Georgia Business Taxes: A Comprehensive Overview for Business Owners

As a business owner in Georgia, you're likely aware that taxes can be a complex and time-consuming aspect of running a business. The state of Georgia has a relatively low corporate income tax rate of 5.25%, which is a significant advantage for entrepreneurs and small business owners.

One of the key aspects of Georgia business taxes is the requirement for a sales tax permit. Businesses with annual gross sales of $3,000 or more must obtain a sales tax permit from the Georgia Department of Revenue. This permit is necessary for collecting and remitting sales tax on behalf of the state.

Georgia also offers a variety of tax incentives for businesses, including the Georgia Job Tax Credit, which provides a credit of up to $3,500 per job created for businesses that invest in new equipment or facilities. This incentive can be a valuable resource for businesses looking to expand or relocate to the state.

Sole proprietorships and partnerships file taxes at the owner's personal income tax rate, not the federal or corporate tax rate.

The type of business structure defines the Georgia business tax rate, which is a crucial consideration for small business owners.

You may need to apply for and obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS) if you have a business structure that requires it.

LLCs are considered pass-through tax entities, meaning the responsibility for paying income taxes passes through the LLC itself and falls on the individual LLC members.

Single-member LLCs aren't eligible for electing the pass-through entity tax (PTET) status, which allows LLCs to be taxed at the entity level.

If your LLC is taxed as a partnership, you can elect to have your LLC taxed at the entity level, but this must be done every year through Georgia's 700 Partnership Tax Return.

If you're a business owner in Georgia, you'll need to consider state income tax obligations. Nonresidents who earn income from Georgia may be required to file a state income tax return, which includes income from wages, Georgia lottery winnings, and income from flow-through entities like S-corporations, partnerships, LLCs, trusts and estates.

You'll also need to pay attention to the tax filing deadline, which is typically the same as the federal due date, April 15. If you request a timely extension, the filing deadline can be moved out six months to mid-October.

Here are the types of income that may require a nonresident to file a state income tax return:

To get an extension for your state income tax, you can either apply for a federal tax extension by Tax Day and attach the confirmation of Form 4868 or the IRS approval when you file your state return, or file Form IT-303 with the Department of Revenue before the April deadline.

To keep your Georgia LLC in good standing, you'll need to file an annual registration with the Georgia Secretary of State by April 1 each year.

The filing fee for this registration is $55 as of 2025, and you'll be charged an additional $10 if you file by mail or in person. This fee can be paid online or by mail.

You can file your annual registration for one, two, or three years at a time, and the process is quick and easy using Georgia's One Click Registration.

Annual registration is a crucial step in maintaining your business's good standing in Georgia. You'll need to file a report with the Georgia Secretary of State every year.

The deadline for annual registration is April 1 of each year. You can file online, by mail, or in person, but keep in mind that there's an additional $10 fee if you choose to file by mail or in person.

The filing fee for an LLC annual registration is $55, as of 2025. You can file for one, two, or three years at a time, depending on your needs.

If you're up to date on your registration fees and don't need to make any changes to your business information, you can use Georgia's One Click Registration process. This is a quicker option that doesn't require logging into your eCorp account.

Here's a quick rundown of the annual registration process:

Remember to visit the Georgia government website or the SOS website for more information on the annual registration process.

If you're planning to do business outside of your home state, you'll need to register your LLC in each state where you'll be conducting business. Whether you're required to register will depend on the specific states involved.

Each state has its own rules for what constitutes doing business and whether registration is necessary. Having a physical presence in a state, such as a business location, can be considered doing business for registration purposes.

Hiring employees in a state or soliciting business through various means like telephone, print ads, mail, or the internet can also be considered doing business. These activities may require you to register your LLC in that state.

To find out registration requirements for other states, you can refer to our state guide to qualifying to do business outside your state.

As a business owner in Georgia, it's essential to understand your responsibilities as an employer and employee. If your LLC has employees, you'll need to pay employer taxes, including withholding employee wages and registering with the Georgia Tax Center (GTC).

You'll need to file withholding taxes on a periodic basis, which can be semi-weekly, monthly, quarterly, or annually, and use Form G-1003 each year to reconcile your LLC's tax withholding. The DOR provides a helpful Employer's Withholding Tax Guide for instructions and information.

You'll also need to register for your Unemployment Insurance (UI) tax account online using the Online Employer Tax Registration system and report and pay taxes each quarter. The Georgia Department of Labor (DOL) administers the state UI tax and has a webpage with frequently asked questions on the Employers FAQ UI webpage.

Here's a breakdown of the tax withholding sources in Georgia:

The Georgia business tax rate for withholding tax is based on a graduated scale, which you can find in the Employer’s Tax Guide 2022 for calculating the rates.

As an employee, it's essential to understand your tax obligations, especially if you're a nonresident in Georgia. If you live in another state but earn income from Georgia, you may be required to file a state income tax return.

Wages earned in Georgia are a common type of income that triggers nonresident status rules. This includes salaries, bonuses, and other forms of compensation.

Georgia lottery winnings also count as taxable income, regardless of your residency status. If you've won the lottery in Georgia, you'll need to report it on your tax return.

Income from flow-through entities, such as S-corporations, partnerships, LLCs, trusts, and estates, is another type of income that may subject you to nonresident status rules. This includes income from rental properties or investments.

Rent earned from properties in Georgia is also subject to nonresident status rules. This includes rental income from properties you own or manage.

Here's a quick rundown of the types of income that may trigger nonresident status rules in Georgia:

As an employer in Georgia, you're responsible for withholding employee wages and paying employer taxes to the federal and state governments. You'll need to register your LLC with the Georgia Tax Center (GTC) to start the process.

To withhold employee wages, you'll file taxes on a periodic basis, such as semi-weekly, monthly, quarterly, or annually. You'll also use Form G-1003 each year to reconcile your LLC's tax withholding. The DOR provides a helpful Employer's Withholding Tax Guide that provides instructions and information regarding employee tax withholding.

You'll need to report and pay unemployment insurance (UI) tax each quarter, which is administered by the Georgia Department of Labor (DOL). You can register for your UI tax account online using the Online Employer Tax Registration system.

The Georgia business tax rate for withholding tax is based on a graduated scale, which you can refer to in the Employer’s Tax Guide 2022 for calculating the rates. Withholding tax is withheld from different sources, including employee wages, pension and annuity payments, lottery winnings, nonresident distributions, and other sources of income as defined by state and IRS.

You can use the Job Tax Credit to reduce or eliminate your company's corporate tax liability by creating new jobs in Georgia. The credit ranges from $1,250 to $4,000 per year for 5 years for every new job created, and in certain areas, it can also lower your payroll withholding obligations.

Here are the requirements to qualify for the Job Tax Credit:

The credit value depends on where the new jobs are located, with counties with the highest levels of economic distress earning the highest credits: $4,000 per new job, per year, for 5 years. New jobs in counties with less economic distress earn lower credits: $1,250 per new job per year.