FAQ pages are short editorial summaries of the longer state and tax guides. Use the linked state agency before filing or relying on a deadline.
Does Georgia Have a Minimum Franchise Tax?
No. Georgia does not impose a franchise tax on LLCs or other business entities. Instead, Georgia LLCs must pay an annual registration fee of $60 (due January 1–April 1 each year) and are subject to Georgia's 5.19% state income tax on pass-through income. O.C.G.A. § 14-11-603 governs the annual registration requirement.
What Georgia LLCs Actually Pay
Georgia eliminated its franchise tax entirely. Your LLC avoids that burden, but you still have state obligations:
Annual Registration Fee ($60) Every Georgia LLC must file an Annual Registration between January 1 and April 1 each year (O.C.G.A. § 14-11-603). File online through the Georgia Secretary of State. A $25 late penalty applies if you miss the deadline. Failure to file within 60 days of notice triggers administrative dissolution.
State Income Tax (5.19%) Georgia taxes LLC members on their share of pass-through income at a flat 5.19% rate (O.C.G.A. Title 48, Chapter 7). The LLC itself is not taxed; liability flows to owners. Self-employment tax also applies to member income.
Sales Tax Registration If your LLC sells taxable goods or services, register for Georgia's 4% state sales tax (plus local taxes) at https://dor.georgia.gov/tax-registration. This is a collection obligation, not a franchise tax.
Key Distinctions
A franchise tax is a separate annual fee based on net worth or capital. Georgia has none. The $60 annual registration is a compliance filing fee—similar to a business license renewal—not a franchise tax.
Your actual tax burden depends on:
- LLC income level and ownership structure
- Whether you elect S-corp or C-corp taxation
- Sales activity subject to sales tax
- Estimated quarterly payment obligations (due April 15, June 15, September 15, January 15)
Bottom Line
Budget $110 for initial formation and $60 annually for registration. Beyond that, you owe income tax on profits and sales tax if applicable—but no franchise tax. Consult a Georgia tax professional about estimated payments and tax elections that may reduce your overall liability.
This is general information, not legal advice.