Georgia LLC or Corporation
The two most popular business structures that first-time business owners opt for are a limited liability company and a business corporation because of the advantages they have over other business structures. The cost to form a Georgia Corporation or LLC is driven by several factors like state laws, annual fees, licensing fees, and other operating costs. The forming cost for a Georgia Corporation is almost the same as that of an LLC and is lower than many other states like the District of Columbia, Illinois, and Maryland among others.
Which business entity should I choose for Georgia business?
Georgia is amongst the top states when it comes to educational institutions, transportation infrastructure, economic activity, container ports, and fiscal stability among others. These factors play a key role in determining the cost to form a Georgia LLC or any other business structure. It is important to understand that different business structures have their own set of advantages and can have a significant impact on taxation, legal liability, ownership control, management, and even attracting funding. We have listed certain elements of a structure that will help you determine the right structure for your business.
- Control of business – If you are looking for ownership control or want to have control of the entire business then a sole proprietorship or a limited-liability company would do justice as corporations require a board of directors.
- Capital investment – All businesses require funds for starting a business or operating a business. The cost to form a Georgia Corporation can be small but operating costs can be more than you expect. It is easier to get capital investment from VCs and other private funding sources if you incorporate in Georgia as compared to forming any other business.
- Taxes – One of the key areas that helps in deciding what business structure you want is taxes. This is one of the primary reasons why entrepreneurs opt for an LLC or elect S Corporation status as both are pass-through entities. The lowering of taxes will result in lower Georgia LLC costs per year.
- Limited Liability Protection – One of the most important aspects to consider apart from the forming cost for a Georgia Corporation or LLC is liability protection. Liability protection refers to helping business owners avoid any personal liability for the debts of the company.
- Complexity – There are certain types of business structures that can have a complex registration, formation, and operation process as compared to other structures like forming and operating a sole proprietorship is easier than corporations.