Start Your Business in Georgia
Take time to explore and research ideas for your business. At this stage, take into consideration your own interests, skills, resources, availability, and the reasons why you want to form a business. You should also consider the likelihood of success based on the interests of your community, and whether your business idea will meet an unmet need. Read our article for more tips on how to evaluate business ideas.
After you select an idea, consider drafting a business plan to determine your chances of making a profit. When you create a plan, you will have a better idea of the startup costs, your competition, and strategies for making money. Investors and lenders will want to review your business plan before providing financial assistance, and you can be prepared by drafting a plan before you start soliciting funding.
Choose a legal framework
- sole proprietorship
- limited liability company (LLC), and
Regulatory licenses and permits.
- safety and health
- the environment, architecture, and construction,
- as well as particular businesses or services.
License and permit applications
- Filing taxes. In order to collect sales tax in Georgia, you must register with the Department of Revenue (DOR). You must register with the DOR for employer withholding taxes if your businesses will employ people. By visiting the Georgia Tax Center, you can register for both types of taxes as well as additional business taxes online (GTC).
- You must get a federal Employer Identification Number (EIN) from the IRS if your business employs people or is subject to separate taxation from you. Even while getting an EIN is not needed, there are many business justifications for doing so. An EIN is frequently needed by banks to create an account in a company’s name, and other businesses you do business with could need one to make payments. By completing an online application on the IRS website, you can obtain an EIN. There isn’t a filing charge.
Report and File Taxes
- Georgia levies tax on all types of businesses. For further details on Georgia’s state business taxes, see Georgia State Business Income Tax.
- single-person businesses. As part of their personal state income tax returns, they pay state taxes on business income (Form 500).
- Partnerships. On their personal tax returns, partners must pay state taxes on partnership income.
- LLCs. On their personal tax returns, members must pay state taxes on their portion of LLC revenue. LLCs must also submit a separate state tax form, either a partnership return or a corporation return. Depending on how the LLC is categorized for federal tax reasons, a special form may be required.
- Corporations. State taxes must be paid by shareholders on corporate dividends. On his or her individual state tax return, a shareholder-employee who receives a salary must also pay state income tax. Additionally, Georgia corporation taxes are levied on the corporation itself.
Business insurance can shield your assets from the effects of unplanned calamities including legal actions for personal injury and natural disasters. Your business may benefit from general liability insurance to defend you against claims of property damage or bodily injury, or cyber liability insurance to pay legal and settlement costs in the event of a data security breach. An insurance agent can assist you in examining the various coverage options for your company.
Open a Business Bank Account
No matter what kind of business you establish, you should think about setting up a separate business account to make it simpler to keep track of your earnings and outgoings. A separate bank account is required for some business structures, such as LLCs and corporations, in order to keep your liability protection.