How to Start an LLC in Georgia: Georgia LLC Ultimate Guide
How to Start an LLC in Georgia: Georgia LLC Ultimate Guide
When you're looking into how to start an LLC in Georgia, you have to be ready to understand what can seem like a daunting process:
Luckily for you, our easy-to-follow guide is the perfect resource to help you create an LLC in Georgia.
Phase 1: How to Start an LLC in Georgia
Although there is an in-depth procedure for starting an LLC in Georgia, Swyft Filings provides a comprehensive guide that walks aspiring business owners through the process. Open an LLC in Georgia today by following these six simple steps:
1: Name Your Georgia LLC
The first step involved in setting up an LLC in Georgia is choosing a name for your business. Be sure to check out the state and federal guidelines concerning the use of certain words in business names.
Tip: Use a free business name search tool to ensure your Georgia LLC's desired name is available.
Business Name Guidelines
The official name of your state of Georgia LLC must end with: Limited Liability Company, Limited Company, LLC, or L.L.C.
Your business name cannot be intentionally misleading to consumers.
The name of your new LLC must not be similar to another organization's name/trademark.
Restrictions
There are some state and federal level restrictions concerning certain words that cannot be used for a business name.
A few examples include:
“Lottery” and “Bank” are ineligible for use (any state).
Terms that represent educational or Veterans' organizations are restricted.
Terms related to the Armed Forces or civil servants (police, EMT, fire).
LLC business names associated with government and/or financial entities are not always restricted — it depends on the state. Additional paperwork may be required.
URL Availability
You also need to check domain name availability for your company's website at a number of online web services sites.
2. Establish Ownership
Georgia LLC owners are actually known as members and/or managers. All LLCs will have members, but not every LLC will have managers — the difference depends on the elected management structure of the business. There are two main types of management structures to keep in mind when forming an LLC in Georgia:
Member-managed: All members participate in operating and making decisions for the LLC.
Manager-managed: An appointed manager oversees the daily operations of the LLC and the members are not actively involved.
Certain rules dictate the designation process when creating an LLC in Georgia.
Required Number of Members
There must be at least one member or manager to set up an LLC in Georgia.
Member Disclosure Requirements
An organizer/authorized representative may sign and file the Articles of Organization in place of the LLC members.
Age Restrictions
LLC members in Georgia may be of any age.
Residence Restrictions
There are no residency restrictions imposed on LLC members in Georgia.
3. Find a Registered Agent in Georgia
All Georgia LLCs are required to select a registered agent. In fact, your LLC will not be officially formed without this position.
What is a registered agent?
A registered agent is a person or business who receives all official government mail and service of process notices on behalf of a Georgia LLC.
Why do you need a registered agent?
Georgia law requires you to appoint a registered agent when registering an LLC in Georgia so that the state government has a consistent contact person at all times.
What are the main requirements for a registered agent?
The registered agent has a physical address — not a P.O. Box.
The registered agent is available during standard business hours.
Who can be a registered agent in Georgia?
A Georgia resident with a physical address
An LLC or corporation that is licensed to conduct business in Georgia
Can I be my own registered agent for my business?
You are legally allowed to be your own registered agent as long as you have a physical address in Georgia.
Is being my own registered agent discouraged?
Since the registered agent's name and address are publicly listed, LLC business owners who choose to be their own registered agent risk compromising their personal information.
Tip: Avoid the hassles and choose Swyft Filings' registered agent services to fill the registered agent needs for LLCs in Georgia.
4. File the Articles of Organization
This is arguably the most important because Georgia LLCs aren't considered officially formed until they file the Articles of Organization with the Secretary of State.
What are Articles of Organization?
The Articles of Organization is a legally binding document that is filed with the state government to legally form an LLC in Georgia.
Why do I need the Articles of Organization?
Without this document, the Secretary of State will not legally recognize your Georgia LLC. Consider the Articles of Organization as part of your LLC's foundation.
What information is included in the Articles of Organization?
The name and address of the LLC
The contact information of the organizer filing the paperwork
The name and location of the registered agent
Additional Georgia Filing Information — Professional Service Businesses
Georgia does not allow professional service businesses to form LLCs; these types of businesses must form a corporation in order to operate in state borders.
Form your LLC with Swyft FIlings and we'll file the Articles of Organization for you.
5. Create an LLC Operating Agreement
Although it's not mandatory for an LLC in Georgia to have an LLC operating agreement, it is highly recommended to have one present. The operating agreement also shows professionalism and helps prevent creditors from getting to your personal assets.
What is an LLC Operating Agreement?
The LLC Operating Agreement is a legal document that defines operating procedures through the roles of the members/managers and explains the voting rights and asset distribution of each person.
Why do I need an LLC Operating Agreement?
