Georgia business owners, old or new, can quickly form an LLC without complicating things or breaking the bank. They need to file the Articles of Organization that costs $100. This legal document can either be submitted online or by mail to the Georgia Corporations Division and make running your business easier than ever.
Here are the five steps to follow when forming a Georgia LLC. Read on!
- Select a Georgia LLC Name
It would be best to have a readily available company name, and no other business entity has already taken it. To check for its availability, search the company name on the Georgia Secretary of State’s website. If you can use the name, you must also check for its web domain to buy an URL that matches it to be easily searchable online by clients.
Use the following naming rules below for a Georgia LLC.
- A company name includes; Limited Liability Company, L.L.C., LLC, Company, Co, Limited, or Ltd.
- A name that doesn’t mention any government agency like the FBI, Treasury, etc.
- Some words such as Attorney, Bank, and University may require additional approvals from the state to be a part of your LLC name.
- Choose a Georgia Registered Agent
Georgia has some of the best registered agents on the market today, who can help you maintain good standing for your business.
What is a Registered Agent? – A registered agent is a company or an individual that acts on behalf of a business entity to send and receive official and legal documents. And the registered agent must be a resident or have a physical address in Georgia, with the authority to conduct business in the state.
You only need to pay for a yearly package that’s more worthy than paying fines – when you don’t abide by all business formation rules in the state.
- File the Articles of Organization for Your Georgia LLC
You can file and submit the Articles of Organization for your Georgia LLC online or by mail. You can find this document’s name different in other states, referred to as the Certificate of Organization or the Certificate of Formation.
Note that filing this paperwork by mail requires you to submit an additional document termed as Transmittal 231 Form to register your LLC in Georgia.
The Georgia Articles of Organization filing fee is $100 non-refundable and payable to the Georgia Secretary of State.
In this case, the Articles of Organization must have:
- Name of your LLC.
- A registered agent – name, address, and signature.
- List of services to offer
- How your LLC will be managed (either manager-managed or member-managed).
- Pay the state filing fee.
All the information filed and submitted will become a public record when the Georgia Secretary of State approves this document.
- Create an Operating Agreement for Your Georgia LLC
Having an Operating Agreement for your Georgia LLC allows you to precisely know each member’s role and who handles specific responsibilities within your organization.
What is an Operating Agreement? It’s a legal document outlining the ownership and the structure of an LLC. It limits problems arising in the future and ensures everyone is on the same page when forming an LLC.
This internal document contains some of the following information.
- The owner of the company.
- The investors and other members.
- How it will be managed.
- Day-to-day operations and who is responsible for managing them.
- How future problems or conflicts should be resolved.
- How profits are shared, etc.
- Apply for an EIN
No one can operate smoothly in Georgia when they don’t have an EIN (Employer Identification Number) for their respective businesses. It’s similar to an FTIN (Federal Tax Identification Number) or FEIN (Federal Employer Identification Number).
What is an EIN? – It’s a 9-digit number issued by the IRS (Internal Revenue System) that identifies a business entity and keeps track of its tax reporting. In other words, it can also be referred to as an SSN (social security number) for the company.
An EIN unlocks some business operations like:
- Open a business bank account.
- File both federal and state taxes for your business.
- Hire employees for the company.
It seems these are enough reasons why you need an EIN, which can be obtained free of charge from the IRS, online, or by mail.
Benefits of Starting a Georgia LLC
Take the first step and form an LLC in Georgia to reap big time through your business.
Here are some benefits:
- Business credibility.
- Personal asset protection.
- Pass-through taxation.
- Ease of maintenance.
- Flexible management structure.
- Easy access to business loans.
FAQ About Starting a Georgia LLC
What is an LLC? – It stands for Limited Liability Company and has a simple business structure as compared to a traditional corporation.
Can I Be my Own Registered Agent? – You can act as a registered agent if you have a physical address in Georgia.
How Long is the Processing Time of Starting an LLC in Georgia? – You can expedite your filings for an additional fee, but an online application usually takes 5 to 7 business days, while by mail, it takes up to 2 weeks.
Will I Be Filing an Operating Agreement with The Georgia State? – This a business document within your organization and not mandatory from the state.
Do I Need an SSN to Get an EIN? – Acquiring an EIN has never been easier. Simply, submit Form SS-4 with the IRS.
With the second-fastest startup growth rate in the USA, Georgia attracts all sorts of businesses looking for growth and expansion at the same time. You can also form an LLC for your business in Georgia to achieve financial success by using the five well-explained steps above.