An LLC is a pass-through entity, which means that its earnings and losses are transferred to the owners’ individual tax returns. Federal income tax is not paid by the LLC itself. Louisiana, however, charges LLCs a franchise tax based on their gross sales. The minimum franchise tax is $10, and the rate is $110 for every $100,000 of revenue. What Louisiana Business Taxes Are Paid?
Businesses in Louisiana must pay state and municipal sales taxes, payroll taxes, and property taxes in addition to the franchise tax. The state sales tax in Louisiana is 4.45%, and depending on where you are, municipal sales taxes might be anywhere between 2.0% and 7.5%. Payroll taxes include the withholding of state and federal income taxes, Social Security and Medicare contributions, as well as unemployment insurance premiums. Local governments calculate property taxes based on the value of the property.
Yes, in order to keep their good standing, LLCs in Louisiana are required to submit an annual report to the Secretary of State and pay a $35 filing fee. By the anniversary of the founding of the LLC, the annual report is required. If the annual report is not submitted, the LLC may be administratively disbanded.
Since LLCs are pass-through businesses, as was already mentioned, they are not subject to federal income tax. However, if an LLC has workers or is subject to Louisiana’s franchise tax, it may be necessary to submit a separate tax return with the state. The Louisiana Partnership Return of Income (Form IT-565) is required for this return, which is due on the same day as the LLC’s federal income tax return.
The franchise tax, sales tax, payroll tax, and property tax are just a few of the taxes and fees that LLCs in Louisiana must pay. LLCs are pass-through businesses and do not pay federal income tax; nevertheless, the state of Louisiana may compel them to submit a separate tax return. LLCs must also submit an annual report and pay a fee to the Secretary of State in order to keep their good standing. Owners of LLCs should be aware of their tax responsibilities and seek the counsel of a licensed accountant or tax expert.
An LLC in Louisiana is required to file an annual report with the Secretary of State’s office in order to keep the LLC in good standing. The report contains details on the LLC, including its name and address, the names and addresses of its managers and members, and the kind of company it engages in. Along with the yearly report, there is a filing fee that needs to be paid.
Limited liability companies, or LLCs, are regarded as distinct legal entities from their owners. This implies that the LLC can do business independently of its owners’ personal affairs, possess property, and engage into contracts in their own names.