Looking to set up an LLC in Georgia? With several financing options, tax credits, and tax relief, Georgia makes a great state to start an LLC.
Read on to find out all about LLCs and registering your LLC.
Is an LLC Operating Agreement Required in Georgia?
No, a business is not required to create an LLC operating agreement (OA) in Georgia. However, there are many benefits to creating one, such as helping you set up the different roles and responsibilities of members.
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.
This will be the most important operation document for your business after you have created your business plan.
Georgia Operating Agreement Laws
Georgia doesn’t require an LLC agreement, but they do have some state-specific requirements – Title 14, Chapter 11. These will be different from other states, so it is always good to get an LLC OA template to make sure you don’t miss them.
Your LLC must have a different name from other businesses registered in the state of GA. The name must also end with one of the following:
- Limited Liability Company or Limited Company
- LLC, L.L.C., LC, or L.C.
- Limited can be abbreviated as Ltd or Ltd. and company as Co or Co.
There are also certain words that they won’t allow in your name without special approval from the Secretary of State. These words are words associated with insurance, education, and banking.
They also won’t allow words like “corporation” or “limited partnership” in the name. They do this so your name won’t confuse people as to what type of business you are.
Georgia asks that you include any optional provisions inside your LLC OA document that are unique to your business. This would include things like if you are going to be a 501(c)(3). Those unique items should be included.
Georgia differs from some other states because they allow licensed professionals such as doctors or lawyers to form LLCs. Georgia doesn’t offer a Professional LLC (PLLC) to licensed professionals.
They do offer a professional corporation (PC) designation for licensed professionals who have a larger business.
How Much Does It Cost to Form an LLC in Georgia?
Georgia offers a very reasonable fee for their domestic filing, with their foreign fee being significantly more.
- Domestic Filing Fee Online – $100
- Domestic Filing Fee Paper – $100
- Foreign Filing Fee Online – $225
- Foreign Filing Fee Paper – $235
The fee is a one-time fee for your business. They do have an annual franchise tax fee that is only $50 each year.
How to Form an LLC in Georgia
How to start an LLC in Georgia is a pretty simple process. There are a few key steps they have laid out to follow:
Step – 1 Reserve a Name
Georgia offers a business search website giving you the ability to search names to see if the one you want is available. You have the ability to pick a name and reserve it while your paperwork is getting approved.
The cost for this is $25, and you 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 to find 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, and you pay your $50 fee.
Georgia LLC Operating Agreement Template
This could be a great time for you to start your own LLC! Below we have created the perfect LLC Operating Agreement Template to get you started.
LLC Operating Agreeement