Louisiana sits in the American South, where the Mississippi River flows into the Gulf of Mexico, with 550 kilometers of coastline. To the west, the Sabine River forms a natural border with Texas. Arkansas lies to the north and Mississippi borders the “Pelican State” to the east. Water covers 15 percent of its roughly 130,000 km². Baton Rouge is the capital of a state that 4.7 million people call home.
Louisiana's business climate brings together a long list of competitive advantages, from tailored workforce training and low operating costs to outstanding infrastructure. That makes the “Pelican State” an ideal place for your business to succeed. Little wonder Louisiana has ranked in the top ten for best business climate in the US with Area Development, Development Counsellors International and Site Selection alike.
A top business location
In 2016, KPMG's “Competitive Alternatives” study rated the overall cost competitiveness of more than 100 cities in ten countries. Louisiana came out as the US state with the lowest costs for businesses. The report looks at location-dependent costs such as taxes, labor, buildings, transport and distribution, and utilities. Three Louisiana cities made the top 4 locations in the southeastern US: Shreveport (No. 1), Baton Rouge (No. 2) and New Orleans (No. 4).
Glen Post, CEO of CenturyLink from 1992 to 2018, sees Louisiana as a great place to do business and expects it to become even more attractive in the future.
In 2015, the Tax Foundation and KPMG published “Location Matters”, a comparison of the combined state and local business tax burden for different types of companies. For many of them, Louisiana ranks among the ten cheapest locations in the country.
A state that backs you
Louisiana's officials won people over by removing obstacles, cutting red tape and offering genuinely useful support. Louisiana was the right location for Benteler Steel, said Matthias Jäger, its managing director from 2012 to 2016.
He is not alone. Louisiana values business investment, and any company that wants to invest in the state can count on innovative solutions that meet its needs. The “Pelican State” is happy to help, whether with site selection, workforce development or permits.
Louisiana also stays competitive through lucrative incentives. A wide range of programs can be combined into competitive incentive packages for new and existing businesses.
The most engaged workforce in the country
Louisiana ranks first in the nation for workforce engagement, and its pool of highly skilled workers keeps growing. The state has invested in new and modernized training facilities at its colleges, and university computer science and engineering departments have received close to $40 million.
Ron Sedley, owner of RonpakAnnouncements, backs up that ranking: his company experienced the excellent workforce first hand and felt how proud people are of their work.
Louisiana also offers LED FastStart®, named the nation's leading workforce development program by Business Facilities nine years in a row. FastStart builds tailored solutions for recruiting, selecting and training staff, so companies have highly skilled, trained workers from day one, all at no cost to the company.
Income tax in Louisiana
Since January 1, 2025, Louisiana has levied a flat income tax of 3%. On top of that, federal income tax applies.
Corporate tax in Louisiana
Louisiana levies a corporate tax of 5.5% (a flat tax since January 1, 2025). On top of that, federal corporate tax applies.
Sales tax in Louisiana
The USA has no VAT on the European model. Instead, states, counties and municipalities levy a local sales tax on the sale of goods (but not services).
Louisiana sales tax rate
Since January 1, 2025, Louisiana's state sales tax has been 5%. Local governments and parishes add around 5% on average.
Louisiana nexus laws & sales tax
Learn more about economic nexus laws and sales tax.
Effective date
July 1, 2020
Included transactions:
Gross revenue from sales of products, electronically delivered products or services into the state
Treatment of exempt sales:
Exempt sales and exempt services count toward the threshold
Trigger:
Sales or transactions
Sales/transaction threshold:
$100,000 or 200 transactions
Evaluation period:
The threshold applies to the previous or current calendar year
Additional information:
- Registration requirements: Louisiana requires remote sellers to register within 30 days of crossing the economic nexus threshold in order to collect and remit sales and use tax. For details, see Information Bulletin No. 20-002.
- Remote seller bulletin
- HB547
- Louisiana Sales and Use Tax on Remote Sales, FAQ
Louisiana marketplace sellers & sales tax
Learn more about registration requirements for marketplace sellers
Effective date for marketplace facilitators:
Economic nexus threshold:
More than $100,000 in sales into Louisiana or at least 200 separate transactions in the current or previous calendar year. When calculating the threshold:
- Remote sellers should exclude sales made through a marketplace
- Marketplace facilitators should include all sales made through the marketplace
Registration requirements:
- Remote multichannel sellers: Once you cross the economic nexus threshold, you must register with the Louisiana Sales and Use Tax Commission for Remote Sellers (Commission) within the Department of Revenue (DOR) and collect Louisiana sales tax on sales not taxed by a marketplace facilitator.
- Remote marketplace sellers: You must register with the Commission once you cross the economic nexus threshold. Contact the Commission for more information.
- In-state multichannel sellers: You must register with the DOR and collect tax on sales not taxed by a marketplace facilitator.
- In-state marketplace sellers: You may need to register. Contact the DOR for more information.
- Learn more here.
Compare every state profile in our overview of US states, and get started in practice with the guide to forming a company in the USA. Which states suit a tax-free US LLC? Our sister site www.zerotax.llc shows you.
Our services for Louisiana:
From choosing the right entity to getting your EIN: everything a US formation involves is under US Company Formation. We'll map out your route to Louisiana together in a consultation.