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When you plan to start a business in Georgia, you must decide on the appropriate structure. Starting a corporation may be more complicated than creating an LLC in Georgia<\/a> or a sole proprietorship. However, it is not that difficult as well. There are a few guidelines that you should be aware of when it comes to creating Georgia corporation. Starting a corporation involves a legal process, that is, the process of incorporation.<\/p>\n In this article, I will share a step-by-step guide to start a corporation in Georgia<\/a>. I will also enlighten you on the advantages and disadvantages of having a corporation. Some people consider starting a corporation in Georgia more than other business structures since it has many advantages over other forms.<\/p>\n What is a Corporation in Georgia<\/a>How to Start a Corporation in Georgia<\/a>Important Information<\/a>Advantages of Starting a Corporation in Georgia<\/a>FAQs<\/a><\/div>\n In definition, a corporation is a formal organization established by stockholders, shareholders, or other people to make a profit. Like individuals, corporations can undertake contracts, own assets, sue and be sued, pay taxes, limit state and federal taxes, and loan funds from banking institutions.<\/p>\n Before you start with the process of forming a corporation, you should know what type of corporation you will form. There are several different forms of corporations you can take into consideration, depending on your corporation’s objectives and ownership structure.<\/p>\n C-Corporation<\/strong>: C-Corporation is the most known type of incorporation. They have almost all corporate distinguishing characteristics. Profits are distributed to corporate owners who are taxed at an individual level. The corporation is taxed similarly to a business unit.<\/p>\n<\/li>\n S-Corporation<\/strong>: An S-Corporation is set up similarly to a C-corporation but has different tax implications and owner limits. S-corps have no more than 100 stockholders and are not taxed separately. These business units must also file paperwork with the Internal Revenue Service (IRS) to obtain their status.<\/p>\n<\/li>\n Non-profit Corporation<\/strong>: Nonprofit businesses are frequently used by religious, educational, and charity institutions to run their operations without making a profit. Thus, a nonprofit corporation is exempt from paying taxes. The nonprofit organization’s gifts, contributions, or cash are reinvested in the company to fund its growth, future endeavors, or operations. Read how to start a nonprofit corp in Georgia to learn about nonprofit corporations.<\/p>\n<\/li>\n<\/ul>\n If you have a small business, it is recommended that you form an LLC<\/a> instead of a corporation in Georgia. LLCs have more tax benefits than other structures. Besides, LLCs protect your personal assets. However, it is wise to consult a legal expert before you start setting up your business in Georgia.<\/p>\n – LLCBuddy<\/a> Editorial Team<\/p>\n<\/blockquote>\n To start a corporation in Georgia, you must follow the below steps that, include forming a corporation name, appointing a board of directors, filing for Articles of Incorporation, drafting corporate bylaws, meeting with the board of directors, issuing stocks, creating a shareholders agreement, requesting for an EIN, and getting a license and permit. All these steps are basic ones. It can be changed depending on the type of corporation you form and the nature of your business.<\/p>\n Naming your business is one of the most crucial activities during the startup phase. Your corporation name serves as the foundation for your brand. Legal procedures should be taken into account when choosing your corporation name. Choose a corporation name that will enable you to develop a strong brand identity without being hampered by irrelevant factors.<\/p>\n If you are forming an LLC<\/a>, there is a complete guide on Georgia LLC name guidelines<\/a> for a proper LLC name. Here are some guidelines you must follow while naming your corporation in Georgia-<\/p>\n To form a corporation in Georgia, you must appoint an initial board of directors before making them permanent once the corporation is formed. In Georgia, you may appoint at least One board of directors. The initial board of directors is in charge of guiding the overall strategy of your business. The structure, responsibilities, and powers given to a board of directors are determined by the bylaws of a company or organization. So, appointing your corporation’s initial board of directors in Georgia is a big step in forming a corporation.