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.
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:
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.
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.
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.
You also need to check domain name availability for your company's website at a number of online web services sites.
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.
There must be at least one member or manager to set up an LLC in Georgia.
An organizer/authorized representative may sign and file the Articles of Organization in place of the LLC members.
LLC members in Georgia may be of any age.
There are no residency restrictions imposed on LLC members in Georgia.
All Georgia LLCs are required to select a registered agent. In fact, your LLC will not be officially formed without this position.
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.
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.
The registered agent has a physical address — not a P.O. Box.
The registered agent is available during standard business hours.
A Georgia resident with a physical address
An LLC or corporation that is licensed to conduct business in Georgia
You are legally allowed to be your own registered agent as long as you have a physical address in Georgia.
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.
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.
The Articles of Organization is a legally binding document that is filed with the state government to legally form an LLC in Georgia.
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.
The name and address of the LLC
The contact information of the organizer filing the paperwork
The name and location of the registered agent
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.
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.
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.
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.
You do not need to file the Operating Agreement with the state; it is for the benefit of your LLC and remains in-house.
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.
Most Georgia businesses are required to obtain an EIN. Your Georgia LLC will not be able to conduct business without this ID.
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.
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.
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.
The EIN for your Georgia LLC will be part of public record.
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.
In order to stay compliant when creating an LLC in GA, LLC owners must follow the protocol pertaining to the state. The procedure includes:
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.
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.
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).
Other taxes your LLC may need to pay:
Sales and Use Tax at 4%
Employee Withholding Tax
Unemployment Tax
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.
All Georgia LLCs are required to complete annual registration with the Secretary of State.
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.
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
The annual registration filed on behalf of your LLC is a matter of public record.
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.
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.
The Certificate of Existence is an official notification that confirms your business is properly formed and is in good standing with all state regulations.
The Secretary of State generally issues the Certificate of Existence.
You will be able to request a Certificate of Existence after your LLC is officially formed through the Secretary of State.
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.
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.
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
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.
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%.
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.
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.
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.
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.
$100 Filing Fee / $50 annual statement
$25 name reservation fee (optional)
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.
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.
Every day, business owners from all over the nation rely on Swyft Filings to help them file an LLC online and maintain their company.
Looking for answers? You came to the right place. Read the FAQ or contact our team for more information.
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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