How to Form a C Corp in Georgia

Pick a name for your C corporation

One of the most essential steps in the incorporation process is picking a good company name. The name should be unique, memorable, and an excellent representation of your company. Georgia also requires that all C corps include an approved word or abbreviation, such as “Corporation” or “Corp.” in their name. Check Georgia’s online business name database for more information about name availability.

Reserve your corporation name

Georgia allows new business owners to reserve their corporate name for up to 30 days. This reservation costs $25 but protects the name from being taken while the business completes the incorporation process.

Determine your registered agent

Georgia requires that all C corporations appoint a registered agent. This agent will receive important legal documents for the business and be in charge of informing the owner.

Whoever you choose as your registered agent must have a physical address in Georgia. This individual or company must also be available during standard business hours. If you hire a company, they must be authorized to do business in Georgia. While it is possible to appoint yourself or a friend as your registered agent, many companies hire professionals for legal safety.

File the Articles of Incorporation

The Articles of Incorporation form is used to officially create your C corp. Information that business owners should provide includes business name, goals, address, the number of shares issued, and registered agent’s information.

The Articles of Incorporation cost $100 to file online or $110 by mail.

Create corporate bylaws

In Georgia, corporate bylaws are essential for your C corp and determine how the company will operate. These operations include things like meetings, voting, and appointing officers. The board of directors must approve before a company implements any bylaws.

While Georgia does not require you to file bylaws with the state, you must keep them for your business records.

Distribute stock to shareholders

Corporations in Georgia have the option to sell stock to shareholders. By purchasing stock and investing in the company, shareholders obtain partial ownership. The board of directors will determine the amount of stock distributed during the first business meeting. Once stocks are distributed, you must track who owns your stock and how much they own.

Apply for your Employer Identification Number (EIN)

All new business owners in Georgia must apply for an Employer Identification Number. EINs allow business owners to do basic business tasks such as paying taxes, hiring employees, and opening a business bank account. Applying for an EIN is simple and accessible through the IRS website.

Obtain permits and business licenses

Georgia does not require that all C corps have a statewide general business license. Instead, individual cities or counties may require specific business licenses. Businesses may also need to apply for additional licenses depending on the industry in which they operate. For example, a C corp operating in the veterinary industry must have a Veterinary Facility License.

Visit Georgia’s Secretary of State License Application website for more information on permits you may need.

Register for state taxes

Georgia requires all C corps to register for state taxes through the Georgia Department of Revenue’s website. Registering is important so your business can correctly pay taxes and avoid legal penalties.

File annual reports

The last step in the incorporation process is filing your company report. In Georgia, C corps must file this report annually to keep the business’s information up to date with the state. This report includes company name, address, purpose, and current registered agent information. You can file it online through the Georgia Secretary of State’s website.

Filing an annual report in Georgia costs $50.

• Tax benefits: While North Carolina corporations have the lowest corporate income tax rates, Georgia also has a reasonably low tax rate. Because of these low tax rates, the C corps in Georgia can save money on taxes.
• Limited liability protection: C corporations provide limited liability protection to their owners. This protection separates the company from the owner, preventing the owner from being personally liable for any business debts.
• Business credibility: Incorporating your business shows potential shareholders, loaning agencies, and customers that it is a credible corporation. This credibility increases the likelihood that people will be willing to invest in the company.

• Unlimited shareholders: A C corps does not have a limited number of shareholders. Access to unlimited investors can make funding a business easier by selling more stock. A C corp also benefits from being less risky for shareholders since having a larger group of people distributes the risks.
• Potential for growth: C corporations provide limited liability protection to their owners. This protection separates the company from the owner, preventing the owner’s assets from being claimed if the business encounters legal problems.