How Much Does an LLC Cost in Georgia
From the standard $100 filing fee to a range of other expenses, read on to ensure you're financially prepared before creating an LLC in Georgia.
Here are the following fees to consider:
- Domestic LLC Formation Fee: $100 or $110
- Foreign LLC Formation Fee: $225 or $235
- Annual Registration Fee: $50 or $60
- Business Permits and Licenses: $0 to $500+
- Business Taxes: 1% to 5.75%
- Registered Agent: $0, or $100-$300/yr
- Operating Agreement: $0, or up to $500+
- Employer Identification Number: $0, or $50 to $99
- BOI Report: $0, or $25 to $149
- Optional Fees: $0 to $3,000+
The primary cost to start an LLC in Georgia is the state registration fee of $100.[1] However, getting started takes more money than that.
Figure out what you need to spend, including the optional fees that could balloon the total cost to more than $1,000.
Set Up Your LLC - $0 + State Fees
- Free business plan included (no credit card required)
- Lifetime compliance alerts
- Comprehensive name check
- Lifetime customer support via email and phone
In Georgia, LLCs need to pay the $50 annual registration fee to the Secretary of State.[2] Other expenses you'll cover every year may include business permits and licenses, website domain, and business insurance premiums.
Georgia Domestic LLC Formation Filing Fee
Cost: $100 (online filing) | $110 (via mail)
All new LLCs in Georgia must submit the Articles of Organization to the Secretary of State. It details essential information about your company. This includes the company name, your name, and that of your LLC's registered agent. Once the application is approved, your LLC will be recognized as legally separate from you.
If you file the Articles of Organization online, the usual processing time is 7 days. If you file by mail, it will take around 15 days.
If you need to create your LLC faster, the Georgia Secretary of State offers expedited services. The fee depends on how soon you want it:[3]
- $100 - 2 business days
- $250 - same day
- $1,000 - 1 hour
Paying the LLC-related fees yourself in Georgia will be most cost-effective. Choose to make payments online if it's an available option. You can also be your LLC's registered agent and save up to $400. Furthermore, create your operating agreement by using free templates online.
Georgia Foreign LLC Formation Filing Fee
Cost: $225 (online filing) | $235 (via mail)[2]
If you already have an LLC in your home state and want to expand your business into Georgia, you'll need to apply for a Certificate of Authority.
You won't have to form your LLC again, but you must register with Georgia's Secretary of State as a foreign limited liability company.
Georgia's Secretary of State doesn't require foreign LLCs to lawyer up. You can process the documents for a foreign LLC in Georgia on your own, just like applying for a domestic LLC.
Georgia LLC Annual Registration Fee
Cost: $50 (online filing) | $60 (via mail)
Every LLC registered in Georgia must complete an annual registration process between January 1 and April 1 of each year. This is a crucial step in maintaining your LLC's good standing and avoiding legal consequences.
An annual registration keeps your LLC's basic information current, including your registered agent, address, and members' names. This is your opportunity to update any changes in your business during the previous year.
Failure to file your annual registration for two consecutive years can lead to the dissolution of your LLC. This means your business will cease to exist legally, and you may face additional challenges.
Yes, all LLCs in Georgia must pay a $25 penalty[4] if the annual registration and the $50 or $60 filing fee are submitted after April 1 of each year.
Georgia Business Permits and Licenses
Cost: $0 - $500+
Georgia doesn't require a business license at the state level. However, you need a seller's permit if your LLC offers a physical product. In Georgia, this is called a Sales and Use Tax Permit. You can get it for free through the Georgia Tax Center (GTC).
All LLCs in Georgia typically need a business or operating license from their city or county. Cities like Atlanta and Columbus require a business license for all merchants that operate in the city.
You might also need a special business license, depending on your LLC's industry. Construction businesses will need a building and zoning permit. Meanwhile, accountants and interior designers will need respective professional licenses.
Georgia Business Taxes
Cost: 1% - 5.75% Individual Income Tax[5]
By default, LLCs in Georgia are treated as pass-through entities for tax purposes. This means profits and losses are passed directly to members and reported on their personal tax returns.
