You may be asking how to set up a sole proprietorship if you’re wanting to launch a business in Louisiana. The simplest type of business structure is a sole proprietorship, which has just one owner and one employee. This article will walk you through the process of forming a sole proprietorship in Louisiana.
Select a business name in the first step. Pick a name for your company that is distinct and hasn’t been taken by another company in Louisiana. The website of the Louisiana Secretary of State allows you to look for already registered business names. In order to conduct business under a name other than your given name, you might also want to think about registering a tradename or “doing business as” (DBA) with the Louisiana Secretary of State.
Obtain an EIN in Step 2 The Internal Revenue Service (IRS) will issue your company with an Employer Identification Number (EIN), a special nine-digit number used for tax purposes. On the IRS website, you can request an EIN for nothing. Remember that you might also require an EIN in order to create a business bank account or recruit staff.
Step 3: Register with the Secretary of State of Louisiana Despite the fact that sole proprietorships are exempt from registering with the Louisiana Secretary of State, you may need to do so if you intend to employ others or if you need to do so in order to register a tradename or DBA. Through the Secretary of State’s website, you can register online.
Obtaining a Louisiana Revenue Account Number is the fourth step. You must obtain a Louisiana Revenue Account Number if your company will be collecting sales tax. Through the website of the Louisiana Department of Revenue, you can apply for a Louisiana Revenue Account Number online. Normally, the procedure takes 5-7 business days. In Louisiana, how much does an EIN cost? No matter if you live in Louisiana or another state, getting an EIN is cost-free. How do I obtain a free tax identification number?
Applying online at the IRS website will get you a free EIN. What is the turnaround time for a Louisiana Revenue Account Number? Applications for a Louisiana Revenue Account Number are normally processed by the Louisiana Department of Revenue in 5-7 business days.
Finally, establishing a sole proprietorship in Louisiana is a rather easy procedure. You can quickly start up your firm by following the above-mentioned steps and collecting all required licenses, permits, and tax IDs.