How Much Does an LLC Cost in Georgia?

If you want to start a business in the U.S., there are few places better than Georgia. The state ranked fourth in CNBC's Top States for Business 2024 survey and has consistently been in the top ten.

Here's a guide that explores the costs of starting a limited liability company (LLC) in Georgia so that you're prepared to cover the initial outlay associated with forming a Georgia LLC, along with the ongoing annual fees.

How much is the Georgia LLC formation filing fee?

The initial filing fee to a Georgia LLC is $100 if you file online through the Georgia Secretary of State's website.

This fee covers the cost of processing your LLC's Articles of Organization, which is the primary document required to establish your business entity in the state. If you prefer to file by mail or in person, there's an additional $10 service charge, bringing the total to $110.

The Georgia Corporations Division website, which is part of the Secretary of State's office, handles the filings for all Georgia LLC filings. It offers an online portal that makes the filing process for an LLC in Georgia relatively straightforward, allowing you to complete the LLC formation process quickly and efficiently.

How much do LLC Articles of Organization cost in Georgia?

The $100 organization filing fee covers the filing of the Articles of Organization for a Georgia LLC.

This document, which is filed with the Georgia Corporations Division, is crucial as it officially creates limited liability companies and includes essential information for a Georgia LLC such as your company's name, details of you registered agent, and management structure.

The Georgia Corporations Division typically processes these filings within 5-7 business days for online submissions and 15 business days for mailed forms.

If you need faster processing, expedited services are available for an additional fee:

• 2-day processing: $100 extra
• Same-day processing: $250 extra
• 1-hour processing: $1,000 extra

What should I include in my Georgia LLC Articles of Organization?

When preparing your Articles of Organization, ensure all information is accurate to avoid potential delays or rejections. Common elements included in the Articles of Organization include the name and principal office address of your Georgia LLC, your registered agent name and address, and its management structure.

How much is the Georgia Annual Report fee?

The annual registration fee is $50 if you file online through the Georgia Corporations Division website. If filed by mail, you'll pay another $10 in state fees for the Annual Registration, making the total annual registration fee $60.

The Annual Registration is due with the Georgia Corporations Division between January 1 and April 1 each year, starting the year after your LLC's formation.

This filing allows you to update or confirm the correct information for your Georgia LLC, including its principal office address for the LLC in Georgia, your registered agent information, and optionally, the names and addresses of your managers or LLC members.

Failing to file the Annual Registration for your business entity on time with the Georgia Corporations Division results in a $25 late filing fee from the Georgia Secretary of State.

Continued failure to file your Annual Registration can lead to administrative dissolution of your limited liability company, so it's crucial to keep track of this annual requirement.

Consider setting up reminders or using a compliance calendar to track important filing dates and prepare for the associated filing fee.

How much does a registered agent cost in Georgia?

Every Georgia LLC must have a Georgia registered agent to receive legal documents and official correspondence. Hiring registered agents adds approximately $100-$300 each year to your Georgia LLC costs.

You can avoid this expense by acting as your own registered agent or designating a friend, family member, or employee to serve as one.

While serving as your own registered agent can save on this LLC cost, using a professional service offers benefits including privacy protection, because your personal address won't be on public record.

It also ensures that you never miss the filing deadlines for important documents and enables you to maintain compliance if you don't have a physical address in Georgia. Finally, it gives you the flexibility to operate outside normal business hours.

An LLC formation service often includes a registered agent service, which can be a cost-effective option for new businesses.

How much does a Georgia seller's permit cost?

As in most other states, sales taxes are a fact of life for Georgia LLCs. If your Georgia LLC will be selling goods or certain services in the state, Georgia law requires you to register for a Sales and Use Tax Number with the Georgia Department of Revenue. The good news is that there's no fee to register for this tax number. You can apply online through the Georgia Tax Center.

How much should I collect for sales taxes?

