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 office, but also 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.
Our Rating & Pricing
#1 TOP PICK
$39 + State Fees
$100 + State Fees
$0 + State Fees
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
The costs to form and maintain an LLC are relatively low, but there are some things to consider. These fees are one-time and should not be a surprise. The cost of forming and maintaining an LLC is relatively small compared to the benefits of starting a business. The first fee is the Annual Registration Fee. This fee can be paid online or by mailing the fee to the state. You will also need to pay a registered agent, which can cost up to $55 a year.
In addition to the annual registration fee, you’ll need to file an annual report. This report will be filed every year and is generally available online. The cost of this filing is $50 online or $60 on paper. You must file the annual report on time to avoid being administratively disbanded, so make sure you don’t wait until the last minute. Once your company has been formed, you can submit your Articles of Organization, which will be reviewed by the Secretary of State Corporations Division. Once you’ve filed these documents, you’ll receive a free account that will give you access to a variety of useful state forms and resources.
Once your LLC is formed, you’ll need to file an annual report, which is called an annual registration. You can file the report online or mail it to the Georgia Secretary of State. While you can file the report by mail, it takes a lot of time and money. You’ll also need to pay a $50 annual fee to maintain your LLC. This fee is due annually on January 15th.
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.