However, depending on the nature of your business, your LLC may still be subject to paying different types of taxes. These taxes include:
- Adult Entertainment Tax
- Fireworks Excise Tax
- Motor Fuel Distributor Tax
- International Fuel Tax
- Transportation Services Tax
Optional Fees for LLCs in Georgia
While the LLC fees in Georgia below are optional, you may need to pay for some depending on your business needs. For example, obtaining a Certificate of Good Standing is often necessary when opening a business bank account.
As you plan your budget for your new Georgia LLC, remember to account for these potential additional expenses:
Georgia LLC Optional Fees | Cost |
---|---|
Georgia LLC Expedited Services Fee | $100 - $1,000 |
Georgia LLC Registered Agent Fee | up to $300+ |
Georgia LLC Operating Agreement Fee | up to $500+ |
Georgia Employer Identification Number (EIN) | up to $99 |
Beneficial Ownership Information Report | up to $149 |
Georgia LLC Business Name Reservation Fee | $25 or $35[6] |
Georgia LLC 'Doing Business As' (DBA) Fee | $150+ |
Georgia LLC DBA Publication Fee | $40 |
Georgia LLC Correction Fee | $20 |
Georgia LLC Amendment Fee | $20 or $30[2] |
Georgia LLC Statement of Change Fee | $20+ |
Georgia LLC Certified Copy of Business Document Fee | $10 - $60 |
Georgia LLC Certificate of Existence Fee | $10 or $20[2] |
Georgia Business Website Domain Fee | $10 - $20 |
Georgia Business Insurance Premium | varies |
Georgia LLC Registered Agent Fee
Annual Cost: $0, or $100-$300/yr
In Georgia, you must have a registered agent to receive business and legal documents for your LLC. This includes government notices, tax forms, and annual reporting forms.
You can technically be your LLC's registered agent—as long as you're at least 18 and have a physical street address in Georgia. You must also be available to receive documents during business hours.
However, your address will be public record. So many LLCs like to hire a registered agent service to keep their personal details private. These services usually charge $100-$300 per year to be your registered agent.
The initial registered agent for your Georgia LLC does not have to officially consent to act in that role.
Georgia LLC Operating Agreement Fee
Cost: up to $500+
In Georgia, LLCs are not required to have an operating agreement. However, having one helps prevent confusion, disagreements, and other issues concerning policies and roles.
An operating agreement is a legal document that outlines the ownership and operating procedures of an LLC. It also defines the roles and responsibilities of the members or managers.
One interesting feature of Georgia law is that you can use your articles of organization for the same purposes as an operating agreement. Because your articles are filed with the state, any changes to them will require an amendment.
The costs associated with the operating agreement come in the drafting of the document. You can create an operating agreement for free by using templates online. Alternatively, it could cost upwards of $500 if you hire an attorney.
If you don't create an operating agreement, you must follow Georgia's default legal provisions for LLCs. For instance, in a Georgia LLC without a specific agreement, all members are assumed to share profits and debts equally.
Georgia Employer Identification Number (EIN)
Cost: $0, or $50 to $99
Any LLC with more than one member or with employees must have an EIN, regardless of how it's taxed. This is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to identify a business entity for tax-related purposes.
You can just apply for an EIN for free on the IRS website. But if you'd like an LLC service to process it for you, you can do so for a small fee. Here are some providers that do this and their pricing:
- Northwest Registered Agent: $50
- Bizee: $70
- ZenBusiness: $99
Single-member LLCs in Georgia don't require an EIN, but it's almost essential in practice. For instance, you'll need one if you hire employees or want to open a business bank account.
Yes. Separating your LLC's finances from personal assets is a requirement of liability shielding. Use a separate bank account to accept payments and pay business expenses to prevent piercing the corporate veil .
Beneficial Ownership Report
One-Time Cost: $0, or up to $149
The Beneficial Ownership Information (BOI) is a one-time report that must be submitted to the Financial Crimes Enforcement Network (FinCEN) within 90 calendar days of your LLC's formation.[7]
It includes information about the LLC's beneficial owners, including name, birth date, and address.
