Why Incorporate in Georgia?
Georgia's Department of Economic Development has implemented several business incentives, which can give your Georgia corporation a competitive edge. You may be able to take advantage of these incentives, provided your business meets the qualifying criteria. For example, the job tax credit offered by the State of Georgia provides tax credits to business owners who create jobs in certain industry sectors. Businesses have the potential to receive a tax credit of up to $4,000 per job created, per year. For most entrepreneurs looking to start a larger business, creating a Georgia corporation may be the best choice. As a corporation, your business is able to buy and trade stock, and when it comes to excess profits, corporations offer more flexibility than an LLC. A corporation is allowed to pass income and losses to its shareholders, who report taxes on an individual tax return at ordinary levels.
Is an LLC Better Than a Corporation?
It all depends on your goals. For smaller businesses, limited liability companies are usually a better option. An LLC is easier to set up, and you receive many of the same benefits as a corporation, but with less regulation.
Learn more about forming a Georgia LLC so you can decide which business entity is right for you.
Benefits of Forming a Georgia C Corporation:
The strongest form of liability protection possible by insulating your personal assets and finances from business debts, obligations, damages, bankruptcy, or other liabilities
Several options to create, buy, sell, or transfer stock, including publicly
The ability to issue more than one class of stock
The ability to sell stock to investors inside and outside the U.S.
The ability to raise more funds by issuing more stock
Benefits of Forming a Georgia S Corporation
It offers several advantages similar to those provided by a C Corp including, but not limited to:
Options for creating, transferring and selling stock, though not as many as a C Corp (for example, an S Corp is only permitted to sell one class of stock)
The capacity for up to 100 shareholders
Simpler rules than those applicable to C Corporations
Easy transfer of ownership simply by selling your stock
The possibility of saving money by allowing you to pay less self-employment tax
In this guide, you’ll find information on naming your corporation, getting a Registered Agent, the fees you’ll need to pay, business taxes and much more. We also cover what you'll need to register your corporation and how you'll interact with the Georgia Secretary of State (SOS).