How to start a business in Louisiana in 14 steps (2025 guide)

Starting a business is an exciting journey—a chance to turn your ideas into reality and build something uniquely your own. And if you live in Louisiana, you’ll find the state filled with entrepreneurial possibilities, with diverse industries and a supportive environment for startups.

Ready to set your business path in motion? We’re here to guide you through the essential steps, from securing funding and registering your business to navigating local tax incentives and insurance requirements. Whether you’re a Louisiana native or new to the state, explore the opportunities and business landscape that await you in this dynamic region.

Why start a business in Louisiana in 2025?

There’s lots to love about Louisiana, from the food and music of New Orleans and the Cajun culture of the state’s southern half to the welcoming people and the state’s wealth of natural resources. If you're ready to learn how to start a business in Louisiana, you’ll find state and local government incentives, low business taxes, and skilled workforces available. 

Louisiana has a thriving pro-business environment, with companies committing over $25 billion in capital investments last year, marking the seventh consecutive year of capital investment economic growth. This momentum has created jobs and opportunities in sectors like energy, agribusiness, advanced manufacturing, and life sciences​. Positioned as a strategic hub for global commerce, Louisiana’s infrastructure—including deepwater ports, interstate highways, and airports—further solidifies its role as an ideal location for new and expanding businesses. Wondering how to start a business in Louisiana? Our small business guide will walk you through the steps. 

Here are the topics we’ll cover in this step-by-step guide: 

• 14 steps to starting a business in Louisiana
• Step 1: Decide what type of industry is best for your business
• Step 2: Conduct industry research
• Step 3: Create a business plan
• Step 4: Choose your business entity
• Step 5: Secure funds: Louisiana small business funding, loans, and grants
• Step 6: Choose your Louisiana business name and Louisiana DBA
• Step 7: Pick a business location in Louisiana
• Step 8: Find a Louisiana registered agent 
• Step 9: Get a Louisiana EIN and file your tax and employer identification documents 
• Step 10: Register as a small business in Louisiana 
• Step 11: Register for your business license and permits in Louisiana
• Step 12: Secure insurance for your Louisiana small business 
• Step 13: Prepare to pay taxes on your business in Louisiana
• Step 14: Set up your business bank account
• Additional resources to get your business started
• Frequently asked questions 

14 steps to starting a business in Louisiana

Most business ideas begin with a vision, but it’s up to you to bring it to life. Whether you’re opening a seafood restaurant in New Orleans or launching a tech startup in Baton Rouge, Louisiana offers the perfect backdrop to kickstart your venture. Below we break down each step, from refining your idea to setting up a foundation for growth. With small business resources and insights tailored to Louisiana, you’ll be prepared for success.

Step 1: Decide what type of industry is best for your business 

Explore what aligns with your skills, interests, and local market demand. Louisiana’s thriving sectors include tourism, agriculture, manufacturing, oil and gas, and energy. Consider your own areas of expertise, research local market trends whether you’re starting a business in Baton Rouge or Lafayette, and identify any gaps your business could fill.

Not sure where to start? Begin by exploring a variety of small business ideas to spark inspiration.

Step 2: Conduct research in your industry

Research your target market, conduct a competitive analysis, determine your unique services or products, and identify any regulations or licensing requirements specific to your chosen field in Louisiana. The Louisiana Economic Development website is a good place to start exploring some of the key sectors in the state such as energy, manufacturing, technology, life sciences, and aerospace.

Step 3: Create a business plan

Your business plan is the foundational document of your Louisiana business. Use it as a blueprint to determine where you're going and what your business concept will be. A business plan identifies your target market, outlines your marketing plan, provides financial projections, and can be used to help secure funding. 