FinCEN doesn't charge a fee to submit your BOI report. But you can pay an LLC service to process it for you and save yourself the hassle:
- Northwest Registered Agent: $25
- LegalZoom: $149
- ZenBusiness: $149
You're considered a beneficial owner if you own 25% or more of the ownership interests in your LLC. Or if you exercise substantial control over the LLC.
Georgia LLC Business Name Reservation Fee
Cost: $25 (online filing) | $35 (via mail)
Naming your Limited Liability Company doesn't cost anything. Your Georgia LLC Name is approved (at no extra cost) when the state approves your Articles of Organization filing.
If you've got a perfect name for your LLC, but aren't ready yet to register with the state, you can reserve the name for 30 days. Submit your Name Reservation Request form to the Georgia Secretary of State online or by mail and pay the corresponding fee.
Make sure the name you want isn't already taken by doing a business search on the Georgia Secretary of State's website. To avoid having problems with your Articles of Organization application, take note of the Georgia LLC naming guidelines as well.
Choose a business name that is also available as a web domain. Even if you have yet to make a business website, you may want to buy the URL in advance to prevent others from acquiring it.
Georgia LLC 'Doing Business As' (DBA) Fee
Cost: $150+ (Publishing fee is separate)
If you want to operate your business under a different name than your LLC's, you will need to file a DBA. In Georgia, DBAs are called trade names and are registered in the county in which your business operates. This filing fee varies by county.
Aside from the DBA filing fee, you'll also need to publish a copy of your DBA in the local newspaper. This should run at least once a week for two consecutive weeks.
Some DBA fees in other counties already include the publication fee. In other counties, you will have to pay a separate publication fee, which costs upwards of $40.
Georgia LLC Correction Fee
Cost: $20
After your Georgia LLC application is approved, your next focus should be on maintaining its good standing over the long term.
Get a copy of the approved Articles of Organization and review all the details carefully. If there are errors, like a misspelled business name or incorrect address, correct them as soon as possible by filing a Certificate of Correction.
Georgia LLC Amendment Fee
Cost: $20 (online filing) | $30 (via mail)
Your Georgia LLC's Articles of Organization contain specific details about your business. Should these details change, you must submit a Certificate of Amendment to the Secretary of State.
File a Certificate of Amendment if you:
- Add, remove, or change an LLC member or manager.
- Update your LLC's business address.
- Modify your LLC's stated business activities.
A Certificate of Correction is for fixing mistakes in initial filings. Meanwhile, a Certificate of Amendment is for updating or changing key details as the LLC evolves.
Georgia Statement of Change Fee
Cost: $20+
You must file a Certificate of Change to update your LLC's registered agent name or address. If you want to skip this fee, you can submit the updated details when you file your annual report.
You can update registered agent details for multiple LLCs in Georgia. A single submission can include changes for all entities, with an additional $5 beyond the fifth LLC.
A Certificate of Amendment is used to change the business name, business purpose, and other details. The Certificate of Change pertains only to changes regarding the registered agent.
Georgia LLC Certified Copy of Document Fee
Cost: $10 (online filing) | $20 (via mail)
A Georgia-certified document is a copy of a business document that includes a signed and dated endorsement from the Georgia Secretary of State.
You often need certified copies of your LLC's documents to open new bank accounts, apply for loans, or demonstrate to investors that your LLC is legitimate and properly managed.
Note that there is an additional 10 cents per page for certified document copies that exceed 25 pages.[2]
If you need your document certified much quicker, you can pay $50 for expedited processing.[2]
Georgia LLC Certificate of Existence Fee
Cost: $10 (online filing) | $20 (via mail)
A Certificate of Existence, also known as a Certificate of Good Standing, is a document that verifies your LLC is legally registered and compliant with state regulations. You may need this certificate when dealing with banks, lenders, or other business entities.
If you're in a hurry, you can pay $50 for expedited processing of this certificate.[2]
Georgia Business Website Domain Fee
Annual Fee: $10 to $20
A website domain and social media presence provide dedicated online spaces for your business. It's essential for marketing, customer engagement, and brand visibility in today's digital world.
Even if you aren't planning to build a business website now, you could still buy the domain name. This will prevent others from using your LLC's name as a web address.
Domain squatters often monitor newly registered LLC names. They purchase corresponding website domains and then resell them at significantly higher prices.
