Georgia charges $100 to form your LLC. After that, $60 a year to keep it active. That’s it for state-level mandatory fees. No franchise tax. No annual minimum tax. No LLC-specific levy that shows up and ruins your year.
If you’re coming from California (where the state charges $800 a year just for existing), that probably sounds too good. It’s not. Georgia genuinely doesn’t impose those fees on LLCs.
What you do owe depends on how your LLC is classified for tax purposes — and that’s what this guide covers. Four classifications, each with different forms, different rates, and different deadlines. Most small LLCs fall into the simplest category and pay tax exactly once a year on a personal return.
Disclaimer: This guide covers general tax rules for Georgia LLCs. It’s not tax or legal advice. Your situation may differ — consult a CPA or tax attorney before making decisions about elections, deductions, or estimated payments.
Good News — Georgia Has No LLC Franchise Tax
California charges every LLC $800 per year, whether you made money or not. Texas has a margin tax that applies once you hit a certain revenue threshold. Delaware has a franchise tax that can balloon based on authorized shares.
Georgia has none of that for LLCs.
Your only mandatory ongoing state obligation is the $60 Annual Registration fee (that’s a $50 base fee plus a $10 service charge), filed with the Georgia Secretary of State’s Corporations Division through the eCorp portal. It’s due between January 1 and April 1 each year, starting the year after you form your LLC.
Miss that deadline and your LLC goes into “Administrative Dissolution” — which is fixable but annoying and costs more to clean up. Set a calendar reminder.
That $60 annual fee is for the registration, not a tax. The actual taxes you owe — income tax, self-employment tax, potentially sales tax — are separate. But the absence of a franchise tax is a real structural advantage that keeps Georgia’s ongoing LLC costs among the lowest in the country.
How Your LLC Is Taxed Depends on Its Classification
The IRS doesn’t recognize LLCs as a tax category. So every LLC gets mapped to an existing tax structure — either by default or by election. That mapping determines which forms you file and what rate applies.
There are four possibilities.
Single-Member LLC (Disregarded Entity)
The most common setup for solo founders. By default, a single-member LLC is a disregarded entity — the IRS treats it as if the LLC doesn’t exist for tax purposes. All income and expenses flow directly to your personal return.
Federally, you report business income on Schedule C (attached to your Form 1040). Georgia follows this treatment. You pay Georgia income tax on your net business income as part of your personal state return, Form 500.
No separate business return. No additional LLC-specific forms. Just your personal return with Schedule C attached.
Multi-Member LLC (Partnership)
If your LLC has two or more members, it’s taxed as a partnership by default. This means:
- Federally: File Form 1065 (Partnership Return). Each member receives a K-1 showing their share of income.
- Georgia: File Georgia Form 700 (Partnership/Fiduciary Return). Members report their K-1 income on their personal Georgia Form 500.
The LLC itself doesn’t pay income tax — but it does have a filing requirement. The return is due by the 15th day of the third month after the tax year ends (March 15 for calendar-year LLCs).
LLC Electing S-Corp Status
Any LLC can elect to be taxed as an S-Corporation by filing IRS Form 2553. Georgia respects this election automatically.
- Federally: File Form 1120-S
- Georgia: File Georgia Form 600S
The main reason people do this is to reduce self-employment tax (more on that below). But it adds complexity — payroll, reasonable compensation requirements, additional filings. Worth it at higher income levels. Not worth it for everyone.
LLC Electing C-Corp Status
Rare for small businesses, but possible. File IRS Form 8832 to elect C-Corp treatment.
- Georgia: File Georgia Form 600
- Tax rate: Georgia’s corporate income tax rate is 5.75% on net income
C-Corp status creates double taxation (income taxed at corporate level, then again when distributed to owners), which is why most small LLCs avoid it. It’s primarily used by businesses planning to raise venture capital or pursue a specific ownership structure.
The bottom line: Most solo founders and small teams are single-member LLCs or multi-member LLCs taxed as partnerships. Those are the two setups where taxes are simplest.
Georgia State Income Tax
For pass-through LLCs — which covers disregarded entities and partnerships — you pay Georgia income tax on your share of business income through your personal return.
Georgia uses a graduated income tax rate for individuals:
| Taxable Income | Rate |
|---|---|
| $0 – $750 (single) | 1% |
| $751 – $2,250 | 2% |
| $2,251 – $3,750 | 3% |
| $3,751 – $5,250 | 4% |
| $5,251 – $7,000 | 5% |
| Over $7,000 | 5.75% |
(Georgia uses different brackets for married filing jointly — check the Georgia Department of Revenue for the full table.)
Most LLC owners with meaningful income will hit the top bracket quickly. For practical planning purposes, assume 5.75% on your net business income at the state level.
Important deadline: Georgia’s individual income tax return is due April 15, matching the federal deadline. (Some older resources cite May 1 — Georgia moved its deadline to align with federal.) Confirm the current year’s deadline at dor.georgia.gov.
Estimated Quarterly Payments
If you expect to owe more than $500 in Georgia income tax for the year (after withholding), you’re required to make quarterly estimated payments. The payment schedule mirrors federal:
- April 15
- June 15
- September 15
- January 15 (of the following year)
Underpay and you’ll owe a penalty. Most LLC owners who aren’t withholding from a W-2 job need to make these. If your first year of business is profitable, don’t wait until April to think about this.
Sales Tax
Not every LLC collects sales tax — but if you sell tangible personal property in Georgia, you do.
Georgia’s base sales tax rate is 4% at the state level. Counties add their own rates on top, which means the effective rate varies by location. Most Georgia counties land between 7% and 9% combined when you add local rates.
A few specifics:
- Atlanta (Fulton County): 8.9%
- Savannah (Chatham County): 7%
- Columbus (Muscogee County): 8%
Check the Georgia Tax Center for the exact rate in your county.
