State guide · Louisiana
Starting a Medical Practice in Louisiana
What physicians need to know about Louisiana's regulatory environment, entity requirements, and practice-specific rules.
Entity required
Medical Corporation or Professional LLC
LLC permitted
No
CPOM enforcement
Strict
Top income tax
Verify — top bracket approximately 4.25% (transitioning to flat 3% in 2025)
Min. franchise tax
Verify — Louisiana franchise tax phased out for many filers
Med board registration
Required
The information on this page is provided for general reference only and may not reflect recent regulatory or legislative changes. Entity formation requirements, tax rates, and CPOM rules vary by state and change frequently. Always verify requirements with your state's official agencies, a qualified healthcare attorney, or a CPA with medical practice experience before making business formation decisions. Nothing on this page constitutes legal or financial advice.
Entity Requirements
Louisiana physicians must form a Medical Corporation under La. R.S. 12:911 or a Professional Limited Liability Company under La. R.S. 12:1301 et seq. All shareholders or members must be licensed Louisiana physicians.
Filing is with the Louisiana Secretary of State.
- •Form a Medical Corporation or Professional LLC
- •All shareholders/members must be licensed Louisiana physicians
- •File Articles of Incorporation or Articles of Organization with the Secretary of State
- •Register the entity with the Louisiana State Board of Medical Examiners
- •File Annual Report with the Secretary of State
Corporate Practice of Medicine
Louisiana enforces a relatively strict Corporate Practice of Medicine doctrine. Lay ownership of physician practices is prohibited. Fee-splitting is restricted under the Medical Practice Act.
MSO arrangements are common but must be carefully structured. Verify current law with Louisiana healthcare counsel.
Tax Considerations
Louisiana is transitioning its personal income tax to a flat 3% in 2025 (Verify). Louisiana franchise tax applies to corporations but has been phased down for many filers.
- •Personal income tax: Verify — transitioning to flat 3% in 2025
- •Louisiana franchise tax (corporations): Verify current rules
- •Sales tax (state + local) is among highest in country (~9.5% combined average)
Louisiana State Board of Medical Examiners
Louisiana requires medical practice entities to register with the Louisiana State Board of Medical Examiners (LSBME).
- •Register entity with the LSBME after Secretary of State filing
- •All shareholders/members must hold active Louisiana medical licenses
- •Update LSBME on any change in ownership or officers
Employment Law Considerations
Louisiana is generally employer-friendly. At-will employment is the default. No state-mandated paid sick leave. Louisiana non-compete law (La. R.S. 23:921) imposes specific requirements on enforceability.
- •At-will employment
- •No state-mandated paid sick leave
- •Non-compete agreements enforceable only if compliant with La. R.S. 23:921 (specific parishes, max 2 years)
- •Louisiana minimum wage at federal $7.25/hour
Official resources
Bookmark these official agency portals for Louisiana entity formation, tax registration, and medical board information.
Looking for Louisiana licensing and credentialing information?
State medical license requirements, controlled-substance registration, and Medicaid enrollment specifics for Louisiana.
View Louisiana licensing guide →Get the complete practice startup guide
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