Starting an S Corp in Georgia 2024: Your Ultimate Guide

by
How to Start an S Corp in Georgia

Welcome to the exhilarating world of Georgia entrepreneurship! Ready to start your Georgia S Corporation and enjoy its unique benefits? You’ve come to the right place. Georgia offers ample resources to ensure your business thrives, with added perks like tax savings and liability protection.

Embark on this thrilling journey with LLCBase as your trusty guide. We’ll provide all the info and resources needed for your Georgia S Corp success. Let’s dive into the vibrant journey of The Peach State entrepreneurship and make your dream a reality!

Start an S Corp

What is an S Corp

An S Corp is a type of corporation that offers certain tax advantages and liability protection for its shareholders. Like a traditional corporation, an S Corp is a separate legal entity from its owners, providing them limited liability. However, unlike a traditional corporation, an S Corp is not subject to double taxation. Instead, profits and losses are passed to the shareholders, who report this information on their tax returns.

Why Start an S Corp in Georgia

Georgia’s reputation for being business-friendly is highly attractive to entrepreneurs. The state government has adopted measures and regulations that create a favorable business environment to operate and thrive. Policies are implemented to facilitate ease of doing business, such as simple registration processes, fair tax codes, and access to resources and support systems for businesses.

Added to these is the liability protection accorded to an S Corp. In case of any legal actions or debts, the personal assets of the owners or shareholders are not in danger, thanks to this corporate structure. This means your personal properties are not at risk even in business failure. Moreover, S Corps in Georgia also enjoy various tax benefits. Unlike traditional corporations that face double taxation on income and dividends, S Corps allow for pass-through taxation, ensuring only shareholders are taxed on company profits, not the corporation itself.

Lastly, establishing an S Corp in Georgia offers a sense of professionalism and credibility. An S Corp designation can give customers and potential investors more confidence in your business because it usually indicates a more formal commitment and a higher level of organization and structure. Additionally, the reputation of Georgia as a business-friendly location, combined with the prestige of operating as an S Corp, can significantly enhance your company’s professional image. Consequently, starting an S Corp in Georgia has numerous advantages that can help propel your business to new heights.

Recommended: Transform your business vision into a thriving S Corp in Georgia – count on to the best formation service’s exceptional expertise. Embark on your journey to success today! We recommend –

Our #1 Pick: LegalZoom – ($0 + State Fees) Online Corporation Setup

How to Start an S Corp in Georgia: Step-by-Step

If you plan to establish an S Corporation in Georgia, it is essential to adhere to this comprehensive, step-by-step guide:

Step 1: Choose a Name

Selecting a unique and distinguishable name for your S Corp in Georgia is crucial for branding and legal purposes. To ensure that your desired business name is not already in use by another entity in Georgia, you can use the Georgia Corporations Division database to search for name availability. When choosing a name, consider incorporating words or phrases relevant to your industry that will resonate with your target audience.

Recommended: Discover your dream business name with a business service you can trust. Effortlessly check availability, receiving instant notifications if it’s already taken. In just a few clicks, transform name hunting from daunting to delightful! We recommend –

Our #1 Pick: LegalZoom – ($0 + State Fees) Online Corporation Setup Sign up with LegalZoom now!

Step 2: Reserve Your Business Name (optional)

If the name you want is available, it’s a good idea to reserve it to ensure that no one else can claim it while you are forming your S Corp. In Georgia, the name reservation is valid for 30 days, with a name reservation fee of $25 through online and $25 through mail. Reservation periods vary by state, so check with your local government agency for specific timeframes and fees.

Recommended: Secure your perfect business name with the best business formation expert. Effortlessly explore name options in just a few clicks, making the reservation process a breeze! We recommend –

Our #1 Pick: LegalZoom – ($0 + State Fees) Online Corporation Setup

Step 3: Appoint a Reliable Registered Agent

Registered Agent is responsible for receiving official correspondence and legal documents on behalf of your S Corp. This includes government notices, tax filings, and legal paperwork. The Registered Agent must have a physical address within Georgia and be available during regular business hours. You can act as your Registered Agent or hire the best registered agent service in Georgia to fulfill this role.