Register for sales tax through the Georgia Tax Center at gtc.dor.georgia.gov. You’ll get a Georgia Sales and Use Tax Certificate of Registration. File monthly, quarterly, or annually depending on your sales volume — Georgia assigns a filing frequency when you register.
Services are generally exempt. If your LLC sells services — consulting, design, coaching, cleaning — you typically don’t collect Georgia sales tax. There are exceptions (certain repair services, for example), so verify your specific service type if you’re unsure.
Selling products online to Georgia customers? You have economic nexus once you exceed $100,000 in sales or 200 transactions in a calendar year. At that point, you collect and remit Georgia sales tax even without a physical presence in the state.
Self-Employment Tax
Here’s the tax that catches single-member LLC owners off guard.
When you work for an employer, they pay half of your Social Security and Medicare taxes (7.65%). You pay the other half through payroll withholding. When you own an LLC and work in it, there’s no employer — so you pay both halves. That’s the self-employment tax.
Federal SE tax rate: 15.3%
- 12.4% Social Security (on net earnings up to $176,100 in 2025)
- 2.9% Medicare (no cap — and an additional 0.9% once you exceed $200,000 as a single filer)
SE tax applies to net earnings from your LLC. If your LLC made $80,000 in revenue and had $20,000 in expenses, you pay SE tax on $60,000.
That’s on top of your federal and state income tax. For many LLC owners, SE tax is their largest tax bill.
The S-Corp Election and SE Tax
This is why the S-Corp election exists. If your LLC elects S-Corp status, you split your income into two buckets:
- Reasonable salary (subject to payroll taxes — essentially SE tax)
- Distributions (not subject to SE tax)
If you’re earning $80,000 net profit and pay yourself a $50,000 salary, only the $50,000 is subject to payroll taxes. The $30,000 distribution isn’t.
The savings can be meaningful at higher income levels. But the S-Corp election requires running payroll, filing quarterly payroll returns, and paying a higher accountant fee. The break-even point is generally around $40,000–$50,000 in net profit. Below that, the cost of compliance often exceeds the tax savings.
Don’t make this election without talking to an accountant first. The “reasonable salary” requirement has teeth — the IRS pays attention to S-Corp owners who pay themselves $1 to avoid payroll taxes.
Local Business Taxes and Licenses
Georgia doesn’t have a statewide business license. Instead, cities and counties issue their own Occupation Tax Certificates (sometimes called business licenses), and most charge an annual fee based on your business type, number of employees, or gross receipts.
Rates and structures vary significantly:
- Atlanta: Occupation tax based on profitability class and number of employees
- Savannah: Flat fee structure for most business types
- Augusta: Gross receipts-based fee schedule
This is separate from the $60 Annual Registration you pay to the Georgia Secretary of State. That fee keeps your LLC legally active in Georgia. The local occupation tax certificate lets you operate in a specific city or county.
If you operate a home-based business, your home county or city still typically requires a certificate. If you operate in multiple locations, you may need multiple certificates.
Check your specific city or county website for current rates and application requirements. Most applications are now online.
FAQ
Does Georgia have a franchise tax for LLCs?
No. Georgia does not impose a franchise tax on LLCs. Your only mandatory annual state fee is the $60 Annual Registration (filed between January 1 and April 1 each year through the eCorp portal). This makes Georgia significantly cheaper to maintain an LLC in than states like California ($800/year) or Texas (margin tax above certain revenue thresholds).
When are Georgia business taxes due?
It depends on your LLC’s tax classification:
- Single-member LLC (personal return): April 15 (Georgia Form 500, matching federal)
- Multi-member LLC (partnership return): March 15 (Georgia Form 700)
- S-Corp election: March 15 (Georgia Form 600S)
- Quarterly estimated payments: April 15, June 15, September 15, January 15
Always verify current deadlines at dor.georgia.gov — deadlines occasionally shift.
Should my LLC elect S-Corp status?
Probably not until you’re consistently netting $40,000–$50,000 or more from the business. Below that threshold, the cost of running payroll and filing additional returns typically cancels out any SE tax savings. Above it, the math often favors the election. Run the numbers with a CPA before filing Form 2553 — the decision isn’t easily reversed.
How does a single-member LLC file taxes in Georgia?
A single-member LLC is a disregarded entity. You report all business income and expenses on Schedule C (federal) and include that income on your Georgia Form 500 (personal return). No separate LLC-level state return is required. If your net profit exceeds roughly $8,700, you’ll also owe federal self-employment tax (15.3% on net earnings).
Do I need to collect sales tax?
Only if you sell tangible personal property. Service businesses (consulting, design, professional services) are generally exempt from Georgia sales tax. If you sell physical products — either in person or online to Georgia customers — register through the Georgia Tax Center. Online sellers hit nexus at $100,000 in sales or 200 transactions per year.
What’s the Georgia corporate income tax rate?
Georgia’s corporate income tax rate is 5.75% on net taxable income. This applies to LLCs that have elected C-Corp status (Form 8832). Most small LLCs don’t elect this — pass-through taxation is generally more advantageous for owner-operators.
What to Do Next
If you’re a single-member LLC just starting out: file Schedule C with your federal return, include that income on Georgia Form 500, pay the $60 Annual Registration by April 1, and make quarterly estimated payments if you expect to owe more than $500 in Georgia tax. That covers your base obligations.
If your business is growing and you’re netting over $50,000, talk to a Georgia CPA about the S-Corp election. The conversation costs a few hundred dollars. The annual savings can be several times that.
And if you haven’t formed your LLC yet, the Georgia eCorp portal handles it for $100 online. Processing takes about 7 business days. The tax situation you just read about starts the day your LLC is active — so it’s worth understanding before you file, not after.