Start An LLC In Georgia
LLC stands for Limited Liability Company. This article will bring you through the steps of forming one in the state of Georgia.
Georgia is one of the most popular states in the US and is business-friendly for small businesses. One primary reason for this is the low level of taxation in the state.
Along with some more benefits, the state provides grants and incentives to small entrepreneurs to encourage more businesses in the state.
Let’s first compare Georgia to other states as a location to form an LLC.
| State | Georgia | Florida | Alabama | South Carolina | US Average |
|---|---|---|---|---|---|
| Population | 10,799,566 | 21,781,128 | 5,039,877 | 5,190,705 | 6,619,825 |
| LLC Filing Fee | $100 | $125 | $200 | $110 | $130.38 |
| LLC Annual/Biennial Fee | $50 (every year) | $138.75 (every year) | $100 minimum (every year) | $0 (no fee and no information report, unless LLC is taxed as an S-Corp ) | $89.34 (every year) |
| Corporate Tax Rate | 5.75% | 5.50% | 6.50% | 5.00% | 5.60% |
| Nominal GDP per capita | $63,271 | $56,301 | $49,027 | $52,031 | $64, 773.08 |
Before You Set Up An LLC In Georgia
Below is a list of things you need to know before starting an LLC in Georgia. These are:
- Discover what type of LLC you need (Domestic or foreign).
- Ensure you choose the right business structure for you.
- Find a registered agent.
- Hire or find someone to prepare the operating agreement.
- Get an EIN (Employer Identification Number)
- Name your LLC.
- Select the tax options offered to you.
How Much Does It Cost To Start An LLC In Georgia?
Besides meeting all the requirements for forming an LLC in Georgia, you also need to consider the cost of starting an LLC in Georgia.
You choose a domestic LLC or a foreign LLC with the Georgia Secretary of State under the Georgia certificate of formation.
Georgia Domestic LLC cost.
- Annual report fee:$50.
- Late annual report submission:$25.
- Mail choice: Fill out the application form and send it to the corporation’s division 2 Martin Luther King Jr. Dr. SE, Suite 313 West Tower, Atlanta, Georgia 30334. Price: $110.
- Online filing: $100.
Georgia Foreign LLC cost.
- Filing online: $225
- Mail choice: fill out the application form and mail it to the Corporations Division, 2 Martin Luther King Jr. Dr. SE, Suite 313 West Tower, Atlanta, Georgia 30334, Price:$225.
Another thing that most business people in Georgia consider is how to start an LLC in Georgia for free? You’ll have to pay the filing fee to the state. It is mandatory. You can save the cost by filing it yourself. In this way, you’ll only have to pay $100.
Steps To Start An LLC In Georgia.
Creating an LLC in Georgia is simple and easy. You have to follow the steps mentioned below to form your LLC successfully.
Pick A Name For Your LLC
This is an essential requirement when forming an LLC in Georgia. Every state has its own rules about what kind of names are allowed for LLCs. These naming guidelines are:
- Banks, attorneys, and universities may require additional paperwork and may also need special permissions for LLC.
- The company should not include words that might confuse your company name with any government agency.
- Your name must include the phrase Limited Liability Company or its abbreviation LLC.
To determine whether the name you want for your business is available, you can use the state’s business search secretary.
If you aren’t ready to register your LLC but are worried that your name will be taken, you can reserve it for a small fee. Names in Georgia can be reserved for up to 30 days by paying the fee and submitting the appropriate form to the state authority.
Find A Registered Agent
The next step in Georgia LLC formation is to select a registered agent. The state requires you to have a registered agent. This agent is a person or organization who accepts official mail, tax forms, legal documents, and official government agreement on your company’s behalf.
A registered agent must be a resident of Georgia or a corporation authorized to do business in Georgia. You can select any individual within the company as a registered agent, including yourself.
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Articles Of Organization
Creating an LLC in Georgia requires you to file Articles of Organization and Transmittal Information Form with the GSS.
Your Georgia LLC is not legally formed until you file your articles of organization. The articles of organization contain your company’s basic formation and contact information and authorization to operate in the state. It can be filed either online or by mail, with a filing fee of $100 and $110 for filing by mail.
Operating Agreement
The operating agreement is the foundation upon which an LLC is built, the essential underpinning that establishes procedures, activities, and conduct. It acts as your company’s bylaws.
Although Georgia law does not require your LLC to have an operating agreement, that does not mean it is unimportant. An LLC’s operating agreement is one of the most important (if not THE most important) internal documents. It works to increase the efficiency of your company, legitimize your business in front of courts, banks, and other institutions, protect your assets, and much more.
EIN For Your LLC
Employer Identification Number, abbreviated by EIN, are nine-digit numbers allotted by the Internal Revenue Service (IRS) to businesses to help them be recognized for tax purposes. This is an IRS identification number used in running businesses. It is essentially a business’s Social Security number.
The EIN is required to:
- Establish a business bank account.
