If you want to register an LLC in Georgia, you’ll find it is relatively more affordable than some other states. Compare the $100 filing fee you’ll spend in the Peach State to the $500 you’ll pay in Massachusetts.
Pricing aside, there’s a lot to know about establishing a Georgia LLC. That’s why we created a helpful guide for you to follow.
1. Choose Your LLC’s Name
The first thing to know is if the name you have planned for your business is available. It is not possible to file an LLC that shares a name as an existing company. Even having a name that’s too close to an established brand could cause plenty of costly complications.
Avoid any foreseeable problems by performing a name search of Georgia businesses. Once your research determines that you’re in the clear, go ahead and file your LLC paperwork.
2. Submit Your Georgia LLC Forms
When you arrive at this stage, you’ll either file as a domestic or foreign entity. (Foreign entities are businesses established in a different state that wish to legally operate in Georgia. They must file a different application and pay additional fees. More on that below.)
Domestic entities—aka businesses by Georgia residents—submit their Articles of Organization to the Georgia Secretary of State. The process costs $100 online; physical filings require an additional $10 fee.
3. Select a Registered Agent
A registered agent is a person or organization authorized to accept legal and tax documents on your LLC’s behalf. Georgia does not require a third party to act as your registered agent; you can represent yourself. It is also possible to ask a trusted family member or friend to step into the role.
Otherwise, you can use a registered agent service that does the work for you.
What Else to Know About LLCs in Georgia
Here are a few other crucial things to keep in mind.
Foreign Entities
Georgia-owned businesses fill out standard Georgia LLC forms and pay the applicable fees. If you’re a non-Georgian hoping to establish an LLC within the state, you are considered a “foreign entity.” That means you will have to submit separate paperwork and pay a $235 fee.
Some states allow for LLC domestication, but Georgia is not one of them. To avoid paying out higher fees, you can try to qualify as a domestic entity. Another option is to dissolve the LLC in the originating state, paving the way to reestablish it in Georgia.
Annual Business Registration
Be aware Georgia requires LLCs to go through the Annual Business Registration process. The cost is $50. If the registration isn’t submitted on time, you will pay a $25 late fee.
Annual registration requires the following:
- The control number or business name
- The name of the person filing the annual registration
- An email address
- The mailing address of the principal office
- A physical address within Georgia; you can substitute a registered agent’s address.
- Acceptable form of payment.
Georgia presently accepts credit cards, checks (including certified checks) and money orders. If paying by credit card, be sure to include the three-digit security code. The official website provides instructions for completing the process.
Operating Agreements in Georgia
An operating agreement isn’t a requirement for setting up your Georgia LLC. Even so, operating agreements are useful tools. Creating one at the onset of your LLC will provide a professional foundation. In cases where LLCs have multiple members, each person will understand their exact role within the business and their legal and financial obligations.
The existence of an operating agreement can also provide an additional layer of liability protection. It further establishes your business as wholly separate from your personal finances.
Frequently Asked Questions
“LLC” stands for limited liability company. It is one of many legal entities business owners can establish. LLCs are more flexible than corporations and provide better liability coverage than sole proprietorships. LLCs functionally shield your personal assets, and you can choose among several different ways to be taxed.
A DBA or doing-business-as allows someone to operate under a trade name separate from their birth name or their already-established business name. A DBA is not a type of business but rather a business’s registered nickname.
Corporations and LLCs are registered business entities. Corporations are owned by shareholders, while LLCs are under an individual or group of members. For a more nuanced understanding, read into the differences between LLCs and corporations.
Arkansas is the cheapest state at present, with a $45 filing fee. Please note LLC pricing is subject to change. Fluctuations in costs could cause another state to become more affordable.
While LLCs are usually not available for free, qualifying individuals could avoid fees in certain circumstances—for instance, if state legislatures decide to waive fees for veterans or members of low-income communities. Check with the state to determine if such exemptions are currently available and to learn if you qualify.
