How to Start an LLC in Georgia (GA)

How-to-start-an-LLC-in-Georgia
How-to-start-an-LLC-in-Georgia

Are you thinking of starting a limited liability company?

Forming an LLC is the perfect business structure if you’re looking to protect your personal assets without all of the restrictions of a corporation.

Forming an LLC in Georgia is simple – all you have to do is follow our step-by-step guide:

How to Form an LLC in Georgia – A Step by Step Guide

How to start an LLC in Georgia - United States Map
How to start an LLC in GA – USA Map

Congratulations on making the decision to create an LLC and get your business up and running. While the steps to submit your application and get approval are straightforward – make sure you follow each step correctly so there are no errors on your application.

Any mistakes or discrepancies will slow down the process, or worse, the Georgia state could deny your application. If you’re lacking confidence in following each step we’d advise hiring experts to file all your business paperwork for you (a more worry-free approach).

Otherwise, if you’re a do-it-yourself kind of person follow these 6 initial steps: 

1. Name your Georgia LLC 

Georgia has specific rules on naming your business and you want to make sure you meet all the requirements before applying. Under Georgia law, your LLC has to be unique – which means you’re the only business operating under this name. 

Name Requirements

Before checking to see if you’re desired business name is available, to abide by Georgia LLC law, make sure the name of your company contains one of the following:

  • LLC (most common)
  • L.L.C.
  • Limited Liability Company
  • Limited Liability Co
  • LTD
  • Liability Co
  • Company
  • Co.

For example, if you want your business name to be ‘GreenFox,’ it would have to be registered as ‘GreenFox LLC,’ ‘GreenFox L.L.C., etc.’  

Check Name Availability

Once you’ve decided on your name you need to check to see if it’s available and there’s no other company in Georgia using it. The quick and easy way to do this is through a quick google search using your desired name.

If after that, you don’t find any competing companies you can move onto the next step – checking your business’s potential name through the Corporation’s business name database.

If your name is available, but you’re not ready to file for your LLC yet, you can reserve it online or through a Name Reservation form. The reservation lasts 30 days and costs $25 to file. 

Using a Fictitious Name

If you don’t want to use LLC in your business name then once your business is registered you can add a fictitious name. Also known as DBA (“doing business as”), or a trade name, a fictitious name allows you to run your business under a name that’s not the legal LLC registered name. 

You can also use a fictitious name if you plan on running several different businesses under your LLC formation.

To register a fictitious name for your LLC business you need to fill out an application to register a trading name and send it to the Clerk of the Superior Court who is responsible for your region. You can find who you need to contact through the Georgia Superior Court Clerks’ Cooperative Authority.

Once you’ve figured out what your business name is and you’ve made sure it’s still available, the next step is to choose a registered agent who will help you with the legal side of your business.

2. Choose a Georgia Registered Agent

A registered agent is anyone who receives and sends legal documents on behalf of your company. They are the main point of contact between your company and the Secretary of State.

In Georgia, an LLC must have a registered agent who lives in Georgia and has a valid street address (not a P.O. box).

An LLC registered agent can be:
  • Yourself 
  • A family member or friend 
  • A Commercial Registered Agent  

Why you may want to use a registered agent

While the easier route seems to have yourself, or one of your LLC’s members, act as the registered agent, there are some benefits in hiring a professional. A registered agent will ensure your business is always in good standing with the state, helping you stay organized and up-to-date. It also adds a layer of protection since they will help you in the case of a lawsuit or any penalties/fines.

Once you’ve decided who’s the best person to be your registered agent the next step is to submit your LLC application form.

3. File a Georgia LLC Article of Organization & Transmittal Form

To File an LLC in Georgia you need to complete the Articles of Organization application form, along with a Transmittal form, and submit both to the Secretary of State.

An Articles of Organization acts as a summary/witness of your LLC registration whereas the transmittal form outlines your company details. Be prepared to include the following information:

  • The name of your LLC
  • The physical address of your LLC’s office
  • Name and address of your registered office 
  • The name of each member 
  • signatures of all the LLC’s members 
  • The date the articles of organization should be effective (it has to be within the next 90 days after filing) 
  • The date
  • Signature and who the signature is from (organizer, member, manager, attorney-in-fact 

The filing fee for an LLC, which includes the articles of organization and the transmittal form, is $100.00 if you apply online or $110 by mail (there’s a $10 paper fee). If applying by mail send your application with payment to:

Georgia Secretary of State” to Corporations Division,
2 Martin Luther King Jr. Dr. SE, Suite 313 West Tower,
Atlanta, Georgia 30334.