LLC Services

Rating & Pricing

Top Features

Learn More

#1 Editor's Choice
Legalzoom

$299 Per Year

  • Free LLC Formation

  • RA service in all states

  • Legal consultation

Learn More

$125 Per Year

  • Flat price for RA service

  • LLC formation package

  • Fast service

Learn More

Step 4: File Articles of Incorporation

Articles of Incorporation are the legal documents that officially establish your S Corp. They must be filed with the appropriate state agency, usually the Secretary of State’s office. The information required in the Articles of Incorporation typically includes your business name, Registered Agent, the purpose of the business, and the number of authorized shares.

Recommended: Unleash the potential of your S Corp in Georgia – rely on the expertiise of your trusted business service for a smooth state incorporation process. Kickstart your success story today! We recommend –

Our #1 Pick: LegalZoom – ($0 + State Fees) Online Corporation Setup

Step 5: Obtain an EIN

An EIN is a unique identification number the Internal Revenue Service (IRS) assigns to your S Corp. It is used for tax filing and reporting, opening a bank account, and conducting other business transactions. You can apply for an EIN in Georgia online through the IRS website, by fax, or by mail.

Recommended: Empower your S Corp in Georgia – trust the best business formation expert for efficient EIN acquisition, paving the way for growth. Set your business up for success today! We recommend –

Our #1 Pick: LegalZoom – ($0 + State Fees) Online Corporation Setup

Step 6: Submit Form 2553

To elect S Corp status for your business, you must file Form 2553 with the IRS. This form provides information about your company’s shareholders, including their names and addresses, and confirms that your business meets the eligibility requirements for S Corp status. The form must be completed and submitted within a specific timeframe, typically within 75 days of your company’s formation.

Step 7: Register for Taxes

Depending on the nature of your business and its location within Georgia, you may be required to register for various taxes, such as sales tax, employer tax, and other state-specific taxes. Registering with the Georgia Department of Revenue ensures you comply with all tax regulations and requirements.

Step 8: Obtain Licenses and Permits

To operate your S Corp legally, you may need to obtain specific licenses and permits based on your industry and location. This can include professional licenses, zoning permits, health department permits, and more. Conduct thorough research to identify all necessary Georgia licenses and permits and file the appropriate applications with the relevant agencies.

Recommended: Sail through the business license process with a reliable LLC formation service. Enjoy a stress-free experience with EIN acquisition and business setup! We recommend –

Our #1 Pick: LegalZoom – ($0 + State Fees) Online Corporation Setup

Step 9: Set Up a Business Bank Account

To maintain clear financial records and separate your personal finances from your business finances, it’s important to establish a dedicated bank account for your S Corp. This account should be used for all business transactions, including receiving payments, paying expenses, and managing payroll. Proper financial management is essential for maintaining your S Corp’s compliance and ensuring accurate tax reporting. Check the list of the best banks in Georgia and make all your business transactions convenient and efficient.

Fees for Starting an S Corp in Georgia

The fees associated with starting an S Corp in Georgia can vary depending on the specific requirements of your business. Here is a list of common fees you may encounter:

  • Name reservation fee (optional): If you choose to reserve your business name, a name reservation fee of $25 (online) and $25 (mail) may be associated with this service.
  • Articles of Incorporation filing fee: To officially form your S Corp, you must file the Articles of Incorporation with the appropriate state agency. This typically involves a $100 for filing online and $110 for filing it by mail and in person..
  • Registered Agent fee: If you hire a professional Registered Agent service, you may need to pay an annual $50 – $150 for their services. Note that this fee can vary depending on the provider.
  • Employer Identification Number (EIN) application fee: Generally, no fee is associated with obtaining an EIN through the IRS. However, if you use a third-party service to obtain your EIN, they may charge an EIN application fee.
  • State tax registration fee: Registering with the Georgia Department of Revenue may involve a state tax registration fee. This fee can vary depending on the types of taxes you must register for.
  • Licenses and permits fees: The costs for obtaining necessary licenses and permits for your S Corp will depend on your industry and location. Depending on the licenses and permits needed, these fees can range from $50 – $300 or more.
  • Business bank account fees: When setting up a business account, you may encounter various fees, such as a bank account opening fee, monthly maintenance, or transaction fees. These fees can vary depending on the bank and your account type.

Please note that these fees are subject to change and may vary depending on your situation. Researching and confirming the fees associated with starting an S Corp in Georgia is essential to ensure you are prepared for all potential costs.

