Last updated: February 23, 2026
Georgia is one of the fastest-growing states for new business formation, offering a relatively low cost of living, a large workforce, and a business-friendly regulatory environment. The state has no franchise tax on LLCs, a flat income tax rate, and a straightforward registration process through the Secretary of State.
This guide walks you through every step to legally start a business in Georgia, from choosing your structure to getting the licenses and tax registrations you need. We’ve compiled requirements from the Georgia Secretary of State, Department of Revenue, State Board of Workers’ Compensation, and county-level agencies so you don’t have to piece it together yourself.
How to Start a Business in Georgia (Step by Step)
Step 1: Choose Your Business Structure
Your business structure determines your personal liability, tax treatment, and paperwork requirements. The most common options in Georgia:
- Sole Proprietorship – Simplest to start, but you’re personally liable for all debts. No state filing required (just a trade name registration if using a DBA).
- LLC (Limited Liability Company) – Most popular choice. Protects personal assets, flexible tax treatment, and relatively simple to maintain.
- Corporation (S-Corp or C-Corp) – More formal structure with shareholders, directors, and officers. Better for businesses seeking investors or planning to go public.
- Partnership – For businesses with two or more owners. Can be a general partnership (GP) or limited partnership (LP).
For most small businesses, an LLC is the right choice. It gives you liability protection without the complexity of a corporation.
Step 2: Register Your Business with the State
LLC Formation via Georgia Secretary of State
Georgia business entities are registered through the Georgia Secretary of State, Corporations Division at ecorp.sos.ga.gov.
| Item | Cost |
|---|---|
| Articles of Organization filing fee (online) | $100.00 |
| Articles of Organization filing fee (by mail) | $110.00 |
| Total to form a Georgia LLC (online) | $100.00 |
| Annual Registration (due by April 1 each year) | $50.00 + $10.00 service fee |
| Late Annual Registration (after April 1) | $25.00 late fee added |
| Expedited processing (2 business days) | Additional $100.00 |
How to file:
- Go to the Georgia Corporations Division online portal
- Choose a business name that includes “LLC,” “L.L.C.,” or “Limited Liability Company” – it must be distinguishable from existing entity names on file
- Designate a Georgia Registered Agent with a physical street address in Georgia (P.O. boxes are not accepted)
- Pay by credit card (Visa, MasterCard, American Express, or Discover) – standard processing takes approximately 7 business days
- You can check filing status through the online portal
Trade Name (DBA): If you plan to operate under a name different from your LLC’s legal name, you’ll need to file a trade name registration with your county’s Superior Court Clerk. The fee varies by county but is typically $10-$25.
Federal EIN (Employer Identification Number)
After forming your LLC, apply for a free EIN from the IRS at IRS.gov. You’ll receive it immediately when applying online. You need an EIN to open a business bank account, hire employees, and file taxes.
Important: Register your LLC with the state before applying for an EIN, since the IRS application requires your legal entity name.
Step 3: Get Required Licenses & Permits
County Occupation Tax Certificate
Georgia does not have a single statewide “business license.” Instead, counties and municipalities require an Occupation Tax Certificate (Georgia’s version of a local business license). This is your primary local business permit.
- Who needs one: Any person or business operating within a Georgia county or city
- Where to get it: Your city or county business license office (if inside city limits, apply to the city; if in unincorporated area, apply to the county)
- Cost: Typically $50-$400, depending on your jurisdiction and business type
- Single jurisdiction: Unlike some states, Georgia requires you to register with only the city OR the county, not both
- Renewal: Annual, typically due January 1
- Late penalty: 10% of the tax amount plus interest
SAVE Affidavit: Georgia requires a notarized Systematic Alien Verification for Entitlements (SAVE) affidavit as part of the occupation tax certificate application.
E-Verify: Businesses with more than 10 employees must be registered with E-Verify to obtain an occupation tax certificate.
State Professional License (If Required for Your Industry)
The Georgia Secretary of State, Professional Licensing Boards Division licenses professionals in over 40 regulated categories. You may need a state license if your business falls into a regulated category, including:
- Conditioned air (HVAC) contractors
- Cosmetologists and barbers
- Private detectives and security agencies
- Real estate agents and brokers
- Architects and engineers
- Electricians and plumbers
- Physicians, dentists, and nurses
Check the full list of licensed professions to see if your business type requires a state license.
Step 4: Register for State Taxes
Georgia Sales Tax
If your business sells taxable goods or certain services, you must register for a sales tax account before beginning operations.
- State sales tax rate: 4%
- Local county/city tax: An additional 1%-4% depending on your county
- Combined rates: Typically 6%-8% (average around 7%)
- Registration: Free online at the Georgia Tax Center
- Important: Unprepared grocery food is exempt from the state 4% rate but may still be subject to local taxes
After registration, you’ll receive your tax account number by email, typically within 15 minutes.
