How to start a Louisiana corporation

It might seem like a lot at first, but once you understand the steps, it’s very doable. This guide will walk you through everything you need to know to start your Louisiana corporation.

How to start a corporation in Louisiana

Incorporating means registering your business as a corporation so the law sees it as its own entity, separate from you. Each state has its own rules for how to do this, so the process can seem confusing. Let’s go through each step: 

1. Choose a name for your Louisiana corporation

Your corporation’s name should be unique and make a statement about your business. Make sure it complies with the following Louisiana requirements:

• Your corporation's name must be expressed in English letters or characters.
• Your name must include "Corporation," "Incorporated," or "Limited." It may also include the word "Company" or its abbreviation, as long as it's not stated "and Company." The abbreviation "DBA" or the words "Doing Business As" may not be used.
• Your name can't include "Bank," "Banking," "Banker," "Savings," "Trust," "Deposit," "Insurance," "Mutual," "Assurance," "Indemnity," "Casualty," "Fiduciary," "Homestead," "Building and Loan," "Surety," "Security," "Guarantee," "Cooperative," "State," "Parish," "Redevelopment Corporation," "Electric Cooperative," or "Credit Union."
• Your name must be unique and not similar to any other name already registered with the Louisiana Secretary of State.
• If your name includes the words "Engineer," "Engineering," "Surveyor" or "Surveying," you must provide evidence that a copy of the corporation's Certificate of Incorporation has been delivered to the Louisiana Professional Engineering and Land Surveying Board.

Need help coming up with a business name for your corporation? Try the Rocket Copilot™ AI Business Name Generator, a free tool to help you brainstorm business names and get started registering your corporation.

2. Decide between a Louisiana S-Corp and C-Corp tax designation

There are similarities between a Louisiana S-Corp and a C-Corp regarding personal liability, management, structure, and compliance. The differences, however, come down to the following:

• Ownership Rules: A C-Corp can have unlimited shareholders and unlimited stock classes. An S-Corp is limited to a maximum number of shareholders, usually 100, and only one stock class.
• Taxes: A C-Corp is taxed separately. It files taxes at the corporate level, and shareholders can also pay taxes on dividends they receive. S-Corps are "pass-through" tax entities. No taxes are paid at the corporate level. Instead, taxes are paid individually by the owners.
• Documents: An S-Corp must file IRS Form 2553 to gain S-Corp status.

3. Appoint directors and shareholders for your Louisiana corporation

Each state has its own personnel requirements for incorporating. In Louisiana, you must follow these rules:

• Age requirement: Incorporators must be at least 18 years of age.
• Number of incorporators: One or more incorporators are required. An incorporator may be a person or a business entity.
• Number of directors: One or more directors are required. A director must be a person, not a business entity.
• Residency: There is no residency requirement for incorporators or directors in Louisiana.

State the number of your corporation's directors in either your Bylaws or your business's Articles of Incorporation. 

4. Choose a Registered Agent

A Registered Agent is the person or business responsible for receiving tax, legal, and government documents during regular business hours. It's important that every business has one. You can either serve as your own registered agent (if you have a Louisiana address) or choose one to do that service for you (if you are not located in Louisiana or would like an extra layer of privacy).

5. File your Articles of Incorporation with the state of Louisiana

Once you have a business name and registered agent, you can register your business as a Louisiana corporation with the state by filing your Articles of Incorporation. This document may be referred to informally as a corporation's "Articles," or in other states, it may be called a "Certificate of Organization," "Certificate of Filing," or "Certificate of Formation."

Your corporation must file an initial report with its Articles of Incorporation. The report must be signed by each incorporator and it must state the location and municipal address of the corporation's registered office. It must also include the full name and municipal address of each registered agent, and the names and addresses of the first directors if you've chosen them by the time you file your Articles.

6. Get an Employer Identification Number (EIN)

Before opening your doors for business, apply to the IRS for an employer identification number, or EIN. All corporations with employees in Louisiana must have an EIN. An EIN is similar to your Social Security number, but it's for businesses. You'll also need an EIN to open your corporate bank account.

Congratulations! After you have completed all these steps, you have formed your Louisiana corporation.

What to do after incorporating in Louisiana

Louisiana does not require that corporations create Bylaws, but it does require them to keep Corporate Minutes to maintain their corporate status. It's recommended that you keep these documents regardless of whether they're required by your state because they help protect the legality of your corporate status. We have more detailed information about Louisiana's requirements for Bylaws and Corporate Meeting Minutes.

Still have questions? Learn more about how to start your own business with Rocket Lawyer and get started today!
 

Key takeaways Starting a corporation in Louisiana means following state rules, like choosing a unique name, filling out paperwork, and paying fees to make it official. One important choice is deciding how your corporation will be taxed in Louisiana, either as an S-Corp or a C-Corp. This affects how the business and owners pay taxes, and the differences between the two change from state to state. After forming the corporation, it is suggested that you keep records like bylaws and meeting notes to stay in good standing with the state and prove your business is real and operating correctly.

Additional resources

Learning how to enforce a contract is just one step. Explore these additional topics to learn more and take the next steps.

• What is a corporation?
• What is an S-corporation?
• How are corporations taxed?
• How to start a corporation
• How to register a corporation by state