It takes 7 days for approval when you apply online vs. 12-15 business days if you apply by mail.

While you’re waiting for approval you can move onto step 4 – creating an LLC Operating Agreement. If you’re operating your LLC by yourself skipping to step 5 of the process.

4. Create Georgia LLC Operating Agreement

If your LLC has two or more members, it should have an operating agreement. Although it’s not required, it’s recommended as it will outline how the business is structured and how it will operate among its members.

Some of the sections you’ll typically find covered in an operating agreement include:
  • Organization
  • Management
  • Voting
  • Capital distributions
  • Distributions
  • Dissolution

Again, while this is not a necessary step, as you don’t have to mail it to the secretary of state, it is recommended if your LLC has more than 2 members. It helps clarify the rules of your LLC and makes sure they are legally documented.

After you’ve agreed and created an LLC Operating Agreement the next step is to create your unique employer identification number. 

5. Apply for your Georgia LLC Employer Identification Number (EIN)

Once your LLC has been approved you’ll need to get an employer identification number (EIN).
An EIN is a federal tax ID number that registers you with the Internal Revenue Service (IRS). This number is used to identify your company when filing taxes.

How to register for an EIN:

Apply online or,
– fill out the Employer Identification Number form and fax it to 855-641-6935, or mail it to:

Internal Revenue Service,
Attn: EIN Operation,
Cincinnati,
OH, 45999

If you apply online you’ll get instant approval. If you apply by fax it takes up to 4 business days whereas mailing it can take up to 4 weeks. Applying for your EIN is completely free!

Georgia LLC Registration – Final Checklist & Summary

Ready to get started? Use this simple checklist to make sure you’ve dotted your i’s and crossed your t’s! 

  1. Name your LLC – Your business name must include LLC, L.L.C., or Limited Liability Company and can’t be used by any other business in Georgia. Make sure you confirm the availability of your desired name through the Corporation’s business name database.
  2. Choose a Registered Office – A registered agent is the person who receives and sends legal documents on behalf of your company. It can be you, a friend or family member, or a commercial registered agent.  
  3. File a Georgia LLC Articles of Organization & Docketing Statement – Complete the Articles of Organization application form, along with a Transmittal form, and submit both to the Secretary of State. Applying online costs $100 and applying by mail costs $110. Expect approval in 7-15 business days.
  4. Create Georgia LLC Operating Agreement – If your LLC has two or more members, you should create an LLC operating agreement that outlines how the business is structured, who is responsible for what, and how much of the LLC each person owns. You don’t have to send your operating agreement to the Georgia state but you should have one so everything is documented and signed by all members.
  5. Apply for your Georgia LLC Employer Identification Number (EIN) – Once you get approval for your LLC you need to apply for an employer identification number (EIN) through the IRS. This number is used to identify your company when filing taxes. You can apply online for free and approval is instant.

While there are a few different pieces to making sure your LLC is filed correctly, make sure you follow each step as stated so there are no errors.

If you can, we recommend using an all-around service to make sure your LLC gets set up correctly from the get-go. Just make sure you do your homework and choose one of the best LLC services for your business.

Our first recommendation is to go with ZenBusiness, an LLC creation service that holds your hand from start to finish. Packages start as low as $49. 

How To Apply for a Georgia LLC Online

Now that you know the exact steps on what’s needed to form your LLC it’s time to start the application process. There are two ways of going about this:

1. Do it Yourself 

Taking the DIY route is a good option if your budget is tight or you’ve previously opened an LLC and understand how it works.

2. Use an Online Formation Company

Using an online formation company is a better option if it’s your first time opening up an LLC and if it’s within your budget (formation services cost anywhere between $49 – $199). This is typically a better choice if you want to avoid headaches and have peace of mind knowing professionals are handling everything for you. 

If using a professional service is more up your alley, here are our top 3 recommendations: 

ZenBusiness

ZenBusiness
ZenBusiness

ZenBusiness built its platform to meet the needs of your business throughout its lifetime. When you pay for their services, you’ll receive a personalized dashboard for your business to store documents, receive alerts, and manage your website.