Advantages of Georgia S Corp

Forming an S Corp in Georgia can provide numerous benefits for business owners, which are explained in detail below:

  • Limited liability protection for shareholders: One of the primary advantages of forming an S Corp in Georgia is the limited liability protection it offers its shareholders. This means that the shareholders’ personal assets, such as their homes, cars, and personal savings, are protected from the debts and liabilities of the business. In the event of a lawsuit or financial loss, shareholders are only liable for the amount they have invested in the company, ensuring their personal assets remain safe.
  • Pass-through taxation, avoiding double taxation: S Corps are unique in avoiding the double taxation issue traditional corporations face. Double taxation occurs when a corporation is taxed on its profits, and then the shareholders are taxed again when they receive dividends. With an S Corp in Georgia, profits and losses are passed to the shareholders, who report this information on their tax returns. This pass-through taxation structure helps to reduce the overall tax burden on the business and its owners.
  • Increased credibility and professionalism: Forming an S Corp in Georgia can increase your business’s credibility and professionalism. Customers, suppliers, and investors often view corporations as more established and legitimate than other business structures, such as sole proprietorships or partnerships. This can attract new business, establish trust in the marketplace, and provide a solid foundation for future growth.
  • Potential state-specific tax benefits or incentives: Depending on the state where you form your S Corp, additional tax benefits or incentives may be available to business owners. These can include reduced tax rates, tax credits, or other financial incentives designed to promote business growth and development within the state. It’s essential to research the specific tax benefits and incentives available in Georgia to determine if forming an S Corp is the best option for your business.