Because the LLC Operating Agreement defines the roles of the business's members and provides direction for daily operations, the document ensures stability and structure when registering an LLC in Georgia and reduces future disputes.
Do I need to file the LLC Operating Agreement?
You do not need to file the Operating Agreement with the state; it is for the benefit of your LLC and remains in-house.
What goes into an LLC Operating Agreement?
While there is not a set rule of what must be included in your LLC Operating Agreement, most documents include the following information:
List of the members/managers and their roles
Designation of authority in the LLC
Initial capital contributions of the members
Voting designations and percentages of the members
Member transfer/addition rules and restrictions
Distribution of profits
Meeting schedule
Tip: Get a customized LLC operating agreement for your Georgia LLC. Add structure to your LLC now.
6. Register for an EIN
Most Georgia businesses are required to obtain an EIN. Your Georgia LLC will not be able to conduct business without this ID.
What is an EIN?
The EIN (Employer Identification Number) is a nine-digit number that the IRS assigns to your business for identification purposes. The EIN is similar to a personal Social Security number.
Are all businesses required to have an EIN?
Federal law dictates that certain types of business entities register for an EIN:
Any business with employees (even if owned by one person)
Any business with more than one member
A partnership (LLC or C-corp)
Please Note: A sole proprietorship is not required to have an EIN, but it is still recommended.
Why does my LLC business need an EIN?
The more common reasons you would need an EIN are:
To hire employees
To open a bank account in the U.S.
To file your company’s taxes
To pay independent contractors
In short, if you make money through your business and have employees, you must have an EIN.
Is the EIN publicly listed?
The EIN for your Georgia LLC will be part of public record.
Can I use my Social Security Number as the EIN?
If you are a sole proprietorship who wants an EIN for your business, you can elect to use your social security number; however, your EIN is part of public record.
Swyft Filings offers EIN/tax ID services for small businesses in Georgia.
Phase 2: Maintaining Your Georgia LLC
In order to stay compliant when creating an LLC in GA, LLC owners must follow the protocol pertaining to the state. The procedure includes:
1. Register for Georgia State Taxes
LLCs in Georgia don't pay any corporate or franchise taxes. LLC members are still required to pay state and federal income taxes on their earnings.
State Income Taxes
Georgia's state income tax rate is 6% for all income above $7,000. Recent amendments by the state legislature have changed the rate to 5.75% in 2019, and then 5.5% in 2020.
Corporate Tax Information
You can also choose to have your Georgia LLC taxed as a corporation; if so, you will be responsible for paying the corporate income tax rate of 6% on your business's earnings.
Please Note: Recent changes to tax laws by the state legislature will lower the rate to 5.75% in 2019, and then to 5.5% in 2020.
Companies with a net worth that exceeds $100,000 will also be responsible for the net worth tax in addition to the corporate tax. Tax fees begin at $125 ($100,000 to $150,000) and cap out at $5,000 ($22 million and up).
Additional Tax Information
Other taxes your LLC may need to pay:
Sales and Use Tax at 4%
Employee Withholding Tax
Unemployment Tax
2. Obtain Business Licenses and Permits
When creating an LLC in Georgia, required business licenses and permits vary wildly depending on the county or municipality where your new LLC is located. If you have multiple locations for your business, you may need to register each location and pay the allotted fees. Additionally, specialized licensing is required for certain businesses such as medical institutions and contractors.
A few common permits to keep in mind when creating an LLC in Georgia include:
Business licenses/tax permits
Regulatory permits, such as health and alarm permits
Building and signs permits
Tip: If you would like to see more in-depth information on licenses and permits, please free to visit our business license research package page.
3. Complete Annual Registration
All Georgia LLCs are required to complete annual registration with the Secretary of State.
What is an annual registration?
Annual registration, which is also known as an annual report, is legal documentation that is filed with the Secretary of State to keep your business's information current with the state.
What kind of information is in the annual registration?
The information requested in the annual registration is similar to what was listed in the Articles of Organization:
The name and address of the business
The name and address of the registered agent
The names of the members
The business’s EIN
Is the annual registration part of the public record?
The annual registration filed on behalf of your LLC is a matter of public record.
Fees and Due Date
Fee: $50 Due Date: Jan 1 - April 1 Implications of Late Filings: $25 late fee and eventual LLC dissolution
Please Note: Georgia LLCs are not required to submit the annual registration until the year following official formation.
Swyft FIlings helps you stay compliant by providing stress-free solutions. Use our annual report service today.
4. Obtain a Certificate of Existence
The Certificate of Existence, also known as Certificate of Good Standing, is used when banks and other businesses want to verify that your Georgia LLC is fully compliant.
What is a Certificate of Existence?
The Certificate of Existence is an official notification that confirms your business is properly formed and is in good standing with all state regulations.
Who issues the Certificate of Existence?
