Understand Your Louisiana Tax Responsibilities
Whether you're launching a new business, purchasing an existing business, or expanding your operations, understanding your Louisiana tax responsibilities from the beginning can help you avoid costly mistakes.
This page provides an overview of common tax requirements and resources available through the Louisiana Department of Revenue.
Getting Started
New businesses should register through geauxBIZ, which allows you to register with the Louisiana Secretary of State, the Louisiana Department of Revenue, and other participating state agencies through a single application.
Register with geauBiz
Before You Open for Business
Starting a business is an exciting milestone, but taking the right steps before you open can help you avoid unnecessary delays, penalties, and compliance issues.
Keep These Important Tips in Mind
Do NOT
- Do NOT use another business's Louisiana Revenue Account Number (Tax ID) or tax accounts.
- Do NOT collect Louisiana sales tax unless you are registered and legally required to do so.
- Do NOT register for Louisiana withholding tax until you actually have employees and are required to withhold Louisiana income tax from their wages.
- Do NOT ignore notices from the Louisiana Department of Revenue. Promptly responding to notices can help prevent penalties, interest, and collection actions.
Do
- Do keep accurate records of your sales, purchases, payroll, and tax filings. Good recordkeeping makes filing returns easier and can help resolve questions if your account is reviewed.
- Do register for the tax accounts required for your business before you begin operating.
- Do create a LaTAP account to manage your business tax obligations online.
- Do ask questions if you're unsure of your tax responsibilities. We're here to help.
Starting a New Business
Before opening your doors, consider these important tax responsibilities.
Register for the Correct Tax Accounts
Depending on your business activities, you may need to register for one or more of the following tax accounts:
- Sales Tax
- Withholding Tax
- Corporation Income Tax
- Partnership Tax
- Fiduciary Income Tax
- Consumer Use Tax
- Excise Taxes
Register with geauBiz
Determine if You Need Additional Permits or Licenses
Some businesses require permits or licenses administered by the Louisiana Department of Revenue or other state agencies.
Examples include:
- Alcohol
- Tobacco
- Vapor Products
- Motor Fuel
- Severance Taxes
Set Up Your Online Tax Account
Create a LaTAP account to:
- File tax returns
- Make payments
- View balances
- Receive notices electronically
- Manage your business tax accounts
Access LaTAP
Buying an Existing Business
Buying an existing business can also mean inheriting tax problems if you are not careful.
Before completing the purchase, take steps to determine whether the business has satisfied its Louisiana tax obligations.
Protect Yourself from Successor Liability
Louisiana law may hold the purchaser of a business responsible for certain unpaid taxes owed by the previous owner.
Before purchasing a business, you should:
- Ask whether all required Louisiana tax returns have been filed.
- Request documentation showing taxes have been paid.
- Determine whether any outstanding tax liabilities exist.
- Request a Tax Clearance from the seller, if available.
- Consult your attorney, accountant, or tax professional before closing the transaction.
Important — Do NOT
- Do NOT use the seller's Louisiana Revenue Account Number (Tax ID).
- Do NOT file returns using the seller's tax accounts.
- Do NOT make tax payments using the seller's account.
- Do NOT assume existing Louisiana tax accounts transfer with the sale of the business.
Instead
After purchasing the business:
- Register your own Louisiana tax accounts.
- Establish your own LaTAP account.
- Update ownership information with the Louisiana Department of Revenue.
- Begin filing and paying taxes under your business's account.
Learn About Successor Liability
Request a Tax Clearance from the Seller
A Tax Clearance may help identify whether a business has satisfied certain Louisiana tax obligations before the sale is completed.
Hiring Employees
If you hire employees, you may have additional Louisiana tax responsibilities.
You may need to:
- Register for Louisiana withholding tax.
- Withhold Louisiana income tax from employee wages, when required.
- File withholding tax returns.
- Remit withheld taxes to the Louisiana Department of Revenue.
- Submit required wage reports.
- Maintain payroll records.
Important
Do NOT register for a Louisiana withholding tax account until you actually have employees and are required to withhold Louisiana income tax from their wages. Registering too early may create unnecessary filing requirements, even if no tax is due.
Withholding Tax LaWage
Collecting Sales Tax
If your business sells taxable goods or services in Louisiana, you may be required to register for a sales tax account and collect sales tax from your customers.
You may need to:
- Register for a Louisiana sales tax account.
- Collect the appropriate state and local sales taxes.
- File sales tax returns.
- Remit taxes collected by the required due date.
- Maintain records supporting your sales and exemptions.
Important
Do NOT register for a Louisiana sales tax account unless your business is required to collect Louisiana sales tax. Registering too early—or when your business only sells non-taxable goods or services—may create unnecessary filing requirements, even if no tax is due.
You generally need to register if you:
- Sell taxable goods at retail in Louisiana.
- Sell taxable services.
- Lease or rent taxable tangible personal property.
- Meet Louisiana's economic nexus requirements for remote sellers.
- Otherwise, have a legal obligation to collect Louisiana sales tax.
Manage Your Business Tax Account
As your business grows, keep your tax account information current.
Notify LDR if you:
- Change your business or mailing address.
- Change ownership or responsible parties.
- Add or discontinue tax accounts.
- Close your business.
LaTap, state, or local agencies
