Louisiana LLC Taxes

Louisiana’s low cost of living and warm climate make it a popular place in which to live and launch new businesses. As more business owners choose to start their ventures in the state, however, many may find it challenging to understand the business taxes involved. 

Regardless of the size of your business, if you operate a limited liability company (LLC) in Louisiana, you must stay up to date on your finances and pay federal, state, and local taxes. Our guide will help you understand the taxes you must pay for your Louisiana LLC.

Recommended: Schedule a free consultation with an accountant to stay on top of your taxes. 

Louisiana LLC Taxes Owed

LLCs benefit from pass-through taxation, which means the business’s profits pass through to its members’ individual tax returns. As a result, your LLC itself doesn’t pay taxes to the federal government or the state of Louisiana. Instead, LLC owners must pay taxes on their portion of the income generated by the LLC. 

In Louisiana, LLC owners can expect to pay the following taxes:

Federal Taxes

Regardless of where your business is located, if you have an LLC within the United States, you will have to pay federal income taxes and federal self-employment taxes. These taxes are reported on your Form 1040.

Federal Self-Employment Taxes

It doesn’t matter if your LLC is a single-member LLC or a multi-member LLC; all LLC members must pay self-employment taxes on their share of the LLC’s profits. The self-employment tax rate is 15.3%. 

Federal Income Taxes

Your federal income taxes will depend on your tax bracket, and the cutoffs for individual tax brackets, as well as the percent owed, will change each year.

Louisiana State Taxes

Each state has its own laws that dictate how it taxes individuals and businesses. Below you’ll find an overview of the important state-level taxes likely to affect your Louisiana LLC.

Louisiana Income Taxes

The income tax rate in Louisiana is 4.25%. This is quite low when compared to other states, placing Louisiana among the 10 states with the lowest income tax rates in the nation.

Louisiana Sales and Use Tax

Louisiana also has a comparatively low state sales tax rate of 4.45%. However, local counties and cities may impose their own sales taxes in addition to the state rate. The average local sales tax rate in Louisiana surpasses the state rate at 5.1%. When combined, the average sales tax rate in the state increases to a whopping 9.55%.

Register for a Louisiana Sales Tax License

If your business sells taxable goods or services, you must register for a Louisiana sales tax license with the Louisiana Department of Revenue. 

Additional State Taxes

The Louisiana Department of Revenue also oversees the collection of other state-specific taxes businesses may have to pay, depending on their location, industry, and number of employees. A few examples of these additional taxes include:

  • Alcoholic Beverage Tax
  • Field Audit Tax
  • Fuel Tax
  • Oil and Gas Severance Tax
  • Tobacco Tax

To learn more, visit the Louisiana Department of Revenue website.

Louisiana Local Taxes

The local laws and ordinances in Baton Rouge may differ greatly from those in New Orleans. Regardless of where you live in Louisiana, check with your local jurisdiction to ensure your business obtains the proper local permits and follows any local regulations that may impact its operations.

Louisiana LLC Compliance

You must obey Louisiana’s state and local laws in order to maintain your business in good standing. While Louisiana LLCs technically don’t file taxes with the state, businesses must still file an annual report each year.

Louisiana LLC Annual Report

All Louisiana LLCs must file an annual report with the Louisiana Secretary of State each year. You can do this by mail or online for a $30 or $35 fee, respectively.

Your annual report will be due the day before your LLC’s anniversary date — the day on which the state approved the formation of your LLC. If the state approves your LLC on August 8, 2024, for example, you’d need to file your first annual report on that day and then by August 7 in subsequent years.

You can file your LLC’s annual report up to 30 days before the due date. Missing the deadline will mark your LLC as “not in good standing” with the state. Continuing to miss payments for three years will result in the state of Louisiana shutting down your business.

For more information, check out our Louisiana LLC Annual Report guide.

Secure Business Filings

The Louisiana Secretary of State offers a Secure Business Filings (SBF) service to LLCs within the state. Enrolling ensures you’ll receive an email whenever someone makes a filing or amendment on behalf of your business. This not only helps prevent fraud, but also allows you to see the progress made with your business’s filings. You’ll receive a unique personal identification number (PIN) that’ll allow you to approve or reject filings made for your business. 

Receiving SBF authorization comes with a one-time enrollment fee of $40. To begin the process, download the appropriate forms and then submit them online to the Louisiana Secretary of State.

LLC taxes are complex. While our guide can provide you with important information, we recommend you schedule a free consultation with an accountant to ensure you handle your business taxes correctly.