ZenBusiness charges are based on a tier system. There are three different tiers with pricing as follows:

  • The Starter = $49 annually
  • The Pro = $199 annually
  • The Premium = $299 annually
Visit ZenBusiness and File Your LLC Today
ZenBusiness Review

IncFile

IncFile
IncFile

IncFile provides you with a full suite offering startup services to best support your business formation.

Their pricing model also depends on the state you are filling. You can generate a personalized quote on their website by entering the necessary information about your business.

Visit IncFile and file your LLC today
IncFile Review

LegalZoom

LLC Limited Liability Company Start an LLC Online LegalZoom
LegalZoom

LegalZoom is an online legal service provider that helps you to be able to create legal documents without having to pay the expensive lawyer fees. Some of the services they provide assistance to includes business formation, copyrights, and trademarks.

LegalZoom has many different pricing options available. For their LLC service, pricing begins at $79 + the allotted state fee.

Visit LegalZoom and file your LLC Today
LegalZoom Review

After Starting Your Georgia LLC

You’ve been approved – now what? The journey doesn’t stop here – there’s still a handful of things you need to do to get your business off the ground. We recommend ticking off the following items to make sure your LLC gets off on the right foot. 

Purchase A Domain For Your Business

Having an online presence, even if your business is local, is important in creating trust, professionalism, and a way for people to find you. If you haven’t already thought about getting a website, now’s the time. In a tech-saturated world, you need a domain to not only attract new customers but help create a good first visual impression of what your business does and how it can help. 

Get A Business Phone Number

Since your business is now an approved Georgia LLC you should think about getting a business phone number. Having a business number is a great way to show professionalism to your clients and customers. It makes you more serious and more importantly – more trustworthy.

There’s a variety of different online phone services you can go with, or you could go the traditional route and open an account through a local branch. You can get a local number or a 1-800, the options are endless!  

Open Your Georgia LLC Business Bank Account

You’ll want to open a business account that’s separate from your personal banking. This will not only make accounting easier but you won’t have to worry about your finances mixing in with your business finances.

USA Business Bank Accounts

If you already have online banking through your personal bank account it might be easier to open a business account through your current bank so all your banking (although in separate accounts) will be accessible in the same place. If you prefer to open a new account keep these checking accounts in mind: 

Chase – Free checking account with no extra fees – as long as you keep a $1,500 minimum balance.

BlueVine – Free checking account with mobile banking and a debit MasterCard. 

Bank Novo – Open a free checking account with Free transfers and free ATM fees.

Georgia Own Credit Union – Through their business account comparison tool, you can choose an account catered to you.

Along with your business checking account, you should apply for a business credit card too. Having a business credit card is a good way to establish your business credit score (which may help if you ever need a loan). It also makes it easier for online purchases and again, it will keep your personal and business finances separate. 

Find Accountant/Buy Accounting Software

Taxes get complicated fast and can be a burden to deal with. We recommend getting an accountant or using accounting software to make sure all your spending actions are being tracked (payroll, bills, invoices, receipts, etc.). Here are some popular options to look into:

Wave – Free invoicing & accounting software with credit card processing & payroll services.

Intuit Quickbooks – Online accounting software to track expenses, customize invoices, and run reports.

Freshbooks – Accounting software to send invoices, track time, manage receipts, expenses, and accept credit cards.

Directory of Federal Tax Return Preparers with Credential – If you want to use a local tax specialist you can search for a certified public accountant (CPA) through the IRS online directory.

Having all of your business reports in one spot is highly beneficial so you can keep an eye on your cash flow. To run a successful business you’re going to need to analyze how your business is performing and narrow down what’s working or what isn’t working so there’s always room for growth.

File Annual Registrations On Time

Each year you need to file an annual report. This is mandatory for any LLC. After your first year of business, it’s due anytime between January 1st and April 1st.

The annual report is $50 and you can submit it online or through your registered agent. If by April 1st you haven’t submitted the report you’ll be charged $25. If you don’t end up filing it by the following year then the State will terminate your LLC. 

Notify Georgia Of Any Changes You Make To Your LLC

If at any time you make changes to your LLC you need to inform the state. If you’re using a registered agent they can do this for you. If you’re going about this alone then you can update changes through Georgia’s online cooperation portal.  

