Incorporate In Georgia

Georgia is known across the United States as the Peach State, and is also the famous home of one of the world's largest companies, Coca-Cola. With a diverse economy and a favorable geographic location along the eastern seaboard, Georgia is a great place to launch a business. Just how good is the situation for Georgia businesses?

As of the end of 2015, Georgia had secured the top spot for a third consecutive year in Site Selection's annual ranking of state business climates.

There were a number of factors powering Georgia's rise to and stranglehold on the top spot, and none of them was more important than the policies that encourage capital investment in companies within Georgia. What are some of the other reasons you should consider incorporating in Georgia?

Benefits of incorporating in Georgia:

Tax Climate in Georgia

Georgia does not have the same tax environment as some of the other popular states for incorporation, but it has enacted policies that lighten the burden on corporations operating within the state. For example, tax credits provide Georgia businesses the chance to minimize or even eliminate entirely the need to pay state income tax.

This applies to companies of any size. On average, tax credits can offset up to 50% of a company’s state tax liability, but there are circumstances where it can offset 100% of liability.

Examples of tax credits in the state of Georgia include Job Tax Credits, Quality Job Tax Credits, and Work Opportunity Tax credits, just to name a few. Georgia not only offers credits, it also offers exemptions that help companies save money by reducing upfront costs.

There are two forms of tax exemptions in Georgia: sales and use tax, and inventory tax. The former exemptions amount to savings of 5 to 8% on purchases, while the latter allows companies to not pay state property taxes on inventory held in factories or warehouses within the state.

Last but not least, Georgia is sweet on small businesses. There are three major business incentives that help small businesses grow within the state. These include small business tax relief (allowing for faster depreciation on equipment deductions), angel investor tax credits (encourages early investment in new firms totaling $50,000 max each year), and financing up to $250,000.

Excellent Location for Foreign Firms Incorporating in the US

Incorporating in Georgia provides a variety of benefits for foreign entrepreneurs looking to do business both in the United States and abroad.

By incorporating your business in Georgia, you have the ability to open a US bank account, which lends credibility to your business and the option of securing financing with ease, using debit cards for the business, and conducting ecommerce transactions.

Additionally, if you conduct physical operations in Georgia, you’ll find a state with the infrastructure to accommodate your needs. There are already 3,500 international firms that own and maintain facilities in the state.

Whether you’re using one of the four major US interstates that connect Georgia to 80% of the US market within two days drive, or Atlanta’s Hartsfield-Jackson International Airport, with connections to 75 countries, you’ll be able to connect your business across the country and around the globe.

Additional Benefits of Incorporation in Georgia

As always, incorporating in Georgia provides you with the opportunity to isolate your personal financial assets from those of your business. Your assets and property as an individual remain separate of those of the business, ensuring your financial well-being regardless of the business climate.

You’ll also enjoy the credibility that comes with forming a corporation or LLC in the state, and using those official titles and abbreviations in your business brand. Plus, all you need to get your brand up and running is a registered agent over the age of 18 residing in the state. You don’t have to be a resident of Georgia yourself.

Naming Regulations to Adhere to

Georgia has naming regulations in place to protect consumers and identify companies accurately.

As an LLC, you must use Limited Liability Company or Limited Company in your name, as well as applicable abbreviations. Corporations must use the terms Company, Corporation, Incorporated, or Limited in their title. If you wish to use Bank, Credit Union, Trust, or Insurance in your title, the state must first approve that selection.

Requirements for forming an LLC in Georgia:

When forming a Limited Liability Company certain steps must be taken on an ongoing basis to keep the business in compliance.

Name requirements for LLCs

LLC names are allowed to end with the terms “Limited Liability Company”, “Limited Company” or the abbreviations “Ltd. Co.”, “LLC” and “L.L.C.”. The words “Bank”, “Credit Union”, “Trust” and “Insurance” need a special approval from other state departments and/or commissioners.

LLC filing requirements

If you decide to incorporate an LLC in Georgia, then the formation document you are required to file is called the Articles of Organization. Additionally, Georgia-based LLCs are required to submit an annual report by April 1st.

Required information for the Articles of Organization

The Articles of Organization must include the name and address of a registered agent who resides in Georgia, and who is available to manage legal and tax business documentation. For more help with filing an LLC or for registered agent services contact Inc. Plan (USA).

LLC taxes and fees

Georgia LLCs will be taxed as partnerships. Therefore, LLCs will not be charged based on the net revenue, but based on their members’ income. Additionally, LLCs are required to withhold personal income taxes on payments to nonresidents.

Requirements for forming a C corporation in Georgia:

Each of the 50 American states has its requirements for incorporating. The essential requirements for C- corporations established in Georgia are as follow:

Name requirements for C corporations

The organization names allowed in Georgia must include the terms “Company”, “Corporation”, “Incorporated” or “Limited”, along with their abbreviations. However, the name must not exceed 80 characters including punctuation and spacing. The state restricts the terms “Bank,” “Credit Union,” “Trust” or “Insurance” unless the company obtains an approval by other state departments and/or commissioners.

Filing requirements in Georgia

In order to form a corporation in Georgia, entrepreneurs must file an incorporation document called Articles of Incorporation. Entrepreneurs must also submit annual report which is due on April 1st.

Required information for the Article of Incorporation

Georgia law require that the Articles of Incorporation include a listing of the company’s authorized shares along with their par value. The Articles of Incorporation must also include the name and address of a registered agent with a physical Georgia address. Inc. Plan (USA) can help you with the necessary filings and with finding qualified registered agent service.

Taxes and fees requirements

Georgia imposes corporate income tax at a rate of 6% based on the net income of the company. Additionally C-corps must pay a “net worth” tax (a franchise tax) calculated based on the company’s paid-in capital. The minimum “net worth” tax is $10 for net worth less than $10,001 and the maximum is $5000 for net worth over $22 million.

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