LLC Cost in Georgia – How Much to Pay for an LLC


Steve Goldstein
Steve Goldstein
Business Formation Expert
Steve Goldstein runs LLCBuddy, helping entrepreneurs set up their LLCs easily. He offers clear guides, articles, and FAQs to simplify the process. His team keeps everything accurate and current, focusing on state rules, registered agents, and compliance. Steve’s passion for helping businesses grow makes LLCBuddy a go-to resource for starting and managing an LLC.

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Perhaps you are hoping to form an LLC in Georgia. People assume how to start an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in Georgia.

Georgia LLC Cost of Filing

Here are the costs involved in forming an LLC in Georgia.

Cost of Filing Formation Certificates

The Georgia Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the Georgia Secretary of State.

Georgia Domestic LLC

  • Online Filing costs $100.
  • Annual Report Fee $50
  • Late Annual Report Submission Fee $25
  • By Mail: Fill out the application form, and mail it to the Corporations Division, 2 Martin Luther King Jr. Dr. SE, Suite 313 West Tower, Atlanta, Georgia 30334. Costs $110.

Georgia Foreign LLC

  • Online Filing costs $225
  • By Mail: Fill out the application form, and send it to the Corporations Division, 2 Martin Luther King Jr. Dr. SE, Suite 313 West Tower, Atlanta, Georgia 30334, costs $225
  • In-Person: Drop the filled-up form at the Corporations Division, 2 Martin Luther King Jr. Dr. SE, Suite 313 West Tower, Atlanta, Georgia 30334. Costs $225

Note that filing online is ideal, not only because you need to go to the Secretary of State’s office, but also because it would be faster. You won’t have to wait in a queue in doing so.

Georgia LLC Formation Service or Registered Agent Fee

You need a registered agent to form an LLC in Georgia, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.

LLC Service

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$0 + State Fees

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  • Extras are bit more expensive

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Business Permits and Licenses

The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the Georgia Department of Revenue for regulatory boards or agencies requiring licensing.

Georgia Business Taxes To Be Paid By LLCs

LLCs have the privilege to pass through the income tax. However, like any other state in the United States, Georgia State also has a set of taxes levied on the LLCs. The members of the LLCs have to pay the income tax separately but not as LLC.

Business Tax Payment

To pay the business taxes in Georgia, all the businesses, including LLCs have to obtain STIN aka State Tax Identification Number from the Georgia Tax Department. This number identifies the business liabilities, tax payments, and credits of the existing business. STIN can be obtained online via the Georgia Department of Revenue or by applying in-person to the office of the Georgia Tax Department.

Sales Tax and Use Tax

In Georgia, the state charges 4% Sales Tax and 9% Use Tax for the LLCs. There is no personal income tax to be paid by the LLCs.

Corporate Income Tax

The members of the LLCs will have to pay federal and state income taxes based on their income from the LLCs. If there are 3 members and the net annual income is $1.5 Million, then each member will earn $500,000 annually. Each of them has to pay federal income tax on the basis of $500,000.

LLCs, Sole Proprietorship, and Partnership companies have the same structure of taxation. On the other hand, Corporations have to pay 6% tax based on their annual income.

Georgia LLC Tax Benefits

Along with the pass-through taxation privilege, LLCs in Georgia can waive off their business expenses. Any expenditure related to business can be waived off if you own an LLC in Georgia.

Cost Comparison Between The States

Georgia State is surrounded by Tennessee, North Carolina, and Florida. Along with the neighboring states, Georgia has incredible benefits of having an LLC. Here’s a cost comparison study among the states around Georgia.

StatesFiling FeeAnnual/Biennial FeeSales Tax
Georgia$100$50 (Annual)4%
Tennessee$300$300 (Annual)7%
North Carolina$125$200 (Annual)4.75%
Florida$125$138.75 (Annual)6%
Alabama$200$100 (Annual)4%

Georgia, among all, has the cheapest cost to start an LLC. The Sales Tax and other tax burdens are also low in this state.

Other Costs

How Much Does It Cost To Maintain An Llc In Georgia

To maintain an LLC in Georgia you will need to pay an annual fee of $50 along with sales tax at 4%, use tax at 9%, corporate income tax and federal taxes.

One of the key costs associated with maintaining an LLC in Georgia is the annual registration fee. The Georgia Secretary of State requires all LLCs to file an Annual Registration each year to keep their entity active. This filing fee may vary depending on the specific circumstances of your business, such as the number of members in the LLC or the nature of its operations. It’s important to factor in this cost when budgeting for your business expenses to avoid any lapse in compliance.

In addition to the annual registration fee, LLCs in Georgia may also incur costs related to business licenses and permits. Depending on the nature of your business, you may need to obtain specific licenses or permits to operate legally in the state. These costs can vary widely, so it’s essential to do thorough research and ensure compliance with all relevant regulations.

Another key cost to consider when maintaining an LLC in Georgia is the cost of professional services. While it’s possible to handle many aspects of LLC maintenance on your own, such as filing the Annual Registration or managing day-to-day operations, some tasks may require the assistance of professionals. This could include hiring an accountant for tax preparation or a lawyer for legal advice. While these services come at a cost, they can also provide invaluable expertise to help you navigate complex legal and financial matters related to your LLC.

In addition to the direct costs associated with maintaining an LLC in Georgia, business owners should also consider the indirect costs of compliance. This includes the time and effort required to stay up-to-date on changing regulations, filing deadlines, and best practices for LLC management. Failing to meet these requirements can result in penalties, fines, or even the dissolution of your LLC, so it’s crucial to dedicate resources to maintaining compliance.

Overall, the cost of maintaining an LLC in Georgia can vary depending on the specific needs and circumstances of your business. It’s important to budget accordingly for annual registration fees, professional services, and ongoing compliance efforts to ensure the long-term success of your LLC. By staying informed and proactive in managing these costs, you can position your business for growth and sustainability in the competitive Georgia market. Ultimately, investing in the upkeep of your LLC can be a worthwhile expense to protect your business assets and opportunities for the future.

F.A.Qs

Can I start an LLC for free?

It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.

Is an LLC expensive?

It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.

Does an LLC need a bank account?

The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.

In Conclusion

The cost of Georgia is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the price of professional LLC services and choose the most affordable one.

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