If you’re thinking about launching a small business in the Peach State, you may want to structure it as a limited liability company, or LLC. In that case, you’ll first have to manage the formation process. Here’s how to form an LLC in the state of Georgia.
Key Points
• Choose a unique name for your LLC that complies with Georgia’s naming standards and reserve it with the Secretary of State.
• Designate a registered agent in Georgia to handle official communications.
• File the necessary documents with the state, including your LLC’s name, registered agent, and organizer details; you’ll have to pay a filing fee.
• Draft an operating agreement to outline your LLC’s management and operational structure, even though that document is not required.
• Obtain any necessary state or local business licenses and permits to legally operate your LLC in Georgia.
1) Choose a Name for Your Georgia LLC
As you set about forming an LLC in Georgia, start by picking your business name. The Georgia secretary of state’s website sets out the state’s standards for name availability.
The first rule is that your new company’s name must be distinguishable from the names of other businesses already registered with the state. Georgia’s standards on this point align with those of nearly 40 other U.S. states. If your desired name differs from another business name only slightly — due to punctuation, plurals, suffixes, and the like — that’s not enough to be distinguishable.
In addition, the use of certain words in your LLC’s name may be restricted. Many words related to insurance, banking, and education are off limits if you don’t have written approval from the relevant state agencies.
Once you decide on your ideal LLC name, use Georgia’s online business search to make sure it isn’t already taken. You can then reserve your business name for up to 30 days through the secretary of state while you finish your LLC formation. The nonrefundable filing fee is $25; additional service charges are $5 for online filing and $10 for filing by mail.
2) Appoint a Registered Agent
An important component of how to create an LLC in Georgia is your choice of a registered agent. A registered agent must be located at a street address in the state, as it’s responsible for receiving official communications on behalf of your business. In Georgia, this role can be held by an owner or shareholder of the LLC or by a third party.
A domestic LLC’s registered agent in Georgia may be any of the following:
• An individual resident of the state
• A domestic corporation or LLC
• A foreign corporation or LLC that is authorized to do business in Georgia
Common third-party options include using an attorney or a professional corporate service company. These professionals will know all the details of how to set up an LLC in Georgia. If you want to change your registered agent later, you can do so either when filing your annual registration or by filing an amended annual registration with the state.
3) File Articles of Organization
One difference between operating a sole proprietorship vs. an LLC in Georgia is that an LLC requires you to file articles of organization. The basic information you need to complete this online form includes:
• Your LLC name or name reservation number
• The name and address of the individual filing for the LLC
• A valid email address
• Mailing address of the principal office
• The registered agent’s name and address
• The name and address of your LLC’s organizer — that is, one or more individuals or companies signing and filing the articles of organization
• Any optional provisions to your articles of organization — whatever additional information you need to include that’s not required by law
There’s also a registration fee you’ll need to pay via credit card, check, cashier’s check, or money order. Filing online costs $105; mailing in paper forms costs $110.
If you file online, the standard processing time for LLC applications is seven business days. However, two expedited options are available: You can get your application processed in two days for an extra $120 or on the same business day (if your application is submitted before noon on a weekday) for an extra $275.
At this stage you may decide to loan money to your LLC to cover the costs of hiring a registered agent and filing (or refiling) your articles of organization.
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4) Create an Operating Agreement
You need not file an operating agreement in the state of Georgia, but it’s a good idea to draw one up to guide decision-making processes and other administrative responsibilities, especially if your LLC has multiple owners or shareholders. An operating agreement should create clear guidelines for running the company and managing the finances — servicing any startup loans, for example — in order to prevent potential conflict in the future.
Consider hiring a lawyer to help you create the operating agreement, because once it’s signed by the LLC’s members, it’s considered a binding contract. Here are common components of an LLC operating agreement:
• Ownership percentages
• Voting rights
• Powers and duties of each member
• Profit and loss distributions
• Meeting schedules
• Buyout and sale rules in case a member dies or wants to exit
You can see how important this document is in clarifying how members are paid, how future ownership changes can happen, and how debt decisions are handled. If your company applies for small business loans in the future, potential lenders may want to know these details.
