You can convert your Georgia LLC to a S corporation by filing the necessary paperwork with the Georgia Secretary of State and the IRS. This post will give you a step-by-step tutorial on how to change your LLC in Georgia into a S Corp.
You must determine whether your LLC qualifies for S Corp status before you begin the conversion procedure. Your LLC must only have one class of stock and a maximum of 100 stockholders, all of whom must be US citizens or residents.
The IRS Form 2553 must be submitted as the following step. This document informs the IRS that your LLC has decided to elect S Corp tax treatment. This form must be submitted no later than two months and fifteen days following the start of the tax year for which you wish the S Corp status to apply.
You must submit Articles of Amendment to the Georgia Secretary of State after submitting Form 2553 with the IRS. This document amends the Articles of Organization of your LLC to reflect the LLC’s conversion to a S Corp. A copy of the IRS’s permission letter must be sent with your Articles of Amendment.
Once the Articles of Amendment have been submitted, your LLC’s state tax information needs to be updated to reflect its new status as a S Corp. This includes revising your Georgia tax identification number and enrolling for any potential new state taxes. Who is subject to the GA net worth tax in this regard?
Georgia imposes a net worth tax on people, estates, and trusts with net worths over $500,000. This is the total value of all assets, including investments, real estate, and personal property, less any liabilities.
S Corps do not have to pay self-employment taxes, hence they generally pay less in taxes than LLCs. S Corp income is instead taxed at the shareholder level, according to their ownership stake.
There are a number of factors to consider before converting your LLC to a S Corp. One reason is because, as was already noted, S Corps provide tax benefits over LLCs. S Corps can also aid investors by offering liability protection for shareholders.
Depending on your specific situation, you should decide whether or not to change your LLC into a S Corp. Converting to a S Corp might be a wise move if you want to lessen your tax burden and draw in investors. However, it could be advisable to continue with that structure if you prefer the adaptability and simplicity of an LLC. A tax expert or attorney should always be consulted before making any major modifications to your company’s structure.
Yes, domestication of an LLC created in another state into a Georgia LLC is permitted by Georgia law. As a result, the LLC is able to benefit from Georgia’s business-friendly laws and rules. However, depending on the state where the LLC was initially formed, the procedure and specifications for domesticating an LLC may change.
If you live in Georgia, have a physical street address there where legal documents may be delivered during regular business hours, and are a resident of the state, you are eligible to serve as your own registered agent in Georgia. However, appointing a seasoned registered agent service is advised to guarantee that court documents are delivered on time and handled correctly.