How to set up an LLC for your rental property in Louisiana

If you own or are planning to buy rental property in Louisiana, you’ve probably heard about using an LLC to protect your investment. A limited liability company (LLC) can be one way to separate your personal assets from your rental business, may help protect you from certain liabilities, and can potentially offer some tax flexibility.

In this guide, we’ll walk you through everything you need to know about how to set up an LLC for a rental property in Louisiana—step by step. We’ll cover the costs, the filing process, ongoing requirements, and some tips on whether an LLC might be the right choice for your rental business in the Pelican State.

What is an LLC and what does it protect you from as a landlord?

An LLC is a business structure that blends the liability protection of a corporation with the flexibility and tax simplicity of a partnership or sole proprietorship. For landlords, this usually means the LLC may provide a layer of protection for your personal assets—like your home, savings, and other investments—from lawsuits or debts related to the rental property.

However, it’s important to understand that an LLC isn’t a magic shield. It generally aims to protect you from legal claims related to the property, such as tenant lawsuits or contractor disputes, but it won’t protect against everything. For example, if you personally guarantee a loan or commit fraud, the LLC won’t offer protection.

If you want to dive deeper into what an LLC protects you from, and whether it’s right for your rental, you can check out this article on should landlords use an LLC.

Step-by-step: how to set up an LLC for a rental property in Louisiana

Setting up an LLC in Louisiana can be a straightforward process, but it’s important to follow the state-specific steps carefully and consider consulting a qualified attorney or professional to ensure compliance:

1. Pick a name for your LLC

Your LLC’s name must be unique and cannot be deceptively similar to other registered business names in Louisiana. It must include “Limited Liability Company,” “LLC,” or “L.L.C.” You can check name availability on the Louisiana Secretary of State’s website.

2. Designate a registered agent

Louisiana requires your LLC to have a registered agent with a physical address in the state. This person or company receives official legal documents on behalf of your LLC.

3. File articles of organization

This is the key document that officially creates your LLC. In Louisiana, the articles of organization are filed with the Secretary of State online or by mail. The form requires basic info like the LLC’s name, registered agent, and if the LLC will be managed by members or managers.

You can learn more about what are articles of organization and how to file articles of organization on the Louisiana business portal.

4. Pay the filing fee

Louisiana charges an LLC filing fee that you’ll pay when submitting your articles. ​According to LLC University, the state filing fee is $100, due at the moment articles of organization are filed.

​There are also annual fees due to the state for keeping your LLC active; more on that later.

5. Create an operating agreement (optional but recommended)

While Louisiana doesn’t legally require an operating agreement, it’s a good idea to draft one. This document outlines how your LLC will be managed and how profits and losses get divided among members.

6. Apply for an EIN

An Employer Identification Number (EIN) from the IRS is often recommended for tax purposes and opening a business bank account. You can get one for free from the IRS website.

7. Register for state taxes if needed

If your LLC will have employees or collect sales tax (rare for rental property), you’ll need to register with the Louisiana Department of Revenue.

8. Maintain compliance with annual reports

Louisiana requires LLCs to file an annual report to keep the company in good standing.

How much does it cost to set up an LLC in Louisiana?

Understanding the costs upfront helps you budget properly.

• LLC filing fee: The fee to file articles of organization in Louisiana is $100. This fee is paid to the Secretary of State when you submit your formation documents.
• Annual report fee: Louisiana requires an annual report, with a $30 filing fee, due every year by your LLC’s anniversary date.
• Registered agent fees: If you use a professional registered agent service, expect to pay anywhere from $100 to $300 annually.
• Other costs: You might have notary fees if filing by mail or costs for an operating agreement template or legal consultations.

So, in total, the initial cost to set up your LLC usually runs around $100 to $200 if you file yourself and don’t use a registered agent service, plus ongoing annual costs.

How long does it take to set up an LLC in Louisiana?

If you file online, Louisiana typically processes LLC formation within 1 to 3 business days. Paper filings take longer—usually about 5 to 7 business days. Expedited services are available for an extra fee.

