Corporate Tax Increase for Louisiana Businesses 2017

Starting on 1 January 2017 the State of Louisiana will impose new tax requirements for corporations operating in the state.

Under the new law LLC's will be treated and taxed in the same manner that they are treated and taxed for federal income tax purposes.

This new law imposes the franchise tax on corporations that own property in the state, either directly or indirectly through other related business entities including partnerships, joint ventures, or any other business organizations, including subsidiaries.

Every domestic corporation and every foreign corporation,  shall pay an annual tax at the rate of $1.50 for each $1,000 or major fraction thereof on the first $300,000 of taxable capital and at the rate of $3.00 for each $1,000, or major fraction thereof, which exceeds $300,000 of taxable capital.

Corporations are allowed to deduct investments in subsidiaries from it's franchise tax.

Every corporation or other entity subject to the franchise tax shall pay only an initial tax of $110.00in the first accounting period or fraction thereof in which it becomes subject to the tax levied herein.

The tax is first due immediately on the corporation's becoming taxable under this Chapter and is payable on or before the 15th day of the 3rd month after the month in which the tax is due.

Sources:
Louisiana House Bill 19

By Bill Williams