The Secretary of State generally issues the Certificate of Existence.
When can I request a Certificate of Existence for my business?
You will be able to request a Certificate of Existence after your LLC is officially formed through the Secretary of State.
Why do I need a Certificate of Existence?
Many businesses and financial institutions want proof that your Georgia LLC is compliant with the state government. Some companies may not even agree to conduct business if your LLC does not have this certification.
Additionally, some states require a Certificate of Existence before a business can apply for Foreign Qualification.
Does the Certificate of Existence have an expiration date?
The Certificate of Existence does not expire/does not need to be renewed.
Swyft Filings can create a Certificate of Existence for your GA LLC.
How to Form an LLC in Georgia: A Recap
Understanding how to form an LLC in Georgia may seem daunting at first, but it's our hope that the preceding guide offers a succinct overview of the Georgia LLC requirements you need to keep top of mind.
No matter what, however, Swyft Filings is here to help during these steps:
Namie Your Georgia LLC
Establish Ownership
Find a Registered Agent in Georgia
File the Articles of Organization
Create an LLC Operating Agreement
Register for an EIN
Register for Georgia State Taxes
Obtain Business Licenses and Permits
Complete Annual Registration
Obtain a Certificate of Existence
Starting an LLC in Georgia: Pros and Cons
Pros
Low Cost of Living
Like most states, prices of homes vary with location. The average price of a home in the larger cities of Georgia ranges anywhere from $114,000 to $420,000. However, renting in Georgia is well below the U.S. average, with one-bedrooms averaging $908 and three-bedrooms around $1,176 per month. Gas prices are 5% under the national average, and food and groceries are close to 1% above average.
Low State Income Taxes of 6%
The tax bracket in Georgia ranges from 1% to only 6%, depending on income. Incomes over $7,000 automatically pay a 6% tax rate, which is almost 2% less than the average national state income tax. This is significantly lower compared to California's income tax rate of 13.3%.
Home to One of the Top 10 Metropolitan Areas in the US
According to the U.S. Census Bureau, Atlanta, Georgia has the #3 largest-gaining metropolitan area, and the #8 most populous metropolitan area in the U.S., with 5,789,700 residents. A larger population yields opportunity for growth in any company, both in employees of the company and customers.
Cons
Recovering and Competitive Economy
Since the recession, Georgia's economy recovered slower than most states in the country. From 2004 to 2014, the economy only grew 0.9%, and 2015 on grew close to or higher than 2.7% year over year. The income is significantly lower than the national average, at $38,980.
High Crime Rate in Atlanta
Two reports in 2016 listed Atlanta as one of the more dangerous cities in the nation, particularly because of its violent crime/murder stats - more than three times the national average in 2016. Only a few years ago, Atlanta was ranked as one of the top 25 “murder capitals” in the U.S.
Poor Air Quality Scores
In a recent report released by the American Lung Association, several Georgia counties received failing grades on air quality. Notably, Fulton county (home to Atlanta) garnered an “F” for its smog rating. Atlanta's poor air quality has been called a contributing factor in the city's higher-than-normal crime rating.
Cost of Doing Business
$100 Filing Fee / $50 annual statement
$25 name reservation fee (optional)
How Long Does it Take to Get an LLC in Georgia?
It takes 7 to 10 business days to get an LLC in Georgia. If you want to form a Georgia LLC more quickly, you can pay an extra fee to request an expedited processing time. The expedited processing time will take 2 to 3 business days total.
It typically takes 7 to 10 business days to get an LLC in Georgia, although express processing times of 2 to 3 business days are available for an extra fee.
How to Create an LLC in Georgia: Final Points
Registering an LLC in Georgia doesn't have to be a grueling, daunting process. When you break down the Georgia LLC formation process to simple steps, you can tackle each confidently. Luckily, our Business Specialists are also on hand to help you through the process.
GA LLC: Related Resources
Guides for Other States
Don’t Just Take Our Word for It
Every day, business owners from all over the nation rely on Swyft Filings to help them file an LLC online and maintain their company.
Frequently Asked Questions
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Orders are processed as they are received. However, clients that select Express Processing or Same Day Processing will have their orders processed before Standard Processing orders.
Orders are processed as they are received. However, clients that select Express Processing or Same Day Processing will have their orders processed before Standard Processing orders.
Orders are processed as they are received. However, clients that select Express Processing or Same Day Processing will have their orders processed before Standard Processing orders.
Orders are processed as they are received. However, clients that select Express Processing or Same Day Processing will have their orders processed before Standard Processing orders.
Orders are processed as they are received. However, clients that select Express Processing or Same Day Processing will have their orders processed before Standard Processing orders.
Orders are processed as they are received. However, clients that select Express Processing or Same Day Processing will have their orders processed before Standard Processing orders.
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