How to Register a Business in the US from Georgia

Step 1: Benefits of starting your US business from Georgia

Starting a US business from Georgia offers numerous advantages that can significantly contribute to the success and growth of your enterprise. One of the most compelling benefits is the favorable business environment characterized by competitive tax rates, a business-friendly regulatory climate, and various incentives for startups and expanding companies. Georgia’s state government actively supports economic development through grants, tax credits, and financial assistance programs designed to foster innovation and entrepreneurship.

In addition to financial incentives, Georgia boasts a strategic geographic location with convenient access to major markets both domestically and internationally. The state is home to one of the busiest airports in the world, Hartsfield-Jackson Atlanta International Airport, as well as a robust network of highways and railways. This extensive transportation infrastructure ensures that businesses operating in Georgia can efficiently reach customers and suppliers, which is crucial for maintaining a competitive edge. Moreover, Georgia's diverse and highly skilled workforce, supported by world-class educational institutions, provides access to the talent needed to drive business growth and innovation.

Step 2: How to start your US business from Georgia

Starting a US business from Georgia can be a rewarding venture, offering opportunities to reach a large and diverse market. The first step is conducting comprehensive research to understand the market demand, competition, and regulatory environment for your business idea. It's essential to create a robust business plan that outlines your objectives, target audience, marketing strategy, and financial projections.

Once you've solidified your business plan, you will need to choose a business structure such as a sole proprietorship, partnership, corporation, or LLC. This decision will affect your taxation, liability, and other legal obligations. Registering your business name with the appropriate government authorities is crucial. You may also need to apply for an Employer Identification Number (EIN) from the IRS. Additionally, ensure you obtain any necessary permits or licenses specific to your industry. Setting up a US-based bank account and understanding local tax obligations are also important steps for managing finances effectively.

Step 3: Opening a Business Bank Account

A business bank account is a separate account that is used exclusively for business transactions. But why is it important to open a business bank account?

Keeping your personal and business finances separate is crucial. A dedicated business bank account allows you to do just that, making it much easier to track your business’s income and expenses. This clear separation translates to simpler tax reporting come tax season.

But the benefits go beyond bookkeeping. Having a separate account can provide legal protection. It establishes your business as a distinct entity from yourself. In the unfortunate event of a lawsuit or bankruptcy, this separation can help shield your personal assets from business liabilities.

Furthermore, a business bank account can boost your credibility and project professionalism.

It demonstrates to clients and vendors that you take your business seriously and are committed to maintaining accurate financial records. This can be especially important in establishing trust with potential partners.

Finally, a business bank account is essential for accepting payments, even if you utilize a merchant account. Whether you use doola or another service, funneling those customer funds into a dedicated business account is necessary.

doola partners with banks that allow you to open a bank account remotely from anywhere in the world, like Mercury. Shop around and compare different banks’ fees and services.

Look for a bank that offers the features you need, such as online banking, mobile banking, or overdraft protection.

You may also want to consider working with a bank that specializes in small business banking.

Step 4: Understanding Your Compliance Requirements in Georgia

Understanding Compliance Requirements for Running a US Business in Georgia

Starting and running a business in Georgia requires understanding a variety of compliance requirements. These requirements are essential to ensure that your business operates legally and can avoid fines or other penalties. Here are some key considerations to keep in mind:

1. Business Structure

The first step in ensuring compliance is choosing the right business structure. The common types of structures in Georgia include:

• Sole Proprietorship: Simplest form with minimal regulatory requirements.
• Partnership: Requires a partnership agreement and may need registration with the state.
• Corporation: Subject to corporate laws and must register with the Georgia Secretary of State.
• Limited Liability Company (LLC): Hybrid structure combining elements of partnership and corporation, also requiring state registration.

2. State Registration

Most businesses in Georgia must register with the Georgia Secretary of State. This process usually involves:

1. Choosing a unique business name.
2. Filing articles of incorporation or organization.
3. Paying the required fees.

3. Licenses and Permits

Depending on your industry and location, you may need various licenses and permits. Common licenses include:

• Business Operating License: Required for general business operations.
• Sales Tax Permit: Necessary if selling taxable goods or services.
• Professional Licenses: Required for professions like healthcare, legal services, and construction.

4. Tax Obligations

Understanding federal, state, and local tax obligations is crucial. In Georgia, these may include:

• Federal Taxes: Income tax, employment tax, and others as required by the IRS.
• State Taxes: Georgia income tax, sales tax, and other state-specific taxes.
• Local Taxes: County or city taxes may also apply.

5. Employment Laws

If you plan to hire employees, compliance with employment laws is mandatory. Key considerations include:

• Fair Labor Standards Act (FLSA): Governs minimum wage, overtime pay, and recordkeeping.
• Occupational Safety and Health Act (OSHA): Ensures workplace safety and health standards.
• Unemployment Insurance: Registration and payment of unemployment insurance tax.

6. Ongoing Compliance

Compliance is not a one-time task but an ongoing requirement. Regular actions include:

• Annual reporting and renewals with the Georgia Secretary of State.
• Staying updated on changes in laws and regulations.
• Maintaining accurate and thorough business records.