Georgia Income Tax
Georgia has a flat income tax rate of 5.19% for both individuals and corporations (effective January 1, 2025, aligned by HB 1023). This applies to:
- Pass-through entities (LLCs, S-Corps, partnerships) – income flows through to owners’ personal returns at 5.19%
- C-Corporations – corporate income taxed at 5.19%, plus a net worth tax ranging from $0 to $5,000 based on the corporation’s net worth
Register for withholding through the Georgia Department of Revenue if you plan to hire employees.
Georgia Unemployment Insurance (If Hiring Employees)
If you plan to hire employees, you must register for unemployment insurance with the Georgia Department of Labor if either condition applies:
- You paid $1,500+ in total wages in any calendar quarter, OR
- You had one or more employees for at least part of a day during 20+ different weeks in a calendar year
New employers pay a rate of 2.7% on the first $9,500 of wages per employee. After accumulating experience, the rate adjusts based on your claims history.
Register through Georgia Department of Labor.
Step 5: Get Business Insurance
Insurance requirements depend on your business type and whether you have employees:
Workers’ Compensation
Georgia requires workers’ compensation insurance for most businesses that regularly employ 3 or more workers (including regular part-time employees).
| Situation | When Required |
|---|---|
| Most businesses | 3 or more employees (including part-time) |
| Corporate officers / LLC members | Count toward the 3-employee threshold |
| Exemptions | Farm laborers, domestic servants, federal employees |
Penalties for non-compliance:
- Civil penalty: $500-$5,000 per occurrence
- Criminal (misdemeanor): Fine of $1,000-$10,000, up to 12 months imprisonment, or both
Learn more at the Georgia State Board of Workers’ Compensation.
General Liability Insurance
While not always legally mandated, general liability insurance is practically essential for most businesses. It protects against claims of bodily injury, property damage, and advertising injury. Many clients, landlords, and government contracts require proof of coverage.
Georgia Business Guides by Industry
Every industry has different licensing, permit, and insurance requirements. Choose your business type for a detailed breakdown of everything you need in Georgia:
- How to Start a Cleaning Service in Georgia – Permits, insurance, workers comp requirements, and cost breakdown
- How to Start a Food Truck in Georgia – DPH permits, health inspections, commissary requirements, and sales tax rules
- How to Start a Daycare in Georgia – DECAL licensing, background checks, training, and facility requirements
- How to Start an HVAC Business in Georgia – Conditioned Air Contractor license, EPA certification, and insurance
- How to Start a Hair Salon in Georgia – Board of Cosmetology license, salon permit, and sanitation rules
- How to Start a Landscaping Business in Georgia – Pesticide licensing, environmental compliance, and workers comp rules
- How to Start a Private Investigation Business in Georgia – Board of Private Detective licensing, background checks, and costs
Georgia Business Resources & Official Links
| Resource | What It’s For |
|---|---|
| Georgia Secretary of State | Business entity registration, professional licensing |
| Georgia Corporations Division (eCorp) | File Articles of Organization, annual registrations, name searches |
| Georgia Department of Revenue | Sales tax, income tax, withholding registration |
| Georgia Tax Center | Register for tax accounts (free) |
| Professional Licensing Boards Division | State professional and occupational licensing |
| State Board of Workers’ Compensation | Workers’ comp requirements and compliance |
| Georgia Department of Labor | Unemployment insurance, employer registration |
| IRS EIN Application | Free federal tax ID number |
| Georgia New Hire Reporting Center | Report new employees within 10 days |
Frequently Asked Questions
How much does it cost to start an LLC in Georgia?
The filing fee for Articles of Organization with the Georgia Secretary of State is $100 when filed online ($110 by mail). After formation, you’ll pay $60 per year ($50 filing fee + $10 service fee) for the required Annual Registration, due by April 1.
Does Georgia require a general business license?
Georgia does not have a single statewide business license. Instead, counties and cities require an Occupation Tax Certificate (typically $50-$400). Some industries also require a state professional license from the Secretary of State’s Licensing Division.
What is Georgia’s income tax rate?
Georgia has a flat income tax rate of 5.19% for both individuals and corporations (effective 2025, aligned by HB 1023). Pass-through entities like LLCs and S-Corps pass income through to the owner’s personal return. C-Corporations also pay a net worth tax of up to $5,000.
Do I need to collect sales tax in Georgia?
If you sell taxable goods or certain services, yes. Georgia’s state sales tax rate is 4%, plus local county and city taxes of 1%-4% (combined rates typically 6%-8%). You must register with the Georgia Department of Revenue before you begin collecting. Unprepared grocery food is exempt from the state rate.
When is the Georgia LLC Annual Registration due?
Annual Registrations are due by April 1 each year. The filing fee is $50 plus a $10 service fee ($60 total). If you miss the deadline, a $25 late fee is added. Failure to file for two consecutive years may result in administrative dissolution of your LLC.
Do I need workers’ compensation insurance in Georgia?
Most businesses that regularly employ 3 or more workers (including part-time employees and corporate officers/LLC members) must carry workers’ compensation insurance. Penalties for non-compliance include civil fines up to $5,000 per occurrence and criminal misdemeanor charges.
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