Louisiana Business Taxes for LLCs
Learn what business taxes your Louisiana LLC needs to pay — state income tax, sales tax, franchise tax, payroll withholding, and federal self-employment tax. Covers forms, deadlines, and filing requirements.
Bizee Editorial Staff
Editorial Team
Louisiana LLC tax facts at a glance
Filing fee: $100 (domestic LLC formation fee)
Processing time: [PROCESSING_TIME]
State agency: Louisiana Secretary of State / Louisiana Department of Revenue
Annual report due: Annual Tax Statement due June 1 (for LLCs taxed as corporations)
State tax rate: Pass-through: individual income tax rates apply to members; Corporate: Louisiana corporate income tax rates apply if taxed as a corporation
Louisiana LLC tax overview
Louisiana LLCs don't pay a single flat business tax. Instead, the taxes you owe depend on how your LLC is classified for federal tax purposes, whether you have employees, and whether you sell taxable goods or services. Most Louisiana LLCs are pass-through entities, meaning the business itself doesn't pay income tax — the owners do.
How Louisiana taxes your LLC
Louisiana follows federal tax classification for LLCs. That means the state taxes your LLC the same way the IRS does — and your federal classification determines which Louisiana returns you file and what you owe.
Single-member LLC (disregarded entity)
If you're the sole owner and haven't elected a different tax status, the IRS treats your LLC as a disregarded entity. Louisiana follows that treatment. You don't file a separate Louisiana business income tax return. Instead, you report the LLC's income on your personal Louisiana return — Form IT-540 for residents, or the appropriate nonresident form if you live outside Louisiana.
Multi-member LLC (partnership)
A multi-member LLC is taxed as a partnership by default. Louisiana treats it the same way. The LLC files federal Form 1065 and Louisiana Form IT-565 (Partnership Return of Income). Income, deductions, and credits pass through to each member's individual Louisiana return — Form IT-540 for residents or Form IT-540B for nonresidents.
LLC taxed as a corporation
If your LLC elected to be taxed as a C Corporation or S Corporation for federal purposes, Louisiana taxes it as a corporation. The LLC must file a Louisiana corporation income tax return and may also owe franchise tax. You register for these accounts through the Louisiana Taxpayer Access Point (LaTAP) or the geauxBIZ portal.
Louisiana state income tax for LLC owners
For most Louisiana LLCs, state income tax is paid at the owner level, not the business level. Your share of the LLC's profits flows to your personal Louisiana income tax return, where it's taxed at Louisiana's individual income tax rates after standard allowances and deductions.
Louisiana's individual income tax applies to income from Louisiana sources, so even nonresident members of a Louisiana LLC generally owe Louisiana tax on their share of the LLC's income. Nonresidents file Form IT-540B or the applicable nonresident return. A tax professional can help you figure out which deductions and credits apply to your situation.
Louisiana sales and use tax
If your Louisiana LLC sells taxable goods or certain taxable services, you need to register for a state sales and use tax account with the Louisiana Department of Revenue before you start collecting tax from customers. You can register through the geauxBIZ portal or directly through LaTAP.
Louisiana imposes a state-level sales tax on most retail sales of tangible personal property. After registration, you collect the tax from customers and remit it to the Louisiana Department of Revenue on a schedule based on your sales volume. Local parishes and municipalities may add their own sales tax on top of the state rate, so the total rate varies by location.
Louisiana franchise tax and annual tax statement
Louisiana imposes a corporate franchise tax on LLCs that are taxed as corporations for Louisiana purposes. LLCs taxed as sole proprietorships or partnerships at the federal level are generally not subject to Louisiana corporate franchise tax at the entity level.
LLCs subject to Louisiana corporate income and franchise tax may also need to file an Annual Tax Statement and pay a $250 fee. This statement is due on or before June 1 each year. The $250 fee is separate from any income or franchise tax liability the LLC owes.
Federal taxes for Louisiana LLC owners
On top of Louisiana state taxes, LLC owners owe federal taxes on their share of business profits. For most single-member and multi-member LLCs, that means federal income tax and self-employment tax — both reported on your personal federal return.
