Wed 03 Feb 2016 | By:

Louisiana Business Taxes: Everything You Need to Know

Small Business Taxes

As an entrepreneur officially starting a business in Louisiana, taxes are a way of life. You cannot operate a business legally if you do not pay your Louisiana business tax obligations to the federal, state, and even local levels. There are various kinds of Louisiana business taxes as well, and this depends on several factors.

From the nature of your business to the type of structure you are forming (LLC, Corporation, DBA, etc) to even the kind of transactions your business engages in. All these will have a bearing in the tax requirements you are obligated to complete. If you do not want to incite trouble as a new entrepreneur, the securing the necessary requirements for these different tax types should be your priority.

This guide will help accomplish this priority by providing you with a simple manual on the common tax types most applicable to businesses within the state of Louisiana. In keeping with the requirements for these taxes, you will be able to breathe easier knowing that the IRS and state government will not be breathing down your neck.


Louisiana Business Income Tax

There is a Louisiana Business Income Tax in effect in the state with marginal rates that are categorized based on taxable net income. Aside from this tax, there is also a Louisiana franchise tax in effect. What makes the state different from other states when it comes to tax policies is that it imposes both of these taxes for S Corporations as well.

In addition to these, when business income personally goes through you, this income is also subject to taxes through your individual state tax return.


Louisiana Federal Tax Forms and Publications

As a precaution, learn to use the federal tax forms found only in Louisiana’s Department of Revenue website or office. Although there are many sources online where you can download forms for your various state taxes, sticking to the ones provided by the state’s Revenue Department will ensure that you are using the official document.

Also, Louisiana tax publications are periodically published, so make it a habit to check if this has any bearing in the business tax requirements you are complying.


Unemployment Insurance Tax

As an entrepreneur with chances of hiring employees in the future, you are also compelled to complete the requirements for the Louisiana Unemployment Insurance. This unemployment insurance tax benefits employees who have been laid off and are jobless though not of their own accord or doing. Depending on the governing criteria, your business startup might be required to process this requirement.


Louisiana Sales and Use Tax

Louisiana Sales and Use Tax are in effect within the state. Sales Tax covers the sale of goods and rendered services. The standard rate for Sales Tax is 4%. On the other hand, a Use Tax applies if goods are purchased outside of the state; hence, it was not charged properly with Sales Tax.


A Tool That Make a Difference in your Louisiana Business Tax Life

With the plethora of startup resources available nowadays, fulfilling your Louisiana business tax requirements should also be made easier and more convenient with the help of tools and resources. To file for business tax requirements, you are not only taking on more paperwork, but there are also those financial reports, accounting books, and other supporting documents to file your tax returns correctly.

That is where a small business accounting software comes in handy.

Startup Tools and ResourcesSmall business accounting tools such as XeroFreshBooks, and QuickBooks are effective applications to use for a more convenient compliance of your Louisiana business taxes.

From features that help you automate financial report generation, payroll generation, and bookkeeping tasks, these software are purposely designed for small business enterprises. Each of these applications also have its strong suites to keep your finances under control.

This guide is not a legal document nor a tax advice. It is written explicitly for informational purposes only. If you have questions on Louisiana business taxes or starting a business in Louisiana in general, always seek the services of a lawyer.

About Ryan James

Half hardworking hermit, half avid adventurer, Ryan founded Startup Savant to simplify entrepreneurship and pay it forward by donating a portion of all revenue to support children's education via