As a state known for its consistent economic climate, seeking to run a business in Georgia is a no-brainer. While requirements and expenses seem easier to handle due to their perks, being complacent about it could lead to non-compliance risks. In this post, let our trade experts ease your worries and discuss all Georgia LLC fees you’ll need to cover to remain in good standing.
Formation Costs for a Georgia LLC
Business Name Reservation
Selecting a unique company name for your LLC is as important as crafting a business plan. According to state law, an entity can only acquire a trade label if it’s not similar to any existing businesses operating in Georgia.
If your desired LLC name is indeed available upon checking the public state records, our team advises you to file your articles of organization right away. However, if you have other engagements, you can secure the name by paying for $25 reservation fee to the secretary of state. This filing gives you 30-day exclusive rights to the trade label.
Articles of Organization
Submitting your articles of organizations is among the first steps you must take to register your business entity officially. This document allows the secretary of state to record all the information involving your company, including LLC name, formation date, business address, registered agent details, and many more.
You can file it via mail or online, along with a $100 filing fee. If you’re not keen on waiting, you can sign up for expedited services that’ll cost you another $100 for a two-day waiting time or $250 for a 24-hour turnaround time.
Operating Agreement
Like other states, creating an LLC operating agreement is not a mandatory requirement in Georgia. However, even our business enthusiasts will attest to the advantage of having this internal document at your disposal. You have the option to make one yourself without any charges or hire professional help to avoid legal lapses.
EIN Registration
After the secretary of state processed and approved your articles of organization, you may now proceed to apply for an Employer Identification Number (EIN). This nine-digit requirement is often used for tax purposes and required when opening a bank account or hiring an employee. You can request an EIN from the IRS online without any charges.
Registered Agent
As you may have already known, your elected registered agent has the critical role of receiving time-sensitive documents from the state relevant to keep your company compliant with the law.
While anyone, including you, can be elected as a professional registered agent to dispel expenses [1], we highly advise hiring professional companies to ensure full compliance and avoid penalties in the long run.
(For online services, you can also seek the help of excellent online incorporation provides listed here)
Business License/s
Formation documents are not the only ones you need to operate legally. The state may oblige you to obtain business-specific permits and licenses, depending on your transactions. For example, if you’re a company offering professional services, you may need to pass certain licensing requirements first.
To avoid delay and possible penalties, we suggest checking out requirements from the federal, state, county, and municipal governments.
Certificate of Existence
Upon running a business, you’ll encounter transactions with banks and lending companies. There will be occurrences when they ask for your LLC’s Certificate of Existence as proof of your good standing. To acquire this document, all you need to do is order it through the secretary of state and pay a $10 fee.
Foreign LLC Registration
Like domestic LLCs, foreign business entities who want to expand in Georgia must register their company first. Instead of articles of organization, you must submit an Application for Certificate of Authority for Foreign LLC along with a $225 fee.
LLC Formation Services (Optional)
While our trade enthusiasts applaud business owners for being hands-on with the registration process, there’s no shame in hiring effective professional LLC services to handle all Georgia LLC fees. Through their offered assistance ranging from $0-$300, you can form your business in an instant and never miss important requirements.
Georgia Annual State LLC Fees
Annual Registration
Besides the regular LLC formation costs, you’re also required to pay recurring maintenance expenses like the Georgia Annual Registration Fee. This submission will cost you $50 yearly and must be paid on or before April 1 to the secretary of state. Failure to make this payment will incur your business a penalty fee of $25.
FAQ
How much does an LLC cost per year in Georgia?
An LLC in Georgia costs around $50 per year for its Annual Registration Fee. This payment must be made on or before April 1, or else your business will be obliged to pay another $25 as a penalty. This expense calculation excludes taxes and professional services you’ll hire to maintain compliance with the state.
Conclusion
Although tracking all Georgia LLC fees may seem overwhelming at first, our team assures you that this business practice will do good for your company in the long run. And while you’re at it, don’t be afraid to seek professional help should you find yourself unable to handle all the leg work. Sometimes, there is work better left with the experts.
