How To Form An LLC In Georgia (2024 Guide)

The first thing to research is if the name you planned for your business is available. It is not possible to file for a limited liability company (LLC) using the name of an existing company. Even having a name considered too similar to an established brand could cause plenty of costly complications down the road.

Avoid any foreseeable problems by performing a name search of Georgia businesses. If your research shows the name you want is available, you can file your LLC paperwork. If you’re not ready to file yet, you can submit an application to reserve the name for 30 days. The fee is $25 and the name reservation can be renewed.

When you arrive at this stage, you’ll either file as a domestic or foreign entity. (Foreign entities are businesses established in a different state that wish to legally operate in Georgia. They must file a different application and pay additional fees.)

Domestic entities—businesses run in Georgia—submit Articles of Organization online or by mail to the Georgia Secretary of State. The process costs $100 online; physical filings require an additional $10 fee.

A registered agent is a person or organization authorized to accept legal documents on your LLC’s behalf. A registered agent can be a Georgia resident or a corporation or LLC authorized to do business in Georgia. The agent must be located at a street address in Georgia.

Georgia does not require a third party to act as your registered agent; you can represent yourself. It is also possible to ask an employee or trusted family member or friend to step into the role.

Otherwise, you can use a registered agent service that does the work for you.

Filing the paperwork to start your LLC isn’t everything you’ll need to do to set up your business. Several post-filing steps should be taken to maintain good standing and meet tax requirements.

Create an Operating Agreement

An operating agreement isn’t a requirement for setting up your Georgia LLC. Even so, operating agreements are useful tools. Creating one at the onset of your LLC will provide a professional foundation.

An operating agreement document holds a few key functions:

• Outlines the LLC’s financial and functional decisions
• Governs internal operations and lays out designated responsibilities
• Details methods for meeting the needs of the business owners

For Georgia LLCs with multiple members, a written agreement will prevent confusion, disagreements and other issues concerning policies and roles. The existence of an operating agreement can also provide an additional layer of liability protection. It further establishes your business as wholly separate from your personal finances.

Get an EIN

Most Georgia LLCs must obtain an EIN, or an Employer Identification Number. The EIN is the LLC’s tax identification number. Even though LLCs may be taxed on the members’ personal tax returns, an EIN allows the LLC to open its own bank accounts and set up payroll for its employees. An EIN is required if your LLC has multiple members or has employees. You can get an EIN online through the IRS’s official website. For more info and a helpful guide, see our comprehensive guide on How To Get an EIN for an LLC.

Separate Personal and Business Assets

If operating a single-member LLC in Georgia, you may not feel like you need a new bank account, but as the purpose of an LLC is to shield you from legal ramifications against your business directly affecting you and your personal property, separating your personal and business assets helps reinforce this separation in the event of legal proceedings. You can use your new EIN to open a business bank account. You can use the same bank to make the transfer of finances easier between personal and business, or, if you have multiple members, consider a centrally located or online bank.

Fulfill Georgia LLC Tax Requirements

How you file and pay income taxes for your LLC depends on your LLC’s tax structure. If you’re a single-member LLC with a sole proprietorship tax structure, you’ll report income or loss on your personal tax returns. Multi-member LLCs taxed as partnerships will function in much the same way. If your LLC elects to be taxed as a corporation, your tax filing requirements will be different.

Filing state sales tax may also be a requirement if your business sells taxable goods. If your business’s sales are subject to sales tax, you’ll need to collect and then pay this tax. A Sales and Use Tax Number will be required in the state of Georgia. You can apply for this identification number online via Georgia’s Department of Revenue website. Sales tax is currently 4% at the state level, plus additional local sales taxes that average about 3% to 4%, depending on the jurisdiction.

The devil may have gone down to Georgia, but even they can’t do business there without understanding some basic information about LLC filing, classification and taxation requirements.

How Are LLCs Classified in Georgia?

In Georgia, limited liability companies and foreign limited liability companies are classified as sole proprietors (also known as “disregarded entities”) or partnerships unless otherwise classified for federal income tax purposes. Georgia follows the federal “Check-the-Box” classification system, thus limited liability companies and foreign limited liability companies are classified in the same way for Georgia income tax purposes as they are for federal income tax purposes.

Foreign Entities

Georgia-owned businesses fill out standard Georgia LLC forms and pay the applicable fees. But if you’re a non-Georgian hoping to do business as an LLC within the state, you are considered a “foreign entity.” This means you will have to submit separate paperwork and pay a $235 fee.

Some states allow for LLC domestication, but Georgia is not one of them. If you want to move your out-of-state LLC to Georgia, the process is more complicated than simply submitting a few forms, and you may have a few options for how to structure the transaction. Seek legal advice if you have a foreign LLC and you want to make Georgia your home state.

Annual Business Registration

Georgia requires LLCs to go through the Annual Business Registration process. The cost is $50. If the registration isn’t submitted on time, you will pay a $25 late fee.

Annual registration requires the following:

• The control number or business name
• The name of person filing the annual registration
• An email address
• The mailing address of the principal office
• Registered agent’s name and address
• Acceptable form of payment

Georgia presently accepts credit cards, checks (including certified checks) and money orders. If paying by credit card, be sure to include the three- or four-digit security code. The official website provides instructions for completing the process.

Georgia Business License Requirements

Georgia doesn’t require a business license at the state level, but all Georgia LLCs need a business or operating license from their city or county. Contact the government offices in your city or county to find out more about these local requirements.

You may need additional licenses or permits if your business’s activities are regulated by state, federal or local laws. Examples of businesses that may need additional licenses include bars, day care centers, plumbers, home inspectors, gun dealers and licensed professionals such as architects and lawyers.

The process of creating a Georgia LLC can be a challenge. Here are a few resources to help with forming your business in Georgia:

• How To Change An LLC Address
• How To Change A Sole Proprietorship To An LLC In 6 Steps
• How To Add A Member To An LLC
• How To Pay Yourself From An LLC