Perhaps you are hoping to form an LLC in Georgia. People assume how to start an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in Georgia.
On this page, you’ll learn about the following:
- Georgia LLC Cost of Filing
- Georgia Business Taxes To Be Paid By LLCs
- Cost Comparison Between The States
- Other Costs
Georgia LLC Cost of Filing
Here are the costs involved in forming an LLC in Georgia.
Cost of Filing Formation Certificates
The Georgia Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the Georgia Secretary of State.
Georgia Domestic LLC
- Online Filing costs $100.
- Annual Report Fee $50
- Late Annual Report Submission Fee $25
- By Mail: Fill out the application form, and mail it to the Corporations Division, 2 Martin Luther King Jr. Dr. SE, Suite 313 West Tower, Atlanta, Georgia 30334. Costs $110.
Georgia Foreign LLC
- Online Filing costs $225
- By Mail: Fill out the application form, and send it to the Corporations Division, 2 Martin Luther King Jr. Dr. SE, Suite 313 West Tower, Atlanta, Georgia 30334, costs $225
- In-Person: Drop the filled-up form at the Corporations Division, 2 Martin Luther King Jr. Dr. SE, Suite 313 West Tower, Atlanta, Georgia 30334. Costs $225
Note that filing online is ideal, not only because you need to go to the Secretary of State’s office, but also because it would be faster. You won’t have to wait in a queue in doing so.
Georgia LLC Formation Service or Registered Agent Fee
You need a registered agent to form an LLC in Georgia, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.
Business Permits and Licenses
The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the Georgia Department of Revenue for regulatory boards or agencies requiring licensing.
Georgia Business Taxes To Be Paid By LLCs
LLCs have the privilege to pass through the income tax. However, like any other state in the United States, Georgia State also has a set of taxes levied on the LLCs. The members of the LLCs have to pay the income tax separately but not as LLC.
Business Tax Payment
To pay the business taxes in Georgia, all the businesses, including LLCs have to obtain STIN aka State Tax Identification Number from the Georgia Tax Department. This number identifies the business liabilities, tax payments, and credits of the existing business. STIN can be obtained online via the Georgia Department of Revenue or by applying in-person to the office of the Georgia Tax Department.
Sales Tax and Use Tax
In Georgia, the state charges 4% Sales Tax and 9% Use Tax for the LLCs. There is no personal income tax to be paid by the LLCs.
Corporate Income Tax
The members of the LLCs will have to pay federal and state income taxes based on their income from the LLCs. If there are 3 members and the net annual income is $1.5 Million, then each member will earn $500,000 annually. Each of them has to pay federal income tax on the basis of $500,000.
LLCs, Sole Proprietorship, and Partnership companies have the same structure of taxation. On the other hand, Corporations have to pay 6% tax based on their annual income.
Georgia LLC Tax Benefits
Along with the pass-through taxation privilege, LLCs in Georgia can waive off their business expenses. Any expenditure related to business can be waived off if you own an LLC in Georgia.
Cost Comparison Between The States
Georgia State is surrounded by Tennessee, North Carolina, and Florida. Along with the neighboring states, Georgia has incredible benefits of having an LLC. Here’s a cost comparison study among the states around Georgia.
|States||Filing Fee||Annual/Biennial Fee||Sales Tax|
|North Carolina||$125||$200 (Annual)||4.75%|
Georgia, among all, has the cheapest cost to start an LLC. The Sales Tax and other tax burdens are also low in this state.
- Georgia Name Reservation: $28 for online fillings or $25 by mail
- Certified Document Copies: $10 + $2 per page.
- Certified of Good Standing: $14
- Business Domain Name and Website: depend on your preference, but domain name could be as low as $2.99/yr at NameCheap, and web hosting is at least $30/mo at Kinsta.
- Online workspace: at least $4.20/mo for GSuite.
- Business Insurance: would vary depending on insurance type–whether general liability insurance or professional liability insurance–and coverage.
- Dissolution of Georgia LLC: No fees. $100 for expedited filing.
How Much Does It Cost To Maintain An Llc In Georgia
To maintain an LLC in Georgia you will need to pay an annual fee of $50 along with sales tax at 4%, use tax at 9%, corporate income tax and federal taxes.
One of the primary ongoing costs of maintaining an LLC in Georgia is the annual registration fee. All LLCs are required to pay this fee to the Georgia Secretary of State. The exact cost varies depending on the type of LLC and the number of members, but it typically falls somewhere in the range of a few hundred dollars. This fee is necessary to keep the LLC in good standing and is generally due by April 1st each year.
Furthermore, filing an Annual Report is another obligatory requirement for LLCs in Georgia. Although the cost is reasonable and typically under $50, it is vital not to overlook this step. The Annual Report allows the state to keep accurate records of the LLC’s contact information and is essential for the entity’s legal continuation.
In addition to fixed annual expenses, there may be other costs associated with maintaining an LLC, such as additional licensing requirements or permit fees. Depending on the industry and the nature of your business, you may need to obtain specific permits or licenses from local, state, or federal authorities. While these costs can vary significantly, it is necessary to research and include them in your budget to prevent any unexpected financial burdens.
Professional services are also an important consideration while estimating the overall cost of maintaining an LLC in Georgia. Engaging an attorney, accountant, or business advisor can be beneficial in navigating the complexities of running a successful LLC while ensuring compliance with state regulations. While the fees for these services may vary depending on their expertise and services provided, it is crucial to understand that having professional guidance can help mitigate potential complications and legal issues in the future.
Moreover, preserving good financial record keeping is imperative for any LLC. While there may not be a direct cost associated with this, maintaining accurate financials and detailed records ensures smooth business operations and avoids any potential penalties. Utilizing accounting software or hiring an accountant can help maintain clean and organized financial statements, making it easier to file taxes and meet other financial obligations.
Ultimately, the costs of maintaining an LLC in Georgia will differ according to various factors such as the size of the business, the industry, and the specific requirements of the company. It is essential to do thorough research, seek professional advice when needed, and include all possible expenses within the budget.
Understanding the costs associated with maintaining an LLC is equally as important as considering its benefits. By accurately estimating ongoing expenses and budgeting for them in advance, entrepreneurs can improve their chances of running a successful and financially stable business.
It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.
It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.
The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.
The cost of Georgia is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the price of professional LLC services and choose the most affordable one.