FAQs

What is an S corporation?
An S corporation is a type of corporation that passes its income, losses, deductions, and credits through to its shareholders.
Do I need to file articles of incorporation to start an S corp in Georgia?
Yes, in Georgia, you need to file articles of incorporation with the Georgia Secretary of State’s Corporations Division.
How much does it cost to file articles of incorporation in Georgia for an S corp?
The filing fee for articles of incorporation in Georgia for an S corp is $100.
Is there a minimum number of shareholders required to start an S corp in Georgia?
No, Georgia state law does not specify a minimum number of shareholders required to start an S corp.
Can I start an S corp in Georgia if I’m not a resident of the state?
Yes, you can start an S corp in Georgia regardless of where you live.
What is the process for registering as an S corp in Georgia?
To register as an S corp in Georgia, you will need to file articles of incorporation and then make an S corp election with the Internal Revenue Service.
How long does it take to register as an S corp in Georgia?
It can take anywhere from several days to several weeks to register as an S Corp in Georgia, depending on how busy the Secretary of State’s office is.
Can I use a service to help me set up my S corp in Georgia?
Yes, there are many companies that provide services to help you set up an S corp in Georgia.
Do I need to obtain any licenses to operate an S corp in Georgia?
Depending on your business type and industry, you may need to obtain state and local business licenses.
Do S corps pay state taxes in Georgia?
S corps are pass-through entities, so the income is passed through to the shareholders who are responsible for paying state taxes.
How do I pay state taxes as an S corp in Georgia?
S corp shareholders each report their share of the company’s income on their individual Georgia income tax returns.
Can I use a professional corporation to set up an S corp in Georgia?
Yes, you can set up an S corp as a professional corporation in Georgia if you are a licensed professional, such as a doctor or lawyer.
Will I need to check for name availability before registering an S corp in Georgia?
Yes, you will need to ensure that the name you want to use for your S corp is available by checking with the Georgia Secretary of State’s Corporations Division.
When should I make an S corp election for my business in Georgia?
You should make an S corp election at the time of incorporation or within 75 days of the beginning of your business’s tax year.
Are there any restrictions on who can be an S corp shareholder in Georgia?
Generally, an S corp shareholder must be a U.S. citizen or resident and cannot be a corporation, partnership, or nonresident alien.
Can an S corp in Georgia have multiple classes of stock?
No. S corps cannot have multiple classes of stock, so all shareholders must have equal voting rights and shareholder distributions must be in proportion to their share ownership.
Is there a limit to the number of shareholders an S corp in Georgia can have?
No, there is no legal limit to the number of shareholders an S corp can have in Georgia.
Do I need to file an annual report for my S corp in Georgia?
Yes, S corps in Georgia are required to file an annual report, which includes basic corporate information and any changes that may have occurred during the year, with the Georgia Secretary of State.
What are the advantages of starting an S corp in Georgia?
Advantages of starting an S corp in Georgia can include limited liability for shareholders, pass-through taxation, potential tax advantages, and fewer formalities than C corporations.
Can an S corp also be an LLC in Georgia?
No, an S corp is a type of corporation, while an LLC is a completely different type of legal entity.
How do I choose a registered agent for my S corp in Georgia?
Your registered agent must be a Georgia resident, or a company that is authorized to do business in Georgia and has a physical address in the state.
What documents do I need to start an S corp in Georgia?
You will need to file articles of incorporation and create corporate bylaws, which lay out the rules and procedures for governing the corporation.
Do I need an operating agreement for an S corp in Georgia?
No, S corps in Georgia do not require operating agreements, but it can be beneficial to have one in order to outline important terms about shareholder agreements, roles, management, and other important details.
Can an S corp change to a C corp in Georgia?
Yes, S corps can change to C corps in Georgia, but doing so requires filing a formal request for the conversion with the Secretary of State’s office.
What is the deadline for filing Georgia income tax returns for an S corp?
Georgia S corps must file income tax returns by the 15th day of the third month after the close of the tax year.
Can an S corp file an extension for its Georgia income tax return?
Yes, Georgia S corps can file for an extension, but they must do so before the due date of the return.
Does my S corp in Georgia need a federal EIN?
Yes, all S Corps must have a federal Employer Identification Number (EIN).
Can I elect subchapter S status for an existing C corp in Georgia?
Yes, a C corp can convert to an S corp by filing Form 2553 with the IRS and by meeting certain eligibility requirements.
What are the ongoing requirements for an S corp in Georgia?
S corps in Georgia must file an annual report, hold annual shareholder meetings, keep corporate records, and follow our state and federal laws and regulations.
What is the process for starting an S Corp in Georgia?
The process involves filing Articles of Incorporation with the Georgia Secretary of State.
Are there any specific requirements for incorporating an S Corp in Georgia?
Yes, in Georgia the corporation must have a registered agent with a physical address and mailing address in the state.
Can I start an S Corp in Georgia on my own or do I need to hire a lawyer?
You can do it yourself, but it’s recommended to hire a lawyer to ensure compliance and accuracy.
Can non-US residents start an S Corp in Georgia?
Yes, non-US residents can start an S Corp in Georgia as long as they have a registered agent and comply with all state and federal laws.
Do I need to have a physical address in Georgia in order to start an S Corp in the state?
Yes, you need to have a registered agent with a physical address in Georgia.
What is a registered agent, and do I need to appoint one for my Georgia S Corp?
A registered agent is a person or organization authorized to receive legal documents on behalf of the corporation, such as lawsuits or subpoenas. Yes, you need a registered agent in Georgia.
How do I appoint a registered agent for my Georgia S Corp?
You can appoint a registered agent in Georgia by filing Form 231 with the Georgia Secretary of State.
Is there a fee for appointing a registered agent in Georgia?
Yes, there is a fee of $25 to appoint a registered agent in Georgia.
How long does the process of starting an S Corp in Georgia take?
The process generally takes 7-10 business days after filing the paperwork with the Georgia Secretary of State.
What is the cost of starting an S Corp in Georgia?
The filing fee to incorporate an S Corp in Georgia is $100.
Do I need to file any other documents besides the Articles of Incorporation to start my S Corp in Georgia?
No, the Articles of Incorporation is all you need to file in order to start an S Corp in Georgia.
Can I reserve a business name before incorporating my S Corp in Georgia?
Yes, Georgia allows businesses to reserve a name for up to 30 days by filing Form 303 with the Georgia Secretary of State.
How many people do I need to start an S Corp in Georgia?
There is no minimum number of people required to start an S Corp in Georgia – it can be a single person.
Do I need to provide specific information about my corporation in the Articles of Incorporation form in Georgia?
Yes, you will need to include the corporation’s name, address, purpose, and the names of the director(s) in the Articles of Incorporation form in Georgia.
Can I file the Articles of Incorporation electronically in Georgia?
No, the Articles of Incorporation must be filed by mail or in-person in Georgia.
Can I use a PO Box as my Georgia corporation’s registered agent address?
No, a physical address is required for the registered agent in Georgia.
Can Georgia S Corps pay shareholders dividends out of pre-tax income?
Yes, Georgia S Corps can pay shareholders dividends out of pre-tax income, just like any other corporation.
How do I obtain my Georgia S Corp’s tax identification number?
You can obtain a tax identification number (TIN) for your Georgia S Corp by completing Form SS-4 with the IRS.
Does Georgia have any state-specific tax requirements for S Corps?
Yes, Georgia S Corps must file an income tax return with the Georgia Department of Revenue each year.
Who is responsible for paying Georgia S Corp’s taxes?
The responsibility for paying Georgia S Corp’s taxes lies with the corporation itself, not the shareholders.
Do Georgia S Corps need to hold annual shareholder meetings?
Generally, yes, the Georgia S Corps needs to hold an annual shareholder meeting and document all minutes.
Can S Corps registered in Georgia have shareholders outside of the state?
Yes, Georgia S Corps can have shareholders located anywhere.
Can I convert my existing LLC into an S Corp and register it in Georgia?
Yes, as long as your LLC is eligible to make the S Corp election under IRS rules, you can convert it into an S Corp registered in Georgia.
Can I change my registered agent name or address after the incorporation of my Georgia S Corp?
Yes, you can change your Georgia S Corp’s registered agent name or address by filing the appropriate form with the Georgia Secretary of State.
Are annual reports necessary for S Corps in Georgia?
Yes, S Corps in Georgia must file an annual report with the Georgia Secretary of State each year.
Do I need to file for permission to do business in other states if I incorporate my S Corp in Georgia?
Yes, if you conduct any business outside of Georgia, you’ll need to file for permission to do business in each state where you do business.
What type of insurances should a Georgia S Corp have?
Georgia S Corps should have general liability insurance, worker’s compensation, and property insurance.
Can I get the filing fee of my Georgia S Corp back if I change my mind and decide not to incorporate?
No, once the Georgia Secretary of State accepts your filing, the fee is non-refundable.

