StructureCost2026

Louisiana: what each business structure costs a year

At $100,000 profit, an LLC taxed as an S corp costs $4,878 a year less than a sole proprietorship in Louisiana. All figures are 2026 tax and fees.

$4,878 a year

less as an LLC taxed as an S corp than as a sole proprietorship in Louisiana, at these numbers. That includes the state's pass-through entity tax election.

More settings revenue, salary, filing status, payroll costs, PTET

Louisiana, 2026: $100,000 profit, single filer

StructureYearly costvs yoursTo set up
Sole proprietorship yours $24,768 $0
Itemized: $24,768
Self-employment taxirs.gov, 2026 rates$14,130
Federal income taxirs.gov, 2026 rates$8,235
State income taxdam.ldr.la.gov, checked Oct 23, 2026$2,403
Yearly cost$24,768
Single-member LLC $24,791 +$23 $125
Itemized: $24,791
Annual Reportstatic.sos.la.gov, checked Oct 23, 2026$35
Self-employment taxirs.gov, 2026 rates$14,125
Federal income taxirs.gov, 2026 rates$8,229
State income taxdam.ldr.la.gov, checked Oct 23, 2026$2,402
Yearly cost$24,791
LLC taxed as an S corp lowest $19,890 −$4,878 $125
Itemized: $19,890
Annual Reportstatic.sos.la.gov, checked Oct 23, 2026$35
Payroll tax on your salaryirs.gov, 2026 rates$6,232
Payroll service and tax return (estimate)$1,800
Louisiana pass-through entity tax, paid by the company (elected)legis.la.gov, checked Oct 23, 2026$1,650
Federal income taxirs.gov, 2026 rates$9,358
State income tax, after the PTET exclusiondam.ldr.la.gov, checked Oct 23, 2026$815
Yearly cost$19,890
S corporation $19,890 −$4,878 $95
Itemized: $19,890
Annual Reportstatic.sos.la.gov, checked Oct 23, 2026$35
Payroll tax on your salaryirs.gov, 2026 rates$6,232
Payroll service and tax return (estimate)$1,800
Louisiana pass-through entity tax, paid by the company (elected)legis.la.gov, checked Oct 23, 2026$1,650
Federal income taxirs.gov, 2026 rates$9,358
State income tax, after the PTET exclusiondam.ldr.la.gov, checked Oct 23, 2026$815
Yearly cost$19,890
C corporation $28,408 +$3,640 $95
Itemized: $28,408
Annual Reportstatic.sos.la.gov, checked Oct 23, 2026$35
Payroll tax on your salaryirs.gov, 2026 rates$6,232
Payroll service and tax return (estimate)$2,000
State corporate income taxrevenue.louisiana.gov, checked Oct 23, 2026$1,914
Federal corporate income tax (21%)irs.gov, 2026 rates$11,105
Federal income taxirs.gov, 2026 rates$5,054
State income taxdam.ldr.la.gov, checked Oct 23, 2026$2,068
Yearly cost$28,408
What these figures count
  • State income tax, and state taxes on the business itself: franchise, LLC, S corp, gross receipts and excise taxes.
  • Social Security and Medicare on both sides of an owner salary, federal unemployment tax and the state's new-employer rate.
  • The 20% qualified business income deduction with its income limits and the professional-service rule.
  • Yearly report fees, and a cost you can change for payroll and the business tax return.

Many S corp calculators leave out state taxes and the QBI deduction, which can make the election look better than it is.

When an S corp election pays in Louisiana

Electing S corp tax treatment for an LLC starts to pay in Louisiana at about $47,500 of profit, with the default salary and $1,800 a year for payroll and the extra tax return.

An S corp in Louisiana can elect to pay the state's income tax itself, a pass-through entity tax of 3%, and the owner gets that income left out of the personal return. The company deducts it on the federal return, so it is not held to the SALT cap. The calculator uses it when it lowers the totallegis.la.gov.

ProfitSole propLLCLLC as S corpC corp
$30,000$5,632$5,659$6,983$7,416
$50,000$10,741$10,767$10,412$12,308
$75,000$17,201$17,227$13,490$19,017
$100,000$24,768$24,791$19,890$28,408
$150,000$41,404$41,428$33,724$48,509
$200,000$58,621$58,648$48,340$67,791
$300,000$100,276$100,288$80,227$107,774

Single filer, no other income, revenue taken as 1.5 times profit, default salary. The lowest cost in each row is marked.

State fees and taxes in Louisiana

LLCCorporation
Filing to form$125Articles of Organization and Initial Report (Louisiana Limited Liability Company)$95Articles of Incorporation (Louisiana Business Corporation)static.sos.la.gov
Yearly reportAnnual Report, $35 a yearAnnual Report, $35 a yearstatic.sos.la.gov
Report dueAnniversary date of formationAnniversary date of incorporation

Not in the calculator: Parishes and municipalities levy occupational license taxes based on gross receipts and high combined local sales taxes; Louisiana has no local income tax. Not modelled.

Switching calculators for Louisiana

By profession in Louisiana

Questions

Is an S corp worth it in Louisiana?

On these figures, from about $47,500 of profit. At $100,000 an LLC taxed as an S corp costs $19,890 a year against $24,791 for a plain LLC, $4,901 less. The saving comes from paying Social Security and Medicare tax on a salary instead of on all profit.

How much does an LLC cost per year in Louisiana?

The state charges Annual Report, $35 a year. Forming one costs $125.

Does Louisiana recognise the S corp election?

Yes. The federal election carries over with no separate state form. Louisiana follows the federal S election; S corp income flows to owners. S corps and other pass-throughs may elect to be taxed at the entity level, not modelled.

What income tax does Louisiana charge?

Louisiana taxes personal income at a flat 3% (2026). C corporations pay 0% to 5.5% of net income.

How this page models Louisiana (2)

Sources checked 2026-10-23. Each figure links to the state or IRS page it comes from.

Other states