What are articles of organization and how to file articles of organization in Louisiana

The articles of organization are the foundational document that officially forms your LLC with the state. They include:

• LLC name
• Registered agent name and address
• Business address
• Whether the LLC is managed by members or managers

To file articles of organization in Louisiana:

• Go to the Louisiana Secretary of State’s online business filing portal.
• Complete the online form with the required info.
• Pay the $100 filing fee.
• Submit your documents.

Once accepted, your LLC officially exists.

Do I need a lawyer to start an LLC or can landlords do it themselves?

You can file to start an LLC yourself in Louisiana using the Secretary of State’s website. Many landlords and real estate investors do this as a DIY project.

However, if your rental portfolio is complex, you have multiple members, or you want help drafting a thorough operating agreement, consulting a business attorney can be valuable. They can also help ensure your LLC structure fits your investment goals.

For many landlords, the process is straightforward enough without a lawyer, but it’s generally wise to at least get legal advice for your specific situation.

How to get an EIN for an LLC that owns rental property in Louisiana

After your LLC is formed, you may want an Employer Identification Number (EIN) from the IRS. This number is used for federal tax filings and opening business bank accounts.

Getting an EIN is free and fast:

• Visit the IRS EIN application page.
• Complete the online form.
• Receive your EIN immediately upon completion.

Obtaining an EIN is often recommended to help separate business and personal finances, but you should consult a tax professional for advice specific to your situation.

Do LLCs need annual reports and other ongoing compliance in Louisiana?

Yes. In Louisiana, LLCs must file an annual report every year by the anniversary of their formation date. The report updates the state on your LLC’s contact info and status.

The annual report filing fee is $30. Failure to file may lead to penalties or administrative dissolution; check with the state or a legal advisor for details.

Besides annual reports, keep good records, maintain a registered agent, and update the state if you change your business address or registered agent.

S corp vs LLC for landlords: a quick overview

Some landlords wonder if they should form an LLC or elect S corporation status. Here’s a high-level look:

• LLC: Easier to set up and maintain, flexible management, and pass-through taxation by default. It offers liability protection but generally does not change how rental income is taxed.
• S corp: Allows pass-through taxation but requires more formalities, like shareholder meetings and payroll if you pay yourself a salary. It can sometimes reduce self-employment taxes for active businesses but is less common for passive rental income.

Because rental income is typically passive, some landlords choose a standard LLC. But individual circumstances vary; consult a tax professional.

LLC vs umbrella insurance for rental property risk management

While an LLC may help protect your personal assets from rental property liabilities, it doesn’t replace insurance. Liability insurance covers risks like injuries on your property, property damage, and lawsuits.

An umbrella insurance policy provides an extra layer of liability coverage beyond your landlord insurance limits.

If you’re weighing protections, learn more about LLC vs umbrella insurance to understand how these tools can work together to safeguard your rental business.

When does it make sense for landlords in Louisiana to use an LLC?

An LLC is often considered by landlords who want to:

• Separate rental liabilities from personal assets
• Simplify management of multiple properties
• Potentially improve financing options
• Create a clearer structure for partners or investors

However, if you own just one rental and want to keep things simple, the cost and paperwork of an LLC might not be worth it.

Also, keep in mind that forming an LLC won’t shield you from all risks—so combining it with good landlord insurance in Louisiana is a smart move.

Final thoughts

Setting up an LLC for your Louisiana rental property can be one strategy some landlords consider to help protect personal assets and organize their investment business. The process involves choosing a name, filing articles of organization with the Louisiana Secretary of State, paying a filing fee, and maintaining ongoing compliance with annual reports.

Costs are reasonable, with a $100 filing fee and $30 annual report fee, and formation usually takes just a few days online. You don’t necessarily need a lawyer, but professional guidance can help with complex situations.

Don’t forget to get an EIN from the IRS and keep your insurance coverage up to date. For more on whether an LLC is right for you, check out our guide on should landlords use an LLC, and if you want to explore liability protections further, see how LLC vs umbrella insurance compare.

For Louisiana-specific insurance options, visit our page on landlord insurance in Louisiana.