Here’s a breakdown of what it typically includes:

• Executive summary: Briefly summarize your business concept, goals, and key strategies.
• Company description: Share your company's story, mission, and vision for the future.
• Market research and potential: Dive deep into your target market, industry trends, and potential for growth.
• Competitive analysis: Size up your competition and highlight what makes your business unique.
• Products and services: Showcase your offerings and explain how they benefit your customers.
• Marketing and sales: Outline your strategies for reaching your target audience and driving sales.
• Business financials: Project your financial performance with income statements, cash flow forecasts, and other key metrics.
• Management and leadership: Introduce your team and highlight their expertise and experience.
• Funding request: If you're seeking funding, clearly state your needs and how you'll use the funds.
• Appendix: Include supporting documents like market research data or legal agreements.

Writing a comprehensive business plan takes time and effort, but it's an investment that can pay off in the long run. A free business plan template can be a helpful tool to get you started. The Louisiana Small Business Development Center is also a good resource for no-cost business plan guidance and support.

Step 4: Choose your business entity: Types of business entities in Louisiana

Whether you’re going it alone or plan to create a more formal structure with shareholders, your business structure type will determine how you pay taxes, the liabilities in your organization, and your business profitability and growth. Here are the main types of structures for Louisiana small businesses: 

Sole proprietorship

A sole proprietorship is the simplest business structure, where an individual owns and operates the business without forming a separate legal entity. This structure requires minimal setup but does not offer liability protection, meaning the owner is personally responsible for all business debts.

Limited Liability Company (LLC) 

An LLC combines the flexibility of a sole proprietorship or partnership with the liability protection of a corporation. Learn more about LLCs.

Partnerships, including Limited Partnerships (LPs) and Limited Liability Partnerships (LLPs)

Partnerships involve two or more individuals or entities sharing ownership, profits, and liabilities. LPs offer limited liability to certain partners, while LLPs protect all partners from personal liability for business obligations.

Corporations, including S corporations, C corporations, and B corps (or benefit corporations)

Corporations are separate legal entities that provide liability protection to their owners (shareholders). C corporations face double taxation on income and dividends, while S corporations avoid this with pass-through taxation. B corporations (or benefit corporations) focus on social and environmental missions alongside profit.

Step 5: Secure funds: Louisiana small business funding, loans, and grants 

Determine how you will fund your venture. Any new small business in Louisiana—whether in Venice, Lake Charles, or Morgan City—needs money to get up and running. Costs to start a business in Louisiana will vary depending on the type of business and industry, required permits and licenses, and other factors. It can cost as little as $500 to file all your permits and licenses. But depending on your industry and how much overhead you have, you may end up spending tens of thousands of dollars to start your small business. 

Here are a few ways to secure funding: 

The following are a few Louisiana-specific funding resources: 

Louisiana Economic Development Micro Lending Program (MLP) 

The Micro Lending Program offers small businesses and startups access to capital for working capital or equipment needs. Participating lenders evaluate applications, underwrite loans, and lend directly to borrowers.

Louisiana Economic Development Collateral Support Program (CSP) 

The Collateral Support Program helps small businesses secure loans by providing pledged cash collateral to participating lenders, addressing collateral shortfalls for borrowers.

STEP grants 

The State Trade Expansion Program (STEP) grant supports small Louisiana businesses that create jobs and generate new export revenue in foreign markets. 

Louisiana Innovation Retention Grant Program 

The Louisiana Innovation Retention Grant provides support for Louisiana small businesses with a research focus that have previously received a federal Small Business Innovation Research (SBIR)/Small Business Technology Transfer (STTR) grant.

Louisiana Endowment for the Humanities

The Louisiana Endowment for the Humanities (LEH) awards grants to fund large and small-scale humanities public programs.

Step 6: Choose your Louisiana business name and Louisiana DBA

Select a business name that will help you stand out from future competitors. The state requires a completely unique name for your newly formed entity. When choosing something that reflects your brand identity, you’ll need to do an entity search on the Louisiana Secretary of State’s website to ensure availability. 

You may also choose to have a DBA. A DBA, or "Doing Business As," allows you to operate under a name different from your business’s legal entity name. This is helpful when you want to brand or market part of your business differently from its official name. For instance, if your business is legally named Charlotte LeBlanc Catering, but you want to sell cheesecakes to specialty grocery stores across the state, filing a DBA for Charlotte’s Cheesecakes would enable you to operate under this more specific and market-friendly name. This gives you flexibility to promote different aspects of your business while maintaining your original legal structure.

