The most straightforward type of business structure is a sole proprietorship. However, it does not shield the owner from culpability. However, creating a Limited Liability Company (LLC) offers asset protection for personal property in the event of business problems or legal troubles. As a result, many Georgian sole proprietors are thinking about turning their company into an LLC. This post will go over how to change a single proprietorship in Georgia into an LLC.
To start, pick a distinctive name for your LLC. The name must not be the same as any other brand-new company name that has already been registered with the Georgia Secretary of State. On the Georgia Secretary of State’s website, you may see if the name you want is available.
Step 2: Submit Articles of Incorporation Articles of Organization must then be submitted to the Georgia Secretary of State. The articles can be submitted by mail or online. The name of the LLC, the name and address of the registered agent, the management structure of the LLC, and the purpose of the LLC should all be listed in the articles.
The IRS issues an Employer Identification Number (EIN), a special nine-digit number, to identify your company for tax purposes. By submitting an online application on the IRS website, you can get an EIN for your LLC. In addition to the owner’s Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN), you will also need the LLC’s name and address.
Register for State Taxes in Step 4 You must sign up for state taxes after getting an EIN. On the website of the Georgia Department of Revenue, you can register to pay state taxes. Depending on the kind of business you run, you may need to register for certain taxes. For instance, you must register for state withholding tax if you have employees. Difference:
involving DBA and LLC
The acronym DBA stands for “Doing Business As.” It is also referred to as a “trade name” or “fictitious business name.” A DBA is a means to run a business under a different name; it is not a legitimate business structure. An LLC, on the other hand, is a legitimate corporate structure that protects the owner’s personal assets.
No, a DBA and a single proprietorship are not the same thing. In a sole proprietorship, the owner is legally and financially responsible for all business debts and liabilities. However, a DBA is a technique to run a company under a different name.
An LLC may have a DBA, yes. By submitting a DBA to the Georgia Secretary of State, an LLC can conduct business under various names. However, for formal records, including tax returns and contracts, the LLC’s legal name must always be used.
In Georgia, changing a sole proprietorship into an LLC offers the owner personal asset protection. Choosing an original name for the LLC, submitting the Articles of Organization, acquiring an EIN, and registering for state taxes are all steps in the procedure. While an LLC is a legitimate corporate organization that offers personal asset protection, a DBA is merely a method of operating a business under a different name. Although a DBA is permissible for an LLC, official papers should always contain the legal name.