- How to obtain a small business license in georgia how to#
- How to obtain a small business license in georgia full#
- How to obtain a small business license in georgia registration#
This number identifies a business operating in the U.S and is used for paying payroll taxes, filing tax returns, and more. The Employer Identification Number or EIN (sometimes referred to as the Federal Employer Identification Number, FEIN, or federal tax ID number) is a nine-digit tax identification number issued by the Internal Revenue Service (IRS). You can also register to keep others from using the name of your business, product, or service.
How to obtain a small business license in georgia registration#
Patent & Trademark Office (USPTO) manages the registration of trademarks.īefore settling on a name, you will want to first check and make sure the name you want to use isn’t already registered to another business. Related: Check the availability of corporation and LLC names in GeorgiaĪ trademark can legally stop others from using names, slogans, or logos. If you have the perfect name picked out, but you aren’t ready to form the entity yet, a Name Reservation Request Form can be filed with the Secretary of State to hold the name for 30 days. Registering the entity name will not provide much protection from anyone else from using the name, other than being able to register with the Secretary of State. This name has to be different from the other entities registered with the Georgia Secretary of State. Registering a Georgia Business Name for a Corporation or LLCĬorporations and LLCs will pick a name at the time of formation.
How to obtain a small business license in georgia how to#
Related: How to register a DBA in Georgia Handyman, etc., you will need to file a DBA filing (Doing Business As) with the County Clerk’s office in the county where the business is located.
How to obtain a small business license in georgia full#
If you are a sole proprietorship or general partnership in Georgia and doing business under your full first and last name, John Smith, for example, there is no filing, but if the business will operate under a trade name or fictitious business name like John Smith’s Handyman Service, Mr. Registering a Georgia DBA for Sole Proprietorships & General Partnerships Income can be taxed as a pass-through entity like the sole proprietor or partnership or as a corporation.Īfter deciding on the business entity, the next step in starting a business in Georgia is to register the business name. The Limited Liability Company does not have the many burdens like the corporation and has the greatest tax flexibility of the four entities. The Limited Liability Company (LLC) is a popular business entity choice because it provides the liability protection of a corporation with the sole proprietorship’s ease of operation. Related: How to form a Georgia Corporation Also, there is no self-employment tax with a corporation, as income to the owner(s) will come from either a salary or dividends, which may be beneficial. Electing how the entity should be taxed is complicated, so be sure to talk with your CPA as there is the potential of double taxation where profits and dividends are both taxed. There are multiple ways a corporation can elect to be taxed, which include the C-corporation and S-corporation. The downside is the compliance requirements and administrative burdens of having a board of directors, annual meetings for directors and shareholders, taking minutes at the meetings, issuing stock certificates, and more.
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While corporations are more expensive and difficult to form than sole proprietorships and partnerships, the major advantage is that the corporation provides personal asset protection for the owners, should the corporation be sued.
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This income is subject to self-employment tax.Ī Corporation is a legal entity that is separate from the individual. Instead, profits and losses are passed through to the owner’s personal tax return. The partnership itself does not pay tax from business income. If the partnership were to be sued, the partner’s personal assets are equally at risk. Also, like the sole proprietorship, the partnership has unlimited liability.
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Like the sole proprietorship, there is no formal state filing. General Partnerships consist of two or more people conducting a business together. Another potential downside is that the owner will pay self-employment tax on all business profits and may be more costly than some other entities.
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If the business is sued, the owner’s personal assets are potentially at risk. The ease of startup is a big selling point however, a major downside to the sole proprietorship is that the owner is personally responsible for all debts and actions of the company. This is the easiest and least expensive of the four entities to set up as there is no state filing. A brief description of each is below.Ī Sole Proprietorship is an individual that decides to go into business. There are four primary business entities: sole proprietorship, partnership, corporation, and Limited Liability Company (LLC). The business entity is sometimes referred to as a business structure or legal structure, which refers to how a business is legally organized. The next step in starting a business in Georgia is selecting a business entity.