Once registered, you'll be responsible for collecting and remitting sales tax to the state. Georgia's state sales tax rate is 4%, but local jurisdictions can add their own taxes, bringing the total up to 8% in some areas.

Familiarize yourself with the sales tax rates in the areas where you'll be doing business as part of your preparation to pay Georgia LLC taxes.

How much do local business licenses cost in Georgia?

Business licenses are another addition to the list of Georgia LLC fees. The cost of local business permits in Georgia varies depending on your location and the nature of your business.

While there's no statewide general business permit requirement, most cities and counties in Georgia require a Georgia LLC to obtain a local business license or occupational tax certificate.

How much do license fees vary?

Fees can range from $50 to several hundred dollars, depending on the municipality and your business type.

In Athens, a limited liability company will pay $20 for a home-based business license, but that increases to $75 in Atlanta. Operating a food truck in Atlanta will cost you $145 in license fees.

Check with your local city or county government for specific requirements and costs.

Some jurisdictions may also require additional permits depending on your industry, such as health permits for restaurants or professional licenses for certain services.

How much is the annual LLC fee in Georgia?

After you file your Georgia LLC articles, the primary annual fees for Georgia LLCs are the annual registration cost of $50 when filed online and the additional $10 if filed by mail.

There might be other Georgia LLC fees to consider, including local business license renewal fees, professional license renewals, and registered agent fees.

How much does business insurance cost in Georgia?

While not a always a state requirement, business insurance is a crucial consideration for protecting Georgia LLCs.

Costs vary widely based on factors such as your industry, number of employees, and coverage limits. Here are some common types of insurance and estimated annual premiums:

General Liability Insurance: Typically, $500 annually for a $1m policy. This covers third-party bodily injury, property damage, and advertising injury claims.

Professional Liability Insurance: Typically, $50-$100 per month. Also known as Errors and Omissions (E&O) insurance, this protects against claims of professional negligence or failure to perform professional duties.

Workers' Compensation Insurance: On average, the Georgia cost is $1.01 per $100 of payroll. Required for businesses with three or more employees in Georgia.

Commercial Property Insurance: $800 annually on average. Protects your business property, including buildings, equipment, and inventory.

These LLC costs are averages and will vary based on your specific location in Georgia, along with the size and nature of your business.

Consult with an insurance professional to determine the best coverage for your specific business needs and get accurate quotes. Many insurance providers offer bundle packages that can provide comprehensive coverage at a more affordable rate.

What is the Georgia franchise tax?

Georgia doesn't impose a specific franchise tax on LLCs, but Georgia LLCs might have to pay a net worth tax, which the Department of Revenue says is "levied in exchange for the privilege of doing business or exercising a corporate franchise in Georgia."

Who pays the net worth tax?

This LLC cost is based on the company's net worth. Businesses worth under $100,000 are exempt, but this applies only to a multi-member LLC rather than a single-member LLC, but the tax can go up to $5,000 for LLCs that are worth over $22m.

While there's no franchise tax, it's crucial that your LLC members stay compliant with all applicable state fees and federal tax requirements.

Consider working with a qualified accountant or tax professional as you form an LLC to ensure you're meeting all your tax obligations and consult with the Secretary of State.

Other Georgia fees and business costs you might encounter

When forming and operating an LLC in Georgia, there are several other potential costs to consider:

Name Reservation: $25 (optional, valid for 30 days). If you're not ready to file your LLC formation documents but want to secure your business name, you can reserve it for up to 30 days by paying an LLC name reservation one-time filing fee.

Certified Copy of Articles of Organization: $10. You may need this for various business purposes, such as opening an LLC bank account or applying for loans.

Certificate of Existence: $10. Often required for opening a business bank account, obtaining loans, or registering to do business in another state.

Amended Articles of Organization: $20. If you need to make changes to your LLC's name, registered agent, or other key information.

Georgia Foreign LLC Registration: $225. If your LLC was formed in another state but wants to do business in Georgia, it is known as a foreign limited liability company. You must pay these state filing fees and submit an Application for Certificate of Authority.