- Manage and file federal and state taxes.
- To hire employees.
The IRS will provide you with an EIN for free. Obtaining an EIN is a simple procedure that can be completed online or via mail.
The Forms You Need To Register An LLC In Georgia
Here is a list of forms that you’ll need while forming an LLC in Georgia:
- For name reservation, fill out this request form.
- Fill out the form CD 030 and submit it with a transmittal form to file the articles of the organization.
- If you request EIN by mail, you’ll need to file Form SS-4.
- To register your business with the Georgia Department of Revenue, fill out form CRF-002.
LLC Taxes In Georgia
To form an LLC in Georgia, everybody must know its cost and the procedures. How much to start an LLC in Georgia? What are the steps to form one?
LLCs are taxed as sole proprietorship (for single-member LLCs) or partnerships (for multi-member LLCs), with business income and losses reported on each owner’s tax return. Each business owner in Georgia pays income taxes on their share of the profits.
If the LLC elects to be taxed as a corporation, it will be required to pay a state corporate tax annually. LLCs that are taxed as corporations must also pay a net worth tax based on the company’s assets.
Remember that a business must pay more than just income taxes. Georgia businesses must also pay payroll taxes for employees. On the first $9,500 in wages, the Georgia payroll tax rate ranges from 0.04 percent to 8.1 percent.
Each year, most LLCs must report their earnings to the IRS using the following format:
- Partnership Return Form 1065 (most multi-member LLCs use this form).
- Form 1040 Schedule C (most single-member LLCs use this form).
How Long To Form An LLC In Georgia
Mail Filing: Approval of mail filings for Georgia LLCs takes 4-5 weeks. This includes the processing time of 12-15 business days and the time your documents are in the mail.
Online filing: Approval of online filings for Georgia LLCs takes 7-14 business days. There is no additional transit time because you can download your documents as soon as approved.
How Much Does It Cost To Run An LLC In Georgia?
Every LLC in Georgia must pay a $50 Annual Registration Fee each year. You can pay the Annual Registration Fee for your LLC by mail or online. Online filings are better because they are more convenient and faster. Besides the annual registration fee, you’ll have to pay your taxes.
What To Do After Formation?
Forming your LLC is just the beginning. You’ll have to comply with specific requirements after successfully forming your LLC. Compliance with these requirements is a must for a smooth sailing LLC. Here we will briefly explain these additional requirements.
- Annual reports — The state secretary requires Georgia LLCs to file an annual registration statement. This annual filing aims to ensure that your company’s address, registered agent, and registered office information are all current.
- Bank account — If your business and personal bank accounts are the same, you risk losing your assets if your Georgia LLC is sued. Therefore, it is better to create a separate bank account for your business in the name of your LLC. This can also make it easy for you to file taxes.
- Build a website/eCommerce store — If you are in a trading business, you should create a website/eCommerce store. The online store will help you in marketing and advertisement for your business and also expand your business.
- Business Insurance — Business insurance allows you to focus on growing your Georgia LLC rather than worrying about risks. Business insurance includes general liability insurance (that protects your business from lawsuits), professional liability insurance (Insurance for service providers covering malpractice), and workers’ compensation insurance (which covers employees’ health, injuries, and deaths).
- Create a logo — You should create a logo for your LLC. The logo represents your company and is also a good tool for marketing. A strong logo is the foundation of your business. The most important thing is to protect your name and logo with a trademark.
These are important because they are necessary to have a smooth sailing LLC in Georgia. Compliance with all the above requirements can cover all your bases.
Resources To Start An LLC In Georgia
- IRS website provides you guide on hiring employees and tax information.
- Registering as a foreign LLC allows your company to operate in multiple states with the same business name. You’ll need to download the Georgia foreign LLC form for this and file it with the state.
- The Secretary of State’s website also provides good information on forming LLC and all the forms and online registration portals.
Start Marketing Your LLC In Georgia
If you’re a limited liability company, you must publicize that you’re one. You don’t have to use LLC or Limited liability company after the name if you’re doing business under a different name than your LLC name. It is only for the company’s legal name.
We share interesting marketing tips to help new companies generate revenue.
How To Dissolve An LLC In Georgia
If you decide you no longer want to do business with your LLC in the future, you must officially dissolve it. Failure to do so on time can result in tax liabilities, penalties, and legal ramifications. There are two basic steps to dissolving your Georgia LLC:
- Close the tax accounts of your business.
- File the Certificate of Dissolution.
Conclusion
This article is about how to start an LLC in Georgia and the costs involved in doing so.
Forming an LLC in the state is straightforward. Creating an LLC in Georgia includes choosing a name, naming a registered agent, filing articles of organization, and obtaining EIN from IRS.
The cost for starting an LLC in Georgia is $100. After successfully forming the LLC, you can begin marketing your company, commence business, create a website, get insurance, comply with annual filing, and pay yearly taxes. You can obtain limited personal liability and tax benefits with these simple steps.