How To Start A Business In Georgia 2023?
The answers to the question of how to start a business in Georgia or any state 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
- Pick a business idea
- Plan your business
- Get funding
- Choose a business structure
- Register your Alaska business
- Set up banking, credit cards, and accounting
- Get Insured
- Obtain Permits & Licenses
- Hire employees
- Build a business website
- Promo your business
How To Start A Business In Georgia?
Pick A Business Idea
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
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 running. 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 domestic 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:
This informal business entity is not incorporated or separated from the owner. Under business law, while small business owners get 100 percent of the business profits, they also bear all the financial liability protection. A sole proprietorship is the easiest and least expensive way of starting a business.
An LLC is a common legal business entity for small businesses because of favorable business taxes. It’s a business structure that offers limited personal liability on the part of the owner. Unlike sole proprietorships, it combines the asset protection of a corporation and the flexibility of a partnership. The domestic limited liability company has the greatest tax flexibility when it comes to accounting and tax filing.
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 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.
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 Service 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 finances accounting system that’s crucial in tracking the performance of your business.
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.
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 do business promotion 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.
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.
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)
The cost starts at $100 to file the articles of organization with the Georgia Secretary of State.
You may need a DBA in Georgia in certain scenarios, but DBAs aren’t required unless you plan to operate under a different name than your legal given name or your registered business name. In many states, DBAs are filed with the Secretary of State and cover the entire state in which you’re operating your business.
If you own an LLC, every year it is in business you must file an annual registration with the Secretary of State’s Georgia Corporations Division. The annual deadline is April 1, unless you already filed for the current year via a multi-year registration.
Georgia law has no provisions for the domestic entity. If you plan to move your company to Georgia you can choose between qualifying your existing company as a Georgia Foreign Entity, or dissolving it in the original state of registration and forming a new company in Georgia.
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- Sba.gov. (2023). Choose a business structure | U.S. Small Business Administration. [online] Available at: https://www.sba.gov/business-guide/launch-your-business/choose-business-structure.
- Sba.gov. (2023). Get business insurance | U.S. Small Business Administration. [online] Available at: https://www.sba.gov/business-guide/launch-your-business/get-business-insurance.
- Irs.gov. (2016). Employment Taxes | Internal Revenue Service. [online] Available at: https://www.irs.gov/businesses/small-businesses-self-employed/employment-taxes.