Georgia has become one of the more cost-efficient states to start a business in, with a cheap filing fee, no franchise tax on pass-through LLCs, and a flat income tax rate that's been dropping every year. Here's what it takes to start a business in Georgia in 2026.
1. Which business structure fits you?
Before you file anything, it helps to know what you're actually choosing between.
- Sole proprietorship. No filing required to start, and you and the business are legally the same entity. Simple, but you're personally liable for whatever the business owes.
- Partnership. Two or more people running a business together, with the same liability exposure as a sole proprietorship, just split across partners.
- LLC. The most common structure for small businesses in Georgia. It separates your personal assets from the business's debts and lawsuits.
- Corporation, either S-corp or C-corp. More paperwork and more formality, usually worth it once you're bringing on investors or multiple shareholders.
For a deeper comparison, see our guide on choosing a business structure.
LLCs and corporations register with the Georgia Secretary of State's Corporations Division, the agency that handles business filings statewide. Sole proprietorships and general partnerships don't register there.
2. Register your business
Forming an LLC
You form an LLC in Georgia by filing Articles of Organization with the Secretary of State. The filing fee is $100 online (or $110 by mail, which includes a small service charge), and approval usually comes back within 5 to 10 business days.
Every LLC needs a registered agent with a physical Georgia address, available during business hours. You can act as your own agent, or hire a commercial service.
Georgia doesn't require an operating agreement by law, but it's still worth writing one, particularly for multi-member LLCs, to spell out how decisions and profits get split.
Sole proprietorships and DBAs
Sole proprietorships don't file with the Secretary of State. If you're operating under a trade name, you'll register it with the clerk of superior court in the county where your business is located.
3. Get an EIN
An Employer Identification Number is free straight from the IRS and takes about 15 minutes online. You'll need one to open a business bank account, hire anyone, or file most business tax forms, even if you're a single-member LLC with no employees.
4. Check licenses and permits
Georgia doesn't issue a single general business license either. What you need depends on your industry and city: professional licensing for regulated fields, a local business license from most cities (Atlanta, Savannah, and others each have their own), and sales tax registration through the Georgia Tax Center if you sell taxable goods or services. Our guides on professional licensing by industry and zoning laws for home businesses cover more of this.
5. Understand Georgia taxes
Georgia has a flat personal income tax rate, currently 4.99% for 2026 after a series of scheduled cuts, with more reductions planned toward 4.99% and beyond in future years depending on state revenue triggers. Pass-through LLCs owe no separate franchise tax; members just pay this flat rate on their share of LLC income. If your LLC elects corporate tax treatment, the corporate income tax rate is 5.75%.
Sales tax starts at a 4% state base, with counties and cities adding local option taxes of up to 4% more, for a combined rate that averages around 7.4% statewide and reaches 8.9% in Atlanta.
6. Stay compliant
Every Georgia LLC files an annual registration with the Secretary of State between January 1 and April 1 each year. The fee is $50 (around $60 if you pay the online service charge). Miss the deadline and you'll owe a $25 late penalty; keep ignoring it for 60 days and the state can administratively dissolve your LLC.
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 online (or $110 by mail), with approval usually within 5 to 10 business days.
What's the personal income tax rate in Georgia?
A flat 4.99% for 2026, following a series of scheduled cuts.
When is Georgia's annual registration due?
Between January 1 and April 1 each year, for $50.
What happens if I miss Georgia's annual registration deadline?
A $25 late penalty applies, and continued non-filing for 60 days can lead to administrative dissolution.
How high is sales tax in Georgia?
A 4% state base plus up to 4% in local option taxes, averaging around 7.4% statewide and reaching 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.