<\/p>\n After you appoint the initial board of directors in your Georgia corporation, the next step is to write and file a Articles of Incorporation. In writing, the Georgia Articles of Incorporation, the corporation name, principal place of business, the purpose of business, Georgia Registered Agent<\/a> contact information, and the names and addresses of incorporators and\/or initial board members, should be written.<\/p>\n Filing a Articles of Incorporation in Georgia may be done with three ways, online, by mail and in-person. The Articles of Incorporation fee may vary from different states. However, in Georgia, it costs $100 for filing online and $110 for filing it by mail and in person..<\/p>\n Now you are done filing a Articles of Incorporation in Georgia, the next step is to draft corporate bylaws. Corporate bylaws are the basic rules that control a corporation. It includes the organization’s structure, processes, laws, and rules. As a result, all personnel, managers, and corporation members must obey the firm’s rules.<\/p>\n In creating corporate bylaws, you should include the following on how the decisions will be made-<\/p>\n After drafting the corporate bylaws, gather all the board of directors for the first meeting. This meeting will be finalized by appointing directors to manage the company’s daily operations, approve the bylaws, choose the corporation’s accounting year, and approve the stock issue. All board meetings should have minutes taken and stored with the company’s records.<\/p>\n After starting your Georgia corporation, one of the first official corporate actions is issuing stock to the shareholders. Keep track of the number of shares issued to each shareholder and the purchase price. A corporation in Georgia is managed by its shareholders, who contribute to the business in exchange for ownership shares.<\/p>\n Even though drafting and finalizing a shareholders agreement is unnecessary, I suggest you still comply since it will benefit your corporation and its shareholders. A small business’s shareholders enter into a shareholder agreement contract. It establishes how ownership will be handled in unexpected situations, like a shareholder passes away, retires, becomes disabled, or quits the corporation. Early on in the life of your Georgia corporation, signing a shareholders’ agreement can help maintain corporate continuity and prevent future disputes.<\/p>\n After everything is in place, you should get or request an Employer Identification Number (EIN)<\/a>. An EIN will serve as the tax ID for your Georgia corporation. EIN can be obtained from the Internal Revenue Service (IRS). It is a 9-digit number similar to Social Security Number. EIN, however, is distinct from SSN. It is only used for business-related activities, particularly for submitting general taxes. The form must be completed and uploaded to the IRS website.<\/p>\n The application of an EIN in Georgia can be through the following:<\/p>\n After you have your EIN number, you can benefit in a number of ways. It will give your corporation the final advantage necessary to operate at full capacity without encountering legal or judicial issues.<\/p>\n Before your corporation operates in Georgia, you must have a business license. A business license is a document issued by a government agency that permits you to operate your business in the geographic region that that agency governs. To legally operate your corporation, you’ll need a business license. Numerous corporate licenses need to be filed and renewed regularly. Check out how to get business licenses and permits in Georgia to know more.<\/p>\n You must also register a DBA<\/a> name if you intend to conduct business using a name other than your corporation’s legal name. The DBA name is sometimes known as “doing business as” or a “fictitious business name.” Depending on your location, you may need to register the DBA with your state, city, and county. You can skip this step if your business solely uses your legal company name.