Sole Proprietorship in Georgia: Trade Name at the Clerk, Occupation Tax Certificate and Taxes
Sole Proprietorship in Georgia: Trade Name at the Clerk, Occupation Tax Certificate and Taxes
A sole proprietorship in Georgia needs no filing with the Secretary of State. It exists the moment you start doing business as an individual, with no formation paperwork and no state fee for the entity itself. What you do need is a short list of local and tax registrations, and the order matters. For most single-owner businesses, the sequence is: get the local occupation tax certificate, register a trade name if you operate under any name other than your legal name, add state tax and payroll registrations only if your business triggers them, and get an EIN if it helps you.
Step 1: Get your occupation tax certificate (your local business license)
Georgia has no general statewide business license. The Secretary of State issues none, and registering with the Department of Revenue for sales tax is not a business license. The license most sole proprietors need is the occupation tax certificate, which cities and counties often call a business license. It is authorized under O.C.G.A. Title 48, chapter 13.
The issuer depends on where the business is located. If your business is inside a city, the city issues the certificate and you pay the city, not the county. If you are outside any city, the county issues it. More than half of Georgians live outside any city, so for many readers the county is the issuer. Georgia has 159 counties and about 537 cities and towns, and each sets its own formula, deadlines and prerequisites. Confirm the fee, forms and due date with your city or county office before you open. For more on the license itself, see our Georgia business license guide.
Employers with more than 10 employees must file an E-Verify affidavit to get the certificate (O.C.G.A. 36-60-6). A sole proprietor with no staff files the exemption affidavit instead. The details are in our guide to E-Verify requirements for business licenses.
Step 2: Register a trade name if you use one
You need a trade name registration only if your business operates under any name other than your own legal name. If Jane Smith runs a bookkeeping business called Peach State Books, the trade name must be registered. If Jane Smith uses only her own name, no registration is needed.
Trade names are filed with the Clerk of Superior Court of the county where the business is chiefly carried on. They are not filed with the Secretary of State. File before the business starts. Georgia law (O.C.G.A. 10-1-490) also requires notice to be published once a week for two weeks in the county legal organ, which is the newspaper designated for legal notices in that county. The clerk fee is about $165 in the counties checked, and the newspaper charge is separate and varies by paper. Ask your county clerk for the exact total before you file.
If ownership of the business changes, you must file an amended registration. A business that has not registered its trade name still has valid contracts (O.C.G.A. 10-1-491), but you should register anyway, because the gap is easy to close now and awkward to explain later. For the full filing steps and costs, read our trade name filing guide.
Step 3: State registrations, only if triggered
Some state registrations depend on what your business does. You may need none of them.
- Sales tax number. Required if you sell taxable goods. Registration through the Georgia Tax Center (gtc.dor.ga.gov) is free. This is a tax registration, not a business license.
- Withholding and unemployment accounts. Needed when you hire. You register for withholding with the Department of Revenue. The Department of Labor unemployment account is triggered when you pay $1,500 in wages in a calendar quarter or employ one worker in 20 different weeks (O.C.G.A. 34-8-33). Hiring steps are covered in our guide to hiring your first employee.
Step 4: Get an EIN (optional without employees)
You do not need an Employer Identification Number if you have no employees, but many sole proprietors get one anyway. An EIN lets you open a business bank account and keep your Social Security number off client forms. See our guide to getting an EIN in Georgia.
How a sole proprietorship is taxed in Georgia
A sole proprietorship has no separate tax return. Business income and expenses go on your personal return. Georgia taxes that income at one flat rate on Form 500, the individual income tax return. Georgia does not use tax brackets.
| Tax year | Georgia individual income tax rate (flat) |
|---|---|
| 2025 | 5.19% |
| 2026 | 4.99% |
Confirm the rate for the year you file with the Department of Revenue at dor.georgia.gov. The corporate net worth tax, which ranges from $0 to $5,000 depending on net worth, applies to corporations. It does not apply to a sole proprietorship, because a sole proprietorship is not a corporation.
Federal self-employment tax
Self-employment tax is a federal tax, separate from Georgia income tax, and you owe it on top of income tax. It is 15.3% applied to 92.35% of your net earnings from self-employment, not 15.3% of net profit. The 12.4% Social Security portion applies only up to the annual wage base, which is $176,100 for 2025 and $184,500 for 2026. The 2.9% Medicare portion applies to all of your net earnings. You can deduct half of the self-employment tax when calculating your adjusted gross income.
Sales tax if you sell taxable goods
The state sales tax rate is 4%. Combined state and local rates run from 6% to 9% depending on the county and city, and Atlanta's combined rate is 8.9%. Georgia issues no separate resale permit. When you buy inventory for resale, give your supplier Form ST-5, the certificate of exemption. Out-of-state sellers must collect Georgia sales tax once they reach $100,000 of Georgia sales or 200 separate transactions.
Other requirements to check
- Workers' compensation. Required once you have three or more workers, including part-time workers.
- Leave laws. Georgia has no state paid sick leave or family leave mandate. Federal rules and local ordinances may still apply.
- Regulated trades. Occupational licenses for contractors, electricians, plumbers, cosmetology, real estate and other fields come from state boards, such as the Secretary of State Professional Licensing Boards Division. These are separate from your local certificate.
- Home food sales. Since July 1, 2025, cottage food products need no state license under HB 398. Local business licensing and zoning still apply.
What you pay to get started
| Item | Cost or requirement | Where to go |
|---|---|---|
| Secretary of State filing | None required for a sole proprietorship | Not applicable |
| Occupation tax certificate | Set by each city or county; confirm the amount | Your city or county office |
| Trade name registration | About $165 clerk fee in the counties checked, plus newspaper publication | Clerk of Superior Court in your county |
| Sales tax registration | Free | Georgia Tax Center |
The main downside: no liability protection
A sole proprietorship and its owner are the same legal person. Business debts and lawsuits can generally reach your personal assets, such as savings, a vehicle or a home, subject to Georgia's exemptions. If that risk worries you, a limited liability company separates your personal and business liability. An LLC costs $110 to form (the $100 filing fee plus a $10 service charge) and requires a $60 annual registration. Read how to start an LLC in Georgia to compare the two structures.
Official resources
- Georgia Department of Revenue: https://dor.georgia.gov/
- Georgia Tax Center (sales tax and withholding registration): https://gtc.dor.ga.gov/
- Georgia Secretary of State, Corporations Division: https://sos.ga.gov/corporations-division
- Georgia Small Business Development Center at the University of Georgia: https://www.georgiasbdc.org/
- SBA resources for Georgia: https://www.sba.gov/district/georgia
Disclaimer: This article is informational only. It is not legal, tax or accounting advice. Fees, deadlines and tax rates change, and city and county requirements vary. For complex situations, such as hiring, multistate sales or choosing between a sole proprietorship and an LLC, consult a qualified attorney or CPA.