Louisiana simplified its tax setup recently: the corporation franchise tax is fully repealed as of 2026, and the state moved to a flat income tax. Combined with a reasonable filing fee, it's become a more straightforward state to start a business in than it used to be. Here's what it takes to start a business in Louisiana in 2026.
1. Which business structure fits you?
Before you file anything, it helps to know what you're actually choosing between.
- Sole proprietorship. No filing required to start, and you and the business are legally the same entity. Simple, but you're personally liable for whatever the business owes.
- Partnership. Two or more people running a business together, with the same liability exposure as a sole proprietorship, just split across partners.
- LLC. The most common structure for small businesses in Louisiana. It separates your personal assets from the business's debts and lawsuits.
- Corporation, either S-corp or C-corp. More paperwork and more formality, usually worth it once you're bringing on investors or multiple shareholders.
For a deeper comparison, see our guide on choosing a business structure.
LLCs and corporations register with the Louisiana Secretary of State through the GeauxBIZ portal, the agency that handles business filings statewide. Sole proprietorships and general partnerships don't register there.
2. Register your business
Forming an LLC
You form an LLC in Louisiana by filing Articles of Organization along with an Initial Report through GeauxBIZ. The filing fee is $100, and online card payments add a small processing fee, typically around $5. Online filings process in 1 to 2 business days.
Every LLC needs a registered agent with a physical Louisiana address, available during business hours. You can act as your own agent, or hire a commercial service.
Louisiana doesn't require an operating agreement by law, but it's still worth writing one, particularly for multi-member LLCs, to spell out how decisions and profits get split.
Sole proprietorships and DBAs
Sole proprietorships don't file Articles of Organization. If you're operating under a trade name, you'll register it through GeauxBIZ as well, though it's a separate filing from LLC formation.
3. Get an EIN
An Employer Identification Number is free straight from the IRS and takes about 15 minutes online. You'll need one to open a business bank account, hire anyone, or file most business tax forms, even if you're a single-member LLC with no employees.
4. Check licenses and permits
Louisiana doesn't issue a single general statewide business license either. What you need depends on your industry and parish: professional licensing for regulated fields, a local occupational license in most parishes, and a sales tax certificate from the Department of Revenue if you sell taxable goods or services. Our guides on professional licensing by industry and zoning laws for home businesses cover more of this.
5. Understand Louisiana taxes
Louisiana moved to a flat personal income tax of 3% starting with the 2025 tax year. Pass-through LLCs owe no separate franchise tax; Louisiana's corporation franchise tax is repealed entirely for periods beginning on or after January 1, 2026. If your LLC elects corporate treatment, the corporate income tax rate is a flat 5.5%.
Sales tax starts at a 4.45% state base, with parish and municipal taxes adding substantially on top, pushing combined rates past 9% in cities like New Orleans and Baton Rouge, and over 11% in some parishes.
6. Stay compliant
Every Louisiana LLC files an Annual Report with the Secretary of State, due on the anniversary date of your formation each year, not a fixed statewide date. The fee is $30 by mail or $35 online. Missing it can lead the Secretary of State to revoke your LLC's authority to do business.
Louisiana business costs at a glance
| Item | Cost |
|---|---|
| Articles of Organization + Initial Report (LLC) | $100 |
| Annual Report (every year, on formation anniversary) | $30 mail / $35 online |
| Registered agent service (optional) | $100 to $300/year |
| EIN | Free (IRS) |
| State income tax | 3% flat |
| State sales tax | 4.45% + local, up to ~11% |
Frequently asked questions
Is Louisiana's corporation franchise tax still in effect?
No, it's fully repealed for periods beginning on or after January 1, 2026.
How much does it cost to form an LLC in Louisiana?
$100 for Articles of Organization plus an Initial Report, processed in 1 to 2 business days online.
What's the personal income tax rate in Louisiana?
A flat 3%, effective starting with the 2025 tax year.
When is Louisiana's Annual Report due?
On the anniversary date of your LLC's formation each year, for $30 by mail or $35 online.
How high is sales tax in Louisiana?
A 4.45% state base, with parish and municipal taxes pushing combined rates past 9% in cities like New Orleans and Baton Rouge, over 11% in some parishes.
Fees and rates above come from the Louisiana Secretary of State and Department of Revenue as of 2026, and they do change over time, so double check before you file. None of this is legal or tax advice. Talk to a Louisiana-licensed attorney or CPA about your specific situation.