<\/p>\n Even if you have established your corporation in Georgia, pay your taxes and keep everything up to date so you won\u2019t pay any penalty. Unlike an LLC, there is a corporate tax that every corporation in Georgia has to pay. On the other hand, they must pay income taxes based on their business income. Some other types of taxes in Georgia are sales tax, franchise tax (not applicable to all the states), and other state taxes.<\/p>\n A filing and annual fee must be paid to form a corporation in Georgia. Without it, your corporation won\u2019t operate. The initial filing fee for a corporation may vary depending on the state. However, in Georgia, it costs $100 for filing online and $110 for filing it by mail and in person.. The corporation in Georgia also has to file an annual report (though it might not be mandatory, it is recommended to file one). Ensure you comply with all the necessary fees and costs so your corporation will run successfully and smoothly. If, in the future, you make any changes to your corporation, you must file the Georgia Amendment. It costs $20.00 to file an amendment in Georgia.<\/p>\n Limited Liability<\/strong>: The biggest advantage of setting up a Georgia corporation is that the shareholders are not personally responsible for the debts of the company. As a result, when you incorporate as a corporation, personal assets like homes, vehicles, and other possessions are prohibited. One of the main benefits of setting up a corporation over a general partnership or sole proprietorship business structure is that neither the business nor the owners are held legally responsible for the obligations of the business, even if it means giving up their personal assets.<\/p>\n<\/li>\n Limitless Corporation<\/strong>: The fact that a corporation’s existence is independent of its owners is another significant benefit of incorporation. In other words, a corporation has an endless life and will continue operating normally even if the owner dies or decides to sell their ownership.<\/p>\n<\/li>\n Advantages in Tax<\/strong>: The deduction of health insurance premium payments made on behalf of an owner-employee is one of the many financial benefits to which corporations are entitled. Corporations also save on self-employment taxes since their revenue is not subject to workers’ compensation, Social Security, or medical taxes. Tax rates on corporate profits are lower than those on individual income.<\/p>\n<\/li>\n<\/ol>\n To form a corporation in Georgia, you must file articles of incorporation with the Georgia Secretary of State’s Corporations Division. The articles must include the name of the corporation, its purpose, the type of shares it may issue, the address of its registered office, and the names and addresses of its incorporators.<\/p>\n<\/div>\n<\/details>\n The fee for filing your Articles of Incorporation in Georgia is $100.<\/p>\n<\/div>\n<\/details>\n Georgia recognizes C-Corporations, S-Corporations, and Limited Liability Companies (LLCs).<\/p>\n<\/div>\n<\/details>\n The filing period for a Georgia corporation is typically two business days.<\/p>\n<\/div>\n<\/details>\n The corporate income tax rate in Georgia is 6 percent.<\/p>\n<\/div>\n<\/details>\n Georgia corporations are required to file an Annual Registration Report with the Secretary of State’s office each year.<\/p>\n<\/div>\n<\/details>\n There is no minimum number of shareholders required to form a corporation in Georgia.<\/p>\n<\/div>\n<\/details>\n Georgia corporations are subject to the same laws and regulations as any other business operating in the state.<\/p>\n<\/div>\n<\/details>\n There is no minimum capital requirement to form a corporation in Georgia.<\/p>\n<\/div>\n<\/details>\n Georgia corporations must have at least three directors.<\/p>\n<\/div>\n<\/details>\n There is no residency requirement for directors of a Georgia corporation.<\/p>\n<\/div>\n<\/details>\n Georgia corporations are not required to hold annual meetings, but the board of directors may choose to do so.<\/p>\n<\/div>\n<\/details>\n No, Georgia is not a community property state.<\/p>\n<\/div>\n<\/details>\n The name of a Georgia corporation must be distinguishable from other business entities registered in the state. Additionally, the name must end with the words “Incorporated,” “Corporation,” “Company,” or an abbreviation of one of those words.