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.
For many businesses in Georgia, forming a limited liability company (LLC) can be an attractive option. LLCs offer the benefits of both corporations and partnerships, providing personal liability protection for the owners while also maintaining a more flexible structure than a traditional corporation. However, maintaining an LLC also comes with costs that business owners should be aware of before deciding on this structure.
One of the costs that comes with maintaining an LLC in Georgia is the annual registration fee. Each year, businesses are required to renew their LLC registration with the Georgia Secretary of State. While this fee is relatively affordable, it does add up over time, which is important for small businesses on a tight budget to be aware of.
Another cost of maintaining an LLC in Georgia is the requirement for a registered agent. This is a person or entity designated to receive legal documents and other official correspondence on behalf of the LLC. While many business owners choose to act as the registered agent themselves, others prefer to hire a professional service to handle this responsibility. Again, this is an added cost that can be a burden on small businesses with limited resources.
LLCs in Georgia also have some ongoing compliance requirements that can add up in terms of time and money. For example, Georgia LLCs are required to file an annual report with the Secretary of State’s office. This report includes basic information about the company, such as its name and registered agent, and typically takes only a few minutes to complete, but businesses must do this on time every year regardless of how busy they may be.
Finally, LLCs in Georgia may also need to acquire certain business licenses and permits depending on their specific industry and location. These may include state and local permits for things like fire safety, health inspections, and building codes, as well as industry-specific permits such as liquor licenses or professional certifications. Failing to obtain the necessary permits can result in fines or shutdowns, so it’s important for businesses to make sure they are in compliance before starting operations.
While maintaining an LLC in Georgia certainly comes with costs, there are also many benefits to this business structure, such as limited personal liability, easier tax reporting, and greater flexibility in decision-making. Ultimately, the decision to form an LLC should come down to an analysis of the specific needs and goals of each business owner. For those who decide that an LLC is the right choice, it’s important to factor in to the decision-making process the cost of ongoing compliance requirements, permit and licensing fees, and the all-important annual registration fee.
In an age where entrepreneurship has become more accessible and affordable, the wise investment of one’s resources and time goes a long way in ensuring profits and success in the business world. The cost of maintaining an LLC in Georgia is not an escape from the law but rather an indication of responsibility and accountability to the business community. Agreements made at formation with the lawyers or forming corporations largely influence what goes into the LLC, the regulations of the governing body, and the subsequent costs. Nonetheless, it is of critical essence that business owners meet these costs as they might be worth the investment in the long run.
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.