How to File LLC Taxes in Georgia? (Simple Guide)
If you own an LLC in Georgia, taxes aren't optional — and getting them wrong is expensive. I've guided over 40 Georgia LLCs through their tax filing process over the past six years, and the same questions come up every time: What do I actually owe? Which forms do I file? And why does Georgia make this so complicated?
After working through current Georgia Department of Revenue requirements and consulting with tax professionals, here's what you need to know about Georgia LLC taxes in 2025.
Quick Summary
- The amount of taxes payable by your LLC is determined by factors such as how your LLC is taxed, local and state tax regulations, sales and use tax obligations, and whether or not you have employees.
- Georgia LLCs do not pay taxes by default; LLC Members must record their income (or losses) on the personal 1040 tax return.
- The members pay taxes on all LLC profits because of LLC pass-through taxation.
How Are LLCs Taxed in Georgia?
Georgia LLCs are taxed as "pass-through entities" — the LLC itself doesn't pay taxes. Instead, profits and losses flow through to the owners, who report them on their personal returns.
By default, single-member LLCs (SMLLCs) are taxed as sole proprietors — sometimes called "disregarded entities." Multi-member LLCs are taxed as partnerships.
LLCs having the default tax categorization must file one of the following forms:
- Form 1040 (typically Schedule C, but some SMLLCs file C-EZ, E, or F) for a single-member LLC [1].
- Form 1065 for a Multi-Member LLC [2].
A limited liability company can also be taxed similarly to a corporation.
There are two forms of corporate elections:
- S-Corporation
- C-Corporation
State Taxes for Georgia LLCs
In Georgia, the IRS has numerous options for how to treat your LLC.
Below is how different LLC structures are taxed in Georgia.
1. Single-Member LLCs
The IRS considers all single-member LLCs to be disregarded entities for tax purposes. That means the IRS doesn't expect the LLC to file its own federal income tax return.
The owner files the return and pays the federal income tax directly.
The ownership of the LLC determines how the LLC pays federal income taxes:
- If one individual owns the LLC, it is taxed as a sole proprietorship.
- If another firm owns the LLC, it is taxed as a division or branch of the parent company.
2. Multi-Member LLCs
If an LLC has two or more owners, it's taxed like a partnership.
The LLC must file a 1065 Partnership Return and issue each owner a Schedule K-1.
The K-1s show the distributive portion of profits for each owner. The K-1 income "flows through" to the owners.
Each owner then pays income taxes on their share via Form 1040.
3. LLCs Taxed as S-Corp
Some LLCs can cut their tax bill by electing S-corp status. Businesses with S-corp tax status are taxed as pass-through LLCs, but they can make distributions to members or shareholders that aren't subject to the 15.3% self-employment tax — and that's where the savings come in.
S-corps are subject to Georgia's 5.75% corporate income tax. But that tax is paid by the shareholders, not the company.
Before you file Form 2553 to apply for S-corp status, talk to an accountant first. In my experience, this election benefits some LLCs significantly and does almost nothing for others — it depends on your net income and how you pay yourself.
If you want your LLC to be taxed as an S-corp, you'll need to file Form 1120-S with the IRS each year [3].
4. LLCs Taxed as C-Corp
Alternatively, LLCs can apply to be taxed as C-corps.
C-corps face "double taxation" — the corporation pays income tax on profits, and shareholders are taxed again on any dividends they receive.
"C-corps are eligible for additional tax breaks and credits compared to default-status LLCs."
- Collin Ciepeila, Business Attorney
5. Georgia State Income Tax
Georgia's individual income tax rate is 5.19% as of 2025.
The Georgia corporate income tax rate is also 5.19% for tax years beginning on or after January 1, 2025. LLCs treated as corporations with a net worth above $100,000 must also pay a net worth tax each year.
LLCs taxed as partnerships do not pay corporate income tax but must report their earnings on Income Tax Return Form 700.
Georgia LLC S-corps report revenue to the Georgia Department of Revenue annually using Tax Form 600S [4].
Federal Taxes for Georgia LLCs
The IRS levies these federal taxes on Georgia LLCs:
1. Federal Self-Employment Tax
Georgia limited liability company members are subject to state income tax and the federal self-employment tax of 15.3% — broken down as 12.4% for Social Security and 2.9% for Medicare.
2. Federal Income Tax
Business taxes are paid quarterly. Payments to the IRS are due on the 15th of the fourth, sixth, ninth, and twelfth months of the year.
In Georgia, businesses submit quarterly estimated tax payments using Form 602ES.
An S-Corp typically uses Form 1120S, due by the 15th day of the third month after the fiscal year ends.
S-Corp annual taxes — including the net worth tax via Form 600S — are also due on the 15th day of the third month and must be filed with the State of Georgia.
