Georgia LLC Guide | A Comprehensive Write-up for Beginners

When talking about LLC, what really comes to your mind? You might have heard about LLC but you don’t really understand the concept of how it’s been operated.

A limited liability company (LLC) is a business entity that offers certain legal protections and rights to its owners. An LLC is either a corporation or a sole proprietorship/partnership.

Do you know that forming an LLC is the simplest way of structuring your business to protect your personal assets in case your business is sued?

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An LLC can be owned by one or more people, who are known as LLC “members”. An LLC with one owner is known as a single-member LLC, and an LLC with more than one owner is known as a multi-member LLC.

Georgia LLC Information

Forming LLCs in Georgia is affordable and easy. Unlike other states, the State of Georgia has some unique LLC requirements.

Interested parties must register with the Georgia Corporations Division by filing the necessary forms, paying the necessary fees and meeting all naming and formation requirements.

The specifications required of a Georgia LLC are:

1. Name Your Georgia LLC

Choosing a company name is the first and most important step in starting your Georgia LLC. Be sure to choose a name that complies with Georgia naming requirements and is easily searchable by potential clients.

1. Follow The Georgia LLC Naming Guidelines:

• Your name must include the phrase “limited liability company,” or one of its abbreviations (LLC or L.L.C.).
• Your name includes words that could confuse your LLC with a government agency (FBI, Treasury, State Department, etc.).
• Restricted words (e.g. Bank, Attorney, University) may require additional paperwork and a licensed individual, such as a doctor or lawyer, to be part of your LLC.
• Your name must be distinguishable from any other Georgia limited liability company, limited liability partnership, limited partnership, or corporation.
• For a complete list of naming rules in Georgia, you can read the Georgia naming guidelines.

2. Choose A Registered Agent In Georgia

You are required to nominate a Georgia Registered Agent for your Georgia LLC.

What is a Registered Agent?

A registered agent is an individual or business entity responsible for receiving important tax forms, legal documents, a notice of lawsuits, and official government correspondence on behalf of your business. Think of your registered agent as your business’ point of contact with the state.

Who can be a Registered Agent?

A registered agent must be a resident of Georgia or a corporation, such as a registered agent service, authorized to conduct business in the state of Georgia. You may elect an individual within the company including yourself.

3. File The Georgia LLC Articles Of Organization

To register your Georgia LLC, you will need to file the Articles of Organization with the Georgia Corporations Division. You can apply online or by mail. Some states refer to the Articles of Organization as the Certificate of Formation or Certificate of Organization.

The Articles of Organization for an LLC (Limited Liability Company) in Georgia is a legal document to officially form your business. You’ll be expected to provide the name of your LLC, choose a registered agent, list the services your LLC will offer, and pay the state filing fee.

After you file the Articles of Organization, we recommend you obtain an Employer Identification Number (EIN) if you plan to hire employees and open a business bank account.

4. Create A Georgia LLC Operating Agreement

An operating agreement is not required for an LLC in Georgia, but it’s a good practice to have one.

What Is An Operating Agreement?

An operating agreement is a legal document outlining the ownership and operating procedures of an LLC.

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Why Are Operating Agreements Important?

A comprehensive operating agreement ensures that all business owners are on the same page and reduces the risk of future conflict.

5. Get A Georgia LLC EIN

What Is An EIN?

The Employer Identification Number (EIN), Federal Employer Identification Number (FEIN), or Federal Tax Identification Number (FTIN), is a nine-digit number issued by the Internal Revenue System (IRS); an Employer ID Number is used to identify a business entity and keep track of a business’s tax reporting. It is essentially a social security number (SSN) for the company.

Why Do I Need An EIN?

An EIN number is required for the following:

• To open a business bank account for the company
• For Federal and State tax purposes
• To hire employees for the company

Where Do I Get An EIN?

An EIN is obtained from the IRS (free of charge) by the business owner after forming the company. This task can be done online or by mail.

NOTE

FOR INTERNATIONAL APPLICANTS: You do not need an SSN to obtain an EIN.

FAQ: Getting An EIN

How Do I Get An EIN If I Don’t Have A Social Security Number?

An SSN is not required to get an EIN. You can simply fill out IRS Form SS-4 and leave section 7b blank. Then call the IRS at 267-941-1099 to complete your application.

What Tax Structure Should I Choose For My LLC?

When you get an EIN, you will be informed of the different tax classification options that are available. Most LLCs elect the default tax status.

However, some LLCs can reduce their federal tax obligation by choosing S corporation (S-Corp) status. We recommend consulting with a local accountant to find out which option is best for you.

6. Cost To Form An LLC In Georgia

To start an LLC in Georgia, you will need to file the Articles of Organization with the Georgia Corporations Division, which costs $100. You can apply online or by mail. The Articles of Organization is the legal document that officially creates your Georgia Limited Liability Company.

7. Georgia LLC Annual Fee

It’s better to know the annual fee of how the State Corporation Commission in Virginia charged. This alone will make you budget for everything at a time which will help reduce the stress of thinking much.

Every LLC in Georgia is required to pay a $50 Annual Registration Fee each year. You can file your LLC’s Annual Registration Fee by mail or online, but the state prefers online filings as they are more convenient and faster.