Louisiana (LA) levies a 4.45% state sales tax, making it essential for businesses to understand collection and remittance obligations. As of 2026, the LLC filing fee is $100 with no annual franchise tax.
Economic Nexus in Louisiana
Remote sellers must collect Louisiana sales tax if they exceed $100,000 in annual sales or 200 transactions within the state. This threshold has been in effect since 2019-01-01. Marketplace facilitators like Amazon and Etsy are also required to collect and remit tax on behalf of third-party sellers. The Louisiana Department of Revenue enforces these provisions and provides registration guidance at https://revenue.louisiana.gov.
LLC Formation in Louisiana (2026)
Forming an LLC in Louisiana costs $100 for the initial filing. There is no annual franchise tax, keeping ongoing costs low. The annual report fee is $35. Louisiana imposes a state income tax, which affects pass-through LLC taxation.
The process involves filing Articles of Organization with the Secretary of State, obtaining a federal EIN, and registering for applicable state tax accounts. You will also need a sales tax permit from the Louisiana Department of Revenue.
Key Tax Rules
• Louisiana has a 4.45% state sales tax rate.
• Local parishes can add up to 7%, creating some of the highest combined rates in the US.
• Louisiana has a unique dual sales tax system with state and local administered separately.
• Economic nexus: $100,000 in sales or 200 transactions.
Sales Tax Exemptions
The following categories are generally exempt from sales tax in Louisiana: groceries (reduced rate), prescription drugs, medical devices. Businesses should maintain proper documentation for exempt transactions.