Louisiana is a beautiful state with a culturally rich history. The state is well known for its vibrant festivals, especially Mardi Gras, which draw in community members and tourists alike. 

Understanding the lay of the land before starting your business in Louisiana is wise. Looking at current business demographics can reveal valuable insights into thriving industries and which communities are succeeding.

The data provided below can assist you during the Louisiana business incorporation phase, helping you strategically position your new venture for growth in the state’s market.

Small businesses are very prominent in Louisiana, especially in specific industries such as tourism and technology. As of 2023, 99.5% of all Louisiana-owned companies are small businesses.

Women own a large portion of the businesses in Louisiana at 188,902 and co-own 22,938. While this is slightly less than the 243,735 male-owned businesses, the many women-owned firms show they can succeed in Louisiana. 

Veterans own 27,883 businesses and co-own 4,198 with non-veterans in Louisiana. Despite being in the minority of small business owners, veterans have unique experiences and discipline that can help them fill a niche in the market.

Hispanic people own 22,182 businesses in Louisiana, while non-Hispanic people own 432,550. While this number may seem small, Louisiana’s multicultural population creates a welcoming environment that helps Hispanic business owners grow their companies.

Racial minorities own 151,862 and co-own 1,793 businesses in Louisiana. This group also seems small compared to the 303,070 white and non-Hispanic-owned companies, but Louisiana’s strong small-business support helps them thrive.

What are the benefits of incorporating in Louisiana?

Louisiana can be a challenging place to incorporate. With its high tax rates and strict business regulations, many small businesses are discouraged from incorporating here. However, Louisiana also offers incentives and unique opportunities for new small businesses. This guide will help you avoid common incorporation mistakes and build your ideal business in Louisiana.

The state supports local small businesses through its many programs and incentives:

• The Small and Emerging Business Development Program offers small business owners the support they need to grow their businesses. The program provides managerial, technical, and developmental help and training.
• The Hudson Initiative helps small businesses get state contracts. These businesses will not be subject to extra charges for jobs under $25,000 and will have additional priority when selected for these positions.
• The Rural Entrepreneurship Initiative helps businesses in rural Louisiana with startup, operations, and business growth. The program involves online workshops with professionals and business growth planning.
• The Pathway to Assist Veteran Entrepreneurs offers veterans in Louisiana business training so they can create and operate their businesses.
• The Diversity in Entrepreneurship Initiative provides minority- and women-owned businesses extra support and helps them identify business strengths or weaknesses. This workshop aims to increase the growth rate and sustainability of these companies.

Business tax climate info stats
40	4.25%	7.50%	4.45%	7.00%	9.56%
Overall rank	Individual income tax	Corporate income tax rate	State sales tax rate	Maximum local sales tax rate	Combined state & average local sales tax rate

https://taxfoundation.org/location/louisiana/

Overview of business structures in Louisiana

Business structure	Management	Liabilities	Taxes
Sole proprietorship	The sole owner manages everything	Personal liability for business and debts	Taxed at personal tax rate or self-employment taxes
Partnership	Two or more owners share management	Partners are liable for debts and liabilities (Excluding limited partners)	Partners taxes separately on their share of the business income
LLC	Member-managed or manager-managed	Limited liabilities for members	Pass-through taxation (profits/losses reported on personal tax returns), or can elect to be taxed as a corporation
S corp	Board of directors, officers, and shareholders play a role in management	Limited liability on investments	Pass-through taxation (no corporate tax, profits reported on personal tax returns)
C corp	Board of directors, officers, and shareholders play a role in management	Limited liability on investments	Double taxation: the corporation pays corporate taxes, and shareholders pay taxes on dividends
Nonprofit	The board of directors and officers play a role in management	Limited liability for directors and officers	Tax-exempt status granted by the IRS; donations may be tax-deductible

S corp or C corp? Which is best for your business?

Choosing a proper business structure is essential for your business’s tax efficiency and long-term success. MaxFilings simplifies the key differences between S corps and C corps to help you make the best decision. Learn more

Want to incorporate in an area with lower tax rates?

Check out our guide on incorporating a business in Wyoming, a business-friendly state with no corporate income tax and plenty of small business support programs.

How to incorporate in Louisiana

Understanding state laws and which business structure you intend to incorporate is vital for the success of your business. Each business structure has different key steps in the incorporation process, so be sure to know which interests you. 

We highly recommend consulting a professional with legal or tax questions before incorporating.

If you’re ready to incorporate, MaxFilings offers services to help you through the process at no upfront cost.