Also Read

Why You Should Start Georgia S Corp

One of the primary reasons why entrepreneurs choose to start an S Corp in Georgia is the tax benefits that come along with this business structure. S Corps are considered pass-through entities, meaning that the income generated by the business is passed through to the shareholders and reported on their personal tax returns. This can often result in a lower overall tax burden for business owners, as S Corps are not subject to federal income tax at the corporate level. Additionally, Georgia does not have a state level tax on S Corps, further enhancing the tax benefits of this structure.

Another key advantage of starting an S Corp in Georgia is the limited liability protection it provides to business owners. By forming an S Corp, owners are able to separate their personal assets from the business itself, reducing the risk of personal financial loss in the event of legal disputes or debt obligations. This can provide peace of mind to entrepreneurs who are looking to protect their personal assets while growing their business.

In addition to tax benefits and limited liability protection, S Corps in Georgia also offer flexibility in terms of ownership and management structure. S Corps are able to have up to 100 shareholders, allowing for growth and expansion as the business becomes more successful. Additionally, S Corps are able to issue different classes of stock, providing owners with more control over the distribution of profits and dividends.

For entrepreneurs who are looking to attract investors or raise capital for their business, S Corps can be an attractive option. S Corps are able to bring in investors through the issuance of stock, making it easier to raise funds for business growth and development. Additionally, many investors prefer to invest in S Corps due to the pass-through tax treatment and potential for dividends.

Overall, starting an S Corp in Georgia can be a strategic decision for many entrepreneurs looking to take their business to the next level. From tax benefits and limited liability protection to flexibility in ownership and management structure, S Corps offer a wide range of advantages that can benefit business owners in the long run. If you are considering starting a business in Georgia, it may be worth exploring the option of forming an S Corp to see if it aligns with your business goals and objectives.

Conclusion

Starting an S Corporation in Georgia, also known as The Peach State, is an excellent choice for entrepreneurs who want to take advantage of the many benefits that this business structure has to offer. By following the steps outlined in this guide and making sure to comply with all the regulations and requirements specific to Georgia, you will be well on your way to establishing a successful and thriving S Corp. Remember, this journey may have its challenges, but with determination, hard work, and the right support, there’s no limit to what you can achieve in the business world of Georgia.

As you embark on this new chapter as a business owner in Georgia, always remember that you are part of a vibrant and thriving entrepreneurial community. The spirit of The Peach State is one of innovation, creativity, and resilience. By choosing to establish an S Corporation in Georgia, you are taking control of your financial future and contributing to the growth and prosperity of the local economy. Visit LLCBase for more valuable insights and resources to help you navigate the process of starting an S Corp in Georgia. Wish you the best of luck in your entrepreneurial endeavors!

Leave a Comment