All corporate entities in Louisiana are required to file an income tax return unless the Internal Revenue Service (IRS) has classified them as exempt from doing so. The taxes that corporate entities in the state are required to pay vary depending on the net income that they generate. While each is required to submit an annual return, many have to file initial ones in the months after they begin operating.
Businesses in Louisiana are required to pay taxes using a graduated scale depending on how much they make.
The first $25,000 of net income that a company generates is taxed at 4 percent, whereas the next $25,000 is assessed at 5 percent tax. The next $50,000 that a business makes is taxed 6 percent and the next $100,000 is assessed a 7 percent rate. Any additional $200,000 in revenue that a company generates beyond the aforementioned is assessed an 8 percent tax.
Most newly formed Louisiana corporations are required to file an initial tax return by the 15th day of the third month after their accounting period closes. They must file an annual return by the 15th day of the fifth month of the accounting year as well. Existing ones must file this by the 15th of the fourth month.
Louisiana Department of Revenue Code R.S. 47:287.654 also requires any business that expects to make in excess of $1,000 or more in a year to pay an estimated tax by the 15th of the month after receiving payment.
A business may have to pay anywhere from 25 or more percent of what they generate. If any overages are found to have been paid, then that amount can be counted toward future installments or refunded.
Much like IRS codes, Louisiana Department of Revenue codes often change from year to year. How much you owe and when you have to make a payment is greatly affected by when and how your Lafayette company is incorporated. A knowledgeable attorney can advise you of what to do so that you remain in compliance with local, state and federal laws.