The following is a guide to help you through the process of creating an LLC in the state of Georgia.
The first step to creating your LLC is naming your LLC. The name of your LLC should not be the same as, or too similar to, an existing name on the Georgia Secretary of State’s Corporations Division. You can check availability in the Corporate Division Business Name Database (for free) to verify that the name you have chosen is in no way similar to any other Georgian LLC. You may also mail a completed Name Reservation Request to the Georgia Secretary of State Corporations Division to get such information.
You must keep in mind that the chosen name should never be misleading in any way to the public or you might get into bug trouble. This name may contain the words:
- Limited
- Limited Liability Company, or
- “L.L.C.”, “LLC”, “L.C.”, “LC”, “Ltd.”, “Co.”.
Once you find a name that is applicable, you can reserve it for 30 days by filing a Name Reservation Request to the Georgia Secretary of State Corporations Division. This form can only be handed in by mail or in person.
Keep in mind that you are not obliged to use your official legal LLC’s name when doing business. You can instead use a DBA, (doing business as), which is a fictitious business name. To register your DBA in Georgia, you must contact the clerk’s office at the Georgia Superior Count Clerks’ Cooperative Authority Website.
Next step is appointing a registered agent. A registered agent is an individual or company that agrees to accept legal papers on the LLC’s behalf if it were to be sued. The agent may be either a natural person who resides in Georgia or a foreign corporation authorized to do business in Georgia. This agent must have a physical address in Georgia.
Once you have registered an agent, you must file your articles of incorporation with the Georgia Secretary of State Corporations Division. These articles must include the date of the LLC’s Dissolution (if you have set one); name, signature and address of the agent and attorney for service of process; name, address and email address of the LLC; LLC’s federal (employer) identification number and the signature of each manager or people authorized to execute documents for the LLC.
The filing must be done either through mail or hand delivered with a $100 USD fee.
Continue by preparing an operating agreement. This is not a mandatory requirement, but it is commonly used in an LLC. The operating Agreement is an internal document that delineate the financial functional decisions of the company, including guidelines, regulations and provisions. An example could be how the members’ percentage interest in the LLC is laid out, or the rules for holding meetings and taking votes.
Once you decide on having an operating agreement, you must obtain an Employer Identification Number (EIN). Even if you have no employees, this is a state requirement. You may obtain an EIN by completing an online application on the IRS website.
Finally, every LLC doing business in the state of Georgia must file annual reports. Keep in mind that the report must contain the same information as the certificate of organization, and just like the registering the register agent, the filing must be done through an online application with a $50 USD fee.
Overall, following these steps will get you the LLC needed to operate in Georgia. Remember that every LLC organized outside of the state must also register with the Georgia Secretary of State. Like any other LLC, the foreign LLC must follow all the steps mentioned with an additional filing fee of $225 USD. It is also important to know that you can form a professional LLC if you have a professional trait, for example a plumber or a freelancer. You just need to follow the same steps as listed above. Single-member LLCs also have additional flexibility when it comes to filing a tax return.
As a final note, creating an LLC can average about $250 if you go for the cheapest option. Still, if you hire lawyers and outside council, this can add up to thousands of dollars.