Regardless of the industry you want to activate in, the state of Georgia (USA) offers varied business opportunities for both local and foreign entrepreneurs. As the 8th largest state in USA, Georgia provides access to international markets, lower operational expenses, proper infrastructure and a highly qualified workforce. The permissive legislation for foreign investments opens the doors for all business persons in search of introducing their operations on the American market. To identify and understand how businesses can be registered in Georgia, we invite you to read our general guide to company incorporation in Georgia, reminding that each step of the process can be entirely supervised and guided by our team of specialists in company formation in USA.

Opening LLCs in Georgia

The most popular entity through which you can start a business in USA is the limited liability company which can be successfully established in Georgia. The first step in opening an LLC is to search for a valid name, considering that the LLC or L.L.C. should be added at the end of it. As most companies in USA require, a registered agent is mandatory for your LLC in Georgia. This can be a natural person with domiciliation in USA, who is going to be in charge of the company’s documents. You may also think of a company in USA which can be the registered agent, but we suggest you talk to our advisors in company formation, as they can act on behalf of your business in Georgia.

One can establish a firm in Georgia without having to relocate in that state. As for the Articles of Association, these must include information about the owners (name, address, nationality), the business address, the purpose and the activities of the company, the name of the directors and details about the selected agent. Moreover, when starting a company in Georgia, an operating agreement must be considered. This is a legal document that states the functioning procedure of your firm and details about the ownership.

Employer Identification Number (EIN) for your business in Georgia

As a mandatory condition, each enterprise cannot activate on the market without the Employer Identification Number or simply the EIN. This is issued by the Internal Revenue Service (IRS) and it is necessary for hiring staff, opening a bank account, register for tax purposes and if you want to change the business structure at a certain point. Obtaining the EIN represents the most important step in opening a company in USA, including Georgia.

The tax regime in Georgia

Georgia offers numerous advantages for entrepreneurs establishing their companies in this state. One of them is the taxation system and the exemption related to certain domains. It is good to know that the sales tax is set at a 4% rate, but it is not imposed on foods, medical equipment, and prescription medicines. Local taxes might concern companies registered in particular jurisdictions. Please also consider that in Atlanta, the capital of Georgia, a 1% municipal option sales tax is imposed on transactions with products sold or used within the incorporated city perimeters of Atlanta. In the case of sole proprietorships in Georgia, owners do not need to consider the corporate tax on profits. As for companies registered in Georgia, the incomes are subject to a 6% corporate tax rate. Moreover, if your company has branches in other American states that generate revenues in Georgia, you might be subject to nexus. This means that you need to pay taxes in those states. For business taxes, do not hesitate to get in touch with our team of consultants in USA.

How can I open a bank account in Georgia?

A business bank account is normally used for drafting the minimum share capital and for future financial operations in the company. It is recommended to separate the personal assets from the ones of the company in Georgia and, more than that, it is a lot easier to deal with the accounting matters. Once the bank account is created, the owner will receive complete services, including credit cards and online banking. You can choose from local or foreign banks with establishments in Georgia.

Licenses and permits for companies in Georgia

The state, local and federal licenses and permits are needed at the time the company is registered in Georgia, USA. Companies activating in commercial sectors like aviation, agriculture, fishery, mining and drilling, alcoholic beverages, transportation, and logistics will have to apply for special licenses and permits. The state licenses refer to professionals like electricians, mechanics, accountants, lawyers, real estate brokers, or other contractors willing to act as sole traders in Georgia. The applications for obtaining the necessary licenses and permits can be overseen by our team of company formation representatives in USA.

Do I need insurance for my business in Georgia?

Yes, it is quite recommended to have general liability insurance and protect yourself for any business risks that might occur, if you have a company in Georgia. Here is why a general liability insurance is needed:

The insurance covers personal or company property damage.
Medical insurance is offered for accidents in the company or near the firm.
General liability insurance in case of wrongful eviction or copyright infringement.
Complete protection in case of advertising and copyright loses.

It is good to know that professional liability insurance is recommended for companies having operations in the legal, medicine or accounting who want to protect themselves from malpractice allegations in Georgia, USA. Intentional acts or coverages that exceed the limits of standard insurances are not protected by such a general liability insurance.

Accounting services for your business in Georgia

Each company in Georgia regardless of the chosen business field requires accounting services. Bookkeeping, payroll and audits are only a few of the accounting services offered by a firm in Georgia. Tracking the business transactions and controlling the incomes and the costs in a firm is part of the overall accounting services you can solicit for your business.

