Advantages of Incorporating a Business in Georgia
Some of the top industries for entrepreneurs in the USA include Retail Trade, Construction, Health Care, Social Assistance, Educational Services, Finance, Insurance, and even information technology. The question is, after you have identified the type of industry why would you register a new company in Georgia?
Georgia is considered one of the top states in the nation when it comes to providing business incentives. Small businesses especially startup companies in Georgia will be able to take advantage of several benefits from tax relief to tax credits, and even financing options.
Advantages for New Businesses – LLC or Corporation?
As one of the top registered agents in the state, we can help you to register a new business in Georgia as this will ensure you are able to leverage all types of business gains and state provided incentives and grants. Let’s take a quick look at why Georgia is considered one of the best places for establishing a business:
Advantage#1: Salient benefits of Corporation or LLC formation
- Independent Life: One of the salient advantages of an S Corporation in Georgia is that it enjoys an independent life. This simply means that the business entity will continue operations undisturbed even if it faced the death of one of its stockholders or incapacitation of one or more stockholders.
- ROI not taxed: If you register a new business in Georgia, then earnings through return on investment (ROI) including rental payment, interest etc will not be subject to self-employment tax provided the employees or stockholders receive compensation for labor or for managing the business.
- Corporate Tax Credit Incentives: The state of Georgia provides new businesses with several tax credit incentives that are intended to help businesses to minimize or eliminate state corporate income.
- Flow through Taxation: When you register a new company in Georgia, an LLC can benefit from the process of flow through taxation that will ensure there are no double taxations.
- Limited Liability: As an owner of a Georgia LLC, you will be able to enjoy limited liability protection quite similar to what a corporation enjoys.
- No Minutes of meetings: Unlike a corporation, an LLC startup company in Georgia will not be required to maintain any minutes of the meetings or resolutions.
- Flexible Profit Distribution: A startup company in Georgia LLC has the benefit of being able to select different ways of distribution of profits
Advantage#2: Benefit Programs for Businesses
What happens when you register a new company in Georgia? Once you have set up your small business in the state of Georgia, you or your business entity will be able to benefit from several state based incentives that aid in the overall growth of your business. There are several business benefit programs to choose from but let’s take a look at some of the most beneficial ones:
- Georgia Enterprise Zones: The General Assembly enacted the Enterprise Zone Employment Act in 1997 and if a startup company in Georgia is established in such a zone then it will be able to enjoy several business incentives. Such a business entity will also benefit from local property tax exemption in accordance to section 36-88-8(a)(1) of the act. A business entity situated in the enterprise zone will also benefit from reduction in occupation taxes, building inspection fees, regulatory fees, and other fee as per OCGA §36-88-9(a). List of Enterprise Zones
- Georgia Business Tax Credits: There is a variety of job and business tax credits that you can benefit from once you register a new business in Georgia. These credits provide businesses with savings and also ensure proper expansion. Let’s take a look at some of the popular business credits:
- Job Tax Credit: This is a type of credit that will help a startup company in Georgia to fuel growth of business through job creation. A job credit can provide a savings of $1,750 per job when it comes to annual tax savings and is dependent on where your business is situated. You can also carry forward the credit for a period of 10 years if it has not been used.
- Mega Project Tax Credit: After you register a new company in Georgia, this credit will be at your disposal especially if you employ a minimum of 1,800 new employees. This is also valid for businesses that make a minimum investment of $450 million in Georgia.
- Work Opportunity Tax Credit (WOTC): This type of tax credit is being administered by Georgia’s Department of Labor and is provided to business entities that hire individuals facing barriers in getting employment. The tax credit can range from $1,200 to $9,600 per qualified employee.
Apart from the above mentioned programs, there are several other programs that businesses can benefit from including Optional Investment Tax Credit, Property Tax Abatement, Entrepreneurial and Small Business Development Loan Guarantee Program, and Tax Exemption programs among others.
Are there any Disadvantages of Incorporating in Georgia?
If you establish a startup company in Georgia then you will be able to benefit from tax credits, loans, abatements, and much more. You will also be able to recruit some of the most talented employers in the country. The important question is: are there any disadvantages? The disadvantages are very few and almost inconsequential for instance, the fact that you have to pay a higher fee and the time taken to process incorporation is also longer, compared to other forms of organization. The fact is that these are small disadvantages compared to the several benefits that can steer ahead your business towards substantial growth.