8 Benefits of Forming an LLC in Georgia

When you file your company as an LLC in Georgia it helps solidify your standing in the business world. This motion shows other businesses and potential customers that you are willing to do what it takes to be a legally operating business.

Choosing to form your business as an LLC in Georgia allows you to take advantage of the benefits of both a corporation and a partnership structure. Some of these benefits include:

1. Protect Your Personal Assets

The LLC will have its liability that does not automatically extend to the owners, unlike a sole proprietor, where you are legally responsible for everything. That means Georgia LLC protects the liabilities and debts incurred by the business. In most situations, your assets, such as your car, home, or savings, will never be at risk if your Georgia LLC is faced with lawsuits or bankruptcy.

2. Benefit From Business Profit Taxation

In an LLC in Georgia, your profits and losses can pass through to your income without having to have corporate taxation.

3. Simple to Create and Maintain

The formation of a Georgia LLC requires minimal paperwork and requirements. They are known for being easy to start and simple to maintain.

4. Minimal Restrictions

Your business matters can be managed by more than one owner or member while still being one main business to the public. This means all decisions and transactions behind the scenes can be equitably distributed while presenting one entity as you move forward.

5. Heighten Your Credibility

As you move forward, your Georgia LLC will continuously be recognized as an entity. People and other businesses prefer doing business with a legitimate entity because it shows your level of professionalism.

6. Gain Access to Business Loans

When you form your Georgia LLC, you will obtain a DUNS number and build your business credit, helping you to further build upon your business.

7. Benefit From Flexible Profit Distribution

In an LLC, you are not required to spread the distribution of profits equally across the owners. You have full control over profit distribution in your Georgia LLC.

8. Good For Any Kind Of Business

An LLC business structure in Georgia is an excellent choice for both medium and higher-risk level businesses. You might always want to consider opting to go with an LLC if you have a significant amount of personal assets to protect from your company. And lastly, LLCs are great for owners who are interested in paying lower tax rates than corporations.

Conclusion

If you follow our step-by-step guide to Georgia LLC Formation you shouldn’t have any problems getting your company approved. The hardest part is knowing what to do – but once you break down each step it’s pretty straightforward!

That being said, if you run into any problems or file something wrong by mistake, your LLC might be formed incorrectly or even get denied. When it comes to your business – we suggest using an all-around formation service to ensure there are no errors. A complete solution, like ZenBusiness, can handle all your legal admin duties while giving you back time to focus on running your business (like marketing, branding, marketing, and launches).

Launch Your Dream Business with ZenBusiness

F.A.Q. About Forming Georgia LLC

There are several different steps you’ll need to do to legally form your LLC. It’s a lot of information to take in and can get confusing. To help out we’ve compiled some answers to the most frequently asked questions:

What are LLCs and why are they important?

An LLC is a Limited Liability Company. It’s a business structure used to protect your assets, like your house, your car, or even your savings. No matter what happens to your business (lawsuits, bankruptcy, etc.) your assets are kept safe. 

How Much Does It Cost to Start an LLC in Georgia?

Expect to pay $100 to complete the Articles of Organization application form, along with a Transmittal form. If you apply by mail it costs $110. 

How Long Does It Take to Form an LLC in Georgia?

If you register online it takes around 7-15 business days.

Can You Start an LLC on Your Own?

Yes, you can start forming an LLC on your own by following the step-by-step instructions provided in this article. For additional help, look to hire an all-around service provider. 

Do You Need a Lawyer to Start an LLC in Georgia?

No, you can start an LLC without a lawyer just be prepared to file and report everything on your own. If you’re not interested in getting a lawyer but want to make sure everything is filed correctly then use an online business formation service, like the ones listed in this article, with ZenBusiness as our #1 recommendation. 

Does an LLC Need to Make Money?

No, an LLC doesn’t need to make profits but if you’re claiming tax deductions with no income the IRS will likely audit your business. 

What Are The Downsides to Having an LLC?

There are pros and cons to forming an LLC. The pros are tax reductions, protecting your personal assets, and creating credibility for your business (and possible future business loans). The main con of an LLC is you’re considered self-employed. This is a disadvantage as you’d be taxed under self-employment and responsible to pay Social Security and Medicare taxes. The amount you’d be required to pay depends on your business’s total net earnings.

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