How to Start an S Corp in Georgia: Federal Election, Form 600S, Net Worth Tax and the Entity-Level Election
If you are looking for how to start an S corp in Georgia, the first thing to know is that there is no Georgia S corp application. S status is a federal tax election made with the IRS. Georgia then follows that federal treatment and requires its own annual return, Form 600S, plus a net worth tax that many owners do not expect. This guide covers the order of operations: form the entity, make the federal election, then handle the Georgia filings.
This article is informational content, not legal or tax advice. Entity choice and S election decisions depend on your specific facts, so talk with a Georgia business attorney and a CPA before you file.
S Status Is a Federal Election, Not a Georgia Filing
The Georgia Secretary of State has no S corporation form. S status is elected on IRS Form 2553, available at irs.gov. Filing Georgia formation documents does not make you an S corp, and filing Form 2553 does not create the company. The business has to exist first.
The Georgia formation filings are:
- LLC: Articles of Organization, $110 total ($100 filing fee plus a $10 service charge), filed online through the Georgia Secretary of State eCorp portal or on paper.
- Corporation: Articles of Incorporation, $110 total, plus a newspaper notice of incorporation. The notice is about $40, but confirm the exact amount with the county legal organ.
Online filings take about 7 to 10 business days and paper filings about 15 business days. Expedited review costs $120 (2 business days), $275 (same day if received by noon) or $1,200 (one hour on business days). If you want to hold a name while you prepare, a name reservation lasts 30 days and costs $35.
An LLC that wants S treatment files Form 2553 with the IRS. That election is also treated by the IRS as an election to be taxed as a corporation. The Form 2553 deadline is generally two months and 15 days after the start of the tax year the election is to take effect. Confirm that deadline and the correct mailing or fax destination in the current Form 2553 instructions before you send anything.
What Georgia Requires: Form 600S
A Georgia S corporation, including an LLC that elected S status, files Form 600S with the Georgia Department of Revenue at dor.georgia.gov. The company's income passes through to its shareholders, who pay Georgia tax on their own returns at the state's flat rate: 5.19% for tax year 2025 and 4.99% for tax year 2026. Georgia income tax is one flat rate, not a graduated schedule, and the corporate rate equals the individual rate.
The Net Worth Tax Surprises Most S Corp Owners
This is the item that catches owners off guard. An S corporation, and an LLC that has elected corporate treatment, reports net worth tax on Form 600S (Schedule 3). The tax is not based on income or on Georgia gross receipts. It is a table keyed to net worth, running from $0 to $5,000 a year.
The schedule starts with no tax when net worth does not exceed $100,000, then rises in steps:
| Net worth | Annual tax |
|---|---|
| $100,000 or less | $0 |
| Over $100,000 up to $150,000 | $125 |
| Over $150,000 up to $200,000 | $150 |
| Over $200,000 up to $300,000 | $200 |
| Over $300,000 up to $500,000 | $250 |
| Over $500,000 up to $750,000 | $300 |
| Over $750,000 up to $1,000,000 | $500 |
| Over $22,000,000 | $5,000 |
The table continues in steps between those rows. Check the current Form 600S instructions for every bracket rather than relying on a summary. The tax is due on the 15th day of the third month after the start of the tax year, which is March 15 for calendar-year filers. A new corporation that has existed for less than six months in its first period pays 50% of the tax.
The Optional Entity-Level Election (HB 149 of 2021)
Under HB 149 of 2021, a Georgia S corporation may elect to pay Georgia income tax at the entity level instead of passing the tax through to its owners. You make the election by checking the box on Form 600S by the original or extended due date. The election is irrevocable for that year and binds all owners, so every shareholder is affected by the decision.
Do not assume a rate. Use the rate the Department of Revenue publishes for the year, and confirm both the rate and the mechanics with the Georgia Department of Revenue before you choose the election. Whether it helps depends on your owners' individual situations, which makes it a good question for your CPA.
Ongoing Costs to Budget For
Beyond the formation fee, plan for these recurring items:
- Annual Registration: $60 ($50 plus a $10 service charge), filed between January 1 and April 1 each year. A corporation files its first Annual Registration within 90 days of incorporating (a corporation formed after October 1 files between January 1 and April 1 of the next year). An LLC files its first one in the year after it forms.
- Late Annual Registration: a $25 penalty.
- Reinstatement: an entity that stays delinquent can be administratively dissolved after notice and a cure period. Reinstatement costs about $260.
- Form 600S and net worth tax: prepared and filed each year, with the net worth schedule described above.
Confirm the current Annual Registration window and late penalty with the Georgia Secretary of State Corporations Division.
When S Status Helps and When It Adds Work
An S corporation can reduce self-employment tax, but only if the structure is run correctly. An owner who works in the business must be paid a reasonable salary through payroll. Self-employment tax is 15.3% on 92.35% of net earnings, not 15.3% of profit, and the Social Security wage base is $184,500 for 2026. Owners who take a salary and then distribute profits are the ones who gain from the structure, but a salary that is too low invites scrutiny.
S status also adds work. You will run payroll, handle withholding, and file a separate Form 600S every year. If you have employees, you must register with the Department of Revenue through the Georgia Tax Center. Officers of a corporation count as employees when you measure the workers' compensation threshold. Georgia requires workers' compensation coverage at three or more workers, including part-time workers.
Steps to Start an S Corp in Georgia, in Order
- Check the name. Search the Georgia business search. The name must include a limited liability company designator or corporate designator and be distinguishable on state records.
- File the formation documents. Articles of Organization or Articles of Incorporation, $110 each, with the Secretary of State. For a corporation, also publish the notice of incorporation.
- Register the entity with the Department of Revenue. Do this if you will sell taxable goods or have employees.
- Get the local license. Georgia has no general statewide business license. The local license is an occupation tax certificate issued by the city, or by the county for unincorporated areas. A business inside a city pays the city, not the county. Each of the 159 counties and about 537 cities sets its own formula and deadlines. Private employers with more than 10 employees must file an E-Verify affidavit to get the certificate (O.C.G.A. 36-60-6). Confirm the requirements with your city or county.
- File IRS Form 2553. Do this before the deadline for the tax year you want the election to take effect.
- Calendar the recurring Georgia filings. Annual Registration between January 1 and April 1, Form 600S with the net worth tax by March 15 for calendar-year filers, and a yearly decision on the entity-level election.
Get Professional Help Before You Elect
Switching to S status is hard to undo cleanly, and the Georgia net worth tax and entity-level election add decisions that depend on your numbers. The Georgia Small Business Development Center at the University of Georgia can help you think through the business side, but for the tax decisions, work with a CPA who handles Georgia returns and a business attorney for the entity documents.
Reminder: this guide is informational content, not legal or tax advice. Rates, fees and deadlines change, so verify each figure with the Georgia Secretary of State, the Georgia Department of Revenue and the IRS before you act.