Corporations and LLCs taxed as Corporations deriving income from Louisiana sources must file Franchise Taxes in Louisiana, regardless of profitability or income tax liability. Louisiana has a short summary of its franchise tax on its website.
Louisiana Franchise Tax is typically filed by a tax accountant due to the detailed financial information required, and because it’s filed annually as part of your Louisiana Form CIFT-620, Louisiana Corporation Income and Franchise Tax return.
There are two returns to keep in mind: the initial return (2024 form) and an annual return (part of the income tax form, which can be filed electronically or via your tax preparer).
Initial return: must be filed on or before the 15th day of the third month after the corporation first “becomes liable”, which is when it initially registers with the Secretary of State.
Annual return : Louisiana corporation franchise tax accrues on the first day of each accounting year, and the return for that period must be filed on or before the 15th day of the fifth month of that accounting year.
The initial corporation franchise tax is $110, unless it’s late, then penalties and interest apply (the 2024 Form for the Initial Return has instructions).
On subsequent franchise tax filings, Louisiana Franchise Tax is based on the amount of capital employed in Louisiana. “Form CIFT-620, Louisiana Corporation Income and Franchise Tax return” has several schedules to help you calculate the factors in your tax due.
In simple terms, for periods beginning on or after January 1, 2023, tax owed equals $2.75 for each $1,000 or major fraction thereof in excess of $300,000 of capital employed in Louisiana.