Understanding and adhering to compliance requirements is key to the successful operation of your business in Georgia. It's often beneficial to consult with legal and financial professionals to ensure you meet all necessary obligations.

doola offers a Total Compliance package, including bookkeeping services, to help you stay on top of your compliance requirements. This ensures your business operates smoothly and adheres to all legal and regulatory standards.

Step 5: Understanding Your Tax Obligations in Georgia

Understanding Tax Obligations for Running a Business in Georgia, USA

Starting or running a business in Georgia, USA requires a clear understanding of various tax obligations. These tax responsibilities can significantly impact your financial planning and compliance strategy. Below are some key considerations:

1. State Income Tax

Businesses operating in Georgia must pay state income tax. This typically affects corporations, partnerships, and LLCs. The state income tax rate for corporations in Georgia is a flat 5.75%. It's important to stay updated with the Georgia Department of Revenue's guidelines to ensure compliance.

2. Sales and Use Tax

If your business sells tangible goods or certain services, you must collect sales tax from customers. The base state sales tax rate in Georgia is 4%, but local jurisdictions may impose additional sales taxes, resulting in a total rate ranging from 6% to 8%. Understanding where your customers are located and correctly applying the local rates is essential.

3. Property Tax

Property taxes in Georgia apply to real property (land and buildings) and personal property (equipment, machinery, etc.) used in your business. Each county in Georgia assesses property tax rates differently, so consult your local county tax assessor's office for accurate information.

4. Franchise Tax

Georgia imposes a net worth tax, also known as the franchise tax, on corporations. This tax is based on the corporation's net worth and is calculated annually. It's crucial to understand the specific requirements and ensure timely payment to avoid penalties.

5. Payroll Taxes

If you have employees, you must handle federal and state payroll taxes. This includes withholding federal and state income tax, Social Security, Medicare, and unemployment taxes. Register with the Georgia Department of Labor and file regular reports for state unemployment insurance taxes.

6. Business Licensing and Fees

Depending on your business type and location, you may need to obtain various licenses and permits. Certain professions and industries have additional regulatory requirements that may include specific fees and taxes. Check with local municipalities and state agencies to ensure all necessary licenses are acquired.

7. Estimated Taxes

Many small business owners in Georgia need to make quarterly estimated tax payments. This ensures that your state and federal tax liabilities are met throughout the year without facing large dues during tax season. Accurate bookkeeping and projections can help you manage these payments effectively.

By understanding and managing these tax obligations, you can ensure your business in Georgia remains compliant and financially healthy.

It’s a good idea to consult with a tax professional or an accountant (or to hire these roles in-house) to make sure you’re not missing anything.

doola's Total Compliance package can handle your tax filings for you, ensuring you remain compliant with federal, state, and local tax requirements.

Step 6: How doola Can Assist

doola simplifies the incorporation and setup process for your company, ensuring you’re ready to charge customers, hire your team, and raise funds as quickly as possible.

Fill out your company details in the doola form in less than 10 minutes. Then, we’ll incorporate your company in any of the 50 US states, get your IRS tax ID (EIN) for you, and file your 83(b) tax election if needed. 

doola can also help you open a bank account and start accepting payments even before the IRS assigns your tax ID.

doola founders also gain access to exclusive discounts at leading software partners, one-click onboarding with select partners, and free CPA consultations.

The doola Application

It takes less than 10 minutes to fill out the details of your new company. You’ll choose your company structure (C corporation, limited liability company) and pick a company name.

Our instant company name checker will let you know if it’s available before you submit your application. You’ll add an address and phone number and review and sign your EIN SS4 letter in one click.

Forming the Company

doola will review your application and file your formation documents in the state within one business day. doola charges $297 for our Starter Plan and your first year of registered agent services (a state compliance requirement), and $297 each year thereafter to maintain your registered agent. 

You can also opt for our Total Compliance plan.

Getting Your IRS Tax ID (EIN)

After your formation in the state is complete, doola will file for your company’s IRS tax ID. Founders who provide a US Social Security number, US address, and US phone are eligible for expedited processing. All other users will receive standard processing. 

For standard orders, doola will fax your form SS4 to the IRS and then call the IRS to retrieve the EIN for you to expedite the process if we can, using real-time IRS data to determine when your filing is likely to be available.

Filing Your 83(b) Tax Election

Many startup founders choose to file an 83(b) tax election to potentially save on future personal taxes. doola can file and mail your 83(b) tax election in one click for both US and non-US founders — no trip to the post office required.

We’ll file it using USPS Certified Mail with tracking, and you’ll get a copy of your signed 83(b) election and proof of filing in your Dashboard.

Partner Perks and Discounts

doola partners with a range of third-party tools to offer special pricing or access to founders. We offer discounts on engineering, tax and finance, compliance, and operations tools, including Amazon Web Services.

doola also partners with Mercury to provide faster, automatic onboarding using your doola company information so you can get ready to bank and fundraise even faster.

Founders may also access discounts on other doola products, including up to one year of free credits toward payment processing.

Read our guides for startup founders, or learn more about doola and how we can help you set up your new business quickly and easily.

Turn your entrepreneurship dream into reality today!

We do our best to provide accurate and up to date information, however the information provided here are just guidelines. Please speak with a tax and compliance professional in your country