Sections of this topic
Dive into Georgia’s thriving business landscape! If you’re considering launching a Limited Liability Company (LLC), you’re about to enter the exciting world of entrepreneurship. First off, it’s crucial to get a solid grasp on the financials. These costs aren’t just about the initial fees; they cover the ongoing expenses that keep your LLC up and running.
We’ve put together a detailed guide that covers all the potential costs of starting an LLC in Georgia. For extra help, LLC formation services like Tailor Brands can steer you through the complex paperwork, ensuring everything is spot on.
With the right info and expert help, you’ll be all set to handle the complexities and expenses of setting up your LLC in Georgia.
>> Start Your Journey With Tailor Brands >>
What Is the Cost of Forming an LLC in Georgia?
The main expense of establishing an LLC in Georgia is the $100 fee for electronically filing your LLC’s Articles of Organization via the Georgia Corporations Division’s online platform.
Georgia Foreign LLC Formation Costs
If you already own an LLC that’s set up in another state and you’re looking to expand into Georgia, you’ll need to register your existing LLC as a foreign LLC in this state.
The cost to register a foreign LLC in Georgia is $225. To do this, you must submit an Application for a Certificate of Authority for a Foreign Limited Liability Company (Form CD 241).
Annual Cost for LLC in Georgia
In Georgia, maintaining a Limited Liability Company (LLC) involves several expenses across different areas:
First off, there’s an Annual Registration fee that keeps your LLC in good standing. You can handle this online for $50 or through mail for $60.
Then, there’s the matter of appointing a Registered Agent. You can be your own agent at no cost, but many choose to hire a registered agent service. Although this incurs a yearly fee, it can save you time and ensure you meet compliance requirements.
Additionally, specific businesses like medical clinics, real estate agencies, and eateries must secure Professional Licensing to operate legally. This may require paying extra fees or completing certain courses.
Lastly, while not direct fees, remember to include state taxes on sales and employment in your financial planning for your LLC.
How Much Does It Cost to Start an LLC in Georgia With the Best LLC Service?
In Georgia, the base cost to file an LLC is $100, but this can increase if you add other services. Normally, processing takes 2-3 weeks. You can reduce this to 8-10 days for an extra $50, or to 5-6 days for an additional $100.
Tailor Brands presents three unique LLC plans designed to meet diverse business needs. The Lite LLC plan starts things off as the most affordable option, requiring only the state filing fee. This plan covers basic LLC formation and operates within standard processing times.
Next, the Essential LLC plan, which costs $199 plus state fees, provides expedited LLC formation, annual compliance services, and an operating agreement, with a yearly maintenance cost of $199.
The pinnacle of Tailor Brands’ offerings is the Elite LLC plan, priced at $249 plus state fees. It encompasses all features of the Essential plan and adds an array of extra business tools.
Highlights include a free business domain for the first year, a DIY website builder, an online store, eight free logos, a digital business card, a business card creation tool, and a social media post maker. An annual fee of $249 is required to continue accessing these services.
Additional Costs When Starting an LLC in Georgia
Georgia LLC Name Costs
In Georgia, there is no cost to register a business name for your Limited Liability Company. Selecting a name for your LLC comes free of charge once the state approves your Articles of Organization.
You may find online sources claiming that LLC Name Reservations are necessary. However, this is generally not true for most states. In most instances, securing a Name Reservation isn’t required to form an LLC.
Georgia Registered Agent Costs
In Georgia, the annual fee for a Registered Agent can be $0 or $125, depending on your choice. Georgia law requires every LLC to have a Registered Agent.
A Registered Agent in Georgia, either an individual or a business, handles receiving legal documents and state communications for your LLC. This agent must have a physical address in Georgia and be available during usual business hours.
If you choose to act as your own Registered Agent or nominate someone you know, it won’t cost you extra.
Alternatively, hiring a Registered Agent service typically runs between $100 and $300 per year. These services often provide additional business support and can assist in protecting your privacy.
There are no state filing fees associated with naming a Registered Agent on your LLC formation documents.
Think about getting a Registered Agent service, especially if:
- You lack a physical address in Georgia (state law mandates that Registered Agents maintain a physical address within the state)
- You aim to keep your address private (depending on your chosen provider, some services may allow the use of their address for this reason)
Georgia Operating Agreement Costs
The fee for creating a Georgia LLC Operating Agreement is $0.