DBA (Doing Business As) Registration: Fees vary by county, but typically $150 or more. Georgia law requires this if you want to operate under a name different from your LLC's legal name.

Specialized Licenses or Permits: Costs vary depending on your industry and local regulations Examples include liquor licenses, contractor licenses, or professional certifications.

LLC Dissolution: Free online, $10 if filing paperwork manually. If you decide to close your LLC, you must file the termination paperwork.

Other state taxes for your Georgia LLC

Income taxes: If your LLC elects to be taxed as a corporation, you must pay state income taxes in line with Georgia's corporate income tax rate. The Department of Revenue says that corporations must pay income taxes of 5.39%.

Sales tax: If you sell goods or certain services, you'll need to collect and remit this.

Withholding tax: If you have employees, you'll need to withhold state income tax from their wages.

Unemployment insurance tax: Required for businesses with employees.

These fees are subject to change, so it's always best to check with the Georgia Secretary of State website for the most up-to-date information.

What is the total cost to start an LLC in Georgia?

Excluding annual fees and variable costs like insurance or specialized permits, the basic cost to start an LLC in Georgia ranges from $100 to $500. Here's a breakdown of the essential startup costs for your financial planning:

Articles of Organization: $100 (this price covers the online filing of an LLC's articles)

Business License: $50-$200 (varies by location and business type)

Optional costs that many businesses choose to include:

Registered Agent Service: $100-$300 per year

Operating Agreement: LLC operating agreements are optional documents detailing the LLC owners and business structure. It can cost up to $1000 when handled by an attorney but is free if self-drafted (you can use a template to help you).

Name Reservation: $25 (if needed before filing)

Initial business supplies and marketing materials: $100-$500+

How much does it cost to start an LLC in Georgia?

Starting an LLC in Georgia is an exciting step towards realizing your entrepreneurial dreams. With careful planning and attention to the various costs involved, you can establish a solid foundation for your business while minimizing unnecessary expenses.

As your company grows, continue to stay informed about ongoing compliance requirements to maintain your good standing, and identify potential cost-saving opportunities to ensure long-term success in the vibrant Georgia business landscape.

FAQs

Does it cost more to register a foreign LLC in Georgia?

Yes, registering a foreign LLC in Georgia is more expensive than forming a domestic LLC. The filing fee for a Certificate of Authority for a foreign LLC is $225 if filed online, or $235 if filed by mail. This is compared to the $100 fee for domestic LLC formation.

Additionally, foreign LLCs are subject to the same $50 annual registration fee as domestic LLCs. Foreign LLCs must also maintain good standing in their home state while doing business in Georgia.

Can you get grants to help cover the cost of starting a limited liability company in Georgia?

While grants specifically for covering LLC formation costs are rare, Georgia does offer various grant programs to support small businesses. These grants often focus on specific industries, demographics, or business activities rather than covering startup costs. Some resources to explore include:

• Georgia Department of Economic Development
• Georgia Small Business Administration (SBA)
• Local economic development agencies
• Industry-specific organizations and foundations

What's the cheapest way to start an LLC in Georgia?

The most cost-effective way to form an LLC in Georgia involves handling your own business tasks as much as possible:

1. File your Georgia Articles of Organization online with the Secretary of State. ($100 state filing fee)
2. Act as your own registered agent. (Free)
3. Create your own operating agreement using free templates.
4. Obtain your federal employer identification number (EIN) directly from the Internal Revenue Service. (Free)
5. Research and obtain necessary local business licenses.

This approach lets you form an LLC as a Georgia resident for as little as $100 plus any required local business license fees.

Obtaining legal advice and a professional tax treatment brings certainty and saves time as you form an LLC in Georgia. An LLC formation service helps to manage the LLC cost and provide some certainty throughout the process, including handling issues you might miss, like securing an employer identification number.