How Much Does an LLC Cost in Georgia (Filing Fees Explained)
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.
As a Mergers and Acquisitions specialist and a Master's Degree holder in tax law, I assisted multiple businesses and individuals with LLC formation.
After consulting with business experts in the state, we'll provide 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.
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.
Quick Summary
- It costs \$100 to file the Articles of Organization online for your Georgia LLC online, and \$110 by mail.
- Once the business has been approved, you may have to pay for additional expenses including taxes, licenses and permits, annual registration, registered agent service, and other pertinent documents.
- LLC owners opting for corporate taxation for their Georgia LLC face a 15% income tax rate, according to the IRS.
- Based on my observation, Georgia has been growing economically since it is one of America's busiest ports.
Cost to Start an LLC in Georgia
Before a business can legally operate in the state, there are mandatory fees and optional costs you have to shoulder.
1. LLC Formation Filing Fee (\$100/Online-\$110/Mail - Mandatory)
The filing fee to register the Articles of Organization is \$100 online and \$110 if done by mail.
The state will process your application within 1 to 2 weeks. Fortunately, you can avail of expedited service to streamline the approval time.
I availed of the \$250 accelerated service in order to complete the process in 1 business day. You may also choose between a \$100 2-day processing time or \$1,000 1-hour delivery.
2. Registered Agent Service Fee (\$80-\$300 Annually – Optional)
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. You can be your own registered agent or designate this role to a professional company.
The price of hiring a registered agent service in Georgia varies depending on the company. The typical range is \$80-\$300 per year.
3. Name Reservation Fee (\$25 - Optional)
After filing a \$25 name reservation application, you will have 30 days to keep the name exclusively yours.
When reserving a name, I remind my clients to determine if their preferred name is available and ensure it follows state guidelines.
Expenses Following the Approval of Your LLC
There are other filing costs that come with creating an LLC in Georgia. These include the following:
1. Business License (Depending on the Line of Business - Mandatory)
The state of Georgia requires all entities to obtain a business license from the city or county where their company is located. The cost will depend on the type of industry.
For instance, a client of mine in the plumbing industry was required to obtain a \$30 plumber license to practice his profession in the state.
"Per GA Code § 48-8-2, every business is required to obtain a Georgia sales and use tax permit, irrespective of the nature of the LLC’s sales, including online, out-of-state, wholesale, or tax-exempt transactions."
- Jon Morgan, CEO, Co-Founder & Editor-in-Chief of Venture Smarter
2. Annual Registration (\$50 - Mandatory)
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. According to the Georgia Secretary of State, this requirement ensures that over 95% of active businesses maintain compliance with state regulations annually.
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. Note that any late filing of this annual report will lead to a penalty charge of \$25.
I advise clients to file their annual reports on or before the due date to avoid penalties and to remain in good standing with the state.
3. Taxes (Depending on Income Bracket - Mandatory)
LLCs are considered pass-through entities 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, as outlined by the Internal Revenue Service.
4. Operating Agreement (\$100 - \$200 - Optional, but Recommended)
Although the state does not require LLCs to file an operating agreement, it is advisable to draft one. The document outlines the rules and regulations of the company, including the management structure, profit and loss distribution, and voting requirements.
You can hire an attorney to draft the operating agreement or employ the services of an online LLC formation company, which costs \$100 to \$200.
5. DBA name (\$25 - Optional)
When a client wanted to conduct business using an assumed name, I helped them file a DBA name registration for a \$25 filing fee.
You can use a DBA name to have a more distinctive and descriptive business name that your customers can identify with.
6. Certificate of Good Standing (\$10/Online-\$20/Mail - Optional, but Recommended)
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.
I always keep a Certificate of Good Standing on file since it could be useful for attracting investors and clients and availing of financial assistance.
7. Federal Tax ID/EIN (\$0 - Optional, but Recommended)
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.
FAQs
Is There A Penalty For Paying My Taxes Late In Georgia?
There is a penalty for paying your taxes late in Georgia. The state will charge 5% for late payments and an additional 5% for each succeeding month.
What Payment Methods Can I Use To Pay Georgia's State Fees For Filing My LLC?
The payment methods you can use to pay Georgia's state fees for filing your LLC include checks, money order, credit card, or cashier's check.
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