How to Form an LLC in Georgia in 5 Simple Steps

If you decide to form an LLC in Georgia there are specific requirements you will need to meet, and certain steps to take to ensure your business is formed correctly. Following a checklist makes this more simple and less likely to forget important steps you will need to take. Typically, this checklist will include:

1. Choose a business name

2. Appoint a registered agent

3. Submit your Articles of Organization

4. Draft an operating agreement

5. Obtain an EIN

6. Maintain ongoing compliance

This guide will cover the steps new business owners will take while completing the process of forming a business. You can choose to submit these forms on your own, or you can have a service like Firstep handle this for you as well. Due to the ease of formation, flexibility in ownership roles, and granting owners liability protection are all reasons why LLCs are one of the most popular business types in the state.

Step 1: Choosing a Business Name

The first step to complete in the process of forming a new LLC in Georgia will be to choose a business name. Your business name will need to be unique and distinguishable enough from other active businesses in the state to avoid any confusion. Also, you will need to include certain designators in your name such as "LLC", "L.L.C.", or "Limited Liability Company". In Georgia, if a business goes out of compliance the state will hold the name for up to 5 years. However, if the business has been voluntarily dissolved there will be no hold on the name and it will be available. Using the name search tool on the Georgia business website while brainstorming potential names is useful to know what names you can potentially use.

Be sure you are avoiding using terms in your business name such as "bank", "insurance", or "law" as these require specific naming qualifications prior to forming your business and if they do not relate to your business operations they could be misleading to customers. You should also be aware to not use any terms that could suggest you are affiliated with the government. Following these guidelines, and choosing a name that is not currently in use will ensure your name is approved for your LLC.

Step 2: Appoint a Registered Agent

All LLCs in Georgia will be required to have an active registered agent for their business. A registered agent will be responsible for receiving any service of process that is sent to your business. These documents will be any sort of important information that is sent to your business by the state of Georgia or more importantly any notice of legal action taken against your business. You can appoint anyone as your registered agent as long as they meet the registered agent requirements that are set by the state. These requirements include:

• At least 18 or older

• Have an active and current address in the state of Georgia

• Be available during regular business hours, which are Monday through Friday 9am-5pm

Your registered agent can be yourself, a trusted friend or family member, or you can hire a service like Firstep to do this for your business. It's important to be aware that if you act as your own registered agent your address will be listed on your business documents, and this will be public information. Hiring a service is useful to protect your privacy as well as ensure they will always be available during regular business hours to receive these documents on your behalf.

Step 3: Submit Your Articles of Organization

With your LLCs name chosen and your registered agent in place, you are now able to file your articles of organization to officially form your new business. To do this, you will need to go to the Georgia business site and select "create or register business". You will then be taken to a form to enter your business information, starting with choosing your business entity type, inputting your business name, and your principal office address. You also are required to give a business purpose which will be in the form of an NAICS code. This will detail the main operations of your business and describe what is it your business does.

The next page of the form will require your business email address, all registered agent information, and organizer information. You will also need to select the effective date of your LLC, and provide an authorized signature for the document. After this you'll be taken to a page to review the information you have entered is accurate and correct, then finally you will go to the payment page for your submission. The total cost for an Articles of Organization in Georgia will be $110 if filed online. After paying, your submission will be sent to the state for a review process which typically will take around 7-10 business days.

You can choose to go through this process on your own, or you can hire a service like Firstep to fill out and submit the Articles of Organization for your LLC. Firstep is able to handle the submission of these documents as well as offering many other advantages to help new business owners manage and operate their LLC. When your submission has been approved, you will receive an email with your approval as well as your certified documents. You will be sent a Certificate of Organization that will include your Articles of Organization within this document.

