Georgia LLC vs Corporation: Fees, Net Worth Tax, Publication and Which Structure Fits
If you are choosing between a Georgia LLC or corporation, here is the short answer. Most small service, retail and local businesses should form an LLC. It has fewer formalities, lower recurring costs and a simpler tax filing for a typical owner. A corporation fits better when you plan to bring in outside investors, issue stock or want the formal governance structure investors expect. The state filing fee is the same for both: $110. The difference shows up after formation. A corporation must publish a notice of incorporation and owes the Georgia net worth tax, which a typical single-member or partnership LLC does not.
This guide is informational content, not legal or tax advice. Before you choose a structure, especially if you have more than one owner, plan to raise money or are considering an S election, talk with a Georgia business attorney and a certified public accountant (CPA).
Georgia LLC vs Corporation at a Glance
The table below compares the two structures on the factors that affect cost and paperwork. Confirm current amounts with the Georgia Secretary of State and Department of Revenue before you file.
| Factor | Georgia LLC | Georgia Corporation |
|---|---|---|
| Formation document | Articles of Organization | Articles of Incorporation |
| State filing fee | $110 ($100 fee plus $10 service charge), online or paper | $110 ($100 fee plus $10 service charge), online or paper |
| Newspaper notice at formation | None | Published once a week for two weeks in the county legal organ, typically about $40 (the newspaper sets the price) |
| Name reservation | $35 for 30 days | $35 for 30 days |
| Annual registration | $60 ($50 plus $10), January 1 to April 1 | $60 ($50 plus $10), January 1 to April 1 |
| First annual registration | Year after formation | Within 90 days of incorporating (a corporation formed after October 1 files between January 1 and April 1 of the next year) |
| Georgia net worth tax | None for a typical single-member or partnership LLC | Yes: $0 to $5,000 by net worth (Form 600) |
| Income tax rate | Income passes through to owners at the flat rate: 5.19% for 2025, 4.99% for 2026 | Corporate rate equals the individual rate: 5.19% for 2025, 4.99% for 2026 |
| Typical Georgia return | Form 700 (partnership) or owner's Form 500 (single-member) | Form 600 |
| Governance | Operating agreement and few formalities | Bylaws, directors, officers, shareholders and annual meetings with minutes |
| Outside investor expectations | Less common for equity raises | Usually expected |
Formation Fees and the Newspaper Notice
Both entities file through the Georgia Secretary of State Corporations Division. The LLC files Articles of Organization and the corporation files Articles of Incorporation, both through eCorp at ecorp.sos.ga.gov or on paper. Each costs $110 in total, the $100 filing fee plus a $10 service charge, and the fee is the same whether you file online or on paper.
The corporation also owes a newspaper notice of incorporation. It must run once a week for two weeks in the county legal organ. The newspaper sets the price, which is typically about $40, so ask the paper for the exact charge before you budget. An LLC has no equivalent publication requirement at formation. Do not confuse this with a trade name (DBA) notice, which is a separate filing covered below.
If you want to hold a name while you prepare paperwork, a name reservation costs $35 and lasts 30 days. Expedited review is also available: $120 for 2 business days, $275 for same-day review if received by noon, or $1,200 for one hour on business days. Online LLC filings take about 7 to 10 business days and paper filings about 15 business days. Confirm the corporation processing times with the Secretary of State.
Annual Registration and Deadlines
Both entity types file an annual registration of $60 ($50 plus a $10 service charge) between January 1 and April 1 each year. The first filing differs. An LLC files its first annual registration in the year after it forms. A corporation files within 90 days of incorporating (a corporation formed after October 1 files between January 1 and April 1 of the next year).
A late LLC filing carries a $25 penalty. An entity that stays delinquent is administratively dissolved after a notice and cure period, and reinstatement costs about $260. Check the Secretary of State for the current filing window and penalty schedule before you rely on these dates, and confirm the corporate late penalty with the agency. You can look up an entity's status in the Secretary of State business search.
Georgia Net Worth Tax LLC vs Corporation: The Difference Owners Miss
The biggest cost difference is not the filing fee. It is the tax that applies after formation.
Does the Georgia net worth tax apply to an LLC?
Usually not. Georgia levies no franchise tax on a typical single-member or partnership LLC. A corporation, and an LLC that elects corporate tax treatment, files Form 600 and pays the Georgia net worth tax under O.C.G.A. 48-13-70 to 48-13-80. The tax is $0 on net worth up to $100,000, $125 above that, and rises in steps to a maximum of $5,000. Confirm the current brackets in the Form 600 instructions from the Georgia Department of Revenue before you calculate your liability.