<\/p>\n<\/div>\n<\/details>\n Yes, Georgia corporations must register with the state by filing an Annual Registration Report with the Secretary of State’s office each year.<\/p>\n<\/div>\n<\/details>\n Yes, Georgia corporations must file an Annual Registration Report with the Secretary of State’s office each year.<\/p>\n<\/div>\n<\/details>\n Georgia corporations provide limited liability protection for their owners, can offer tax advantages, and provide owners with the flexibility to structure their business as they see fit.<\/p>\n<\/div>\n<\/details>\n To dissolve a corporation in Georgia, the board of directors must vote to dissolve the corporation and then file a Certificate of Dissolution with the Secretary of State’s office. The Certificate must include the name of the corporation, the date of dissolution, and the signatures of the directors.<\/p>\n<\/div>\n<\/details>\n Yes, the Articles of Incorporation of a Georgia corporation must include the name of the corporation, its purpose, the type of shares it may issue, the address of its registered office, and the names and addresses of its incorporators.<\/p>\n<\/div>\n<\/details>\n Yes, Georgia corporations may be eligible for certain tax credits, deductions, and exemptions. It is recommended that you consult with a tax professional for more information about the available tax benefits.<\/p>\n<\/div>\n<\/details>\n Georgia corporations pay taxes on their income through the Georgia Department of Revenue.<\/p>\n<\/div>\n<\/details>\n Georgia corporations can issue shares through a share subscription agreement or by selling them to investors.<\/p>\n<\/div>\n<\/details>\n There is no limit on the number of shares that can be issued by a Georgia corporation, but the Articles of Incorporation must specify the type of shares that can be issued.<\/p>\n<\/div>\n<\/details>\n You must notify the state of any changes to your Georgia corporation’s address or other information by filing an Amended Annual Registration Report with the Secretary of State’s office.<\/p>\n<\/div>\n<\/details>\n Georgia corporations are required to file an Annual Registration Report with the Secretary of State’s office each year.<\/p>\n<\/div>\n<\/details>\n There are no restrictions on the ownership of a Georgia corporation, but the Articles of Incorporation must specify the type of shares that can be issued.<\/p>\n<\/div>\n<\/details>\n To form a corporation in Georgia, you must submit Articles of Incorporation to the Georgia Secretary of State, obtain a federal Employer Identification Number, obtain a state tax identification number, file annual reports, appoint a registered agent and notify the Georgia Department of Revenue.<\/p>\n<\/div>\n<\/details>\n The filing fee to register the Articles of Incorporation with the Georgia Secretary of State is $100. Additionally, there may be fees associated with obtaining a federal Employer Identification Number, a state tax identification number and filing annual reports.<\/p>\n<\/div>\n<\/details>\n To form a corporation in Georgia, you must submit Articles of Incorporation to the Georgia Secretary of State.<\/p>\n<\/div>\n<\/details>\n The Articles of Incorporation must include the name of the corporation, its principal office address, the registered agent name and address, the duration of the corporation, the number of authorized shares, the incorporator name and address, and the purpose of the corporation.<\/p>\n<\/div>\n<\/details>\n The Articles of Incorporation must be signed by one of the incorporators.<\/p>\n<\/div>\n<\/details>\n Yes, it is necessary to obtain a federal Employer Identification Number for a corporation in Georgia.<\/p>\n<\/div>\n<\/details>\n Yes, it is necessary to obtain a state tax identification number for a corporation in Georgia.<\/p>\n<\/div>\n<\/details>\n Yes, corporations in Georgia are required to file an annual report with the Georgia Secretary of State.<\/p>\n<\/div>\n<\/details>\n\nOn this page<\/h4>\n
What is a Corporation in Georgia<\/h2>\n
Common Types of Corporations<\/h3>\n
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How to Start a Corporation in Georgia<\/h2>\n