Reserve your business name and/or your DBA 

Once you’ve settled on your business name, you can reserve it online through the Louisiana Secretary of State’s office. You can also mail in a Trade Name form. DBA filings in Louisiana are not handled by the state but are instead managed at the parish level. To register a DBA, you’ll need to contact the local Clerk of Court’s office in the parish where your business operates. For any questions or further information regarding the process, it's best to contact the Parish Clerk of Court directly.

Step 7: Pick a business location in Louisiana

Choose the ideal location for your Louisiana business. Deciding on the perfect area hinges on several factors, including your target market, industry needs, and budget. 

Each region in Louisiana has unique economic strengths and challenges. For example, the southern region thrives on industries like energy and seafood, while northern areas are known for agriculture and manufacturing. Understanding these regional dynamics can help align your business with local opportunities and resources. The cost of doing business can also vary significantly depending on location—urban areas may offer greater market access but at a higher cost, while rural regions often provide lower overhead expenses. Depending on your type of business, you may also opt to run it from your home, which could further reduce costs.

Here are a few city-specific considerations to keep in mind: 

New Orleans 

• With its thriving tourism industry, New Orleans is a global destination, ideal for businesses catering to travelers. The city's vibrant cultural scene and nightlife attracts businesses in food and beverage, entertainment, music, and arts industries.
• Compared to other parts of Louisiana, New Orleans generally has higher rent, commercial property prices, and labor costs.
• If you plan to set up shop in New Orleans or somewhere nearby like Metairie or Algiers, look for properties that fit your budget and attract the clients you want. Check the area for local competitors. 

Baton Rouge 

• Baton Rouge is the state capital and attracts major oil and gas companies, along with B2B services, professional services, and government contractors.
• Operating costs like rent and commercial properties are generally lower in price in Baton Rouge compared to New Orleans.
• The presence of LSU, Southern University, hospitals like Our Lady of the Lake, and research institutions like Pennington Biomedical Research Center can benefit businesses seeking a highly skilled workforce or partnerships with academia.

Lafayette

• A smaller town than Baton Rouge or New Orleans, Lafayette has become a South Louisiana hub for industries like agribusiness, energy, and tech. 
• Situated near the Atchafalaya National Wildlife Refuge and smaller towns like Crowley, Rayne, and Scott, Lafayette provides a small-town feel with vibrant energy. 
• Operating costs in Lafayette are generally lower compared to Baton Rouge and New Orleans.

Shreveport–Bossier City

• Located in northern Louisiana, this combined metropolitan area attracts businesses in retail, healthcare, and manufacturing.
• Shreveport's central location and infrastructure make it ideal for businesses with distribution or logistics needs.

Step 8: Find a Louisiana registered agent

Any Louisiana business must have a registered agent, whether a professional service or an individual. Your registered agent acts as a point of contact for your business’ important state and legal mail. A registered agent must have a physical mailing address (not a P.O. Box or remote location) in the state. They’ll also need to be available during regular business hours. If the registered agent is an individual, they must be over 18 years old.

You can also choose to be your own registered agent, or you can appoint a trusted friend or family member to do so, as long as they meet the above requirements. If you use a service for a Louisiana registered agent, you’ll pay a fee likely ranging from $100 to $300 per year. 

Step 9: Get a Louisiana EIN and file your tax and employer identification documents

An EIN (Employer Identification Number) is a nine-digit number the IRS uses to identify your business for tax purposes. Although Louisiana doesn't require a state EIN, you'll need one to file payroll taxes and federal tax returns, open a business bank account, and apply for loans. You can apply for a free EIN through the IRS website.

Step 10: Register as a small business in Louisiana

When launching a small business in Louisiana, you’ll have to navigate the registration process for almost any type of business structure. You can file the documents via mail or register through GeauxBiz.com, the Louisiana Secretary of State’s website. 