Georgia Business Insurance Premium
Cost: varies
If your LLC in Georgia has three or more employees, state law mandates you get workers' compensation insurance.[8] Not having this insurance can lead to fines or, worse, your business being shut down.
The cost of this insurance depends on factors like the number of employees, the risk level of your industry, and your past insurance claims. For instance, a large-scale industrial manufacturer typically incurs higher insurance premiums compared to a smaller graphic design studio.
DIY vs. Hiring Services
A DIY approach costs $100 to $110 for the Articles of Organization. Then, pay your LLC's permits and business licenses.
Alternatively, pay a Georgia LLC formation service to do the work. Northwest Registered Agent charges $39 for an LLC formation package on top of the state filing fee.
Other providers like ZenBusiness could charge as much as $349 for a premium package. These typically include annual Georgia registered agent services, an EIN, and an operating agreement.
Fortunately, LLC services like Bizee offer free basic packages. It prepares and files your LLC documents at no additional cost.
Is it Worth it to Form an LLC in Georgia?
It could be worth forming an LLC in Georgia because of its favorable business environment.
It has low filing fees, a free sales tax permit, and straightforward LLC regulations. Compared to states with higher taxes and more complex filing requirements, it's an attractive option.
Plus, forming an LLC in Georgia provides liability protection, a benefit that sole proprietorships and partnerships don't have. It also has more flexibility in management than corporations.
- What are the benefits of forming an LLC for my business model?
- How will Georgia's tax advantages impact my business financially?
- Am I prepared for the administrative responsibilities of running an LLC?
- How important is liability protection for my business operations?
Bottom Line
The $100 Certificate of Formation filing fee is just the beginning of your expenses if you want to start an LLC in Georgia. The numbers above tell you the very least you need to get started, but there is a lot more you need to know.
The cost will increase depending on additional services, documents, and licenses your LLC needs to operate. You can also use an accountant to stay compliant with the law. Ultimately, it's never a bad idea to set aside an extra budget for unexpected costs.
- Alabama LLC
- Alaska LLC
- Arizona LLC
- Arkansas LLC
- California LLC
- Colorado LLC
- Connecticut LLC
- Delaware LLC
- District of Columbia LLC
- Florida LLC
- Georgia LLC
- Hawaii LLC
- Idaho LLC
- Illinois LLC
- Indiana LLC
- Kansas LLC
- Kentucky LLC
- Louisiana LLC
- Maryland LLC
- Massachusetts LLC
- Michigan LLC
- Minnesota LLC
- Mississippi LLC
- Missouri LLC
- Montana LLC
- Nevada LLC
- New Hampshire LLC
- New Jersey LLC
- New Mexico LLC
- New York LLC
- North Carolina LLC
- North Dakota LLC
- Ohio LLC
- Oklahoma LLC
- Oregon LLC
- Pennsylvania LLC
- Rhode Island LLC
- South Carolina LLC
- South Dakota LLC
- Tennessee LLC
- Texas LLC
- Utah LLC
- Vermont LLC
- Virginia LLC
- Washington LLC
- West Virginia LLC
- Wisconsin LLC
- Wyoming LLC
References
- ^ Georgia.gov. Register an LLC with Georgia Secretary of State, Retrieved 1/04/2024
- ^ Georgia Secretary of State. Corporations Division Filing Fees, Retrieved 1/04/2024
- ^ Georgia Secretary of State. Filing Fees and Expedited Processing of Document Filings, Retrieved 1/04/2024
- ^ Georgia Secretary of State. How to Guide: File Annual Registration, Retrieved 1/04/2024
- ^ Georgia. gov. Department of Revenue: Taxes for Businesses, Retrieved 03/11/2024
- ^ Georgia.gov. How To Guide: How To Reserve a Name, Retrieved 1/04/2024
- ^ Financial Crimes Enforcement Network. Beneficial Ownership Information, Retrieved 10/02/2024
- ^ Georgia.gov. Workers' Compensation Insurance FAQs, Retrieved 01/17/2024
Nicole King is a research analyst at CreditDonkey, a business formation services comparison and reviews website. Write to Nicole King at nicole.king@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.
Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.
|
|
|