How to Form an LLC in Georgia

Pick a name for your LLC

The first step in starting a business is picking a unique and recognizable name to stand out against competitors. Georgia LLCs must also include “Limited Liability Company” or a similar phrase in the name. You can also reserve this name for up to 30 days for a small fee of $25.

Appoint your registered agent

LLCs operating in Georgia are required to have a valid Georgia registered agent. This person will receive and inform the business owner about any vital company documents. Registered agents can be anyone with a physical address in Georgia who is available during regular business hours.

You can choose yourself or a friend as your registered agent if they meet Georgia’s requirements. However, many business owners hire a professional for legal protection and convenience.

File your Articles of Organization

All new LLC owners must file the Articles of Organization to form their company. This document provides the state with details like your LLC’s name, address, and registered agent. Once reviewed and approved by the Georgia Division of Corporations, your LLC is officially formed and recognized as a legal entity.

As of 2024, filing the Articles of Organization costs $110 through mail and $100 online.

Apply for your Employer Identification Number (EIN)

LLC owners need an Employer Identification Number (EIN) from the IRS for tax purposes. Companies need EINs for filing taxes, handling payroll, hiring employees, or opening business bank accounts. The EIN also helps separate business and personal finances and is necessary for obtaining business licenses. The application is simple and free, and you can get your EIN quickly through the IRS website.

Get business licenses

LLCs from all states may need specific licenses depending on their industry. For example, an incorporation in Alabama that provides haircut services will require a cosmetology license. Georgia has a similar license requirement for salons.

Check with Georgia’s License Compliance Program for more information about necessary licenses.

Register for state taxes

While LLCs are often considered “pass-through” entities and don’t pay federal income tax at the corporate level, they must still register for state taxes. This registration allows them to pay other taxes, such as state income tax and employer taxes.

LLCs in Georgia must also file an annual report to update the government on their current business status. This information includes the registered agent’s name and address, the company name, and other basic business aspects. Filing an annual report costs $50 for LLCs.

• Limited liability protection: Incorporating an LLC separates the business from the owner’s assets, protecting them from business-related debts, lawsuits, and liabilities. This protection means personal property, like a home or savings, is generally safe if the business faces financial trouble.
• Tax benefits: LLCs avoid double taxation by passing profits and losses to their members, who report these on their tax returns. Members only pay taxes on their share of the LLC’s earnings or losses.

• Flexible management structure: LLCs offer flexible management structures where members can choose to manage the business themselves or appoint managers to handle operations.
• Professionalism and trust: Incorporating your business boosts its credibility by making it a government-recognized legal entity. This trust with investors, customers, and potential partners. Incorporation opens up more funding opportunities and attracts customers who see your business as stable and professional, which helps drive growth and success.