Learn about the annual report and tax filing obligations for Georgia limited liability companies.
To establish and operate a Georgia limited liability corporation (LLC), you must prepare and submit a number of paperwork with the state. This article discusses Georgia LLCs’ most essential continuing reporting and state tax filing needs.
Table of Contents
Fees for Annual Registration
The state of Georgia requires you to register your LLC annually and pay a charge of $50. The registration should be filed online at the SOS website. Your first annual registration is required between January 1 and April 1 of the calendar year following the year in which your LLC was established. Subsequent registrations are required each year by April 1. The state should send you a reminder notification in the mail.
State Corporation Tax
Most LLCs are pass-through tax corporations when it comes to income taxes. In other words, the burden for paying federal income taxes is passed via the LLC to the individual LLC members. LLCs do not pay income taxes by default; only its members do. Georgia, on the other hand, charges a $50 yearly registration fee (see above).
In certain situations, the owners of an LLC elect to have their firm taxed as if it were a corporation. This decision is made by submitting IRS Form 2553 to the IRS. (The form is available on the IRS website.) When an LLC elects to be taxed as a corporation rather than as a pass-through entity, the firm must submit a separate tax return. Georgia, like practically every other state, taxes corporate revenue. The company income tax in Georgia is a flat 6% of federal taxable income (with adjustments). In addition, Georgia levies a corporate net worth tax (also known as a franchise tax). LLCs are subject to both income and net worth taxes. The taxes must be paid to the state Department of Revenue (DOR).
Employer Taxes in the State
Do you have workers in your LLC? If this is the case, you must pay employer taxes. Some of these taxes are paid to the federal government (the IRS) and are not addressed in this section. (However, it is important to understand that federal employer tax duties begin with getting a federal employer identification number (EIN).) Georgia employers, on the other hand, must pay state taxes.
To begin, you must withhold and pay employee income taxes to the DOR. Begin by registering your company with the DOR, either online or in print form (Form CRF-002). After you’ve enrolled, you must submit withholding taxes on a regular basis (for example monthly or quarterly). Each year, you’ll also need to utilize Form G-1003 to balance your LLC’s tax withholding.
You’ll also need to register to pay state unemployment insurance (UI) taxes. The Georgia Department of Labor is in charge of these taxes (DOL). Form DOL-1A may be used to register for these (Employer Status Report). Then, each quarter, utilize Form DOL 4N to record your earnings and pay your unemployment insurance taxes.
Taxes on Sales and Use
If your LLC sells items to clients in Georgia, you must collect and remit sales tax. This implies you’ll have to register with the Department of Revenue for this reason and then make periodic sales tax payments for products sold. You may sign up online or by mail using Form CRF-002. Then, on a regular basis, you must file sales tax returns with the DOR.
Other States Registration
If you want to do business in states other than Georgia, your LLC may need to be registered in any or all of those states. The exact states concerned will determine if you are needed to register: each state has its own regulations for what defines conducting business and whether registration is required. For registration reasons, having a physical presence (a business location) in a state, recruiting personnel in a state, or soliciting business in a state (through telephone, print advertisements, mail, or the Internet) are sometimes considered conducting business. Obtaining a certificate of authority or comparable document is normally required for registration.