How to Form a Georgia LLC

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Georgia LLC Quick Facts

Georgia LLC Costs

Initial LLC Filing Fee – $100

 

Recurring Fee – $50 Annual Report Fee

LLC Processing Time

Online – 7 business days

Mail – 2-3 weeks

 

Expedited processing is also available for an additional fee.

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Quick Reference

The Limited Liability Company (LLC) is a popular business entity choice structure for many businesses starting in Georgia. The LLC provides personal liability protection and has the potential to save money on taxes. With a little research, you can learn how to form an LLC in Georgia without an attorney.

Unlike a sole proprietorship or partnership where the small business owner can be held personally liable for lawsuits against the business, the LLC is a separate legal structure, protecting the business owner’s personal assets.

Related: How Does an LLC Protect You?

Besides the liability protection, the Limited Liability Company provides several other benefits over the sole proprietorship, partnership, and corporation because of the multiple tax options, ease of administration, and management flexibility.

To form a Limited Liability Company in Georgia, file the Articles of Organization with the Georgia Secretary of State.  The LLC filing fee in Georgia is $100.

Approval time for the Georgia LLC typically takes around 2-3 weeks if filing by mail or 7 business days when filing online.    Expedited processing is also available.  Two business day processing is an additional $100 for a total cost of $200.  Same-day processing will cost an additional $250 for a total cost of $350.

Guide to Forming an LLC in Georgia

The steps for filing online or by mail are largely the same.  The screenshots show filing online.

Forming an LLC can be both affordable and is something most people can do themselves. Entity formation companies like IncFile or IncAuthority help guide you through the process and make sure there are no mistakes.

Related: Should you use a Formation Service, Hire an Attorney or Do it Yourself?

To get started, either create a user account with the Georgia Secretary of State or download the Georgia LLC Articles of Organization (Form CD030) and the Transmittal Form (Form 231).

Step 1: Create the Entity

When filing an LLC that is based in Georgia, select “Create or Register a Business,” then select “I am creating a new domestic business” and then “Domestic Limited Liability Company.” Registering a Foreign LLC is used when a business formed in another state wants to do business in another state.

How to Form a Georgia LLC

Create an LLC in Georgia

Step 2: Business Name

If you have previously registered the business name with the Secretary of State, select “Yes” for the question Do you have a Business Name Reservation Number?  Name registration isn’t required before filing for an LLC.

Select a name for your LLC.  Remember that the LLC’s name has to differ from other entity names in the state of Georgia.  Check on available LLC names.  There are optional forms for a 2nd and 3rd name choice if the first name isn’t available.

Last, the legal name of the LLC must include one of the following at the end of the business name:

  • Limited Liability Company
  • Limited Liability Co.
  • Ltd. Liability Company
  • Ltd. Liability Co.
  • Limited Company
  • Limited Co.
  • Ltd. Company
  • Ltd. Co.
  • LLC
  • L.L.C.
  • L.C.
  • LC

Certain words are not allowed to be used in the name of an LLC without prior approval.  Some of these words include bank, credit union, insurance, assurance, indemnity, surety, fidelity, reassurance, reinsurance, college, or university.

Before finalizing a name, learn more about LLC Name Requirements in Georgia.  You may also want to see if a domain name is also available to have a matching website address.

If there is a name you want to use but are not ready to form the LLC, a name may be reserved by submitting a Name Reservation Request form and paying a fee of $25. The name reservation will hold the name for 30 days.

If you plan to use a different name from the one that you register (perhaps you want to run multiple businesses under the LLC), you can use a trade name (sometimes referred to as a fictitious business name, assumed name, DBA, or Doing Business As name).  To register a fictitious name, a Registration Statement will need to be filed with the Clerk of the Superior Court in the county where the LLC operates out from.

Georgia LLC Register Business Name

Step 3: Business Purpose

This section is used to classify the industry the business operates in.  If you choose to list your business industry, select a NAICS Code from the drop-down menu.

The NAICS (North American Industry Classification System) code is a six-digit number that classifies and categorizes different businesses.  This information is used in reporting statistical data for each of the industries in the U.S.  Remember this number as you will need it when filing annual tax returns.  Find your NAICS number here.

If your business activities aren’t specifically listed, but you want to answer, select the industry that is the closest or “Any Legal Purpose.”

Georgia LLC Business Purpose

Step 4: Principal Office

In this section, enter the street address, city, state, zip code, and country of the initial principal office.  This address can be the LLC’s physical address, the address where the business records are kept, or the address of the Registered Agent.  You may not use a PO Box for the principal office.

Georgia LLC Principal Office

Step 5: Business Email

Enter the email address where the notice of the LLCs approval should be sent.

Georgia LLC Email Address

Step 6: Registered Agent

To have an LLC in Georgia, a Registered Agent must be identified for service of process.  The Registered Agent is either a Georgia resident or a corporate agent registered with the state of Georgia. The agent must have a physical address in the state to act as a point of contact to receive legal documents, tax notices, summons, subpoenas, etc. on behalf of the LLC.

If the Registered Agent is an individual, note that a message that says “No data found” will appear when you type their name.  When that happens, a button will be created that will allow you to create a registered agent and enter their contact information.

You are not required to pay for a registered agent. Any individual meeting the requirements can be the agent; however, the agent’s name and address become public record, and with that comes a loss of privacy. This is more important for some entrepreneurs, especially when doing business from home or still employed.  Hiring a registered agent service like Northwest Registered Agent to be the Registered Agent will reduce unwanted phone calls and mailings.