For that matter, even if you’re a single-member LLC, an operating agreement can be useful. It establishes that the business’s operations are separate from your personal affairs. Having this spelled out could be important if you ever apply for an LLC business loan.
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5) Obtain Necessary Licenses and Permits
The state of Georgia does not require general business licenses or permits. The city of Atlanta does, however, as do other cities and municipalities.
Occupational licenses from the state may be mandatory for LLCs operating in certain industries. Georgia has separate licensing boards for these lines of work:
• Animal care
• Athletics and entertainment
• Auctioneering
• Cosmetology and barbering
• Building and contracting
• Counseling and assistance
• Environmental
• Funeral homes and cemeteries
• Transportation and security
• Wellness, including nursing and optometry
• Various types of therapies, including athletic training
There is also a separate licensing process for any businesses related to selling alcohol, tobacco, or motor fuel. Complete information is available from the secretary of state’s licensing division.
Depending on your business, you may need to renew your occupational licenses in Georgia each year to continue operating your LLC in compliance with the law. You can log into your Georgia business registration account to find out the requirements for your own company.
Securing the proper licenses and keeping them current is essential to get your business started. If you later need a business line of credit to keep your LLC growing, lenders may want to see that your company’s licenses are in order to ensure it can continue to generate revenue.
6) Review Georgia Tax Requirements
In addition to learning from the secretary of state’s website how to set up an LLC in Georgia, you also need to register with the state’s department of revenue to take advantage of any applicable LLC tax benefits.
To begin, you must get a federal employment identification number (EIN) from the IRS. With an EIN, you can create an online account with the Georgia Tax Center using the following details about your business:
• Business structure
• Legal name of your LLC
• North American Industry Classification System (NAICS) code
• Date of first Georgia sales
• Information about the LLC’s officers and responsible parties
• Business mailing address
After you submit your form, you’ll get a state taxpayer identification number; you’ll then be able to log in and pay your business taxes either monthly or quarterly.
The Takeaway
Georgia provides plenty of online resources to make the LLC formation process as straightforward as possible. There’s no state requirement for a general business license, but you may need certain professional or occupational licenses. To manage your company’s tax payments, you can easily set up an account with the state’s revenue department online.
If you’re seeking financing for your business, SoFi is here to support you. On SoFi’s marketplace, you can shop and compare financing options for your business in minutes.
FAQ
What steps are involved in forming an LLC in Georgia?
There are six steps for forming an LLC in Georgia. Before filing any paperwork, you need to choose a business name and appoint a registered agent. Then you’ll need to file your articles of organization, create an operating agreement if you wish, obtain business licenses required for your industry, and register with Georgia’s Department of Revenue.
How much does it cost to file LLC formation documents in Georgia?
The cost to file LLC formation documents in Georgia varies depending on your filing method. The cheapest option is to file online, which costs $105. Filing paper forms by mail costs $110. You can also expedite the approval process for an additional fee.
Do I need a Georgia business license to operate an LLC?
Whether or not you need a Georgia business license to operate an LLC depends on your industry. LLCs must be registered with the state, but only certain industries require specific business licenses in order to operate. Start by checking out Georgia’s online list of licensing boards to determine if any apply to your LLC. If you have additional questions, consider consulting a lawyer.
What is the role of a registered agent in forming an LLC in Georgia?
A registered agent is required of any LLC doing business in Georgia. This individual or business is responsible for receiving documents and official communication on behalf of your LLC. It can be an owner of the LLC or a third party; however, the registered agent must be located in Georgia.
How do I file an annual report for my LLC in Georgia?
LLCs are not required to file an annual report in Georgia, but you do need to file an annual registration. If there are no changes to your LLC, you can use the state’s One Click annual registration, or you can log into your account with the secretary of state to make any changes.
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