A Georgia LLC operating agreement helps set up the different roles and responsibilities of members and define the operational procedures of the company.
This important document can make a major difference in legal proceedings. Lenders will often ask to see one before opening a business bank account. Investors and potential partners will often ask for one in their evaluation of a business.
Is an LLC Operating Agreement Required in Georgia?
NO, a business is not required to have an LLC operating agreement in Georgia. However, there are many benefits to creating one.
By Type
Laws
The state-specific requirements for Georgia LLC operating agreements are outlined in Title 14, Chapter 11 of the Code of Georgia:
- § 14-11-101: Definitions.
- § 14-11-1107: Laws governing chapter; limited liability companies.
Costs and Fees
Georgia offers a very reasonable fee for their domestic filing, with their foreign fee significantly higher.
- Domestic filing fee – $100 (either online or by paper).
- Foreign filing fee – $225 online/$235 by paper.
- Name reservation fee – $25.
- Annual franchise tax – $50.
How to Form an LLC in Georgia
There are a few key steps to follow when starting an LLC in Georgia:
Step – 1 Reserve a Name
Georgia offers a business search website that gives you the ability to search names to see if the one you want is available. You can pick a name and reserve it while your paperwork is getting approved.
You can reserve the name for up to 30 days. They also ask that you give two other variations in case the one you want is taken, so you don’t have to reapply.
Step 2 – Pick a Registered Agent
The registered agent acts as the representative of your LLC when it comes to any official communication. They receive official mail from the state when needed and also receive any service of process in legal matters.
The agent can be a member of the company, but they must live in Georgia. Some companies get a business attorney or an agent service to represent them as official agents.
Step 3 – Pick Your LLC Type
Georgia has two main types of LLCs: the Multi-Member LLC and the Single-Member LLC. The Multi-Member LLC is the appropriate choice for businesses with more than one owner. A Single-Member LLC is designated for businesses with a single owner.
Step 4 – Federal Compliance
The LLC with employees will have to pay federal payroll taxes to cover Social Security and Medicare. Any other federal taxes you will have to pay will be based on your LLC status.
You will also need to get an Employee Identification Number (EIN). This will give you the ability to conduct financial transactions in the company name.
Step 5 – State Compliance
The LLC is expected to communicate with the Georgia Department of Revenue about the state tax laws. Businesses with employees will have to pay payroll taxes, and the owners will pay state income tax on business profits.
Each LLC is responsible for finding out if they need to obtain Workers’ Compensation insurance. They will also need to check to see if they have to pay unemployment taxes.
Step 6 – Maintain Annual Registration
All LLCs are required to file an annual registration statement each year between January and April. This keeps your information up to date with the state.
Sample
Below you can download our Georgia LLC operating agreement template to get you started.