Income tax: one flat rate
Georgia income tax uses one flat rate for individuals and corporations: 5.19% for 2025 and 4.99% for 2026. The corporate rate equals the individual rate, so a corporation no longer pays a different income tax rate than its owners. Do not assume a rate beyond 2026 without checking the current figure. An LLC taxed as a partnership files Form 700, while a single-member LLC reports its income on the owner's Form 500.
Self-employment tax and the S election
Owners of a single-member or partnership LLC generally pay self-employment tax on net earnings. The rate is 15.3% on 92.35% of net earnings. The Social Security portion is capped at $184,500 for 2026, up from $176,100 for 2025.
An S election is a federal tax choice available to either an LLC or a corporation. It can reduce self-employment tax for owners who work in the business, because they take a reasonable salary and may take remaining profit as distributions. The savings depend on that reasonable salary. Some advisers cite about $50,000 of profit as a break-even point, but that figure is only a rule of thumb, not a Georgia or IRS threshold. Read which structure saves you more, an LLC or an S corporation before you decide.
Structure and Governance
An LLC runs on an operating agreement, which sets out how the company is managed, how profits and losses are shared and what happens if an owner leaves. It has few formal meeting or record-keeping requirements, which is why many owners prefer it.
A corporation needs bylaws, directors, officers and shareholders, and it holds annual meetings with minutes. That formality is the reason it is the structure most outside investors expect. If you plan to sell stock to people outside your immediate circle, the corporation is usually the easier path, even though it costs more to maintain.
Requirements That Apply to Both
Choosing a corporation or an LLC does not change your state and local obligations. Georgia has no general state business license. The Secretary of State issues none, and sales tax registration with the Department of Revenue is not a business license. A business registers its entity with the Secretary of State, registers with the Department of Revenue through the Georgia Tax Center if it sells taxable goods or has employees (registration is free), and then adds the licenses and permits for its activity. Georgia issues no separate resale permit. A buyer claiming a resale exemption uses Form ST-5, the certificate of exemption.
The local license is an occupation tax certificate, often called a business license. A city issues it for businesses inside city limits, and the county issues it for unincorporated areas under O.C.G.A. Title 48, chapter 13. Georgia has 159 counties and about 537 cities and towns, and each sets its own formula, deadlines and prerequisites. More than half of Georgians live outside any city, so for many owners the county is the issuer. A business inside a city pays the city, not the county. Check with the issuing government before you open.
Employers with more than 10 employees must file an E-Verify affidavit to get the local certificate under O.C.G.A. 36-60-6. Workers' compensation insurance is required at three or more workers, including part-time workers. Georgia has no state paid sick leave or family leave mandate. None of these rules depends on your entity choice.
If either entity operates under a name other than its registered name, you need a trade name registration. It is filed with the Clerk of Superior Court of the county where the business is chiefly carried on, not with the Secretary of State. Notice runs in the county legal organ once a week for two weeks. The clerk fee is about $165, plus the newspaper charge, so confirm both with your county clerk. The Secretary of State business FAQ covers the process.
Which Structure Fits
Choose an LLC if:
- You run a service, consulting, local retail or trade business with one or a few owners.
- You want lower recurring costs and minimal paperwork.
- You do not plan to sell stock or bring in investors.
- You want to avoid the corporate net worth tax, which a typical LLC does not owe.
Choose a corporation if:
- You plan to raise money from outside investors or sell stock.
- Lenders, partners or customers expect a formal structure with a board and officers.
- You are prepared for bylaws, annual meetings, minutes and the net worth tax.
- Your CPA has confirmed that corporate tax treatment fits your situation.
Whichever you choose, the formation steps are covered in how to start an LLC in Georgia and how to start a corporation in Georgia. Both structures need the local occupation tax certificate, and both need an E-Verify affidavit once the employer has more than 10 employees.
Official Resources
- Georgia Secretary of State Corporations Division: sos.ga.gov/corporations-division
- eCorp online filing: ecorp.sos.ga.gov
- Georgia Department of Revenue: dor.georgia.gov
- Georgia Small Business Development Center at the University of Georgia: georgiasbdc.org
This guide is informational only and is not legal or tax advice. Fees, deadlines and tax brackets change, so confirm current figures with the named agency. For a decision that affects your taxes or ownership, consult a qualified Georgia attorney or CPA.