Step 11: Register for your business license and permits in Louisiana

There is no statewide business license requirement in Louisiana, however, depending on your industry, location, or profession, you may need certain business licenses and permits. 

If, for example, you’re a cosmetologist or opening a hair salon, you’ll likely need a professional license to operate. An establishment that plans to serve alcohol, must obtain an ABC license from the Louisiana Office of Alcohol and Tobacco Control. And if you’re selling tourist gifts in the French Quarter (or any other goods, anywhere else in the state), you’ll need a seller’s permit to collect and remit sales tax. Businesses selling tangible goods or certain services must register for a sales tax permit (also called a resale certificate) with the Louisiana Department of Revenue.

Do you need a business license in Louisiana?

Unlike some states, Louisiana doesn't mandate a general business license for all businesses to operate within the state. However, your city or parish might have specific occupational licensing requirements, so check with local municipalities. 

Step 12: Secure insurance for your California small business

Business insurance is crucial for protecting your business from risks that could result in significant financial loss. It provides a safety net for unforeseen events such as accidents, natural disasters, lawsuits, and other liabilities.

Common types of California small business insurance

Step 13: Prepare to pay taxes on your business in Louisiana  

Understanding your tax obligations as a small business owner is crucial for long-term success. Fortunately, Louisiana boasts a relatively low corporate income tax rate compared to the national average. However, the state collects revenue through various other means, including sales taxes and various industry-specific taxes.

Corporate income tax

Louisiana imposes a graduated corporate income tax. This means the tax rate increases as your business earns more. Corporate income tax rates range from 3.5% to 7.5%.

Corporate franchise tax

The Louisiana Department of Revenue states that the corporate franchise tax is “$2.75 for each $1,000 or major fraction thereof in excess of $300,000 of capital employed in Louisiana.”

Sales and use tax

Louisiana has a state sales and use tax rate of 4.45%, with localities often adding additional local sales tax rates. 

Other unique Louisiana tax situations 

• Excise taxes cover specific goods and services, including alcohol, tobacco, and gasoline. Businesses involved in the production, sale, or distribution of these goods might have additional tax filing requirements.
• Occupational license taxes will vary depending on your profession or business, and you may have to pay parish governments, too. For example, here are the requirements for East Baton Rouge Parish. Check with your local parish when setting up your business. 
• Gaming taxes cover any establishment involved with the casino industry. According to the Louisiana Casino Association, casinos pay a 21.5% tax rate. 

Federal taxes

In addition to state and local taxes, all businesses must pay applicable federal taxes, including:

• Federal income tax
• Self-employment tax (for sole proprietors and partners)
• Employment taxes (if you have employees), including the Federal Unemployment Tax Act (FUTA tax)
• Excise taxes (for certain industries)

To ensure you understand your federal tax obligations, check out these IRS resources: Publication 334, Tax Guide for Small Business and Publication 583, Taxpayers Starting a Business and Keeping Records

Tax credits and incentives for Louisiana employers

Louisiana does offer various tax credits and incentives to attract and retain businesses, particularly in targeted industries. These can help reduce your tax liability and free up funds to invest in your business growth and development. Here are a few programs: 

• The Industrial Tax Exemption Program offers an 80% tax abatement for ten years, provided you meet eligibility requirements. 
• The Angel Investor Tax Credit gives investors a 25% tax credit if they invest in businesses certified by Louisiana Economic Development. 
• Any music industry-related company can get a 10% to 15% credit on their W2 wages if they hire Louisiana employees.  
• Louisiana Quality Jobs Rebate provides up to 6% on annual payroll expenses for up to a decade, along with a state sales/use tax rebate on capital or facilities expenses. 

