Whether starting a new business or turning your hobby into a side job, learning how to get an LLC in Georgia can be beneficial. Georgia is full of business opportunities, and forming an LLC can help you make more money and save on taxes. Here’s a simple guide to how Georgia LLCs work and the steps to create one.
Step 1: Name your Georgia LLC
Step 2: Choose a Registered Agent
Step 3: File an Articles of Organization
Step 4: Received a Certificate From the State
Step 5: Obtain an Operating Agreement
Step 6: Get an Employer Identification Number
Step 1: Name your Georgia LLC
When starting a business in Georgia, you need to pick a name that follows these rules:
- Include Specific Words: Your LLC name must have “Limited Liability Company,” “LLC,” or “L.L.C.”
- Unique Name: Check the Secretary of State’s website to ensure that no other business in Georgia is using your chosen name.
- No Government Words: Do not use words that imply a connection to government agencies, such as the State Department or FBI.
- Restricted Words: Some words (like bank, lawyer, attorney) might need extra paperwork or licenses.
Check the guidelines for a complete list of Georgia’s naming rules.
Additional Consideration:
Reserve your Name: Once you’ve decided on a name for your business, you can check if it’s available on Georgia’s business search website. If it is, you can reserve the name for up to 30 days by filling out a name reservation form online or by mail. There’s a $25 fee for this reservation.
Remember, reserving a name doesn’t guarantee it meets trademark or federal laws. If you’re unsure about a name’s suitability, it’s a good idea to talk to a lawyer.
Website domain: It’s wise to reserve your domain name early, even if you plan to set up a website later. Before you finalize your LLC name, check if the website address (URL) you want is available, which ensures you can keep the option open for creating a website.
Step 2: Choose a Registered Agent
In Georgia, you need to appoint a registered agent for your LLC. This person or company receives legal papers and official notices on behalf of your LLC. Here are the basic requirements:
- Who Can Be: Your registered agent can be a person (like yourself or an employee) or a company that offers this service.
- Georgia Address: They must have a physical address in Georgia.
- Availability: They must be at that address during regular business hours to receive documents.
Having a registered agent ensures your LLC stays compliant with Georgia’s rules for receiving critical legal notifications.
Step 3: File an Articles of Organization
Once you’ve chosen a name and designated a registered agent for your LLC, the next step is officially registering your LLC with the state of Georgia, which involves submitting the Articles of Organization, which serves as your LLC application and includes essential details about your business:
- Your LLC’s name or the name reservation number if you reserved it beforehand
- Name and address of the person filing the application
- Email address of your LLC
- The mailing address of your LLC’s principal office
- Name and address of your registered agent
- Names and addresses of all organizers involved
- Any specific provisions you wish to include
- The desired effective date of registration, which can be up to 90 days after filing
When filing by mail, include Form 231 (Transmittal Information) and the Articles of Organization. While handling the LLC registration process yourself is straightforward, consider using a formation service or consulting with an attorney for peace of mind and accuracy. You can file your filing options on the Georgia Corporations Division website. Mail your documents to the Office of the Secretary of State, Corporations Division in Atlanta, GA. The filing fee is $100 for online submissions and $110 for mail submissions.
Step 4: Received a Certificate From the State
Once the Secretary of State gets your Articles of Organization, your business officially starts. It usually takes five to seven business days for them to process your filing and mail you a Certificate of Organization to your business address.
This certificate allows your LLC to obtain an Employer Identification Number (EIN) and necessary business licenses and open a business bank account.
Step 5: Obtain an Operating Agreement
An operating agreement outlines how your LLC does business. Even if not required by the state, it’s vital for your business. A written operating agreement is accessible and helps resolve disputes, especially over finances and potential legal issues. State law decides matters without one, which may not be in your LLC’s best interests.
Essential parts of an operating agreement include:
- LLC’s name and address
- Duration of the LLC
- Registered agent’s details
- Information from the Articles of Organization
- Business purpose
- Member contributions
- Divide profits and losses
- Admit new members and manage departures
- Terms about indemnification and liability
These details in writing can protect your LLC and ensure everyone understands its operation.
Step 6: Get an Employer Identification Number
If your LLC will have employees, you may need to get an Employer Identification Number for tax purposes. Similar to a Social Security number, an EIN identifies your business entity. The Internal Revenue Service (IRS) issues EINs for federal income taxes, and you can apply for one at no cost through the IRS website. An EIN is typically required to file tax returns and open bank accounts for your LLC.
Follow these steps to start your LLC in Georgia and get your business running.
LLC State Guides
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FAQs:
What is the cost of starting an LLC in Georgia?
Filing a Georgia LLC costs $100 for online submissions and $110 for mail or in-person filings. Expedited processing is available for additional fees: $100 for two-day processing, $250 for same-day processing (if submitted before noon on a weekday), and $1,000 for one-hour processing.
How do I keep my Georgia LLC in good standing?
You must file your annual registration with the Secretary of State each year and pay the associated fee. Additionally, you must renew your local city or county business license and pay their fees annually. Reporting and settling any federal, state, or local taxes as required is essential. Keeping up with these obligations ensures your Georgia LLC remains compliant and in good standing.
What happens if my Georgia LLC doesn’t have a physical address?
You can use a registered agent service’s address as your LLC’s official mailing address. These services accept legal documents on your behalf and often offer additional business support.
Do I need a business bank account for my LLC?
While it’s not mandatory, opening a separate business bank account for your LLC is a good idea. It keeps your personal and business finances separate and simplifies tracking your income and expenses.
Are annual reports required for Georgia LLCs?
Georgia LLCs must submit a yearly report with a $50 fee. If not submitted, the state may shut down the LLC. You must submit reports annually between January 1 and April 1, and you can file them up to three years in advance.
