How to Start an LLC in Georgia: 7 Steps to Get Started Today! (2023)

FAQs

How to Start an LLC in Georgia: 7 Steps to Get Started Today!? ›

Georgia LLC Articles of Organization General Information

The filing fee is $100, whether you file through the mail or the website. If you file by mail, it will take 12-15 business days to get approval. If you file online, it takes about seven business days for approval.

Georgia LLC Articles of Organization General Information

The filing fee is $100, whether you file through the mail or the website. If you file by mail, it will take 12-15 business days to get approval. If you file online, it takes about seven business days for approval.

All partnerships, corporations, and LLCs that are registering with the Department must register as a new business using the Georgia Tax Center (GTC).

Every LLC in Georgia is required to pay a $50 Annual Registration Fee each year. You can file your LLC's Annual Registration Fee by mail or online, but the state prefers online filings as they are more convenient and faster.

Online registration is available through Georgia Tax Center (GTC), a secure electronic customer self-service portal. After your online submission, you should receive your specific tax account number within 15 minutes by email.

In this state, you'll need to file a Georgia Annual Registration and pay a filing fee of $50. You can file your registration online or print a form from the state's online portal. If you file the paper form, you'll be required to pay an additional $10 fee.

If you own an LLC, every year it is in business you must file an annual registration with the Secretary of State's Georgia Corporations Division. The annual deadline is April 1, unless you already filed for the current year via a multi-year registration.

Within 90 days of incorporation, each Georgia corporation must file an initial annual registration that lists three principal officers with the Secretary of State. The fee is $50.00 for profit and professional corporations, and $30.00 for nonprofit corporations.

What are the disadvantages of an LLC in Georgia? ›

LLC cons: Unlike a corporation, an LLC cannot issue shares of stock. Any new investor would need to become a member of the LLC, which is more complicated. Furthermore, many outside investors consider LLCs risky, and prefer to invest in corporations.

The main cost of forming a limited liability company (LLC) is the state filing fee. This fee ranges between $40 and $500, depending on your state. There are two options for forming your LLC: You can hire a professional LLC formation service to set up your LLC (for an additional small fee).

Yes, Georgia allows you to be your own registered agent as long as you live in the state. If you operate a multi-member LLC, you can also choose one of the member's to act as the agent. The state also allows a family member or friend to act as the registered agent.

While many Georgia businesses are required to register with the Corporations Division, businesses often need local operating licenses, federal operating licenses depending on the business, and/or state-level professional licenses. In certain cases, employees may need to be individually licensed as well.

Georgia LLC Annual Registration Fee ($50/year)

The Georgia LLC Annual Registration Fee costs $50 per year. This fee is paid every year for the life of your LLC, and can be filed online.

How Long Does It Take to Process a Business License in Georgia? Once you have paid the appropriate application fees, you should generally receive your business license within 30 days.

EIN. An Employer Identification Number (EIN) is also known as a federal tax identification number, and is used to identify a business entity.

Your sales tax ID number is also called an employer identification number or state taxpayer identification number. It is a number specifically assigned to your business by the Georgia government for licensing or tax purposes, according to the Georgia Department of Revenue.

Is Georgia EIN free? ›

Applying for an Employer Identification Number (EIN) is a free service offered by the Internal Revenue Service.

The cost of applying for a small business license in Georgia is $75. This fee is nonrefundable and must accompany the application packet.

There is no fee to register for this permit with the state of Georgia. If you're already feeling a little overwhelmed with this process, you should know that we can handle the entire permit registration process for you with our Sales Tax Permit Registration Service.

The IRS will only allow you to claim losses on your business for three out of five tax years. If you don't show that your business is starting to make a profit, then the IRS can prohibit you from claiming your business losses on your taxes.

The answer is yes--it is possible and permissible to operate multiple businesses under one LLC. Many entrepreneurs who opt to do this use what is called a "Fictitious Name Statement" or a "DBA" (also known as a "Doing Business As") to operate an additional business under a different name.

Name requirements

The name of your LLC must be distinguishable from other businesses that are registered with the Georgia secretary of state. In addition, the name must end with one of the following words: limited liability company, limited company or the abbreviations LLC, L.L.C., LC or L.C.

Processing Time: 15 business days, unless the name reservation request is expedited for an additional cost.

What Does Trademarking a Name Cost? Filing a trademark for your business name with the U.S. Patent and Trademark Office (USPTO) will cost between $225 and $600, plus legal fees. You can register with most states for $50-$150 if you don't want protection outside your state.

