How to Start an LLC in Georgia | SimplifyLLC (2023)

FAQs

How much does a LLC cost in the state of Georgia? ›

Fill out the required information about your business entity (listed above). Pay the $100 filing fee by approved credit card: Visa, MasterCard, American Express, or Discover.

To start a Georgia LLC you'll need to file Articles of Organization with the Georgia Corporations Division for a $100 filing fee. You can apply online or by mail. The Articles of Organization is the legal document that officially creates your Georgia Limited Liability Company.

Georgia LLC Approval Times

Mail filings: In total, mail filing approvals for Georgia LLCs take 4-5 weeks. This accounts for the average 15 business day processing time, plus the time your documents are in the mail. Online filings: In total, online filing approvals for Georgia LLCs take 7-10 business days.

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.

Since a limited liability corporation is a pass-through entity, the LLC will not be required to pay the same federal or state taxes as a corporation. Instead of the taxes being paid for by the company, the taxes are essentially passed to the owner of the business.

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

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.

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.

How much is a business license in GA? ›

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.

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.

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, you can have multiple businesses under one LLC.

running all the business activities under one LLC name, or. registering DBAs (“doing business as”), also known as Fictitious Names.

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.

Disadvantages of creating an LLC

Cost: An LLC usually costs more to form and maintain than a sole proprietorship or general partnership. States charge an initial formation fee. Many states also impose ongoing fees, such as annual report and/or franchise tax fees.

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.

If your LLC is taxed as a corporation:

Your LLC pays a minimum $800 franchise tax fee every year, except the first year it's in operation. Your LLC pays California corporation taxes. If taxed like a C Corp, you pay a flat 8.84% tax on net income. If taxed like an S Corp, pay a 1.5% tax on net income.

The Georgia self employment tax is made up of two parts, for a total of 15.3%. The Social Security portion is 12.4%, which includes social security, old-age, survivors, and disability insurance. The Medicare or hospital insurance portion is 2.9%.

Does Georgia recognize single member LLC? ›

Georgia does not require an SMLLC to have an operating agreement. However, even though an SMLLC has just one member, an operating agreement is highly recommended. An SMLLC operating agreement does not need to be filed with the state. The operating agreement is usually made between the single member and the LLC itself.

You do not have to register your business with the state of Georgia unless you are planning to incorporate, become a specific legal entity or if you plan to do business with the state. In which case, you will need to become a registered vendor through the Department of Administrative Services (DOAS).

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.

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 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.

Each business entity registered or filed with the Office of Secretary of State is required to file an annual registration.

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.

Can I use a virtual address for my LLC in Georgia? ›

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.

How do I add a member to my Georgia LLC? To add a member to your LLC, you will need to amend your Georgia LLC operating agreement. Your operating agreement contains your members' names and addresses, so when you add a new member, you'll need to update the operating agreement with the new member's information.

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.

Etsy's seller policies do not require you to have a business license to sell on their platform. However, the inquiry doesn't end there. A seller of goods on Etsy may need a license or permit from municipal, county, state, or federal agencies regulating businesses. Your Etsy shop is either a business or a hobby.

For Sole Proprietors Who Have Not Filed a Georgia Return:

You will need to complete a New Business Registration as a Sole Proprietor on Georgia Tax Center.

Applying for an EIN for your Georgia LLC is completely free. The IRS doesn't charge any service fees for the EIN online application.

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.

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.

Should I turn my side hustle into an LLC? ›

You are not required to have an LLC or legal business entity in order to run your side business, so the timing is up to you. However, whether you're still in the planning phases or have been running your side hustle for some time, forming an LLC is typically a smart, cost-effective choice.

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.

A limited liability company (LLC) is a business entity type that can have more than one owner. These owners are referred to as “members” and can include individuals, corporations, other LLCs, and foreign entities. Most states do not restrict LLC ownership, and there is generally no maximum number of members.

Having multiples DBAs will not protect the assets and income of each DBA from the other DBAs. If one of your DBAs gets sued, all other DBAs under the LLC name will be liable. For liability protection purposes, it is better to have multiple LLCs for each of your businesses.

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.

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.

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.

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

The fee is $50.00 for profit and professional corporations, and $30.00 for nonprofit corporations. Corporations that form between October 2 and December 31 must file the initial annual registration between January 1 and April 1 of the next calendar year.

How much is a self business license in Georgia? ›

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.

The Georgia LLC annual fee for business registration is $100. The fee is what limited liability companies must pay each year to do business in the state.

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