Louisiana · LLC tax election
Louisiana LLC: S corp or C corp?
Louisiana overhauled its corporate and personal taxes in 2025, and S corporations are in the middle of it.
See Louisiana at a glanceShort answer
Louisiana taxes a C corporation at a flat 5.5% and individuals at a flat 3%, and it repealed the corporation franchise tax starting 2026. S corporations file Form CIFT-620 and can elect a 3% entity-level pass-through tax. The S question here is more about how Louisiana treats your return than about the rate.
Last checked .Louisiana at a glance
| Question | Louisiana |
|---|---|
| S election recognized? | Partly: Louisiana does not treat S corporations like the IRS for all purposes, and some must file a Louisiana corporation return.1 |
| Separate state form and deadline | Form CIFT-620 (corporation income and franchise tax return)2 |
| Tax the S corp itself pays | Only if the S corp elects Louisiana's 3% pass-through entity tax.3 |
| C corp rate and minimum | 5.5% flat4 |
| Personal income tax | Yes, on wages and pass-through income5 |
What is different about Louisiana?
Louisiana changed more than most states did. Since 2025 a C corporation pays a flat 5.5% instead of graduated brackets, individuals pay a flat 3%, and the corporation franchise tax is gone for periods starting January 1, 2026. That last one matters: the franchise tax used to hit S and C corporations alike. What is left is a quirk. The Department of Revenue says S corporations file Form CIFT-620, and an S corporation can elect to pay Louisiana tax at the entity level at 3%. So you do not just flip a federal switch. Your S corporation's filing path, and whether to elect, deserve a short look before you commit.
Does Louisiana recognize a federal S corp election?
Louisiana's Department of Revenue says it does not treat S corporations the same way as the IRS for all purposes, and that S corporations may be required to file a Louisiana corporation income tax return, Form CIFT-620. An S corporation can elect to pay tax at the entity level, which Louisiana taxes at 3% for periods starting in 2025 or later. With the election, shareholders exclude that income. Confirm with the Department how your return is treated.
Does my LLC need a separate Louisiana election or form?
Louisiana's Department of Revenue says S corporations may be required to file a Louisiana corporation income tax return and points to the Form CIFT-620 instructions.2
What does Louisiana tax an S corp or LLC at the entity level?
Is a Louisiana LLC taxed as a C corp ever better?
A Louisiana C corporation pays a flat 5.5% on income for tax periods beginning on or after January 1, 2025. The old graduated brackets are repealed. The franchise tax, which used to be a second corporate charge, is repealed for periods beginning January 1, 2026. Dividends are taxed again on your return at 3%.
Run your Louisiana numbers
With a 5.5% corporate rate and a 3% personal rate, the gap on profit you take out is the difference between those two numbers, plus federal payroll savings. The 2026 franchise tax repeal removed an old cost from both entity types. The election and CIFT-620 filing work is the real overhead to weigh.
Result
How much would a Louisiana LLC owner save as an S corp?
| Taxed as | At $80,000 profit | At $150,000 profit |
|---|---|---|
| Default LLC | $11,304self-employment tax $11,304 | $21,194self-employment tax $21,194 |
| S corp | $9,344payroll tax $7,344 + Louisiana S corp tax $0 + $2,000 payroll and prep | $15,770payroll tax $13,770 + Louisiana S corp tax $0 + $2,000 payroll and prep |
| C corp | $17,454payroll tax $7,344 + Louisiana tax $1,760 + federal $6,350 + $2,000 payroll and prep | $30,977payroll tax $13,770 + Louisiana tax $3,300 + federal $11,907 + $2,000 payroll and prep |
Assumes a 60% salary8 and a single filer. Income tax is left out. C corp dividends are taxed again. Louisiana's 3% entity tax applies only if the S corp elects it, so it is left out. We could not confirm on an official Louisiana source whether a default LLC pays an entity-level tax, so none is shown.
When is the Form 2553 deadline for a Louisiana LLC, and what if I miss it?
Late relief: federal steps, deadline guide.
What to do next
How to start one, or have us form it from $123.75.
Registered agent $74.25/yr, annual report.
LLC vs S corp guide, election deadline, Form 2553 filed for $165.
More on Louisiana: How to start a Louisiana LLC · How to start a Louisiana corporation · Louisiana LLC cost · Louisiana annual report · Annual report late fees by state
File the S-Corp Election for your Louisiana LLC
We file Form 2553 for a flat $165.
Get the S-Corp ElectionCommon questions
What is the Louisiana corporate income tax rate?
A flat 5.5% for tax periods beginning on or after January 1, 2025. The graduated brackets that applied before have been repealed.
Did Louisiana repeal the corporation franchise tax?
Yes. The Department of Revenue says it has been repealed for franchise tax periods beginning on or after January 1, 2026.
Does a Louisiana S corporation file a corporate return?
The Department of Revenue's guidance says S corporations file Form CIFT-620. Check the current instructions for what your corporation reports.
What is Louisiana's pass-through entity election for S corporations?
An election to pay Louisiana income tax at the entity level. The rate is 3% for periods starting in 2025 and later.
What is the Louisiana individual income tax rate?
A flat 3% for tax periods beginning on or after January 1, 2025.
Sources 9 links, checked Nov 6, 2026
- Louisiana does not treat S corporations the same way as the IRS for all purposes, and S corporations may be required to file a Louisiana corporation income tax return. revenue.louisiana.gov, checked Nov 6, 2026
- Louisiana's Department of Revenue says S corporations may be required to file a Louisiana corporation income tax return and points to the Form CIFT-620 instructions. revenue.louisiana.gov, checked Nov 6, 2026
- An electing Louisiana S corporation pays the pass-through entity tax at 3% for periods starting in 2025 or later. revenue.louisiana.gov, checked Nov 6, 2026
- Louisiana taxes C corporation income at a flat 5.5% for periods beginning on or after January 1, 2025. revenue.louisiana.gov, checked Nov 6, 2026
- Louisiana taxes individuals at a flat 3% for 2025 and later. revenue.louisiana.gov, checked Nov 6, 2026
- Louisiana repealed its corporation franchise tax for periods beginning on or after January 1, 2026. revenue.louisiana.gov, checked Nov 6, 2026
- IRS: Form 1120 instructions, C corp rate irs.gov, checked Nov 6, 2026
- IRS: S corp reasonable compensation irs.gov, checked Nov 6, 2026
- IRS: Form 2553 instructions irs.gov, checked Nov 6, 2026
Last verified Nov 6, 2026.
This page explains the rules; it is not tax advice. Run your numbers with a CPA or enrolled agent before you elect.
Last verified Nov 6, 2026.