Obtain a Tax ID (EIN) Number and Register Your Business in Louisiana

Starting up any type of organization can be overwhelming. Whether it is an LLC, an Estate, Non-Profit, Corporation, or any other type of company, you need to know the order of getting things done. The Louisiana Tax ID Application Manual has a design base to help you better understand the EIN application process. Knowing how to apply online is valuable information and can lead you to acquire a Tax ID (EIN) Number in Louisiana in little time. This is one step in starting an organization which can be quite simple.

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Steps to Getting a Tax ID (EIN) Number and Register Your Business in Louisiana

1. Louisiana Means Business
2. Forming a Business in Louisiana
3. Federal Tax ID (EIN) Number Obtainment
4. Louisiana State Tax ID Number
5. Localized Licenses and Permits in Louisiana

1. Louisiana Means Business

Economic growth in Louisiana has been lower than the national average for a few years, but don’t let that deter you. Economists believe one of the central conditions for this shrinking has been the drop in oil prices as of late, since Louisiana depends on oil for a chunk of its economy. Other types of businesses are performing well, and seeing a healthy rate of growth.

There are currently more than 900,000 Louisiana residents employed by small businesses, which make up more than 97 percent of all employers in the state. Major areas like Lafayette, New Orleans, and Baton Rouge are constant draws to entrepreneurs, and there’s no shortage of resources or networking opportunities to find. Savvy entrepreneurs can quickly find mentorships, grants, or other connections through Louisiana’s Small Business Development Center, and other organizations in the state.

2. Forming a Business in Louisiana

When you’re ready to get serious about starting a business, you’ll need to decide what type of business structure to use for your idea. There are several options here, which from least complex to most complex are: sole proprietorships, partnerships, limited liability companies (LLCs), and corporations. Corporations are the most complex because they face a number of rules, laws, and regulations that the other companies don’t. They’re also capable of issuing public shares to raise funds.

One of the biggest factors for your decision should be the tax advantages inherent to each business type. Sole proprietorships and partnerships are simple; they have you pay taxes as an individual on whatever money you make in the business. LLCs are a little more complex; they’re treated as separate entities that track their own finances, so you’ll only pay taxes as an individual on money you withdraw from the business (as profit or salary). In Louisiana, LLCs are responsible for paying a franchise tax, based on your income level. And if your LLC is taxed as a corporation at the federal level, it may be taxed as a corporation in Louisiana as well. Corporations are distinct legal entities like LLCs, but they must pay taxes on eligible income, resulting in double taxation for owners. In Louisiana specifically, the corporate income tax rate works on a sliding scale, starting at 4 percent for your first $25,000 of income, and ending with 8 percent for the highest income bracket.

You’ll also need to consider the liability protection from each business type. In sole proprietorships and partnerships, you’ll bear the brunt of liability, taking on any business debt or legal issues that arise. LLCs provide some liability protection, since they can be treated as separate legal entities, but if you want the most protection, you’ll need a corporation. Corporations are also the most valuable legal structure for protection if you grow to operate at a national level.

3. Federal Tax ID (EIN) Number Obtainment

Before you can legally start buying and selling goods, or hiring employees, you’ll need to get a federal tax ID number and register with the federal government. This signature number, also called an employer identification number (EIN), works much like a social security number for your business; you’ll use it when filing taxes at the end of the year, keeping track of some of your professional relationships, and for opening business bank accounts (and keeping tabs on your business credit).

There are a few possible approaches to complete this process, but it’s in your best interest to get it done as quickly as possible, and early on in your business’s development. If you’re interested in getting registered in the span of just a few hours, consider using our federal tax ID obtainment services!

Apply for an Louisiana Tax ID Number

4. Louisiana State Tax ID Number

If you’re going to sell taxable goods or services in the state of Louisiana, if you’re selling products that come with an excise tax (such as gasoline), or if you plan on hiring employees, you’ll also need to register your business with the state of Louisiana, and get a Louisiana state tax ID number. Though similar in name and function to your federal tax ID, this is a completely separate registry process, and one that’s legally required in most cases.

If you’re interested in registering your business with the state of Louisiana as fast as possible, be sure to take advantage of our Louisiana state tax ID number obtainment services; with just a few pieces of information, we can get your business set up in less than a day!

5. Localized Licenses and Permits in Louisiana

Louisiana has complex requirements for licenses and permits, which vary depending on your business type, and the specific industry in which you’re operating. Industries like transportation, construction, and healthcare are commonly regulated, but you might be surprised to learn some of the other businesses that require licensure. The Louisiana geauxBIZ portal is a useful resource for determining what you might need at the state level, but you’ll also need to consider licensure at the local level. Many cities and districts within Louisiana have their own, separate rules for licensing, so check in with your local Chamber of Commerce to ensure you’re compliant, long before you begin operations.

There are still many steps to take when starting your business from the ground up; you’ll need a website, funding, and possibly a few hires. But these foundational requirements should get you everything you need to build initial momentum. Be sure to use our federal tax ID and Louisiana state tax ID obtainment services to start that momentum even faster!