Why incorporate in Georgia?
Business Information & Rankings
- Georgia ranks 3rd for Best State to Do Business (Site Selection, 2005)
- Georgia ranks 11th in the U.S. for overall number of high-tech workers and 17th for average high-tech wage. (“A State-by-State Overview of the High-Technology Industry”, Cyberstates 2005)
- Atlanta ranks 5th for Best Metros to Do Business (Forbes, 2004)
Cost of Living Index
|For Atlanta, GA (2005):||Index Score|
|Misc. Goods & Services:||97.3|
Georgia has the 38th lowest crime ranking among U.S. States. (FBI, 2004)
Fees & Taxes
Business Inventory Tax
Inventory is generally taxable, unless locality allows exemption.
Corporate Income Tax
Corporate income tax is a non-graduated percentage based on a corporation’s federal taxable net income. Corporations that own property or do business in Georgia are subject to corporate income tax. The rate of taxation is 6% of a corporation’s taxable net income attributable to business done in Georgia.
Certain corporations also pay a net worth tax. This tax is based on the net worth of a corporation and is levied in exchange for the privilege of doing business or exercising a corporate franchise in Georgia. The minimum tax is $10 for a net worth less than $10,001. The maximum is $5,000 for a net worth in excess of $22 million.
Personal Income Tax
Georgia’s personal income tax system consists of six separate brackets with a top rate of 6% starting at an income level of $7,000.
Personal Property Tax
Taxable. Georgia is one of the 38 states that collect property taxes at both the state and local levels. Georgia does not tax intangible property such as stocks, bank accounts or certificates of deposit.
State Sales and Use Tax
Base Rate: 4%
Machinery Rate: None
An exemption is given for machinery and components which are used directly in the manufacture of tangible personal property when the machinery is bought to replace or upgrade machinery.
Georgia’s new employers’ rate is 2.7% for 3 years.