Cheap to file, no franchise tax on pass-through LLCs, and a flat income tax that keeps inching down each year — that combination has made Georgia one of the more budget-friendly states for a new business. Here's how the process actually breaks down for 2026.
1. Which business structure fits you?
Georgia founders are usually choosing among four setups, and the right one depends mostly on how much liability protection you need.
- Sole proprietorship. You and the business are one and the same in the eyes of the law, with no filing to get started — but that also means every debt the business takes on is yours personally.
- Partnership. Functionally a sole proprietorship shared by two or more people, including the liability exposure.
- LLC. The go-to choice for small Georgia businesses, since it keeps your personal assets walled off from business debts and lawsuits.
- Corporation, S-corp or C-corp. Comes with more paperwork and formal upkeep, generally justified once investors or multiple shareholders enter the picture.
Weigh these in more detail in our business structure guide.
LLCs and corporations both register with the Georgia Secretary of State's Corporations Division, which handles business filings across the state. Sole proprietorships and general partnerships have nothing to register there.
2. Register your business
Forming an LLC
Filing Articles of Organization with the Secretary of State is what creates your LLC. It costs $100 if you file online, or $110 by mail once you factor in the small service charge, and approval typically lands within 5 to 10 business days.
You'll also need a registered agent with a physical street address in Georgia who's available during business hours — either you, if you're based in-state, or a commercial service you hire.
No statute in Georgia mandates an operating agreement, and plenty of single-member LLCs skip it. Multi-member LLCs shouldn't: it's the document that actually settles how decisions get made and profits get split.
Sole proprietorships and DBAs
There's no Secretary of State filing for sole proprietorships. Operating under a trade name instead means registering it with the clerk of superior court in whatever county your business calls home.
3. Get an EIN
Getting an Employer Identification Number costs nothing through the IRS and the online form typically takes about 15 minutes to finish. Opening a business bank account, hiring your first employee, or filing most business tax forms all require one — even for a single-member LLC that has no employees at all.
4. Check licenses and permits
There isn't one blanket business license that covers the whole state. Requirements instead track your industry and city: regulated professions carry their own licensing rules, most cities issue their own local business license (Atlanta and Savannah both run separate systems, among others), and selling taxable goods or services means registering for sales tax through the Georgia Tax Center. Check our guides on professional licensing by industry and zoning laws for home businesses for more.
5. Understand Georgia taxes
Georgia taxes personal income at a flat 4.99% as of 2026, the result of several years of scheduled cuts, with further reductions possible in future years depending on how state revenue tracks against its triggers. There's no separate franchise tax layered on top for pass-through LLCs — members simply pay that flat rate on their share of the LLC's income. Electing corporate tax treatment instead means a 5.75% corporate income tax rate.
The state sales tax rate is 4%, and counties and cities can stack local option taxes on top of that, up to 4% more. Combined rates land around 7.4% on average statewide, climbing to 8.9% in Atlanta.
6. Stay compliant
Georgia LLCs owe an annual registration to the Secretary of State every year between January 1 and April 1, at a cost of $50 (closer to $60 once the online service charge is included). A missed deadline brings a $25 late penalty, and if the LLC goes 60 days without filing, the state can move to dissolve it administratively.
Georgia business costs at a glance
| Item | Cost |
|---|---|
| Articles of Organization (LLC) | $100 online / $110 mail |
| Annual registration (every year, due April 1) | $50 |
| Late registration penalty | $25 |
| Registered agent service (optional) | $100 to $250/year |
| EIN | Free (IRS) |
| State income tax | 4.99% flat |
| State sales tax | 4% + up to 4% local (avg ~7.4%) |
Frequently asked questions
How much does it cost to form an LLC in Georgia?
$100 if you file online, $110 by mail, and approval generally takes 5 to 10 business days either way.
What's the personal income tax rate in Georgia?
A flat 4.99% in 2026, the latest step down in a run of scheduled rate cuts.
When is Georgia's annual registration due?
Every year between January 1 and April 1, and it costs $50.
What happens if I miss Georgia's annual registration deadline?
You'll owe a $25 late penalty, and going 60 days past due opens the door to administrative dissolution.
How high is sales tax in Georgia?
4% at the state level, plus up to 4% more locally — around 7.4% combined on average, and 8.9% in Atlanta.
Fees and rates above come from the Georgia Secretary of State and Department of Revenue as of 2026, and they do change over time, so double check before you file. None of this is legal or tax advice. Talk to a Georgia-licensed attorney or CPA about your specific situation.