If you are planning to start a small business in Louisiana, here is a complete 10 step guide for beginners covering the registration process and requirement of licenses and permits.
10 Steps To Start A Small Business In Louisiana
Follow the given steps to legally start a business in Louisiana.
Step 1. Select a Business Idea
The very step obviously is to select a business idea at the very first. Depending on your interest, expertise and local demand choose a business that can be potentially profitable. You can read our article on the best small business ideas in Louisiana and take help.
Step 2. Create A Business Plan
Choose a relative idea you want to start a business with. Now it’s time to analyze your idea and work on external factors. This will help you to create a proper business plan with goals and targets you wish to achieve in the future. Here we list down some basic chapters that must be included in your business plan:
- Executive Summary
- Company description
- Market Analysis
- Organizational Structure
- Operational Plan
- Products/ Services Offered
- Marketing Plan
- Funding Strategy
- Financial Plan
Step 3. Naming Your Business
Once you are ready with the business plan, now it’s time to name your business. Go for a name that is easy to pronounce and has fewer syllables. Register your name and make sure no other business has it. Also, register your website domain immediately after you finalize the name.
Step 4. Registering A Business In Louisiana
You have to register your business. Either you can register as an LLC or corporation or a sole proprietor. The most common legal structures for a small business are:
- sole proprietorship
- limited liability company (LLC), and
Registering as an LLC will offer you added tax benefits and will keep you free from certain legal obstacles.
Step 5. Federal EIN & Tax Filings
Now you need to register your Federal EIN. This will act as a Tax ID Number for businesses and use can use the EIN to file for federal taxes.
With EIN you can legally hire employees or have your own business bank account. You can also visit the official site of the department of revenue of Louisiana to know more.
Step 6. Licenses & Permits
Even after registering your business, you may still need to obtain a few licenses to be legally operational in Louisiana. The type of licenses to acquire will entirely depend on the kind of business activities you are planning. Go through all the state government regulations for the business permits and licenses. Some of the licenses you may need to obtain are the following:
- Professional/Occupational Licenses
- Environmental Permits
- Zoning permits
- Local licenses
To learn more and support, you can visit the geauxBiz website of the government of Louisiana. geauxBIZ makes it easy for beginners to start a business in Louisiana.
Step 7. Set Up Business Accounting System
Your business will involve an innumerable number of transactions. Setting up an accounting system will help you to easily track the transactions which help you with your annual tax filings. Go for good business accounting software that will make your business accounting fast and easy.
Step 8. Business Insurance
In Louisiana, businesses selling services will need professional liability insurance, and companies with one or more employees will need worker’s compensation insurance to be legally operational.
Step 9. Hiring Personnel
Most of the businesses mentioned above can be done from home without the need for a second person. In case you wish to have employees, you can hire employees once you have your Federal EIN and worker’s compensation insurance.
Step 10. Create A Website & Business In Louisiana
In today’s world, you must have a website to promote your business. Customers must find you in the online marketplace. It not only helps you to reach your potential customers but also instills confidence in your company brand.
In addition, there are a number of ways to promote your business depending on your financial budget. You can check our article on low-Cost Ways To Promote Your Small Business.
If you have some money to afford, hire an agency that will help your new business to find potential customers, and assist to discover the products and services you offer.
Other than starting a business of your own, you can also buy a franchise if you can afford to shell out some extra money. We hope this hands-on guide on how to start a successful business in Louisiana with a minimal investment will help you start a profitable business.
About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their business. Our aim is to educate the entrepreneur on the various stages of entrepreneurship.