For entrepreneurs wishing to create a sole proprietorship, starting a firm in Georgia can be a fantastic opportunity. A business form known as a sole proprietorship is run and owned by just one person. The simplicity of setting up and running this kind of business appeals to small business owners. We will walk you through the procedures needed to establish a sole proprietorship in Georgia in this article.
The first step is to select a business name. A crucial first step in establishing a sole proprietorship is selecting a company name. Your company name needs to be distinctive, simple to remember, and simple to spell. To check whether the name you’ve chosen is available, use the Georgia Secretary of State website’s company name search function.
Step 2: File a Business Registration Form Sole proprietorships are exempt from Georgia’s Secretary of State registration requirements. However, the county or city where your firm is located will need you to obtain a business license. It’s vital to verify with your local government office for the specific requirements and costs of the application procedure since it can vary depending on the county or city.
You might need to apply for extra permits and licenses from the state or local government depending on the nature of your firm. For instance, the Georgia Department of Revenue will require that you apply for a permit if you intend to serve food or beverages. For a list of state organizations and their contact details, visit the website of the Georgia Secretary of State.
Get an Employer Identification Number (EIN) in step four. The Internal Revenue Service (IRS) issues each business an individual nine-digit number known as an Employer Identification Number (EIN) for tax-related purposes. Although it is not compulsory for sole entrepreneurs to acquire an EIN, doing so may be vital if you intend to hire staff or create a business bank account. On the IRS website, you can submit an online application for an EIN.
Depending on the county or city where your firm is located, getting a business license in Georgia can take a different amount of time. Some cities may grant a business license the same day, while others might process the application over the course of several weeks. It’s crucial to confirm the requirements and processing times with your local government agency.
By contacting the county or city where the business is situated, you can confirm the existence of a business license in Georgia. For a list of state-licensed enterprises, visit the website of the Georgia Secretary of State.
An alternative business name to the owner’s legal name is registered as a DBA (Doing Business As). A DBA is permissible for use by a sole proprietorship. A Limited Liability Company (LLC) is a distinct legal structure that offers liability protection for its owners and offers greater management and tax flexibility. How can I obtain LLC?
You must submit Articles of Organization and pay a filing fee to the Georgia Secretary of State in order to establish an LLC there. Additionally, you will need to obtain all required licenses and permissions as well as an IRS EIN. It’s crucial to speak with a lawyer or business counselor as the procedure of establishing an LLC can be more complicated than that of doing so for a sole proprietorship.