A key advantage of a Louisiana LLC is that it is recognized by all fifty states as a legal form of organization. Additionally, a Louisiana LLC form meets the initial legal requirement for establishing a business presence within Louisiana. Business people will appreciate the simplicity and high degree of flexibility of your Louisiana limited liability company, and the public support offered by the pro business Louisiana and its Secretary of State.
Should I form a Louisiana LLC?
An Louisiana LLC satisfies a necessary condition of your business planning developement in that it meets the requirement that you establish a legal form of organization in order to gain the statutory benefits and protection available in Louisiana to your LLC. Your Louisiana LLC establishes a legal presence within the state, which you can use either as a platform for in-state operations or by registering your Louisiana LLC via your agent's physical address in order to meet the purely statutory requirement for tax and filing purposes absent an in state operation.
Advantages and Disadvantages of a Louisiana LLC
Advantages of Limited Liability Company
Limited Liability: Owners of a LLC have the limited liability protection of a corporation.
Flexible Profit Distribution: Limited liability companies can select varying forms of distribution of profits. Unlike a common partnership where the split is 50-50, LLC have much more flexibility.
No Minutes: Corporations are required to keep formal minutes, have meetings, and record resolutions. The LLC business structure requires no corporate minutes or resolutions and is easier to operate.
Flow Through Taxation: All your business losses, profits, and expenses flow through the company to the individual members. You avoid the double taxation of paying corporate tax and individual tax. Usually, this will be a tax advantage, but circumstances can favor a corporate tax structure.
Disadvantages of Limited Liability Company
Limited Life: Corporations can live forever, whereas a LLC is dissolved when a member dies or undergoes bankruptcy.
Going Public: Business owners with plans to take their company public, or issuing employee shares in the future, may be best served by choosing a corporate business structure.
Added Complexity: Running a sole-proprietorship or partnership will have less paperwork and complexity. A LLC may federally be classified as a sole-proprietorship, partnership, or corporation for tax purposes. Classification can be selected or a default may apply.
By Louisiana and other state law in order to proceed with forming a llc, you need to prepare a written abstract detailing
your llc purpose, the names of your initial Louisiana LLC members, the name and address of your Louisiana registered agent, the details of which will be introduced into the body of your LLC operating agreement and related Louisiana LLC formation documents assembled for application to the state of Louisiana.
Louisiana's 2008 Business Tax Climate Ranks 32nd
Louisiana ranks 32nd in the nations State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes; individual income taxes; sales taxes; unemployment insurance taxes; and taxes on property, including residential and commercial property. Neighboring states ranked as follows: Texas (8th), Arkansas (35th) and Mississippi (18th).