How To Start A Business In Georgia 2022 – Free Guide

How To Start A Business In Georgia

Starting a business can be overwhelming, with many steps involved and more information to learn. This guide breaks down the steps needed to start a business in Georgia. By the time you finish reading, you will understand all the right steps.

11 Basic Steps To Start A Business In Georgia 2022

Do you have a great idea for a business but are not sure how to get it into operating your own business in Georgia? There are important aspects to consider before starting and running a company. Like any other state, Georgia has its rules and regulations to consider when planning to start a company. This guide to starting a Georgia business discusses all the relevant ownership details.  

Pick A Business Idea

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The first step toward business ownership is deciding on the right business idea. Select a business to run depending on your personal goals and what suits your interests. Some ideas to consider in Georgia include the grocery store, clothing boutique, a liquid store, or a drive-in movie theatre. 

Plan Your Business 

Your second step is to plan your business, having analyzed your idea. Write a business plan to get funding for your business. It also helps get it out of your head and create a roadmap for where you want the business to go. The components of a well-crafted business plan include product development, sales and marketing, financial planning, and partnerships.  Part of business planning is developing a business name and finding the right business location.  Conduct market research in Georgia to determine customer interest in your products. Thorough market research can understand the target market before writing your business plan

Get Funding

You’ll need to secure funding to cover start-up costs. Your business plan will determine how much money you will need to get up and run. You can get small business loans or small business grants. Getting a business loan or small business grant from a lender is a good idea if you have a good personal credit history. You can also find your company through venture capital,  personal investors, friends, or family. If you don’t want to go to the traditional business funding options, you can always crowd-source funds from a group of people.

Choose a Business Structure

The next step is to choose the correct business structure. It refers to how a business is legally organized. Choosing the right business entity is about balancing the legal and financial protection needed. This is an important decision that you should consider carefully before launching your business. There are four primary business entities as described below:

Sole Proprietorships

This informal business entity is not incorporated or separated from the owner. Under business law, while the small business owners get 100 percent of the business profits, he also bears all the financial liability protection. A sole proprietorship is the easiest and least expensive way of starting a business. 

LLCs

An LLC is a common legal business entity for small businesses because of favorable business taxes. Unlike sole proprietorships, it combines the asset protection of a corporation and the flexibility of a partnership. The limited liability company has the greatest tax flexibility when it comes to accounting and tax filing. 

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Related: How to Form an LLC Georgia

Corporations

A corporation is a separate legal entity owned by shareholders. They have more formal regulations than a limited liability company and are more attractive to investors than sole proprietorships. Corporations provide personal asset protection for the owner in case of litigation. The different ways a corporation can elect to be taxed include S corporation and C corporation.

Nonprofits

Nonprofits differ from other business structures because donations rather than investors fund them. If you want to run your business as a nonprofit, you’ll be responsible for the debts and liabilities. 

Partnership

Partnerships are an informal business structure with multiple owners. Limited partnerships don’t have liability protection associated with a formal business structure. The partnership also doesn’t pay tax from business income, with profits and losses passing down to the owner’s tax return.

Register Your Georgia Business

After settling on a legal structure, you form your business, register it and be ready to work. Registering a Georgia business includes giving it a business name and choosing a registered agent. Choose a business name or trade name that complies with Georgia naming requirements and is easily searchable by potential clients. When choosing a registered agent, they must be residents of Georgia and authorized to construct business within days. You should also get a federal employer identification number (EIN) which is a number assigned by the internal revenue services to identify your business for federal tax purposes.

Set up a Business Bank Account, Credit Cards, & Accounting

Setting up Business Banking credit cards and accounting is the best way to separate your personal account from a bank account. It’s essential for personal asset protection in case your business stands for litigation.  You need to open a bank account to separate your company’s assets from your personal assets. Keeping your personal and business accounts separate makes it easier to pay state taxes. Getting a business credit card builds your Georgia company’s credit history, which helps raise capital. You also need to set up a business accounting system that’s crucial in tracking the performance of your business.

Get Insured

Getting business insurance is an important step in managing business risk. It’s critical to protect the business and personal assets from anything that could go wrong. Every state has different laws and requirements for business insurance, and Georgia is no different.  You should buy a general liability policy, disability insurance, and professional liability insurance. State labor laws in Georgia require businesses with more than one employee to have workers’ compensation insurance and unemployment insurance. 

Obtain Permits & Licenses

You need a business permit to operate your new business legally. It is the only way to comply with state, local, and federal government regulations. You will need different licenses to operate a Georgia business. The business licenses vary depending on the business location and business activity. There is no general state of Georgia business license, though many cities require a license to operate. Contact your local county clerk and ask about local licenses and permits. Follow by visiting the Georgia department website for the Secretary of State and the US small business administration guide to understanding other licenses and permits.

