At a glance
- Corporate tax
- 5.5% flat
- Tax on wages
- 3% flat
- Sales tax
- 5% + parish
- Economic nexus
- $100,000 in sales
- Minimum wage
- $7.25/hr (federal)
- UI wage base
- $7,000
- New-employer UI rate
- Industry average rate
- Paid leave program
- None
- Annual report
- Anniversary of qualifying, $35
2026 figures, each explained with its source on the area’s page. On top of the federal baseline.
Setup, in order
Qualify the corporation
Before doing business in LouisianaFile an Application of Foreign Corporation for Certificate of Authority with the Secretary of State ($155 from Oct 1, 2026) with a Delaware good-standing certificate under 90 days old, and appoint a registered agent.
Open a withholding account with LDR
Before the first Louisiana payrollRegister through LaTAP for withholding; file Form L-1 quarterly and electronically.
Register for unemployment insurance
When the first Louisiana employee is hiredRegister with the Louisiana Workforce Commission; the 2026 wage base is $7,000 and new employers pay their industry’s average rate.
Report new hires
Within 20 days of hireReport every new hire and rehire to the Louisiana Directory of New Hires.
Buy workers’ compensation insurance
Before the first employee startsRequired from the first employee.
Register for sales tax
When nexus is reached — SaaS is taxable from 2025Remote sellers over $100,000 register with the Remote Sellers Commission. Sellers with an office or employee in Louisiana register with LDR and with each parish collector where they sell.
Get a local occupational license
When opening an officeParishes and cities issue occupational licenses for a physical location.
The six areas
- AccountingAccounting and state tax in LouisianaLouisiana taxes corporate income at a flat 5.5% from 2025 and repealed its capital-based franchise tax for periods from 2026. The CIFT-620 is due May 15 for calendar-year companies.Corporation income tax5.5% flat
- ReceivablesReceivables and sales tax in LouisianaLouisiana taxes SaaS from 2025 at a 5% state rate plus parish tax. Remote sellers over $100,000 file once through the Remote Sellers Commission; sellers with presence deal with LDR and each parish.State sales tax rate5%
- PayablesPayables and contractors in LouisianaLouisiana wants every 1099-NEC by February 28, through CF/SF or LaWage, and since 2025 software purchases carry state and parish use tax when the vendor did not charge it.1099-NEC with LDRDue Feb 28
- PayrollPayroll taxes and employer rules in LouisianaLouisiana withholds a flat 3% from 2025, has no state minimum wage or paid leave program, and taxes the first $7,000 of wages for unemployment in 2026.State income tax on wages3%
- ComplianceCompliance and filings in LouisianaQualify with the Secretary of State ($155 from Oct 1, 2026), file a $35 annual report each anniversary, and file the CIFT-620 by May 15. The franchise tax is gone for 2026 periods.Certificate of authority$155
- AdvisoryAdvisory: credits and decisions in LouisianaLouisiana’s R&D credit is worth up to 30% of in-state research spending above a base amount, but LED certifies it first and claims share a $12 million statewide cap each fiscal year. The 2025 reform is the backdrop for every other decision.R&D tax credit, fewer than 50 employees30% of the excess
Who you register with
- Louisiana Department of Revenue (LDR)Corporation income tax, withholding, state sales tax (LaTAP)
- Louisiana Sales and Use Tax Commission for Remote SellersSingle registration and return for remote sellers’ state and local tax
- Parish sales tax collectors (via LDR’s Parish E-File)Local sales tax returns for sellers with Louisiana presence; every parish but Cameron files through it
- Louisiana Workforce Commission (LWC)Unemployment insurance account, quarterly wage reports, new-hire registry
- Louisiana Secretary of State — Commercial DivisionCertificate of authority and annual report
- Louisiana Department of the Treasury — Unclaimed PropertyAnnual unclaimed property report
Hiring across the border
An employee who lives in one state and works in another is the most common way a startup ends up registered in two. These are Louisiana’s neighbors.
