--- title: "Louisiana Tax Presence and PE Risk for Employers" description: "How hiring in Louisiana can create permanent establishment risk, what entity registration costs, and how Teamed keeps you clear of it." canonical: https://www.teamed.global/country-hiring-guides/united-states/louisiana/permanent-establishment-risk --- ![Louisiana business district.](/cluster-assets/country-hiring-guides/united-states/louisiana/permanent-establishment-risk/images/hero.webp) # Does hiring in Louisianacreate a taxable presence for you.. Teamed employs your Louisiana staff under its own registered entity, so your company avoids the tax presence and franchise-tax questions that direct payroll can raise. Served by Teamed US Inc., Delaware · Payroll via SUNA Solutions Last reviewed 22 September 2026 · Louisiana guide At a glance ## Louisiana tax presence, in brief Louisiana no longer imposes a corporate franchise tax, so the tax that used to worry out-of-state employers has a minimum of $0 and no basis, per the Louisiana Department of Revenue. Registering your own entity still means a formation fee with the Louisiana Secretary of State, and the deeper question, whether hiring staff there creates a taxable presence at all, depends on what those employees actually do, not just where they live. Minimum franchise tax$0 Franchise tax basisnone Formation / registration fee$125 The mechanism ## Why hiring in Louisiana raises the permanent establishment question Permanent establishment risk is not really about the state, it is about activity. If someone working from Louisiana signs contracts, manages inventory, or runs core parts of the business, tax authorities can argue your company has a taxable footprint there even without an office. Louisiana's own corporate franchise tax used to add weight to that concern, but the Department of Revenue confirms it is repealed, with a minimum of $0 and no basis left to calculate against. That removes one layer of exposure, but it does not remove the underlying question of nexus, which state and federal tax authorities can still raise based on what your people do, not what tax the state happens to charge. The numbers that matter ## What entity registration actually costs in Louisiana If you decide to register your own entity in Louisiana rather than employ through Teamed, the Secretary of State charges a formation and registration fee of $125, effective under the fee schedule dated 1 October 2026. That fee is straightforward and published, unlike the compliance work that follows it, registered agent upkeep, annual filings, and the tax registrations that come with having a legal presence in the state. The franchise tax itself is no longer part of that calculation. With the basis set to none and the minimum at $0, Louisiana has taken one recurring cost off the table for companies that do incorporate there, which is worth knowing whether you plan to set up now or later. The EOR route ## How Teamed keeps your company out of the Louisiana tax net When you hire through Teamed, your Louisiana employee sits on Teamed's own registered entity, not yours. Teamed handles the local registration, the payroll filings, and the employer-side administration, so your company is not the one whose name shows up on Louisiana's books. That structure is what actually addresses permanent establishment risk for a single hire or a small team. You get someone working legally in Louisiana without your business itself becoming a registered, taxable presence in the state. The honest take ## When an EOR isn't the right long-term answer An employer of record is sometimes the better answer, and a fair alternative rather than a lesser one, especially for a small or still-changing team, or while you are testing whether Louisiana is even the right market for you. Your own entity, eventually ## Your own entity, when it's time. We set it up, migrate you in, and hand it back intact. At some point, growth in Louisiana might justify your own registered company rather than routing employment through Teamed. That is where Global Entity and Employment Operations, which we call GEMO, comes in, Teamed sets up the entity, migrates your existing team onto it, and hands you a fully functioning, compliant operation, not a half-finished shell. Because Louisiana's own registration fee and repealed franchise tax are now known quantities, the move is more predictable than it looks from the outside. Teamed runs this same handover across 100+ countries, so the Louisiana transition follows a process the team has already done many times over. Before you commit ## Sometimes an employer of record is the better fit An employer of record is sometimes the better answer, and a fair alternative rather than a lesser one, especially for a small or still-changing team, or while you are testing whether Louisiana is even the right market for you. 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. Talk to a member of the team Model the crossover for the United States 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. Because Louisiana's own registration fee and repealed franchise tax are now known quantities, the move is more predictable than it looks from the outside. Teamed runs this same handover across 100+ countries, so the Louisiana transition follows a process the team has already done many times over. Entity Management (GEMO) The Graduation Model Employer cost calculator > They set up our EU entity and moved hires across without missing a payroll. *Helene Dubois, COO* Talk to an expert about Louisiana Questions ## Louisiana tax presence, answered Does having a remote employee in Louisiana create a permanent establishment for my company? It depends on what that employee actually does, not just where they live. Signing contracts, holding inventory, or directing core business functions from Louisiana raises the risk far more than routine remote work does. Is Louisiana's corporate franchise tax still something I need to plan for? No. The Louisiana Department of Revenue confirms the franchise tax is repealed, with a minimum of $0 and no basis to calculate against. What does it cost to register a company in Louisiana if I want my own entity? The Louisiana Secretary of State charges a formation and registration fee of $125, under the fee schedule effective 1 October 2026. That covers the filing itself, not the ongoing compliance work that follows. Can Teamed reduce my tax exposure while I'm still testing the Louisiana market? Yes. Teamed employs your Louisiana staff under its own registered entity, so your company is not the one carrying the local tax registration or filing obligations while you find out if the market is worth staying in. When should I set up my own entity in Louisiana instead of staying with an EOR? It depends on your salaries and how long you intend to stay, not on a fixed headcount. Run the numbers through the crossover calculator or talk to a member of the team before you commit either way. Where these figures come from ## Sources Figures on this page come from the Louisiana Department of Revenue and the Louisiana Secretary of State. ## More on entities in Louisiana - [Hiring in Louisiana, overview](/country-hiring-guides/united-states/louisiana)parent - [Louisiana setting up](/country-hiring-guides/united-states/louisiana/entity-setup)sibling - [Louisiana running costs](/country-hiring-guides/united-states/louisiana/entity-running-costs-and-filings)sibling - [Louisiana entity or eor](/country-hiring-guides/united-states/louisiana/eor-vs-entity)sibling - [Louisiana moving from an eor](/country-hiring-guides/united-states/louisiana/moving-from-eor-to-your-own-entity)sibling - [Set up an entity, by country](/entity-setup-by-country)hub - [Entity Management (GEMO)](/entity-management)core - [Talk to an expert about Louisiana](https://www.teamed.global/contact?from=permanent-establishment-risk)CTA