Hire Employees

You will need a team to succeed as a Georgia business. Hiring employees is a complex process and often overwhelming for a new business owner. When hiring employees such as a business accountant for your business, it’s important to conduct due diligence to find the right people. You will also need to comply with regulations for hiring employees legally. For example, ensure you are registered with the internal revenue service (IRS) for employee taxes. Visit the IRS website to register by filing an IRS form. When issuing paychecks, you should also use a payroll professional service to make your tax season manageable. 

Build a Business Website

Every business in this day and age needs a website. It is the only legitimate way to get your business online and interact with customers. Whether you’re running a small business or a large corporation, setting up a company website is one of the fundamental steps. Creating a website has become easier than ever with many software and website builder tools out there. You can also hire a professional designer to help you if you are uncomfortable designing yourself. Just get a domain, and you have the option to build the website. Before building a business website, you will need to define your brand since all successful businesses are built on a solid brand.

Promo Your Business entity

Marketing is one of the main ways to attract customers. It lets you get your business in front of people and generate sales, so your idea turns into business. The best way to business promote is to integrate social media marketing. Adopt a broad-based social media strategy across different platforms like Facebook, Instagram, and YouTube. Also, integrate search engine optimization that considers google’s search engine results. You may also consider putting up a billboard and print ads in local newspapers and magazines. 

Important Steps After Forming A Business In Georgia

What to do after forming a business is equally important. Make sure the Georgia company is properly set up for a successful business. The steps to follow after forming a business in Georgia include

  • Create an LLC operating agreement
  • Get an EIN
  • Open business bank accounts and credit accounts
  • Get an accountant
  • Learn about Georgia taxes for an LLC
  • Get a business insurance 
  • Apply for business permits and licenses
  • Establish your web presence
  • Publish a press release

Type Of Business Start In Georgia

There are many great businesses to choose from in Georgia. The most popular businesses to try in Georgia included vending machines, pest control, home inspection, lawn care, food truck, credit repair, medical transportation, home health care, and fingerprint. Consider doing home-based businesses as they are more profitable and can help with economic development.

How Much Does It Cost To Start A Business In Georgia?

Every business has different financial needs. It’s important to estimate your startup costs before starting a business, considering the research expenses, product materials, and packaging.

Final Thoughts

Starting a business in Georgia is not a small feat. You need a combination of courage, captivity, or motivation while following all the right steps. This guide has presented the steps needed to start a business and deal with all the challenges and roadblocks.

Frequently Asked Questions (FAQs)

Is an LLC better than a sole proprietorship?

A limited liability company separates the assets of a business and personal finances and is more tax flexible. It also helps separate personal and business expenses, making it better than a sole proprietorship in avoiding double taxation.

What are the steps of starting an LLC in Georgia?

The steps include making sure the LLC or business name is available, appointing a registered agent, and filling out the articles of the organization.

What licenses do you need to start a business in Georgia?

The state requires no general business license. However, there are several licenses and permits needed before starting a business.

How much does it cost to start a business in Georgia?

The cost of starting a business in Georgia varies depending on the type of business and where it’s located. You will need to account for an occupation tax certificate, this City business license, and the employer identification number.

How much does it cost to start an LLC?

The cost starts at $100 to file the articles of organization with the Georgia Secretary of State.

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ABOUT THE AUTHOR

Billy Graham is a Highly skilled copywriter/editor with over 8+ years of experience working for content mills, direct clients, and SEO marketing agencies alike. Possesses extensive expertise in crafting unique copy, exceeding editorial goals, and delivering first-rate client-focused service in results-driven content production. Specialties include gaming, branded content, short-form to long-form copywriting, call-to-action, buying guides, how-to – articles, product reviews, and comparisons, copy editing, proofreading, complete QA, and in-depth research.

ABOUT THE REVIEWER

Jazmin Castello holds a Master's degree in Business Management, owns two companies, and has also published a self-help book. When she is not working or writing, she likes to spend time with her family and to travel.

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  1. Yelp for Business. 8 smart social media marketing tips for small businesses. Yelp for Business. Published December 29, 2021. Accessed April 4, 2022. https://business.yelp.com/grow/social-media-marketing-tips-for-small-businesses/
  2. Get business insurance. Get business insurance. Published 2022. Accessed April 4, 2022. https://www.sba.gov/business-guide/launch-your-business/get-business-insurance
  3. Yelp for Business. How much does it cost to start an LLC? Yelp for Business. Published December 8, 2020. Accessed April 4, 2022. https://business.yelp.com/plan/how-much-does-it-cost-to-start-an-llc/
  4. Choose a business structure. Choose a business structure. Published 2022. Accessed April 4, 2022. https://www.sba.gov/business-guide/launch-your-business/choose-business-structure