You must register for an account and fill out the application, which asks for details on your LLC’s name, objectives, management structure, and registered agent. A filing fee is furthermore due; it is now $100 in Georgia. You can download the form from the Secretary of State’s website, fill it out, then mail it in to the office along with a check for the filing fee if you’d like to file by mail.
You’ll get a certificate of organization from the state once your articles of incorporation have been accepted. This document attests to the fact that your LLC was legitimately formed and granted permission to operate in Georgia. With your certificate in hand, you can start your business by opening a bank account for it, getting a tax identification number, and operating it.
After forming your LLC, you might be considering paying yourself. You have the option of paying yourself as an employee or through dividends as an LLC member. You must consider the company’s income and losses if you decide to pay yourself through dividends. You must abide by state and federal employment rules as an employee, which include withholding taxes and contributing to Social Security and Medicare.
Even though LLCs have many advantages, some business owners might think about setting up a S Corporation instead. An S Corp’s more complex tax obligations and potential cost increases in accounting and legal costs are its main drawbacks. S Corps are also subject to limitations on the number and nature of shareholders, which may reduce their capacity for expansion.
It’s crucial to take your business objectives, liability protection, and tax ramifications into account when choosing between an LLC and a sole proprietorship. Despite being easier to establish up and run, sole proprietorships do not provide personal liability protection, and all earnings and losses are recorded on the owner’s personal tax return. On the other side, LLCs provide numerous tax options as well as liability protection.
And finally, you might be unsure if Georgia requires a company license. The answer is based on the nature of your company and its location. A state or local license may be necessary for some enterprises, like restaurants and retail stores, to operate. Additionally, the Georgia Department of Revenue requires all companies that offer products or services in Georgia to apply for a sales tax authorization.
In conclusion, establishing a business in Georgia entails submitting Articles of Organization, paying yourself as an LLC member, weighing the pros and downsides of S Corps and sole proprietorships, and acquiring any required business permits. You can successfully launch and run your company in Georgia with careful planning and adherence to legal requirements.
Yes, you will require a Georgia Tax ID number, commonly known as a Georgia Sales and Use Tax Certificate of Registration, if you are beginning a business in Georgia. If you intend to provide taxable services or sell tangible property in Georgia, you must provide this number. By signing up with the Georgia Department of Revenue, you can get a Georgia Tax ID number.