Georgia real estate LLCs are common. Starting an LLC is easy and provides several advantages.
If your real estate firm is sued, an LLC may safeguard your personal assets (vehicle, home, money). LLCs are credible and tax-saving.
Georgia LLC formation is easy.
Register the LLC’s Articles of Organization with the GA Secretary of State. Georgia LLCs cost $100.
Table of Contents
Step 1 name your LLC.
Real estate LLC formation begins with a firm name. Your company name must fulfill Georgia naming standards.
Articles of Organization will register your name.
Georgia naming requirements:
Name must contain “limited liability corporation” or abbreviation (LLC or L.L.C.)
Your LLC name can’t imply government affiliation (FBI, Treasury, State Department, etc.)
Check Georgia’s name availability. Online LLC name searches may help you find available company names.
If you require real estate company names.
Check whether your business name is a domain. Buy the URL to prevent others from using it.
Step 2:Choose a Registered Agent
Articles of Organization need a registered agent.
Your LLC’s registered agent accepts legal papers like service of process and tax notifications.
Registered agent might be a person or a service. Many company owners choose to employ a registered agent service.
Before hiring a registered agent, consider:
You must be available 9 a.m.–5 p.m. Monday through Friday at the address you indicate.
If you work from home, your address must be public.
You might be sued in front of relatives or colleagues.
Step 3: File LLC Articles
To register your Georgia LLC, submit Form CD 030 with the Georgia Secretary of State. Online or through mail.
Real estate LLCs should consider S Corp tax status. An S corp might bring tax advantages to your real estate firm.
Step 4:Create an LLC operating agreement
An LLC operating agreement covers ownership and member obligations.
Operating agreements benefit even single-member LLCs.
Your operating agreement should include:
Member duties
New member admissions
Transferring or canceling membership
Distributing earnings and dividends
When will capital be called?
Good-faith manager errors are covered.
Tax deadlines
Members have transferable interest and first refusal on property sales.
Your real estate LLC operating agreement might include elements that don’t contradict with Georgia law.
Step 5:Obtain an EIN
EINs are used by the IRS to identify and tax companies. It’s a business’s SSN.
After Forming an LLC
After incorporating an LLC, you must:
Business bank account. Corporate bank accounts separate personal and business funds. This separation preserves your LLC’s corporate veil (i.e., your limited liability protection).
If you already possess property that you’ll be transferring to your new LLC, you’ll need to register a deed. You may do this yourself or via a title firm. Start by calling a title firm or county clerk.
Lease update. If you transfer a rental property to a new LLC, you must change the lease.
Annually register your Georgia LLC. Between January 1 and April 1, file with the Georgia Secretary of State. LLC reports aren’t due in the year of formation.