LLC Cost in Georgia – How Much to Pay for an LLC


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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.

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.

LLC Service

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$99 per year

  • Standalone registered agent service

  • Take you through all steps

  • LLC formation package available

$125 per year

  • 1 year free service along with LLC formation package

  • Fast service

  • Flat rate, no hidden cost

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.

StatesFiling FeeAnnual/Biennial FeeSales Tax
Georgia$100$50 (Annual)4%
Tennessee$300$300 (Annual)7%
North Carolina$125$200 (Annual)4.75%
Florida$125$138.75 (Annual)6%
Alabama$200$100 (Annual)4%

Georgia, among all, has the cheapest cost to start an LLC. The Sales Tax and other tax burdens are also low in this state.

Other Costs

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.

How much it costs to maintain an LLC in Georgia is largely dependent on whether you have to pay business license fees in each county and obtain any professional licenses necessary for your business. In addition to annual registration fees, each business in Georgia must file an annual report that costs $50. A list of these fees can be found at the Georgia Division of Corporations. According to this website, Georgia has 1.1 million small businesses, and nearly four out of every five jobs are held by small companies.

Once your LLC is registered, you will need to find a registered agent. This is not an easy task if you’re new to the business process. A good option is to use an LLC service. These services will help you get your LLC registered in Georgia. Basic registration services will cost $49, plus state filing fees. Some services will also provide you with a registered agent service for the first year, as well as draft custom LLC operating agreements for you.

There are many different ways to form your LLC in Georgia. You can file articles of organization online, through the mail, or by visiting a local office of the Secretary of State. However, filing by mail is often slower and requires a visit to a physical office. Moreover, you may need to hire a registered agent for your business, which will add another cost to your business. However, it’s worth it for the convenience and peace of mind it brings.

In Georgia, LLCs are taxed like corporations and have to pay annual corporate income tax and net worth tax. You will also need to file an annual registration report if you have employees. Failure to file these reports can cause your company to be dissolved and lose its business status. These reports also keep your registered agent details up to date. These fees are $50 online or $60 for paper-filed forms.

If you are expanding your business from another state to Georgia, you will need to file the articles of organization and obtain an EIN. These documents define the management of the business and who owns what percentage. These documents do not have to be filed with the state. To obtain an EIN, you must apply for a certificate of authority from the Internal Revenue Service. This form costs $225 and requires a small fee.

The Georgia secretary of state requires that every LLC file an annual registration statement. This document is important to keep your business information up-to-date. Generally, this form must be submitted between January and April of the year following the calendar year the LLC was formed. An annual registration statement also includes information such as your registered agent, principal business address, and other key details. You should read Nolo’s article for more information on filing an annual registration statement.

In addition to paying the registration fee, you also have to pay the annual registration fee to the Secretary of State Corporations Division. If you fail to pay the annual registration fee, you may have to face a civil suit. Failure to pay taxes on time is another major reason for dissolution. You can choose to run your business as a sole proprietor if you’d rather avoid the annual registration fee altogether.

F.A.Qs

Can I start an LLC for free?

It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.

Is an LLC expensive?

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.

Does an LLC need a bank account?

The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.

In Conclusion

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.

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