Skip to content
Ask a question
All posts

What are the legal requirements for starting a small business in Georgia?

Picture of Chris Battis By   ·  1 minute read

To start a small business in Georgia, there are several legal requirements that must be met.

  1. Choose a Business Name: The first step is to choose a name for the business that complies with state law. The name must not be the same as or too similar to any other registered business in Georgia.
  2. Choose a Business Structure: Businesses in Georgia can be structured as sole proprietorships, partnerships, corporations, or limited liability companies (LLCs). Each structure has different legal requirements and tax implications.
  3. Register the Business: If the business is structured as a corporation, LLC, or limited partnership, it must be registered with the Secretary of State's Corporations Division. Sole proprietorships and partnerships are not required to register with the state but may need to obtain a state or local business license.
  4. Obtain Necessary Permits and Licenses: Depending on the nature of the business, it may need to obtain permits and licenses from state and/or local agencies. For example, a restaurant would need to obtain a food service permit, a retail business would need to obtain a sales tax certificate, and a construction business would need to obtain a contractor's license.
  5. Obtain Employer Identification Number (EIN): If the business has employees or operates as a corporation, LLC, or partnership, it will need to obtain an EIN from the IRS.
  6. Register for State Taxes: Georgia requires businesses to register for state taxes, including sales tax, withholding tax, and unemployment insurance tax.
  7. Obtain Business Insurance: Although not required by law, it is recommended that businesses obtain liability insurance to protect against any potential lawsuits or claims.
  8. Comply with Federal and State Employment Laws: If the business has employees, it must comply with federal and Georgia employment laws, including minimum wage and overtime requirements, anti-discrimination laws, and immigration laws.

It is important to note that there may be additional legal requirements based on the specific nature of the business. It is recommended that business owners consult with an attorney or accountant to ensure compliance with all applicable laws and regulations.