Does Georgia Have a Franchise Tax for LLCs?
No. Georgia does not impose a franchise tax on LLCs. Under O.C.G.A. Title 48, Chapter 7, LLCs are not subject to a state franchise tax. Instead, pass-through LLC income is taxed to owners at Georgia's flat income tax rate of 5.19%. LLCs must file an Annual Registration by April 1 each year (O.C.G.A. § 14-11-603) for a $60 fee.
What Taxes Do Georgia LLCs Pay?
Income Tax
Georgia taxes LLC income at the owner level, not the entity level. Pass-through income flows to members and is taxed at 5.19% under O.C.G.A. Title 48, Chapter 7. Single-member LLCs default to Schedule C (disregarded entity) treatment federally, while multi-member LLCs default to partnership taxation (Form 1065). Owners report their share of profits on personal tax returns and pay self-employment tax on business income.
Sales Tax
If your LLC sells taxable goods or services, you must register for Georgia sales tax. The state rate is 4%, plus applicable local taxes. Register at dor.georgia.gov/tax-registration.
Annual Registration
Georgia requires all LLCs to file an Annual Registration between January 1 and April 1 each year (O.C.G.A. § 14-11-603). The $60 filing fee is mandatory for compliance. Missing the deadline triggers a $25 late penalty and potential administrative dissolution after 60 days of notice from the Secretary of State.
Tax Planning Considerations
Estimated Quarterly Payments
Owners must pay estimated Georgia income tax quarterly on April 15, June 15, September 15, and January 15 if they expect to owe $500 or more in taxes.
Entity Classification Elections
Your LLC can elect S-corp or C-corp taxation federally, which may reduce self-employment tax liability in certain situations. This requires separate IRS filings and does not change your Georgia state tax treatment.
Next Steps
- File your Annual Registration by April 1 each year at sos.ga.gov
- Register for Georgia sales tax if applicable at dor.georgia.gov/tax-registration
- Set up quarterly estimated tax payments
- Consult a tax professional about entity classification elections and self-employment tax planning
- Contact the Georgia Department of Revenue at dor.georgia.gov for specific guidance
This is general information, not legal advice.