Who Must File Louisiana Franchise Tax Return?

Every domestic or international corporation doing business in Louisiana is required to submit a Louisiana franchise tax return. The privilege of conducting business in Louisiana is subject to this tax. The sum of a corporation’s capital stock, surplus, and undivided profits is used to determine the franchise tax. In Louisiana, the franchise tax rate is $1.50 per $1,000 or fractional part thereof on the first $300,000 of capital and $3.00 per $1,000 or fractional part thereof on capital above $300,000. These rates will be in effect as of 2021.

Yes, you must still submit a Louisiana franchise tax return even if your corporation had no income during the tax year. However, you can be qualified for a $10 minimum franchise tax exemption. Your corporation must have had no revenue or activity throughout the tax year in order to be eligible for this waiver.

You must submit a Statement of Change of Registered Office or Registered Agent form to the Louisiana Secretary of State in order to modify your registered agent in Louisiana. There is a $25 filing fee and the form can be submitted either online or by mail. The name and address of your new registered agent must also be provided.

In most circumstances, a business license is required to operate in Louisiana. Depending on your industry and location, you may need a certain kind of license. For instance, if you are running a restaurant, you will require both a liquor license from the Louisiana Office of Alcohol and Tobacco Control and a food service permit from the Louisiana Department of Health. To find out which exact licenses and permissions your company requires, contact the Louisiana Secretary of State’s office.

The IRS doesn’t charge anything to obtain a tax identification number, sometimes called an Employer Identification Number (EIN). However, there can be a cost if you need to get a state tax ID number in Louisiana. For instance, the Louisiana Department of Revenue levies a $75 cost on new businesses to get a state tax ID number. Be careful to check with the Louisiana Secretary of State’s office to find out if your business needs a state tax ID number because not all businesses are required to have one.