In Georgia, there are a number of expenses associated with forming a company, such as state filing fees, legal fees, and ongoing costs for upholding the firm’s legal standing. Depending on the sort of corporation you wish to form and the legal and professional services you need, the overall cost of forming a corporation in Georgia can change.
You must submit Articles of Incorporation to the Georgia Secretary of State in order to establish a corporation there. The articles of incorporation must be filed for $100. You can file by mail or online, but online filing is often quicker and more practical.
You can also be required to pay legal expenses for the drafting and review of incorporation documents in addition to the state filing charge. The price of legal services can vary depending on your corporation’s intricacy and the hourly fees of the lawyer or law firm you choose to work with.
Once your organization is established, you will also have regular legal maintenance costs to pay. For instance, the Georgia Secretary of State will require that you submit annual reports and pay a $50 filing fee each year. Other legal and professional services, such tax filing and bookkeeping, could also cost money.
Consider whether an LLC or S Corp could be a better option for your company if you’re thinking of founding a corporation in Georgia. While setting up and maintaining an LLC is easier and less expensive than doing so for a corporation, they do not provide the same tax advantages as S Corps. S Corps are more difficult to set up and more expensive, but they provide pass-through taxes and can provide significant tax benefits for some enterprises.
The same procedures as for forming a regular corporation must be followed in Georgia in order to establish a S Corp, but you must also submit Form 2553 to the IRS in order to choose the S Corp status. Although Form 2553 is inexpensive to file, you might need to spend legal or accounting expenses to make sure you comply with all S Corp eligibility requirements.
Conclusion: Depending on the kind of business you want to form and the legal and professional services you need, the price of forming a corporation in Georgia can vary. Although creating and sustaining a company has costs, the advantages of restricted liability and other legal protections may make it an investment that is justified for some firms.
Due to the fact that S Corporations are regarded as pass-through businesses, they often have fewer tax obligations than LLCs. This indicates that the S Corporation’s gains or losses are transferred to its shareholders for inclusion on their personal tax returns. In contrast, LLCs are taxed separately and must pay both corporate and individual income taxes on their profits. However, the tax ramifications can differ based on the particulars of the company and its owners, thus it’s always advised to speak with a tax expert.
Selecting a business name, choosing a registered agent, submitting articles of incorporation with the Georgia Secretary of State, getting any required business licenses and permits, and drafting corporate bylaws and a shareholder agreement are all processes in the formation of a corporation. To make sure all requirements are met, it is advised to seek the help of a lawyer or a business formation agency.