If you're incorporating an LLC in Georgia, it's a good idea to know the costs of the formation process so you can understand what to anticipate fees-wise.
Our legal team took the time to research the filing costs of creating and running an LLC in Georgia by checking the latest information found in the Secretary of State’s official documents.
Here's a summary of everything you need to know.
Quick Summary
- In Georgia, forming an LLC requires a filing fee of $100 paid to the Secretary of State.
- All Georgia LLCs are legally mandated to file annual registrations between 1st January and 1st April.
- In Georgia, a certificate of good standing is issued only to compliant LLCs.
How Much Does a Georgia LLC Cost?
A Georgia LLC costs $100 to register online and $110 if done by mail.
However, there are other Georgia LLC fees that you might have to pay, such as annual registration, LLC taxes, and registered agent service fees.
Georgia LLC Filing Fee
The Georgia LLC fees cost $100. This fee is for registering your articles of incorporation and other documents needed by the Georgia Secretary of State [1].
You can file your limited liability company online through the SOS website for $100. This online filing has a standard processing time of 7 days, but you can pay an extra $100 to reduce the turnaround to 2 days.
Also, if you want to reduce Georgia LLC processing time, expedited same-day processing costs an additional $250.
If you're registering your Georgia LLC by mail, you must download the Articles of Organization for LLC (CD 030) form from the SOS website and fill out your details. The completed document is then mailed to the SOS office together with a $110 processing fee.
Also, before submitting your articles of organization to the Georgia Secretary of State, the document must be signed by either the LLC chairperson, a corporate officer, a registered agent, or a qualified lawyer.
The turnaround times for mail-in orders are different from online filings. With mail orders, the standard processing time is 15 days, including the mailing time.
Registering your LLC in person is similar to a mail-in order, although the turnaround times for this vary depending on how soon you submit your documents.
In-person filings also offer extra-expedited processing within an hour for $1000.
Georgia Registered Agent Service Fee
A registered agent is a person or a service that acts as a middleman between your business and the Georgia Secretary of State's office.
If you run a business in Georgia, you can be your own registered agent service or designate this role to a professional company.
The registered agent must be of legal age, have a mailing address in Georgia, and be available during regular working hours.
The price of hiring a registered agent service in Georgia varies depending on the company you hire.
The typical range is $70-$300 per year.
Georgia Taxes
LLCs are considered pass-through entities for tax reasons and do not submit a separate corporation tax return.
Each firm member will therefore be required to pay personal income tax.
But, if your business sells goods, you may also be required to pay self-employment tax for medicare, social security, or sales tax.
Georgia now levies a 15.3% self-employment tax and a 4% sales tax. If LLC owners choose to have their Georgia LLC taxed as a corporation, they’re only obligated to pay a 15% income tax rate if they turn a business income.
Other LLC Filing Costs
There are other filing costs that come with creating an LLC in Georgia. These costs include the following:
1. LLC Name Reservation
Even though it's not required, name reservations in Georgia are crucial. After filing for a name reservation, you will have 30 days from the date of the Georgia Secretary of State's notice to keep the name exclusively yours.
You have three options for submitting the name reservation form for your business entity: online, mail-in, or in person at the secretary of state's office.
The paperwork and a $25 filing fee must be submitted regardless of your filing method.
Confirm that your LLC name is available in the state of Georgia before reserving it.
2. DBA name
A DBA is a different name that your LLC uses other than the legally registered business name.
In Georgia, after forming your LLC and you wish to conduct business using an assumed name, you must file for a DBA name registration for a $25 filing fee.
A DBA is necessary when you want to open a business bank account, as the financial institution will ask for a DBA certificate to prove the legitimacy of the name.
Also, you can use a DBA name to have a more distinctive and descriptive business name that your customers can identify with.
3. Georgia Annual Registration
All LLCs in Georgia need to file an annual registration to be in the right standing with the SOS and continue to do commerce in the state.
Annual registration, also known as annual reports, costs a $50 filing fee in Georgia and must be submitted between 1st January and 1st April.
But your first report should be submitted within 90 days of LLC incorporation.
An annual report is a document that contains all updated information about your Georgia business, such as Georgia LLC name change or registered agent amendments.
As a business owner, you can file your Georgia LLC annual reports yearly or file them once to cover three years.
Filing for three years at once is an excellent alternative if you don't anticipate any significant changes during the following three years.
The Georgia Secretary of State receives all yearly reports submitted in the state. You'll specifically deal with the Georgia Corporations Division of the agency, which offers companies three filing options: two using the state's eCorp system and one by mail.
Note that any late filing of this annual report will lead to a penalty charge of $25.
4. Georgia Certificate of Good Standing
A certificate of good standing or a certificate of existence in Georgia indicates that your LLC is legally incorporated and is compliant enough to do business there.
You can get a certificate of good standing in Georgia for $10 online or $20 by mail.
For your Georgia business to obtain a certificate of good standing, you must comply with all state laws, like filing your taxes, submitting certified articles of organization, having the correct business licenses, and registering your annual reports on time.
Note that if your LLC fails to meet state requirements, you'll not be eligible to apply for a certificate of good standing in Georgia.
5. Federal Tax ID/EIN
An employer identification number is like a security number for your company.
To get an EIN, you can file it for free directly on the Internal Revenue Service website or hire a professional service to register it for you at a fee of $50-$100.
An EIN is necessary when opening a business bank account, filing LLC taxes, sourcing insurance, or hiring employees.
After learning how much an LLC costs, let's look at the expenses for registering a foreign LLC.
Foreign LLC Registration in Georgia
This applies to business entities that are registered outside of Georgia but wish to expand and do business in Georgia. You need to submit your LLC operating agreement to the SOS and obtain the proper Georgia business license.
You must also apply for a Certificate of Authority to Transact Business in Georgia during the foreign LLC registration.
This Georgia foreign LLC certificate costs $235 if ordered via mail and $225 if ordered online. You can make payments via credit cards or checks to the Georgia corporations division [2].
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FAQs
How Long Does It Take To Form a Georgia LLC?
It will take 7 days to form a Georgia LLC online. If you do the process via mail, it takes around 15 days to process it, including the mailing time. However, there are expedited shipping options that you can choose from, although you'll pay more for them.
Do You Have To Pay an Annual Fee For an LLC in Georgia?
Yes, you have to pay an annual fee for an LLC in Georgia. There's a $50 cost for the annual report registration.
Do You Need Professional Help with Your Georgia LLC?
A Georgia LLC is a business structure that is easy to form and manage. Also, as an LLC owner in Georgia, you enjoy liability protection together with your shareholders.
You can take care of the forming process by yourself, or you can hire a professional service to do it on your behalf.
If you want to form an LLC in this state without making costly mistakes, hiring the best LLC formation services in Georgia is a step in the right direction.
These business formation companies offer affordable yet professional LLC formation and maintenance services according to Georgia law.
In addition to customizable service features, you also get top-notch customer support to walk with you every step of the way.
References:
- https://georgia.gov/register-corporation
- https://sos.ga.gov/how-to-guide/filing-fees-and-expedited-processing-document-filings
