (employee identification number) for all corporations that will have employees, and most banks will require one to open accounts. Louisiana does not require corporations to obtain state tax ID numbers. Learn more about EINs.

Business license requirements

The business licenses and permits required in Louisiana vary wildly depending on the county or municipality in which your new corporation is located. If you would like to see more in-depth information on licenses and permits, please feel free to visit the content in our learning library that covers business licenses and permits.

S corporation election
Louisiana does not require a state-level S corp election, as they recognize any elections held at the federal level.

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