How Much Does It Cost to Form an LLC in Georgia?

What Are the Types of LLCs in Georgia?

Georgia allows several types of LLCs, each with its own set of requirements and costs.

A single-member LLC is owned by one individual. The formation process is relatively simple and involves fewer costs compared to multi-member LLCs.

A multi-member LLC is owned by two or more individuals. This type of LLC requires more paperwork and may involve higher costs due to additional filing fees.

What Are the Formation Costs for an LLC in Georgia?

The primary cost associated with forming an LLC in Georgia is the filing fee for the Articles of Organization. This fee varies depending on whether you file online or by mail.

The online filing fee for the Articles of Organization is $100. This method is faster and more convenient as it allows you to track your application in real-time.

If you prefer to file by mail, the fee remains at $100 but processing times may be longer.

What Are Additional Costs Involved in Forming an LLC in Georgia?

While the filing fee covers most of the initial costs, there are additional expenses you might incur during the formation process:

1. Registered Agent Service: In Georgia, every LLC must have a registered agent who can receive legal documents on behalf of the company. You can either act as your own registered agent or hire a professional service provider. The cost for hiring a registered agent typically ranges from $50 to $300 annually.

2. Business License Fees: Depending on your business type and location, you may need to obtain various licenses and permits. These fees vary widely but can range from $20 to several hundred dollars annually.

3. Operating Agreement: An operating agreement outlines how your LLC will be managed and governed. While not mandatory in Georgia, having one can help avoid potential disputes among members. You can draft this document yourself or hire an attorney for around $500-$1,000.

What Are Ongoing Annual Fees for an LLC in Georgia?

Once your LLC is formed, there are ongoing annual fees you'll need to pay:

1. Annual Report Fee: Every year, you'll need to file an annual report with the Georgia Secretary of State's office. This fee is currently set at $50 if filed online or $60 if filed by mail.

Conclusion

Forming an LLC in Georgia involves several costs that need careful consideration. From the initial filing fee to ongoing annual reports, understanding these expenses will help you plan financially for your new business venture.

By breaking down these costs into their respective components—filing fees, additional services like registered agents and business licenses—you'll be better equipped to manage your finances effectively as you navigate the process of setting up your Limited Liability Company.