Louisiana lesson 5 of 6
Louisiana LLC taxes, licenses and parish-level obligations
Louisiana repealed its franchise tax on LLCs, which removed a recurring cost that used to apply regardless of profit. Members of a pass-through LLC are instead taxed on their share of income, and local licensing runs through the parish where you operate.
How members are taxed
A Louisiana LLC taxed as a partnership or sole proprietorship for federal purposes passes income through to its members, who report their share on their Louisiana individual income tax return. Confirm the current flat individual rate on the Department of Revenue's site each filing season, since Louisiana restructured its individual income tax to a flat rate in recent years and the exact figure is set by statute that can be revised.
An LLC that elects C corporation tax treatment instead files a Louisiana corporation income tax return and pays the state's corporate income tax rate on Louisiana taxable income; check the current rate and any graduated brackets on the Department of Revenue's corporation tax page.
Parish-level occupational licenses
Louisiana's local governments are organized as parishes rather than counties, and many parishes and the municipalities within them require their own occupational license or local business permit before you operate, priced and administered independently of the state filing. Check with the parish where your LLC operates, since requirements and fees are set locally rather than through the Secretary of State.
Certain professions also require a state board license, for example in construction, healthcare or cosmetology, which is separate from both the Secretary of State filing and any parish occupational license.
Do not assume that filing with the Secretary of State and the Department of Revenue covers local requirements. Parish and municipal occupational licenses in Louisiana are a genuinely separate step.
Key takeaways
- Louisiana's LLC franchise tax has been repealed; only a C-Corp election pays Louisiana corporate income tax.
- Pass-through members pay Louisiana's individual income tax on their share of LLC profit.
- Check parish and municipal occupational license requirements separately from state filings.
Frequently asked questions
Does Louisiana still charge LLCs a franchise tax?
No. Louisiana repealed the franchise tax on LLCs. Only an LLC that elects C corporation tax treatment pays Louisiana corporate income tax.
What is a parish occupational license?
It is a local license or permit required by many Louisiana parishes and municipalities to operate a business, administered and priced separately from anything filed with the Secretary of State.
Official sources
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Last reviewed: September 2026 - reviewed by Gullia Filing Legal & Formation Team