1<\/span> Choose a Corporation Name in Georgia<\/a>2<\/span> Board of Directors Initial Appointment<\/a>3<\/span> Filing the Articles of Incorporation in Georgia<\/a>4<\/span> Draft Corporate Bylaws<\/a>5<\/span> Hold the First Board of Directors\u2019 Meeting<\/a>6<\/span> Issuing Stock in a Corporation<\/a>7<\/span> Draft and Finalize a Shareholders Agreement<\/a>8<\/span> Request an EIN in Georgia<\/a>9<\/span> Get Licenses and Permits for your Corporation in Georgia<\/a><\/div>\nStep 1<\/span>Choose a Corporation Name in Georgia<\/h3>\n
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Step 2<\/span>Board of Directors Initial Appointment<\/h3>\n
Step 3<\/span>Filing the Articles of Incorporation in Georgia<\/h3>\n
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Step 4<\/span>Draft Corporate Bylaws<\/h3>\n
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Step 5<\/span>Hold the First Board of Directors\u2019 Meeting<\/h3>\n
Step 6<\/span>Issuing Stock in a Corporation<\/h3>\n
Step 7<\/span>Draft and Finalize a Shareholders Agreement<\/h3>\n
Step 8<\/span>Request an EIN in Georgia<\/h3>\n
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Step 9<\/span>Get Licenses and Permits for your Corporation in Georgia<\/h3>\n
Important Information<\/h2>\n
Paying your Taxes in Georgia<\/h3>\n
Cost of Forming a Corporation in Georgia<\/h3>\n
Advantages of Starting a Corporation in Georgia<\/h2>\n
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FAQs<\/h2>\n
\nWhat is required to form a corporation in Georgia?<\/summary>\n
\n\nHow much does it cost to start a corporation in Georgia?<\/summary>\n
\n\nWhat types of corporations can be formed in Georgia?<\/summary>\n
\n\nWhat is the filing period for a Georgia corporation?<\/summary>\n
\n\nWhat is the corporate income tax rate in Georgia?<\/summary>\n
\n\nAre there any filing requirements for Georgia corporations?<\/summary>\n
\n\nWhat is the minimum number of shareholders required to form a corporation in Georgia?<\/summary>\n
\n\nAre there any restrictions on the type of business that can be conducted by a Georgia corporation?<\/summary>\n
\n\nIs there a minimum capital requirement to form a corporation in Georgia?<\/summary>\n
\n\nWhat is the minimum number of directors required to form a corporation in Georgia?<\/summary>\n
\n\nIs there a residency requirement for directors of a Georgia corporation?<\/summary>\n
\n\nAre Georgia corporations required to hold annual meetings?<\/summary>\n
\n\nIs Georgia a community property state?<\/summary>\n
\n\nAre there any restrictions on the name of a Georgia corporation?<\/summary>\n
\n\nDo Georgia corporations need to register with the state?<\/summary>\n
\n\nAre there any annual filing requirements for Georgia corporations?<\/summary>\n
\n\nWhat are the advantages of forming a Georgia corporation?<\/summary>\n
\n\nWhat is the process for dissolving a corporation in Georgia?<\/summary>\n
\n\nAre there any specific requirements for the Articles of Incorporation of a Georgia corporation?<\/summary>\n
\n\nAre there any special tax considerations for Georgia corporations?<\/summary>\n
\n\nHow does a Georgia corporation pay taxes?<\/summary>\n
\n\nHow does a Georgia corporation issue shares?<\/summary>\n
\n\nIs there a limit on the number of shares that can be issued by a Georgia corporation?<\/summary>\n
\n\nHow do I notify the state of a change in my Georgia corporation’s address or other information?<\/summary>\n
\n\nAre there any special reporting requirements for Georgia corporations?<\/summary>\n
\n\nAre there any restrictions on the ownership of a Georgia corporation?<\/summary>\n
\n\nWhat are the steps to forming a corporation in Georgia?<\/summary>\n
\n\nWhat are the fees required to start a corporation in Georgia?<\/summary>\n
\n\nWhat documents are required to form a corporation in Georgia?<\/summary>\n
\n\nWhat information is needed to file Articles of Incorporation in Georgia?<\/summary>\n
\n\nWho must sign the Articles of Incorporation to form a corporation in Georgia?<\/summary>\n
\n\nIs it necessary to obtain a federal Employer Identification Number for a corporation in Georgia?<\/summary>\n
\n\nIs it necessary to obtain a state tax identification number for a corporation in Georgia?<\/summary>\n
\n\nAre there annual reports that must be filed for a corporation in Georgia?<\/summary>\n
\nAlso Read<\/h4>\n
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