Louisiana has a comprehensive taxation system that applies differently to corporations and pass-through entities. Corporations are subject to both franchise tax and corporate income tax, while S corporations, partnerships, LLCs, and LLPs are generally taxed at the individual level as pass-through entities. Each type of tax has defined filing requirements, due dates, penalty rules, and estimated payment provisions that businesses must follow.
This blog provides a detailed overview of Louisiana’s taxation structure, covering franchise tax, corporate income tax, and pass-through entity taxation. It also highlights the filing deadlines, extensions, and consequences of non-compliance.
Franchise Tax
Corporations or entities taxed as corporations for federal income tax purposes must file a Louisiana corporation franchise tax return if they meet any of the following conditions:
- Organized under Louisiana law
- Qualified to do business in Louisiana or actively conducting business in the state
- Exercising or continuing a corporate charter within the state
- Owning or using any corporate capital, plant, or property in Louisiana, whether directly or indirectly through partnerships, joint ventures, or other business organizations
Tax Rate
- For periods beginning before January 1, 2023: USD 1.50 per USD 1,000 (or fraction thereof) up to USD 300,000 of capital employed in Louisiana, and USD 3 per USD 1,000 (or fraction thereof) above USD 300,000.
- For periods beginning on or after January 1, 2023: USD 2.75 per USD 1,000 (or fraction thereof) of capital employed above USD 300,000.
- The initial corporation franchise tax is USD 110.
Filing Deadlines
- An initial return must be filed by the 15th day of the third month after the corporation first becomes liable.
- Franchise tax accrues on the first day of each accounting year, and the return for that period must be filed by the 15th day of the fifth month of that year.
Corporate Income Tax
Corporations are taxed on their net income at progressive rates:
- 3.5% on the first USD 50,000 of net income
- 5.5% on the next USD 100,000 of net income
- 7.5% on net income above USD 150,000
Filing Requirements
C corporations with income from Louisiana sources, or incorporated under Louisiana law, must file Louisiana Corporation Income Tax Return (Form CIFT-620). Even if a corporation has no net income, a return must still be filed if Louisiana income exists.
Due Date
Returns and payments are due on or before the 15th day of the fifth month following the close of the accounting period. If this date falls on a weekend or holiday, the deadline is extended to the next business day, with delinquency applying immediately thereafter.
Extension to File
If a corporation cannot file on time, it may receive an automatic six-month extension to November 15 if a federal extension was also requested.
Estimated Tax Payments
Corporations must make estimated tax payments if expected income tax liability (after credits) exceeds USD 1,000. Payments are made quarterly on April 15, June 15, September 15, and December 15, depending on when liability arises.
Penalty and Interest
- Failure to File: 5% of total tax due, capped at 25%.
- Failure to Pay: 5% of unpaid tax by the statutory deadline.
- Interest: 0.5417% per month, as specified in Form R-1111, until the tax is paid in full.
Pass through entity Tax
In Louisiana, S corporations, partnerships, LLCs, and LLPs are generally treated as pass-through entities. The entity itself does not pay tax at the business level. Instead, its income, deductions, and credits are reported by the individual shareholders or partners on their personal returns.
Tax Rates
S corporation net income is taxed at the following rates:
- 1.85% on the first USD 25,000
- 3.5% on the next USD 75,000
- 4.25% on income above USD 100,000
Filing Requirements
Individual shareholders and partners file Louisiana Individual Income Tax Return (Form IT-540) to report their share of the entity’s income, deductions, and credits.
Due Date
The standard due date is May 15 for calendar year taxpayers.
Penalty and Interest
- Delinquent Payment Penalty: 0.5% of unpaid tax per month or fraction thereof, up to 25%.
- Delinquent Filing Penalty: 5% per month, capped at 25%. If filed after the extended deadline, the maximum penalty is applied.
- Interest: Charged at 0.5417% per month until the balance is cleared.
Extension to File
Pass-through entities receive an automatic six-month extension to November 15. No separate paper or electronic form is required.
Estimated Tax Payments
Individual taxpayers must make estimated payments if their annual liability, after credits and withholdings, is USD 1,000 or more. Payments are made in four installments:
- April 15
- June 15
- September 15
- January 15 of the following year
Payments can be made electronically through the Louisiana Department of Revenue’s website or by mailing Form IT-540ES (Estimated Tax Declaration Voucher).
Louisiana’s taxation structure ensures corporations and pass-through entities comply with state revenue requirements through defined filing rules, progressive tax rates, and strict penalty provisions. Corporations face both franchise and income tax, while pass-through entities shift liability to individual taxpayers. Extensions provide flexibility, but penalties and interest charges underscore the need for timely compliance.
For businesses and individuals, staying aligned with Louisiana’s tax rules means more than avoiding fines—it provides predictability in financial planning and confidence in long-term operations.
