Louisiana Franchise Tax Filing Information

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 detailed information about franchise taxes on the Revenue Department's 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.

It’s worth noting that Louisiana is repealing its corporation franchise tax for taxable periods beginning on or after January 1, 2026. For periods ending before January 1, 2026, the information below still applies.

When is it due?

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.

How to calculate Louisiana Franchise Tax

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, the 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.

Penalties and interest

• Delinquent filing penalty: 5% of the tax for each 30 days or fraction thereof during which the failure to file continues (combined filing and payment penalties cannot exceed 25%)
• Delinquent payment penalty: 5% of the tax not paid for each 30 days or fraction thereof during which the failure to pay continues
• Interest: Accrues on all items of tax not paid by the due date at rates that vary year to year

Manage your Louisiana franchise tax notifications with Discern

Louisiana franchise tax calculations require a detailed analysis of capital employed in Louisiana and coordination with corporate income tax returns on Form CIFT-620. With the franchise tax being repealed effective January 1, 2026, businesses need to stay informed about transition requirements and final filing obligations.

Although Discern doesn't file Louisiana franchise taxes, we automatically notify you when Louisiana filings are due and provide guidance on requirements. For businesses with taxable periods ending before January 1, 2026, Discern helps track your final franchise tax obligations. 

Discern also provides registered agent services in Louisiana and across all 51 US jurisdictions. Ready to streamline your Louisiana compliance? Book a demo with Discern today.