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What steps do I need to take in Georgia to establish a sole proprietorship?

Picture of Chris Battis By   ·  1 minute read

To establish a sole proprietorship in Georgia, the following steps need to be taken:

  1. Choose a business name: The name of the business needs to reflect the nature of the business and must be unique. It is advisable to conduct a business name search before settling on a name.
  2. Register the business name: Sole proprietors are not required to register their business name with the Secretary of State in Georgia. However, if the business intends to operate under a name different from the owner's legal name, a Trade Name Registration needs to be filed with the Clerk of the Superior Court in the county where the business is located. This registration needs to be renewed every five years.
  3. Obtain necessary business licenses and permits: Depending on the type of business, the owner may be required to obtain a business license or permit from the county, city, or state where the business is located. The Georgia Secretary of State's website provides a comprehensive list of licenses and permits required for various types of businesses.
  4. Obtain an Employer Identification Number (EIN): An EIN is a unique nine-digit number issued by the IRS for tax purposes. Sole proprietors who have employees or are required to pay excise taxes need to obtain an EIN.
  5. Open a business bank account: It is advisable to separate personal and business finances by opening a separate bank account for the business.
  6. Register for taxes: Sole proprietors are not required to pay state income tax in Georgia but are required to pay federal income tax. Additionally, if the business has employees, the owner needs to register for state and federal payroll taxes.

Potential limitations or exceptions to this advice depend on the specific circumstances of the business. For example, if the business is in a regulated industry, additional requirements and licenses may need to be obtained. It is advisable to consult with a licensed attorney for specific legal advice.

If you need further assistance with establishing a sole proprietorship or have any legal questions, it is recommended to seek the advice of a licensed attorney in Georgia.