Self-employment tax covers Social Security and Medicare contributions. As an LLC owner who isn't on payroll, you're responsible for both the employee and employer portions — 15.3% on net self-employment income up to the Social Security wage base, and 2.9% on income above that threshold. A tax professional can help you figure out whether an S Corporation election makes sense for your situation, since that structure can reduce self-employment tax exposure.
Payroll taxes if you have employees
If your Louisiana LLC has employees, you need to register for a Louisiana withholding tax account with the Louisiana Department of Revenue through LaTAP before you withhold and remit state income tax from employee wages.
Each quarter, you file Form L-1 (Employer's Quarterly Return of Louisiana Withholding Tax) to report the tax withheld. Payment frequency depends on how much you withhold: under $500 per month is quarterly, $500–$5,000 per month is monthly, and $5,000 or more per month is semi-monthly. Quarterly payments are generally due April 30, July 31, October 31, and January 31.
You'll also owe federal payroll taxes — FICA withholding, employer Social Security and Medicare contributions, and federal unemployment tax (FUTA). Louisiana employers with employees are also subject to state unemployment insurance (SUI) through the Louisiana Workforce Commission. A payroll provider or tax professional can help you stay on top of all the filing deadlines.
Estimated tax payments
If you expect to owe Louisiana income tax beyond what's covered by withholding, you'll need to make estimated tax payments to the Louisiana Department of Revenue. This applies to most LLC owners who receive pass-through income without an employer withholding state tax on their behalf.
For calendar-year filers, Louisiana estimated payments are due April 15, June 15, September 15, and January 15 of the following year. You can pay in 4 equal installments or pay the full estimated amount by January 15 if you prefer a single payment. Missing or underpaying estimated taxes can result in penalties and interest even if you're owed a refund when you file your annual return.
FAQ
It depends on your LLC's tax classification. Most Louisiana LLCs are pass-through entities, so there's no entity-level income tax — owners pay Louisiana individual income tax on their share of profits at standard individual rates. LLCs taxed as corporations pay Louisiana corporate income tax on net income from Louisiana sources. Plus, if your LLC sells taxable goods or services, you'll collect and remit Louisiana sales tax.
Yes. Louisiana imposes a state-level sales tax on most retail sales of tangible personal property and certain taxable services. Local parishes and municipalities add their own rates on top of the state rate, so the total sales tax rate varies by location. If your LLC sells taxable goods or services, you need to register with the Louisiana Department of Revenue before collecting sales tax from customers.
Yes, but only for LLCs taxed as corporations for Louisiana purposes. LLCs taxed as sole proprietorships or partnerships at the federal level are generally not subject to Louisiana corporate franchise tax at the entity level. LLCs that do owe franchise tax may also need to file an Annual Tax Statement and pay a $250 fee by June 1 each year.
Yes. Louisiana has a state income tax that applies to individuals, including LLC owners who receive pass-through income from their business. For most LLCs, the business itself doesn't pay state income tax — the owners report their share of profits on their personal Louisiana returns and pay tax at individual income tax rates after allowances and deductions.
Yes, in most cases. If you expect to owe Louisiana income tax beyond what's covered by withholding, you need to make quarterly estimated payments. For calendar-year filers, the due dates are April 15, June 15, September 15, and January 15. Missing estimated payments can result in penalties and interest even if you're owed a refund when you file your annual return.
Self-employment tax is a federal tax, not a Louisiana-specific one. LLC owners who aren't on payroll pay self-employment tax — covering Social Security and Medicare — on their net business income. This is reported on your federal return. On top of that, you'll owe Louisiana individual income tax on your share of the LLC's profits. A tax professional can help you figure out the right structure to manage both.
It depends on your LLC's structure. Single-member LLCs file their income on personal Form IT-540 (residents) or the applicable nonresident form. Multi-member LLCs file Louisiana Form IT-565 (Partnership Return of Income) at the entity level, and each member reports their share on their individual return. LLCs taxed as corporations file a Louisiana corporation income tax return. If you have employees, you also file Form L-1 quarterly for state withholding.
