Genesis Bobo Intro to Business LLCs In Louisiana The topic I chose demonstrates how residents of Louisiana that are looking to start a business should go about registering their title as a Limited Liability Corporation and everything that obtaining an LLC holds in this state. There are many different laws when it comes to being a business owner and following tax regulations is one of the biggest things entrepreneur’s must comply with in order to keep their business running the legit way. In my paper, I discuss the many steps one must undergo as well as the fees and guidelines associated with obtaining an LLC in the state of Louisiana. An LLC, is a form of corporation and in contrast, is a separate tax entity from its owner or owners and pays taxes. Because most LLC’s profits and losses are run through the owner’s tax returns, the IRS considers LLCs as “pass through entities”. Many business owners favor LLCs, including myself, because they're easy to operate. It is a more intimate form of ownership and the LLC itself doesn't pay federal or state income taxes. All while the IRS also uses this term for partnerships and sole proprietorships, they just aren’t as popular as LLCs have grown to be. Basically, people favor LLCs because they don’t lock down the business owner with the personal liability for the business’ debt. Many owners who acquire the LLC label are mainly selfemployed entrepreneurs, so they don’t really suffer the disadvantages of taxes being taken directly out of their pay. But there is a tax law requirement that makes LLCs make quarterly estimated tax payments to the IRS and their state. Some other fees that an LLC may require is am annual renewal fee. In Louisiana, to obtain an LLC, one must go through the secretary of state first and foremost. The most important step in obtaining an LLC, which also means starting a new business, is first determining what kind of business it is that you are looking to start as an entrepreneur. There are so many types of businesses to choose from, including sole proprietorship, partnership, corporation, limited liability company and limited liability partnership. Each have their own advantages and disadvantages as well as the tax consequences they face. Through this process although you go through them to get it, the Secretary of State can’t necessarily tell you which to choose, in this sense you have to decide what’s best for you. In Louisiana, there is a website www.geauxbiz.sos.la.gov in which one will fill out the necessary requirements for their business to become its own entity legally. You have to set up an account directly with this site to launch your new business which will help you reserve and register your business name, make the key financial decisions your business will uphold, and also help you file certain amendments with the Louisiana Secretary of State. The fee for each type of business can range from $75-$150 depending on the entity you are trying to uphold. During this process, you must also obtain a federal tax ID number which will basically mark as the birth of your business as well. Once all of this is completed, you are all set to go as an official business owner with your business listed as an LLC. Following this, you must undertake certain steps on an ongoing basis to keep your business in compliance with the state. Louisiana requires an annual report. Which forces business to file an Annual Tax Statement which is due by June 1st. The fee for this report is $250. Taxes are also required with owning a business in Louisiana. The amount LLC’s pay seems to be lower and at a better cost for the owner as stated earlier. Although Louisiana does require a Federal Tax Identification Number, a State Tax identification number is not required. Business licenses are required for whatever type of business it is that you are running as well. Some other stipulations you must hold as a business owner is an official residence, a physical address must be in place no P.O boxes, a minimal of one owner, and also initial reports must be issued. The many things that you must obtain to start your business officially are just a small piece of the entrepreneual puzzle. Once one gets past all of this, maintaining and running the business should only get better and easier. There are so many websites and books created to help small business owners keep up with the many tactics and tricks dealing with running their business. It is all about how and who you allow to help you during this process. I myself started a business about a year and a half ago in Georgia. Though the steps are very similar, Louisiana seems to have a better structure when it comes to filing business taxes along with your personal taxes. My sister, Sherrie, just recently started a new business here in Louisiana and she gave me so much insight on how to get things transferred over from Georgia. Being an owner of an LLC, means that you file your business and personal together which can be much simpler when you are just starting out and have already lost out on so much money on startup costs. Most times people are afraid to do things the right way because of all the fees it may entail. But having a legit business with an even more legit source of income and proof of it all in order to pay the few taxes you will have to pay, makes being a business owner much more worth it in the long run. The state of Louisiana makes it easy to become a business owner, it’s just all about taking that leap of faith, doing the necessary research, and going through all of the correct processes to make your dream come true. Citations 1) “How to Start a Business including LLC's, Corporations, & Partnerships.” www.startabusiness.org/la/llc, LA Secretary of State. Aug 30, 2016. Sep 30, 2018 2) Johnson, Heather. legalzoom.com. “What is an LLC (Limited Liability Company)?” https://www.legalzoom.com/articles/what-is-a-limited-liability-company-llc. Nov 04, 2017. Sep 24, 2018 3) Edwards, Sherrie. Personal Interview. 24 Sep. 2018
