How to start a business in Georgia: 2026 step-by-step guide

Choose the right business structure for your goals

The first question is: which type of business entity will you use? The choice impacts your personal liability, taxes, and ongoing administrative work. Let’s take a quick look at some:

• Sole proprietorships: This is considered the easiest to start and run. But they give you no liability protection. If someone sues your business, your personal assets could be at risk. A general partnership with two or more owners works similarly.
• Corporations are an alternative structure: These are fully separate legal entities that protect your personal assets. It’s a good choice if you’d like to raise outside investment, but it comes with more paperwork and formalities. Plus, C Corporations are subject to double taxation.
• Some Georgian business owners opt for a limited liability company (LLC): It shields your personal assets like a corporation, but keeps administrative work relatively light. These are also taxed as pass-through entities by default, so profits avoid C Corporation taxes. You can also elect S corporation tax treatment down the road if it becomes a better fit as your profits grow, which gives the LLC even more flexibility.

Keeping track of initial filing requirements and ongoing fees can get overwhelming quickly — so we put together this table to help you compare what each Georgia business structure requires.

At the end of the day, the answer to which structure to use depends on your funding plans and long-term goals.

Register your business with the Georgia Secretary of State

Once you’ve chosen a structure, LLCs and corporations should register with the Georgia Secretary of State’s Corporations Division.

• Start by using the state’s business entity tool to verify that the name you want is still available. You can reserve a name for a small fee if you aren’t ready to file yet.
• The next step? Filing your formation documents. LLCs need Articles of Organization, while corporations use Articles of Incorporation. Both provide the state with the basic details of your business. You can file online for $100 or pay $110 if you prefer snail mail. Online filings take about a week to process, while mailed filings take a bit longer. When filing online, you have the option to pay an additional fee for faster processing: $100 for processing within two business days, or $250 for processing on the same business day.
• Georgia doesn’t legally require an operating agreement, but it’s worth drafting one here if starting an LLC. These define key aspects of your business, like how profits are shared and who owns what percentage of the company. If you don’t establish this early, it could create problems with partners down the line.

Banks typically want to see your business plan before opening your business account. Corporations have a similar document called corporate bylaws.

Assign a registered agent and obtain an EIN

In Georgia, every LLC and corporation must have a registered agent with a physical address in the state. This is the person you designate to receive all legal documents and official state correspondence on your behalf. A P.O. box doesn’t satisfy the requirement. The agent must also be available during normal business hours.

Register for state taxes with the Department of Revenue

Another important step is setting up your state tax registration with the Georgia Tax Center (GTC). You can visit the Department of Revenue’s online portal to see which accounts you’ll need, depending on what your business does.

For example, if you sell taxable goods or certain services, you’ll have to collect sales and use tax from your customers. Georgia’s rate is four percent, but counties and cities add their own on top. The combined rate is often closer to seven to nine percent, varying by location. It’s on the higher end in the Atlanta metro area. You’ll file and remit what you collect on a schedule the state assigns based on your sales volume.

• If you have employees, you’ll also need to register for a state income tax (SIT) withholding account through GTC. Georgia has a flat rate of 4.99 percent. The employer handles withholding the correct amount of state income tax withholding from each paycheck and remitting it to the state on time.
• Set up these accounts early in the business formation process so you don’t have to scramble later. The good news is you can manage sales tax, withholding, and your other obligations in one place through GTC.
• One thing the state registration doesn’t cover is local licensing. Most Georgia cities and counties require businesses to obtain an occupation tax certificate — often called a business license — before operating within their limits.

The cost and process vary by jurisdiction and are usually based on factors such as your business type, location, and sometimes your number of employees or gross receipts. Will you be operating in Atlanta or another major metro? Check directly with your city or county government, since you may need this certificate in hand before you legally open your doors.

Prepare for hiring and Georgia payroll compliance

At this point, your business is registered, and you’re ready to move forward with building it. That comes with a few additional requirements around hiring and payroll.

• For example, you’ll need to register for unemployment insurance (SUI) with the Georgia Department of Labor. There’s an unemployment tax that employers are entirely responsible for. New businesses are generally assigned the standard new-employer rate of 2.7 percent. That rate can change over time based on your company’s actual financial numbers. The state issues annual rate notices through your online employer portal.
• Once you start hiring, you’ll need to report each new employee to the state within 10 days of their first day. You can do that through the Georgia New Hire Reporting Center. This is part of how the state enforces child support orders. Keep in mind that payroll companies like OnPay handle new reporting for you.
• You’ll also need workers’ compensation insurance if you have three or more employees. This includes seasonal and part-time workers. Once this is all in place, the administrative work moves to the ongoing process of paying people accurately and on time.

Stay compliant with annual Georgia requirements

At this point, you’ve got everything in place to start running your business. But you’ll need to do a little upkeep each year to remain in good standing. For example, every Georgia LLC and corporation must file an annual registration with the Secretary of State between January 1 and April 1, along with a $60 fee.

• Your first filing is due the year after you form.
• New corporations have a tighter first deadline, though, they must file an initial annual registration within 90 days of incorporating.
• Georgia also lets you file for up to three years at once, which can be a convenient way to stay ahead of the deadline if your business is stable.