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S-corp election in Louisiana

In short

For periods beginning on/after 1/1/2026: no Louisiana corporation income tax on the S corp and no franchise tax (repealed). An informational CIT-620 is still mandatory and must be e-filed.

Does Louisiana recognize the federal S election?

BRAND-NEW as of tax year 2026 — Louisiana flipped from one of the worst S-corp states to a conforming one. Act 382 of the 2025 Regular Legislative Session amended La. R.S. 47:287.732 so that "As of January 1, 2026, Louisiana (La. R.S. 47:287.732) now recognizes S corporations as flow-through entities consistent with federal income tax treatment. This means all income, losses, deductions, and credits automatically pass through to shareholders—no election is needed." Before 2026 Louisiana taxed S corps as C corporations, with an optional "S corporation exclusion" election under R.S. 47:287.732(B) — that whole regime is dead for 2026. Act 382 also makes QSubs automatically disregarded for Louisiana purposes, matching federal, with no election. The change is effective for income tax periods beginning on or after January 1, 2026, including short periods beginning on or after that date. IMPORTANT: the S corp still must file Form CIT-620 — as an INFORMATIONAL return, electronically.

Tax the entity still owes

Corporation income tax: for taxable periods beginning on or after January 1, 2026 an S corporation "must file an informational return instead of paying corporation income tax" (RIB 25-032). Shareholders calculate and pay on their own IT-540/IT-541. Louisiana's corporate rate, which now only reaches an S corp that affirmatively elects entity-level treatment, is a flat 5.5% for periods beginning on/after 1/1/2025 with a $20,000 corporate standard deduction. Franchise tax: "The Louisiana corporation franchise tax has been repealed for franchise tax periods beginning on or after January 1, 2026" (LDR). Estimated payments: "Since S corporations are no longer subject to corporation income tax, estimated payments are no longer required from the S corporation" — voluntary only if a composite return is expected (Form CIT-620ES).

Registering for payroll

(1) Withholding: register a Louisiana withholding tax account with the Louisiana Department of Revenue via geauxBIZ or LaTAP (Form R-16019 / CR-1 Application for Louisiana Revenue Account Number); then file Form L-1 quarterly returns and Form L-3 annual reconciliation with W-2s. (2) Unemployment insurance/SUTA: register with the Louisiana Workforce Commission (LWC) at laworks.net for a UI account and file quarterly wage and contribution reports. geauxBIZ can initiate both.

Annual filings

Form CIT-620, Louisiana Corporation Income Tax Return — for 2026 and later this is an INFORMATIONAL return for S corps and "must be filed electronically." Due on or before the 15th day of the 5th month after the close of the accounting period (May 15 for calendar-year filers) — note Louisiana's 5th-month rule, unlike most states. Optional composite: mark the "S corporation composite filing" box on the face of CIT-620 and complete Schedules K and L; composite filing is not allowed if the S corp has a net loss. Form CIT-620ES only if making voluntary composite estimated payments. Form R-6980 if electing entity-level tax. Louisiana Secretary of State annual report, due on the entity's anniversary date. LDR L-1 (quarterly) and L-3 (annual) for withholding; LWC quarterly UI wage reports.

Pass-through entity tax

Yes, and it is now a genuine trap rather than a freebie. La. R.S. 47:287.732.2 lets an S corp elect to be taxed at the entity level (RIB 25-032 phrases it as electing "to be taxed as a C corporation"). Elected on Form R-6980, Tax Election for Pass-Through Entities, emailed to LDR (Section732.2election@la.gov) per LAC 61:I.1001; LDR must ACCEPT the election. RATE: LDR states "For taxable periods beginning on or after January 1, 2025, the individual income tax rate is a flat 3%" and that rate applies to PTE-electing entities — so 3% for 2025 and 2026, not the 5.5% corporate rate. DURATION IS THE TRAP: once made, the election "is effective for the entire taxable year for which it was made as well as all subsequent taxable years until the election is terminated." A stale R-6980 filed years ago is still binding in 2026. Mutual exclusivity: per RIB 25-032, an S corp that has made the PTE election for a period "cannot file a composite return and make composite tax payments for that same period," and vice versa. Economics changed sharply: with Louisiana's flat 3% individual rate, the PTE election now buys only a federal deduction for a 3% state tax, so it is far less compelling than under the old graduated regime — model it, don't default to it.

The mistake owners make most often in Louisiana

Assuming "pass-through now means nothing to file." For 2026 the CIT-620 is still REQUIRED and must be e-filed — RIB 25-032: "While a completed LDR Form CIT-620 ... is still required to determine how income is allocated and apportioned, the return is informational only." Owners who read the headline "Louisiana now treats S corps as pass-throughs" and skip the return get late-filing exposure. The close second, and the costlier one: a Form R-6980 pass-through entity election made in an earlier year is BINDING until affirmatively terminated. An S corp that elected under R.S. 47:287.732.2 back when Louisiana taxed S corps as C corps will still be taxed at the entity level (3%) in 2026, and is blocked from composite filing for its nonresident shareholders — nobody remembers the old election.

Filing your federal Form 2553

Businesses operating in Louisiana send Form 2553 to the IRS Ogden service center — fax 855-214-7520. Full address and filing checklist for Louisiana.

Frequently asked questions

Does Louisiana require a separate S-corporation election?

No. Louisiana does not require a separate state election. BRAND-NEW as of tax year 2026 — Louisiana flipped from one of the worst S-corp states to a conforming one. Act 382 of the 2025 Regular Legislative Session amended La. R.S. 47:287.732 so that "As of January 1, 2026, Louisiana (La. R.S.

What tax does an S corporation pay in Louisiana?

For periods beginning on/after 1/1/2026: no Louisiana corporation income tax on the S corp and no franchise tax (repealed). An informational CIT-620 is still mandatory and must be e-filed.

Where do I file Form 2553 from Louisiana?

With the IRS Ogden service center. Fax 855-214-7520, or mail to Department of the Treasury, Internal Revenue Service, Ogden, UT 84201.

What is the most common S-corp mistake in Louisiana?

Compare with other states: Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi.

Sources

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Researched from official Louisiana sources and verified July 30, 2026. State tax rules change. This is general information, not tax advice — confirm with the state or a CPA before you rely on it.