See more about the requirements of a registered agent in Georgia.

Georgia LLC Registered Agent

Step 7: Organizer Information

An LLC Organizer is someone involved with the formation of the Articles of Organization.  The Organizer may or may not become a member, such as a mentor, attorney, or accountant, but the initial members will all be listed as organizers.

Learn more about who can be an LLC Organizer.

LLC Organizer Information

Step 8: Optional Provisions

This is an optional section and not used by most LLCs.  Here you would include additional rules for the operation of the LLC.

Step 9: Filer’s Certification

Click on the box that states the filer agrees to the terms.

The next area asks about the effective date of the LLC.  By default, the LLC is effective on the date submitted.  If you prefer to have the LLC officially start at a later date (up to 90 days), enter that date in this field.

Last, one of the members/owners (choose Member) or organizers (choose Organizer) will enter their full name.

Step 10: Review

Review the information to ensure it is all correct.

Step 11: Pay and File

Pay and file the Georgia Articles of Organization.

If mailing, send the form and a check or money order payable to the Georgia Secretary of State to:
Corporations Division
2 Martin Luther King Jr. Dr. SE
Suite 313, West Tower
Atlanta, GA 30334

If you have questions, contact the Georgia Secretary of State at 404-565-2817 or
http://sos.ga.gov/index.php/corporations

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Tasks After Forming Your LLC

Once the LLC has been formed, there are a few additional steps to take care of. Below is a list of the most common tasks.

Prepare an LLC Operating Agreement

The operating agreement is a document that governs the framework of an LLC.  This document covers items like ownership rights, member responsibilities, how profits and losses are distributed, and more.

Most states do not require an LLC to have an operating agreement, but it is still worth considering. Without an operating agreement:

  • The LLC could be subject to generic state rules that may be detrimental in the event of a lawsuit.
  • Member’s personal liability protection may be diminished.
  • Members may not fully understand their roles and responsibilities, which could lead to costly disputes in the future.

Related: Georgia operating agreement template

Obtain an EIN

The EIN or Employer Identification Number (also called a Federal Employer Identification Number or FEIN) is a unique 9-digit tax identification number assigned to a business by the Internal Revenue Service (IRS). Similar to a social security number for an individual, the EIN identifies business entities for tax purposes. The EIN will be needed to hire employees, open a bank account, register for business licenses and permits, file tax returns, and more.

There is no cost for the EIN when registering through the IRS. The number is available immediately when applying through the IRS website; however, you can also register by phone, fax, or mailing IRS Form SS-4.

Related: How to Apply for an EIN

Open an LLC Bank Account

Opening a bank account for your LLC is important for liability protection as the account separates the business’s funds from the member’s personal funds.

Several documents will be needed to open a business bank account, such as:

  • A banking resolution is a document that authorizes the members to open a business bank account on behalf of the LLC.
  • Copies of the certificate of organization paperwork from the state showing the creation of the LLC (or Certificate of Authority if a foreign LLC).
  • Driver’s licenses of the members.
  • Depending on the LLC age, a Georgia Certificate of Good Standing may be needed to prove the LLC is active and in good standing with the state.

Related: How to Open a Business Bank Account for your LLC 

Elect the LLC’s Form of Federal Income Taxation

One of the significant benefits of the Limited Liability Company is the tax flexibility it provides.  When applying for the Employer Identification Number, you will choose how the entity will be taxed for federal income tax purposes. While there are some limitations, an LLC may be classified for federal income tax purposes as a:

  • Sole proprietorship
  • Partnership
  • C-corporation
  • S-corporation

While this may sound confusing, this refers to how the LLC is taxed, not the legal structure.

Related: How can an LLC be taxed?

By default, the taxation of an LLC is called pass-through taxation, which means the profits or losses of the LLC flow through to the members.

Single-member LLCs will, by default, be taxed as a sole proprietorship. The members can also elect to change the taxation to a C-corporation or an S-corporation.

Multi-member LLCs will, by default, be taxed as a partnership. The members can also elect to change the taxation to a C-corporation or an S-corporation.

In general, the difference between being taxed as a corporation and being taxed as a sole proprietorship or partnership the profits and losses are passed to the member’s federal income tax returns based on their percentage of ownership.  As a result, the owner will pay self-employment taxes on all business profits.  As an alternative, electing to be taxed as a corporation allows the members to take a reasonable salary and then pay payroll taxes.  Any remaining profits are distributed and aren’t subject to payroll taxes, resulting in potential tax savings. Note that a disadvantage of an LLC taxed as a corporation in Georgia is an annual corporate tax and net worth tax will be assessed, in addition to double taxation for C-corporations.

Before electing how your LLC will be taxed, be sure to talk with an accountant to assess which one will be best for you as tax requirements are complicated.

Apply for Business Licenses and Permits

Depending on what your business does and where it is located, there will likely be various business licenses and permits needed. Some common registrations include:

  • Business License – Some cities require businesses to obtain licensing before they can start.
  • Professional License – Certain services such as barbershops, accountants, salons, and others must be licensed.
  • Sales Tax Permit – To sell products and certain services, registration with the Georgia Department of Revenue will be necessary.

Related: What Business Licenses are Needed in Georgia?

File the Annual Registration

LLCs are required to file an annual registration with the Georgia Secretary of State.  The cost of the initial registration is $50 and will be due between January 1st and April 1st of the year following the formation of the LLC. The annual report updates ownership information and other details.

Related: How to File a Georgia LLC Annual Registration