This agreement acts as a formal contract among the LLC members, detailing important aspects such as ownership, management structure, and profit distribution.
It’s advisable for both Single-Member and Multi-Member LLCs to draft an Operating Agreement, keep it with their business records, and provide copies to all members.
Although many websites charge between $50 to $200 to create LLC Operating Agreements, using online resources can be a cost-effective way to handle this requirement for Georgia LLCs.
Georgia EIN Cost
Obtaining an LLC EIN Number is free, relating to the cost of getting an Employer Identification Number (EIN) or Federal Employer Identification Number (FEIN). This unique number is crucial for several reasons, including filing income taxes, opening an LLC bank account, and hiring employees, if applicable.
Although many websites charge a fee to help secure an EIN for your LLC, it’s possible to get one at no cost. The Internal Revenue Service (IRS) offers a free service to obtain an EIN for your LLC, which can be quickly completed through their online filing system in just a few minutes.
>> Start Using Tailor Brands Today >>
Georgia LLC Taxes
Georgia LLCs are subject to a variety of taxes, resulting in significant differences in annual expenses. The taxes your business needs to pay depend on the income it generates.
Here’s a rundown of some of the taxes that LLC owners might encounter:
Federal Income Taxes
The Internal Revenue Service (IRS) provides various tax classifications for Limited Liability Companies (LLCs). Single-member LLCs are treated as Disregarded Entities, which means they don’t file their own federal income tax returns. Instead, the LLC owner files the return and handles the tax payments.
How the owner is taxed depends on their status: individual owners pay taxes as Sole Proprietorships, whereas corporate owners pay taxes as branches or divisions of the parent company.
Multi-Member LLC Taxes
When an LLC is owned by two or more individuals, it’s taxed as a Partnership. The LLC must file a Form 1065 Partnership Return and provide each owner with a Schedule K-1 that outlines their portion of the profits. Owners then report their share of income from the K-1 on their personal tax return using Form 1040.
Husband and Wife LLC Taxes
In states with community property laws, a husband and wife owning an LLC together have the option to be taxed either as a Single-Member LLC (Qualified Joint Venture) or a Multi-Member LLC. However, this option isn’t available in states lacking community property laws, like Georgia.
Electing Corporate Taxation
Beyond their default classifications, LLCs have the option to elect corporate taxation, including as an S-Corporation or C-Corporation.
To be taxed as an S-Corp, an LLC must file Form 2553, which can help lower self-employment taxes. Opting for C-Corporation taxation, which involves filing Form 8832, is less usual. It’s recommended to consult with an accountant before deciding on this tax structure.
Georgia State Income Tax
In Georgia, Single-member LLCs usually don’t file a separate state tax return; instead, the owner reports the LLC’s profits or losses on their personal state tax return.
Multi-member LLCs might file a state-level Partnership return, with each owner then including their share of the profits or losses on their personal state returns. Additionally, certain business-specific taxes may apply in some instances.
Local Income Tax
In Georgia, LLCs may be required to file and pay income taxes to local municipalities. It’s advisable to seek professional help and confirm specific local requirements with the respective municipality.
Georgia Sales Tax
LLCs that sell products in Georgia generally need to collect sales tax and are required to secure a Seller’s Permit from the Georgia Department of Revenue. This permit, essential for the collection of sales tax, is also referred to as a resale, wholesale, or sales tax permit.
Georgia LLC Payroll Taxes
In Georgia, LLCs that employ workers must handle payroll taxes. This responsibility involves withholding federal and state income taxes and contributing to Social Security, Medicare, and unemployment taxes.
Given the complexities involved in accurately managing payroll taxes, many businesses choose to employ professional payroll services or consult with a tax professional for assistance.
>> Check Out Tailor Brands Now >>
Georgia LLC Cost FAQs
Conclusion
To sum up, establishing an LLC in Georgia involves various costs that warrant careful planning. Although the state is business-friendly and offers numerous advantages, setting up an LLC here requires paying filing fees, possibly hiring a registered agent, and potentially incurring additional expenses for legal assistance. Services like Tailor Brands can simplify this process with their various pricing plans.
Business owners should weigh these costs against the benefits of operating in Georgia, such as robust legal frameworks and a positive business environment. This evaluation will help determine if forming an LLC in Georgia aligns with their business objectives and financial capabilities.
>> Establishing an LLC in Georgia With Tailor Brands >>
