Should you set upan entity in Louisiana.
Teamed employs your Louisiana hire under its own entity today, so you skip formation paperwork and start payroll this week, not next quarter.
At a glance
Louisiana's setup math in brief
Louisiana repealed its corporation franchise tax, so there's no ongoing franchise tax basis or minimum to budget for once you're formed. The Secretary of State charges a filing fee of $125 to register the entity, but the real cost of going it alone is the weeks of setup, registered agent arrangements, and payroll tax registrations that come before your first Louisiana hire gets paid.
- Minimum franchise tax
- $0
- Franchise tax basis
- none
- Formation / registration fee
- $125
Forming an entity
What it actually takes to register in Louisiana
Setting up an LLC or corporation in Louisiana means filing with the Secretary of State, paying the $125 registration fee, and naming a registered agent with a Louisiana address. Once that's done, you still need an EIN, a state withholding tax account, and an unemployment insurance account before you can run your first payroll.
None of this is unusual for a US state, but it adds real weeks to your timeline. If you already know you're building a durable, long-term team in Louisiana, that timeline is worth it. If you're not sure yet, it's a lot of process to commit to before you've hired anyone.
The tax picture
Why Louisiana's repeal of the franchise tax changes the calculation
Louisiana's corporation franchise tax is repealed, with a minimum of $0 and no tax basis applied. That removes one of the recurring costs that entities in other states carry every year regardless of profitability.
It doesn't remove the other obligations, though. You'll still register for state withholding and unemployment insurance, and you're still on the hook for the compliance calendar that comes with running payroll as a Louisiana employer. Fewer tax lines doesn't mean fewer administrative ones.
The faster path
What changes when Teamed employs the hire instead
When you hire through Teamed's employer of record, Teamed is the Louisiana legal employer of record for that hire, not you. You skip the Secretary of State filing, the registered agent search, and the tax account registrations entirely, and you can have someone on payroll in days.
This matters most when you're testing whether Louisiana is even the right state for you, or when you're hiring one or two people and don't yet know if that number will grow. If you already know you want a permanent, owned presence there, run the numbers with the crossover calculator rather than guessing, since the right answer depends on salaries and how long you plan to stay.
Before you commit
Sometimes an employer of record is the better fit
An employer of record is sometimes the better answer, not a lesser one, especially for a small or still-changing headcount in Louisiana or when you're testing the market before committing. Talk to a member of the team about your specific situation first, and run the crossover calculator if you want the numbers behind the decision.
Contractors, employer of record and your own entity all run on one platform at Teamed, so moving between them later does not mean changing provider or re-onboarding anybody. Real HR and legal experts handle the work rather than a ticket queue.
Talk to a member of the team and we will tell you plainly which one suits where you are. If you would rather look at the numbers yourself first, the crossover calculator models it on local salaries and employer costs rather than on a headcount rule of thumb.
Who carries it
Your own entity, when it's time. We set it up, migrate you in, and hand it back intact.
Global Entity and Employment Operations, which we call GEMO, is how Teamed forms your company, registers it for tax and payroll, runs it month to month and keeps its filings current, across 100+ countries. You stay the employer. We do the work behind it.
In Louisiana, that means we handle the Secretary of State filing, the $125 registration fee, the registered agent setup, and the tax account registrations, then transfer the employment relationship to your new entity without a gap in coverage. You keep the benefit of Louisiana's repealed franchise tax and $0 minimum without carrying the setup burden alone, and the same GEMO process runs the same way across our 100+ countries.
They set up our EU entity and moved hires across without missing a payroll.
Questions
Louisiana entity and EOR questions
Does Louisiana still charge a corporation franchise tax?
No. Louisiana's corporation franchise tax is repealed, with a minimum tax of $0 and no tax basis applied. This removes one of the recurring annual costs that entities in other states still carry.
How much does it cost to register a company in Louisiana?
The Louisiana Secretary of State charges a filing fee of $125 to register your entity. That fee doesn't cover the registered agent, EIN, or payroll tax account setup you'll also need before hiring.
Can I hire someone in Louisiana without forming an entity there?
Yes. Using an employer of record like Teamed lets you employ someone in Louisiana under Teamed's existing entity, so you don't need to register your own company first. It's a common way to test the state before committing to a permanent setup.
When does it make sense to form our own Louisiana entity instead of using an EOR?
It generally makes sense once you know you're building a lasting, sizeable presence in Louisiana rather than testing it. The right point to switch depends on salaries and how long you intend to stay, which is exactly what the crossover calculator is built to help you work out.
If we outgrow an EOR in Louisiana, can we move to our own entity later?
Yes. Teamed's GEMO service sets up the Louisiana entity, migrates the employment relationship over, and hands it back to you fully intact, so you're not starting from scratch when you're ready to own it.
Where these figures come from
Sources
Figures on this page are drawn from the Louisiana Department of Revenue and the Louisiana Secretary of State.
Looking for a job in Eor Vs Entity yourself? Teamed does not hire people directly. Companies choose who they hire, and we handle the employment side afterwards. Here is why we cannot help with your search.