Step 4: Draft an Operating Agreement

Once your Articles of Organization has been approved, a good next step will be to draft an operating agreement. Operating agreements will detail the roles and responsibilities of the business owners, as well as outlining the processes for how your business will be managed, how voting rights are determined, and the process for settling disputes between members. It can be very useful to have these types of things in writing to avoid problems between owners and having a standardized process for handling situations that might come up.

Especially as your business grows, your operating agreement will help detail the processes for members joining and leaving the business, such as bringing on new investors and owners to the LLC. The main advantage of operating agreements is to state the ownership percentages, voting rights, and having standardized processes for your internal business operations to avoid any disputes between members and handle things like this easily.

Step 5: Obtain an EIN

Another important document to obtain for your new LLC will be to obtain an EIN. Your EIN, or employer identification number, will be required for certain business activities such as filing taxes, hiring employees, and opening a business bank account. This number will be issued to your business by the IRS, and each business will only be able to get one number as these do not expire or need to be renewed. You might also be required to present your EIN when registered for certain business licenses with the state as well.

You can obtain this EIN on your own, or you can hire a service like Firstep to do this for you. It's extremely important to make sure all information entered on this form matches exactly to what is on your Articles of Organization or this will not be approved. If you have gotten an EIN before and lost your documentation or EIN number, you can still retrieve this from the IRS. However, this process can take anywhere from a few weeks to a few months, depending on how busy the IRS is at the time. Along with obtaining new EINs for businesses, Firstep is also able to retrieve your lost EIN and handle all communications with the IRS.

Step 6: Maintain Ongoing Compliance

Now that your LLC has been officially formed in Georgia, one of the most important things you will do is to maintain your good standing with the state. This will include filing annual registrations for your business to keep your information accurate and updated, and ensure your business stays in good standing. You may also be required to file for and renew any business licenses that are needed by businesses in your industry.

Annual Registration

LLCs in Georgia are required to file annual registrations with the state each year to keep their business active and in good standing. These reports are due anytime between January 1st - April 1st and will cost $60 to file online. To file these reports, you will need your business name or control number to begin, and you will need to update information such as your registered agent information, physical address, mailing address, and enter a valid email address. Firstep is able to submit these for you each year to ensure your LLCs continued compliance.It's important to stay up to date on these reports as missing reports can lead to additional fees, as well as potential administrative dissolution which will take your business out of good standing until a reinstatement is submitted.

Business Licenses

Depending on the industry your LLC is in, you may be required to register for certain licenses with the state. These will typically be filed at the local level, and will be dependent on what industry your business operates in. It's important to check to see if you will be required to do this, especially if you are a professional service such as construction, healthcare, law, or insurance as these specialized services typically require licenses to operate legally.

FAQs on LLCs in Georgia

Where do I need to go to form my LLC and submit annual registration to keep it active

To form your LLC you will need to go to the Georgia business website where you will find all required forms for your new business. On this site, you will also be able to find your annual registration forms and you are able to file both online from here. The total cost for forming an LLC will be $110, and your annual registration will cost $60.

Are operating agreements legally required for LLCs in Georgia

No, operating agreements are not legally required for LLCs to maintain their good standing. However, these are highly recommended to ensure standardized processes for the internal operations of the business.

What if I don't have an active Georgia address to act as my own registered agent

If you don't have a registered agent with a current Georgia address, you are able to hire a registered agent service to meet this requirement for you. Firstep offers a registered agent service that is able to meet all guidelines the state has set for registered agents and is included in our Everything package.

When is my annual registration due for my Georgia LLC

The LLC annual registration in Georgia is due anytime from January 1st-April 1st. You can file the report in this window, but be sure not to miss your due date or you risk additional fees or potential administrative dissolution of your LLC.

Can I form an LLC in Georgia if I don't live in the state

Yes, you can. The main requirement that this will cause issues with is your registered agent. However, if you have a registered agent with a current physical address in the state, or if you hire a registered agent service you will not have any issues. Your physical office address does not need to be in the state of Georgia, only your registered agent physical and mailing address.