Georgia LLC Business Tax Requirements

Filing fee: $100 (online) / $110 (paper)

Processing time: 7–10 business days (standard); 1–2 business days (expedited, additional fee)

State agency: Georgia Secretary of State, Corporations Division

Annual report due: Annual registration due April 1 each year; $50 fee

State tax rate: Individual income tax: 5.49% flat rate (2024); Corporate income tax: 5.75% flat rate

A Georgia LLC doesn't pay income tax at the business level. Instead, profits pass through to the owners, who report them on their personal tax returns and pay state and federal income tax there. On top of that, Georgia LLCs may owe sales tax, a corporate net worth tax, and an annual registration fee.

Most Georgia LLC owners deal with 4 main tax obligations: state income tax on their share of profits, self-employment tax on those same profits, federal income tax, and sales tax if they sell taxable goods or services. If you have employees, payroll taxes come into play too.

• Georgia state income tax on owner profits (Form 500)
• Self-employment tax on net earnings (Schedule SE)
• Federal income tax reported on your personal return
• Georgia sales and use tax if you sell taxable goods or services
• Georgia corporate net worth tax if your LLC is taxed as a corporation
• Georgia annual registration fee ($50, due April 1)
• Payroll and unemployment taxes if you have employees

State income tax

Georgia taxes individual income at a flat rate of 5.49% as of 2024, with the rate scheduled to decrease gradually in future years. As an LLC owner, you report your share of business profits on Georgia Form 500 — the same return you use for your personal income. The LLC itself doesn't file a separate state income tax return unless it has elected to be taxed as a corporation.

Multi-member LLCs taxed as partnerships file Georgia Form 700 (Partnership Tax Return) and issue each member a Georgia Schedule K-1 showing their share of income. Each member then reports that amount on their own Form 500. One thing that catches people off guard: Georgia requires estimated tax payments if you expect to owe $500 or more for the year, so plan for quarterly payments rather than one lump sum at filing.

Georgia sales and use tax

Georgia's statewide sales tax rate is 4%, but most counties add a local option sales tax, bringing the combined rate to 7%–9% depending on where your business is located. If your LLC sells taxable goods or certain services in Georgia, you need to register with the Georgia Department of Revenue and collect sales tax from customers.

Use tax applies when you buy taxable items without paying Georgia sales tax — for example, purchasing inventory from an out-of-state vendor. You're responsible for remitting use tax directly to the state. A tax professional can help you figure out which of your sales are taxable and what rate applies in your county.

Georgia corporate net worth tax

Georgia imposes a corporate net worth tax on LLCs that have elected to be taxed as a C Corporation or S Corporation. The tax is based on the net worth of the business as reported on the Georgia corporate income tax return (Form 600). Standard pass-through LLCs — those taxed as sole proprietorships or partnerships — don't owe this tax.

The net worth tax rate is tiered and relatively modest for most small businesses, but it's worth knowing about if you're considering a corporate tax election. Talk to a tax professional before making that election — the trade-offs between pass-through taxation and corporate taxation depend on your specific income level and business structure.

Georgia annual registration fee

Every Georgia LLC must file an annual registration with the Georgia Secretary of State and pay a $50 fee. The deadline is April 1 each year. This isn't a tax — it's a state filing requirement to keep your LLC in good standing — but it's worth including in your annual budget alongside your tax obligations.

If you miss the April 1 deadline, Georgia charges a late fee and your LLC can lose its good standing status. Filing online through the Georgia Secretary of State's website is the fastest way to stay current.

Federal tax requirements

At the federal level, how your LLC is taxed depends on how many members it has and whether you've made a tax election. By default, a single-member LLC is treated as a sole proprietorship and reports business income on Schedule C (Form 1040). A multi-member LLC is treated as a partnership and files Form 1065 with the IRS, issuing each member a Schedule K-1.

LLC owners who are active in the business also owe self-employment tax — currently 15.3% on net earnings up to the Social Security wage base, and 2.9% on earnings above it. This covers Social Security and Medicare contributions that an employer would otherwise split with an employee. If you elect S Corporation status using Form 2553, you pay yourself a reasonable salary as a W-2 employee and only that salary is subject to self-employment tax — which can reduce your overall tax bill at higher income levels. Talk to a tax professional before making that election.

Employer and payroll taxes

If your Georgia LLC has employees, you'll need an Employer Identification Number (EIN) from the IRS, and you'll be responsible for withholding and remitting federal and state payroll taxes. That includes federal income tax withholding, Social Security and Medicare (FICA) taxes, and Georgia state income tax withholding.

Georgia also requires employers to register with the Georgia Department of Labor and pay state unemployment insurance (SUI) tax on wages paid to employees. The SUI rate varies based on your claims history. Federal unemployment tax (FUTA) is separate and filed annually with the IRS on Form 940. Payroll tax rules have enough moving parts that most small business owners work with a payroll service or accountant to stay on track.