There are also federal tax credits available, including:

• Work Opportunity Tax Credit: The Work Opportunity Tax Credit (WOTC) is a federal tax incentive that offers businesses credits of up to $2,400 per eligible employee hired from specific target groups. The credit can be higher for certain categories, particularly some veterans.
• Disability Access Credit: This federal tax credit is based on expenses to allow disabled individuals to access a business. Businesses with no more than 30 employees or income not greater than $1 million can claim it for eligible expenses. The Disability Access Credit can be used for various expenses, including removing barriers, providing interpreters, and modifying equipment for individuals with disabilities.
• Barrier Removal Tax Deduction: Businesses can claim a tax deduction of up to $15,000 per year for expenses related to removing architectural and transportation barriers for people with disabilities and the elderly. This deduction can be used in conjunction with the Disabled Tax Credit, and it's claimed as a separate expense on the business's income tax return.

For a list of other federal tax credits and deductions for businesses, visit the IRS website.

Step 14: Set up your business bank account

One of the first things you need to do when starting a small business in Louisiana is set up a business bank account to manage your finances. Here’s how: 

1. Collect all your business paperwork, including your EIN, business formation documents, registrations, permits, and licenses to open your small business bank account. 
2. Choose a bank or credit union that offers products and services you need, whether loan offerings, checking, or high-yield savings accounts. 
3. Establish business credit using a bank credit card for business-related purchases and expenses. 
4. Set up your financial records by selecting the right accounting software for your organization. 
5. Hire a professional accountant well-versed in local tax codes and your industry to help with financial and other bookkeeping services.

Additional resources to get your business started 

There are several state and federal resources that can support your business with guidance, training, potential funding and more. 

State resources

GeauxBIZ: A one-stop portal managed by the Louisiana Secretary of State for starting and managing a business. It offers services like business name reservation, filing business documents, and creating a customized list of possible licenses and permits required for your business.

Louisiana Economic Development (LED): The state's economic development agency offering various programs, incentives, and resources for businesses. 

Louisiana Department of Revenue: Provides information on state tax obligations, online tax filing, and business registration for tax purposes. It's essential for understanding and complying with Louisiana's tax requirements.

Louisiana Workforce Commission: Offers resources for employers, including information on unemployment insurance, worker's compensation, and labor market data. It also provides an online system for filing wage and tax reports.

Louisiana Small Business Development Center: Provides free consulting services and low-cost training to small businesses and aspiring entrepreneurs. They offer assistance with business plans, financial projections, marketing strategies, and more.

Federal resources 

Small Business Administration (SBA): The SBA supports small businesses through various loan programs, including the 7(a) loan, provides resources for government contracting, and offers counseling and training programs to help entrepreneurs start and grow their businesses.

Grants.gov: This centralized platform simplifies the process of searching for and applying for federal grants across various sectors. It also provides grant writing tips and has a Grants Learning Center featuring the basics of grants, eligibility, and more. 

Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR): SBIR and STTR programs provide research and development funding to innovative tech companies. 

SCORE: SCORE is a national nonprofit organization that partners with the U.S. Small Business Administration (SBA) to provide free mentoring and educational resources to entrepreneurs and small business owners. While not a direct federal agency, SCORE is an independent organization with a network of volunteer business mentors across the United States.   

U.S. Department of Agriculture (USDA): The USDA website lists grants, loans, and other programs and resources for farmers and other businesses serving rural America.

Frequently asked questions

What is the best business to start in Louisiana? 

When choosing the best business to start in Louisiana, it’s helpful to focus on the state's strong industries. Oil and gas remain important, but growing sectors like healthcare and technology offer new opportunities. New Orleans' thriving tourism and tech scenes provide potential for hospitality, food, or digital ventures. The best business choice will depend on your interests, skills, and careful market research, along with an understanding of local regulations and incentives.

How long does it take to get an LLC in Louisiana?

While the LLC can be formed quickly (within 24 hours for online filings), the entire process of setting up the business may take a few weeks. You need to choose a name, register your business entity name, appoint a registered agent, and apply for all the permits and licenses you need.  

Do I need a local business license if I only operate online in Louisiana?

Even if your business is online-only, Louisiana generally requires a state tax registration and possibly local licenses. Requirements vary by parish, so check with your local government. Home-based businesses may need to comply with zoning laws or obtain permits. Certain industries may also have specific licensing requirements. It's best to consult with your local government or a business professional to ensure compliance.

Disclaimer: 

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