Promoting the business on the internet

Whether you have established a branch or a brand-new company in Georgia, it is recommended to concentrate on the marketing strategies which can promote your firm on the internet. You may start with creating a website for your activities in Georgia and present your goods and services offered on the market. Even if it is a competitive business field, your enterprise should be properly presented on the internet, in order to gain clients from all around the world.

Virtual office in Georgia

If you do not want to relocate yet in Georgia, you have the possibility of obtaining virtual office services with the help of our company formation representatives in USA. Besides a prominent business office in Georgia, the virtual office services involve a local business number, call forwarding, mail correspondence, information about the firm and business meetings with future partners.

The main industries in Atlanta

The stable economy of the state of Georgia is based on agriculture, the movie industry, the energy, the automotive sector and also the tourism industry. More than 14 million tourists visit Georgia each year attracted by the entertainment industry among many others. Furthermore, the agriculture sector in Georgia generates profits of about $72 billion every year, a solid reason why this field is preferred for business.

FAQ about companies in Georgia

1. Do I need an operating agreement for my company in Georgia?

Even if it’s not mandatory, it is recommended to agree on such a contract and stipulate all the details involved, such as names of the business and of the owners, the activities and the internal rules in the firm.

2. What is the EIN?

The EIN is the Employer Identification Number which is issued by the tax authorities at the time the company is registered for tax purposes in Georgia. This is a mandatory condition as imposed by the Internal Revenue Service, the authority that accepts the tax documents.

3. What is the proper business structure in Georgia?

The limited liability company is the preferred business entity in Georgia and the type of structure that fits in most of the economic sectors. You can easily open an LLC in tourism, agriculture, IT, communication, retail and many more. For incorporation of LLCs in Georgia, please talk to our team of company formation agents in USA.

4. Can I receive accounting services for my business in Georgia?

Yes, you can solicit accounting services from our team of specialists in Georgia. There are many companies that would rather direct the attention to an accounting firm in Georgia instead of opening an accounting department.

5. Can I purchase virtual office services in Georgia?

Yes, if you do not want to set up a company from scratch and go throughout the entire incorporation process, you can buy virtual office packages in Georgia at a fraction of costs of a traditional office. You can benefit from a notable business address, a virtual assistant in charge of daily activities, mail collection and forwarding, dedicated fax services and many more. All the information in this matter can be provided by our team of consultants who can also help you buy virtual office services in Georgia. It is important to have a clear picture of how the business is done in the American states, including in Georgia, and to start in a professional manner.

Foreign investors should pay attention to the taxation structure in Georgia when opening a business in USA, and particularly in this state. The corporate tax and the sales tax are two of the most important taxes one should consider for his/her business. Our company formation agents in USA can provide you with information about how to set up a company in Georgia and about the taxes which need to be paid for the states’ authorities. You may also consider the general guide to company incorporation in Georgia for details.

What is the sales tax in Georgia?

Georgia aligns with the states that impose a low sales tax which is now set at 4%, with the exception that it is not enforced on medical equipment, food, and medicines. It is good to know that Atlanta, Georgia’s capital, has its own sales tax rate of 1.9%. Also, municipalities in Georgia can choose to have their own sales tax without exceeding 4%. We are at your services if you would like to know more about the taxes in Georgia.

What is the corporate tax in Georgia?

The corporate tax rate in Georgia is set at 6% and it is imposed on the net income registered by the company in this state. We mention that enterprises which have different properties in Georgia and activities in this state are subject to the above-mentioned corporate tax.

We are at your disposal with complete support for taxation matters in Georgia and for company registration in Georgia, so you can talk to our team of company incorporation agents in USA.

Taxation for sole traders in Georgia

Performing the economic activities as sole traders in Georgia comes with different benefits, meaning that proprietorships are not subject to the corporate income tax. In this sense, it is good to know that the business income is allocated to the owner, therefore the individual federal tax is imposed on that revenue.

Nexus for multistate companies

If your company in Georgia has several business offices in USA, meaning other branches, it will have to pay the imposed taxes in the American states where the activities are performed. Such companies are subject to Nexus, the sufficient physical presence which is the factor that determines what kind of taxes you need to pay. Please observe the following matters:

• if the business is registered elsewhere in USA, but it generates revenues in Georgia, this states’ taxes need to be paid;
• foreign companies need to provide information about the other branches in USA and register for tax purposes;
• each state enforces its own income tax and sales tax;
• the rules for such kind of taxation can be entirely explained by our team of advisors.