Louisiana recently cleaned up its tax setup considerably: the corporation franchise tax is fully repealed as of 2026, and the state has shifted to a flat personal income tax. Paired with a reasonable filing fee, it's turned into a more straightforward place to start a business than it used to be. The following covers each step of launching a business in Louisiana in 2026.
1. Which business structure fits you?
Before any filing happens, you need to settle on a legal structure.
- Sole proprietorship: the simplest option, with no filing to start and no legal separation between you and the business, which means personal liability for its debts.
- Partnership: two or more owners sharing a business without incorporating, and sharing the liability exposure that comes with it too.
- LLC: Louisiana's most common small-business structure, built specifically to wall off personal assets from business debts and lawsuits.
- Corporation (S-corp or C-corp): more filings and more formality, typically adopted once outside investors or multiple shareholders are involved.
If you want the fuller comparison, we cover it in our business structure guide.
LLCs and corporations register through GeauxBIZ, the Louisiana Secretary of State's business filing portal. Sole proprietorships and general partnerships skip this step entirely.
2. Register your business
Forming an LLC
To form an LLC in Louisiana, file Articles of Organization together with an Initial Report through GeauxBIZ. The state charges $100 for this, plus a small card-processing fee around $5 if you pay online, and turnaround runs 1 to 2 business days.
Louisiana LLCs need a registered agent with a physical in-state address who's reachable during business hours, whether that's you or a commercial provider you hire.
Louisiana law doesn't mandate an operating agreement, but skipping one, especially with more than one member, leaves decision-making and profit splits undefined until a dispute forces the question.
Sole proprietorships and DBAs
Sole proprietorships skip Articles of Organization entirely. A trade name still needs registering through GeauxBIZ, but that's a separate filing from anything related to LLC formation.
3. Get an EIN
Getting an EIN costs nothing and takes about a quarter hour through the IRS website. It's a prerequisite for opening a business bank account, bringing on staff, or filing most business tax paperwork, regardless of whether your single-member LLC has any employees at all.
4. Check licenses and permits
Louisiana has no blanket statewide business license either. Instead, requirements track your industry and parish: professional licensing for regulated occupations, a local occupational license in most parishes, and a sales tax certificate from the Department of Revenue if you're selling taxable goods or services. See our guides on professional licensing by industry and zoning laws for home businesses for more.
5. Understand Louisiana taxes
Since the 2025 tax year, Louisiana has taxed personal income at a flat 3%. Pass-through LLCs don't owe a franchise tax at all here, and starting with periods on or after January 1, 2026, the corporation franchise tax is gone entirely, repealed statewide. Electing corporate tax treatment for your LLC instead brings a flat 5.5% corporate income tax rate.
The state sales tax base is 4.45%, but parish and municipal layers add considerably more, putting combined rates past 9% in New Orleans and Baton Rouge and above 11% in some parishes.
6. Stay compliant
Louisiana ties the Annual Report deadline to your LLC's formation anniversary rather than a single statewide date, and it's filed with the Secretary of State each year for $30 by mail or $35 online. Skip it and the Secretary of State can revoke your LLC's authority to operate.
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 total 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%, in place since the 2025 tax year.
When is Louisiana's Annual Report due?
On the anniversary of your LLC's formation each year, costing $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, and over 11% in some parishes.
The numbers here reflect Louisiana Secretary of State and Department of Revenue guidance current as of 2026 and are subject to change, so confirm before you file. This isn't legal or tax advice. A Louisiana-licensed attorney or CPA can weigh in on your specific situation.