Fee: The filing fee is $15.00 per application. Make checks or money orders payable to the Secretary of State. Filing fees are non-refundable.

Are LLCs bad for taxes? ›

1. Pass-through taxation. One of the biggest tax advantages of a limited liability company is the ability to avoid double taxation. The Internal Revenue Service (IRS) considers LLCs as “pass-through entities.” Unlike C-Corporations, LLC owners don't have to pay corporate federal income taxes.

An LLC requires maintenance. If you aren't inspecting the LLC and taking care to make repairs and keep it tuned up and smoothly operational, then it's going to turn out badly for you when you need its protection. Your LLC can fail when you need it the most!

The main advantage to an LLC is in the name: limited liability protection. Owners' personal assets can be protected from business debts and lawsuits against the business when an owner uses an LLC to do business. An LLC can have one owner (known as a “member”) or many members.

Your LLC's name can't contain the words like “bank,” “trust,” “trustee,” “insurer,” “insurance company” or any other words suggesting you're in the insurance business (unless you are). You can't include things like “incorporated,” “inc.” or “corporation,” because your LLC is not a corporation.

Accordingly, Georgia follows the Federal "Check the Box" classifications. Does an LLC have to pay net worth tax? An LLC is only subject to net worth tax if it is treated as a corporation for income tax purposes.

Under the default rules, every member of the LLC is an agent of the LLC and can conduct business on behalf of the LLC. In other words, each member has the authority to bind the LLC in ordinary business transactions, whether or not the member has the consent of the other members. See OCGA §14-11-301.

As an LLC owner, this is also a good way to get paid because you will only have to pay self-employment taxes on the salary you have designated for yourself. This can save you about 15% on your taxes compared to if you were to just take distributions.

If an LLC has opted to be treated as an S corporation or C corporation for tax purposes, members (now also known as shareholders) aren't allowed to take owner's draws. Instead, they're considered employees and must pay themselves a set salary on the company's regular payroll with taxes withheld.

Financial planners recommend a 30% rule of thumb. That means for every dollar of profit you would set aside 30 cents for taxes. The 30% rule could be too much or too little depending on where you live.

What to do after getting LLC in Georgia? ›

An LLC can help you avoid double taxation unless you structure the entity as a corporation for tax purposes. Business expenses. LLC members may take tax deductions for legitimate business expenses, including the cost of forming the LLC, on their personal returns.

Processing Time: 15 business days; Processing in 2 business days costs an additional $100. Processing in the same business day (if submitted before noon on a weekday) costs an additional $250. Processing in one hour costs an additional $1,000.

Yes. You can use your virtual address for your business to upgrade your company image or to protect your privacy. Since every one of our more than 2,500 addresses is a real street address, you can also use your virtual address to register an Atlanta business address or a business address elsewhere.

And the Registered Agent for your LLC in Georgia must have a physical street address in Georgia. PO Box addresses aren't allowed.

General business license

A general license is required for you to run your business in almost every state. They're often issued by the Department of Revenues and Secretary of States—whichever office is in charge of business registrations.

Within 90 days of incorporation, each Georgia corporation must file an initial annual registration that lists three principal officers with the Secretary of State. The fee is $50.00 for profit and professional corporations, and $30.00 for nonprofit corporations.

The corporate Georgia LLC tax rate is six percent of Georgia taxable income. It is payable by the LLC if C corporation status is elected, and by the members if S corporation status is elected. The net worth tax is also assessed, if the net worth of the LLC is more than $100,000.

What are the pros and cons to LLC? ›

An LLC has pros such as flow-through taxation and limited liability protection. However, there are also disadvantages such as the legal process of “piercing the corporate veil” and being forced to dissolve the LLC if a member leaves.

How much does an LLC in Georgia cost per year? All Georgia LLCs need to pay $50 per year for the Annual Registration Fee. These state fees are paid to the Secretary of State. And this is the only state-required annual fee.

Before starting the registration process with the Georgia Department of Revenue (the Department), you must have specific information about your business, including but not limited to: Legal name, location, and mailing address of the business. EIN/FEIN (if applicable) NAICS code.

Georgia doesn't issue business licenses at the state level, but all Georgia businesses need to obtain an operating license from the city or county where they're based. An operating license may also be called a business license, a business tax certificate or an occupational tax certificate.

You must file an annual registration for your LLC with the Secretary of State every year. If you own an LLC, every year it is in business you must file an annual registration with the Secretary of State's Georgia Corporations Division.