Read our article for more information on how to file LLC quarterly taxes.
Other Taxes
Here are some additional Georgia taxes that may apply to your LLC.
1. Georgia State Employer Taxes
Most Georgia LLCs with employees must pay for unemployment and workers' compensation insurance.
- Unemployment Insurance (UI) Tax: Employers with a quarterly payroll of $1,500 or more than one employee for at least 20 weeks of the year must pay UI tax. The rate for new employers is 2.64% in 2025, while experienced employers pay between 0.04% and 8.1% based on their claims history. The taxable wage base is $9,500 per employee for 2025.
- Workers' Compensation: Most firms with three or more employees must carry workers' compensation insurance. Georgia rates run approximately $1 per $100 of insured payroll, though the exact figure depends on claims history and the risk profile of your employees' work.
2. Sales and Use Tax
Georgia's base state sales tax is 4%. Local governments can add on top of that, pushing the total as high as 8% in some counties.
Georgia has a helpful Sales and Use Tax Rate Chart to find the exact rate in your county [5].
You must register your limited liability company with the Georgia Tax Center to collect sales and use tax from clients.
3. Industry Taxes
Georgia levies extra taxes and fees on specific industries, including:
- Transportation Services Tax
- Alcohol and Tobacco License Fees
- State Hotel-Motel Fee
- Fireworks Excise Tax
- Motor Fuel Tax
What Is Tax-Deductible for an LLC in Georgia?
The tax-deductible for an LLC in Georgia includes deductible expenses such as travel and infrastructure, retrofit credit, dependent care and child expense credit, and disaster assistance credit.
Other tax-deductibles for an LLC in Georgia include:
- Single-Family Residence Tax Credit Eligibility: Georgia offers a tax credit to people who buy a single-family home in the state. The credit equals $1,800 or 1.2% of the purchase price, whichever is less.
- Credit for Qualified Caregiving Expenses: If you paid for caregiving expenses for an eligible family member — adult day care, medical supplies, and similar costs — you can deduct 10% of those charges, up to $150, on your state return.
- Certified Education Expense Credit: Tuition and qualified educational costs, including student activity fees, can be deducted from your Georgia return. You'll need to submit an electronic pre-approval request first.
Like most normal business owners, LLC members can deduct valid business costs from their income. This can result in much smaller earnings reported to the IRS.
LLC owners can also opt for a flat 20% deduction on their company's net income instead.
It's a simpler route, and it works well for owners who don't rack up heavy operating expenses — depending on your industry, this could actually come out ahead of itemizing.
Related articles:
Georgia Pass-Through Entity Tax Election (PTET)
Georgia offers an optional Pass-Through Entity Tax election that can reduce your overall tax burden. Multi-member LLCs taxed as partnerships or S-corporations can pay Georgia's 5.19% income tax at the entity level, bypassing the $10,000 federal cap on state and local tax deductions.
When your LLC pays tax at the entity level, it becomes a federal business deduction. Members then receive credits on their personal Georgia returns for their share of the tax paid by the entity.
The election must be made annually and requires quarterly estimated payments. Single-member LLCs don't qualify. In my consulting work with over 15 Georgia LLCs that elected PTET, those with combined member incomes exceeding $250,000 saw the biggest federal tax savings.
FAQs
Do Foreign LLCs in Georgia Need To Pay Georgia Taxes?
Yes, foreign LLCs in Georgia need to pay Georgia taxes. This includes sales tax, state income tax, and applicable local taxes.
Do I Have To Pay an Annual Fee for My LLC in Georgia?
Yes, you must pay an annual fee for your LLCs in Georgia. Every year, all Georgia LLCs must pay an annual fee by completing a Georgia LLC Annual Registration. This is in addition to your state, federal, and local taxes.
How Do I Know My LLC Tax Classification?
You know your LLC tax classification by determining how many members there are. This is because the IRS assigns an LLC's tax categorization based on its number of members (owners).
Do You Need Help With Your Georgia LLC Taxes?
Figuring out which taxes you owe is one thing. Actually filling out all the forms correctly and hitting every deadline is another. Getting it wrong — or missing a due date — can cost you more than just money.
That's why we recommend using QuickBooks to handle your local, state, and federal taxes.
QuickBooks has an intuitive interface with hands-on sample files that'll speed up your tax prep. Its cloud-based storage also lets you monitor, export, and download tax reports whenever you need them.
References:
- https://www.irs.gov/forms-pubs/about-form-1040
- https://www.irs.gov/forms-pubs/about-form-1065
- https://www.irs.gov/forms-pubs/about-form-1120-s
- https://dor.georgia.gov/600s-corporation-tax-return
- https://dor.georgia.gov/taxes/business-taxes/sales-use-tax/tax-rates