Common questions
Is Louisiana’s franchise tax really gone?
For tax periods beginning on or after January 1, 2026, yes. The franchise tax used to be filed on the same CIFT-620 as the income tax and was measured on capital, so it hit a company that had raised money even in a loss year. A calendar-year corporation that was already qualified in Louisiana paid it one last time for the 2025 franchise period, and may still owe returns for earlier periods.
Do I charge Louisiana sales tax on SaaS?
Since January 1, 2025, yes. The 2024 reform extended the sales tax to digital products and related services, including SaaS, and parishes followed at the local level. A SaaS company with Louisiana nexus charges the 5% state rate plus the local rate for the customer’s location. Contracts and price lists written before 2025 often assume no Louisiana tax.
Do I file 1099-NEC forms with Louisiana?
Yes. Every business that must file Form 1099-NEC with the IRS must also file it with LDR, by February 28. The simplest route is to e-file with the IRS on time through the Combined Federal/State Filing program, which forwards the data to Louisiana; otherwise the forms go in through LaWage.
Does Louisiana have its own minimum wage or paid leave?
No. Louisiana has no state minimum wage statute, so the federal $7.25 applies, and state law bars parishes and cities from setting their own. There is no state paid sick leave, paid family leave or disability insurance program to withhold for.
Did Louisiana’s filing fees change in 2026?
Act 921 of the 2026 Regular Session raised the Secretary of State’s commercial fees from October 1, 2026. The foreign corporation application is $155 and the annual report is $35 on the new schedule. Older guides quoting $150 and $30 are out of date.
Is the Louisiana R&D credit worth claiming?
It can be, but it is smaller than the headline and it is now a queue. For a company with fewer than 50 employees the credit is 30% of Louisiana research expenses above a base — half the average of the three prior years — so a first year of research earns the most and flat spending earns 15% of the year’s total. Louisiana Economic Development certifies it, the company applies within a year after the tax year ends, and from July 1, 2025 claims on returns share a $12 million statewide cap each fiscal year, first come first served. LED says complete applications on file are considered first when the next allocation period opens.
Sources
Checked against each agency’s own page on . Rates and thresholds change, usually on January 1.
- Louisiana Department of Revenue — Corporation Income Tax
- Louisiana Department of Revenue — Is the corporation franchise tax repealed?
- Louisiana Department of Revenue — 2024–2025 Tax Reform
- Louisiana Department of Revenue — What are the individual income tax rates and brackets?
- Louisiana Department of Revenue — Why do the withholding tables use 3.09%?
- Louisiana Department of Revenue — LAC 61:I.1135, market-based sourcing rule
- Louisiana Department of Revenue — Withholding
- Louisiana Department of Revenue — When must I file Form L-1?
- Louisiana Department of Revenue — Due date to file Form 1099-NEC
- Louisiana Department of Revenue — Do I have to submit 1099s to LDR?
- Louisiana Department of Revenue — Policies (Sales and Use Tax on Digital Products and Related Services)
- Louisiana Sales and Use Tax Commission for Remote Sellers
- Louisiana Sales and Use Tax Commission for Remote Sellers — FAQ
- Louisiana Legislature — HB 171 (2023), remote dealer thresholds
- Louisiana Legislature — SB 162 (2025), Act 433, remote dealer definition
- Louisiana Workforce Commission — Unemployment Insurance Tax Rates
- Louisiana Workforce Commission — 2026 UI Contribution Rate Table
- Louisiana Workforce Commission — New Hire Registry
- Louisiana Secretary of State — Fee Schedule effective 10/1/26 (Act 921 of 2026)
- Louisiana Secretary of State — Business Filings FAQ
- Louisiana Economic Development — Research and Development Tax Credit
- Louisiana Legislature — R.S. 47:6015, research and development tax credit
- NAUPA — Louisiana reporting profile
- US Department of Labor — State minimum wage laws
General information for US companies, not tax, legal or accounting advice for yours. Rules and thresholds change; confirm the specifics with a CPA or the agency before you act on them.