How to Form a Sole Proprietorship in Louisiana
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A Louisiana sole proprietorship appears as an unincorporated business owned by a single person, or a husband and wife. Sole proprietorships in the state of Louisiana have no separation from the owner of the business. Louisiana sole proprietorships must file the appropriate documents with the Louisiana state and local governments. Sole proprietorships in the state of Louisiana that fail to properly register the business may be subject to fines, penalties and business closure.
File a fictitious business name with the Louisiana Parish Clerk of Court where the business operates. A Louisiana sole proprietorship will have the same name as the owner of the business, unless the owner files a fictitious business name, also known as an assumed business name. Sole proprietorships must choose a fictitious business name that isn't in use or held on reserve by any other business entity in the state of Louisiana. Conduct a business name availability search on the Louisiana Secretary of State website.
Register the business with the Louisiana Clerk of the Court in the parish where the sole proprietorship operates. The registration process requires Louisiana sole proprietors to supply information such as the name and location of the business, as well as the business type. Log on to the Louisiana Secretary of State's website to locate the contact number of the parish clerk where the business operates.
Request an employer identification number from the IRS. Louisiana sole proprietors may obtain an EIN by phone, fax, mail or online. Applying by phone or online will allow a Louisiana sole proprietorship to receive an EIN for immediate business use. Louisiana sole proprietors that elect to file by mail may wait up to four weeks to receive an EIN. Faxing Form SS-4 will allow the IRS to issue an EIN to a Louisiana sole proprietor within four business days.
Register for business taxes with the Louisiana Department of Revenue. According to the Official Guide to Doing Business in Louisiana website, all businesses that engage in sales of any kind must register with the Louisiana Department of Revenue. For example, Louisiana sole proprietorships that sell goods must obtain a seller's permit, as well as a sales and use tax permit. Louisiana sole proprietorships must provide the EIN or Social Security number of the owner, as well as the legal name and address of the business. Louisiana sole proprietors may register for Louisiana state taxes on the Louisiana Department of Revenue website. After completing the online registration process, Louisiana sole proprietors will receive a Louisiana Revenue Account number by mail within four to six weeks.
Acquire business licenses and permits necessary to operate the sole proprietorship. All Louisiana sole proprietorships must obtain a general business license from the parish clerk's office, as a condition of operating in the state of Louisiana. Sole proprietors that provide professional services, such as chiropractors and doctors, must obtain the appropriate Louisiana occupational license. In addition, Louisiana sole proprietors may be required to obtain a zoning permit, depending on the location of the business. Contact the Clerk of the Court in the Louisiana parish where the sole proprietorship operates to ensure all permits and licenses have been obtained to legally run the business.
Christopher Carter loves writing business, health and sports articles. He enjoys finding ways to communicate important information in a meaningful way to others. Carter earned his Bachelor of Science in accounting from Eastern Illinois University.
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