If you’re looking for a great place to launch a business, why not try Georgia? Forming an LLC in Georgia is a great idea because it’s relatively inexpensive to live and work in this peach of a state.
First, Why an LLC in Georgia is Right For Your Business
We see a ton of CorpNet customers that prefer the flexibility the LLC offers. It’s a bit of a hybrid business structure because it offers the best features of a corporation as well as a limited liability partnership, all the while protecting your personal assets.
Just like with a corporation, as the owner of an LLC you will enjoy limited liability. That means your personal assets are protected from judgments and other obligations of the business should your company be taken to court. If the LLC incurs debts or liabilities, the creditors are limited to the assets of the LLC, and can’t take any from you.
On the other hand, a sole proprietor is personally liable for all the obligations of the business. This means that sole proprietors risk everything they own to satisfy the debts or judgments of their respective businesses, including their homes, cars, personal savings, and investments. You’re doing the smart thing by filing an LLC.
Another benefit of the Limited Liability Company is that it requires fewer corporate formalities than an S or C-Corporation, including regular meetings of a Board of Directors and an annual meeting of shareholders. They do, however, require filing of Articles of Organization with the Secretary of State, and members of the LLC must enter into an Operating Agreement that governs how the LLC will be operated.
The fact that LLCs are treated as “pass through” entities unless the members elect to have it taxed like a corporation is yet another appeal. Owners report profits and losses only on their own personal income tax forms and no separate entity level filing is required.
Another perk forming an LLC in GA will get you is being able to allocate profits and losses among members of the LLC in any way you wish. You aren’t required to allocate them in proportion to ownership interest. This allows for more flexibility in separating ownership interest from distribution of profits from ongoing operations, which may be useful, for example, in businesses where some owners are actively involved in day-to-day activities while others are not. It also provides significant flexibility in tax planning for its members. Always check with your tax accountant or advisor when setting or changing allocations.
Now for Those Fees for Forming an LLC in Georgia
Now that you’re convinced that a Georgia LLC is right for your business, let’s talk money. To initially file your LLC paperwork, you will need to pay a $100 fee. Then, every year when you file your LLC Annual Report, you’ll need to pay an additional $50.
Remember: filing that Annual Report by its due date will keep your business compliant and keep you from paying late fees, so make sure you get it in on time.
CorpNet can help you in forming an LLC in Georgia. Just call us at 888.223.0311 to find out more.