With more than 1.3 million small businesses, Georgia is a vibrant, dynamic market, offering many benefits to new businesses.
“For an unprecedented 10 consecutive years, Georgia has been named the No. 1 state for business by Area Development magazine,” says Chris Clark, president and CEO of the Georgia Chamber of Commerce. “Our predictable tax environment, robust infrastructure network and extensive entrepreneurial community make Georgia the best place in the nation to start and grow your business.”
That said, there are some complexities for entrepreneurs looking to start a business locally. This step-by-step guide walks you through how to start a business in Georgia.
Table of contents
How to start a business in Georgia
- Choose a business idea
- Name your business
- Create a business plan
- Choose a business structure
- Get an EIN
- File your articles of incorporation, if relevant
- Find financing
- Obtain a business license and permits
- Examine insurance options
- Set up a business bank account
- Market your business
1. Choose a business idea
Before you can answer the question—what do I need to start a business in Georgia—you need a fantastic business idea. Choosing a workable business idea isn’t just about deciding what products to sell or what services to provide.
There are other considerations you’ll have to weigh before settling on an idea for your small business in Georgia.
- Who is your customer? The best business ideas are rooted in a clear understanding of who you’re selling to. To cultivate this understanding, you can conduct a competitive analysis of other businesses in the same market, analyze marketplaces where similar products or services are sold, survey prospective customers, and research industry trends.
- What is your projected profitability? Determine the profitability of your idea by looking at pricing, distribution opportunities, business models, and the costs you’ll incur building your business and making your product. What’s your break-even point? How many products or services must you sell to at least cover your costs?
2. Name your business
Naming your Georgia business entity is one of the most crucial decisions you’ll make as an entrepreneur. It factors into branding, marketing, and even customer retention. Here are a few considerations when choosing a business name:
- Is it unique in Georgia? All business names in Georgia must be unique—you can conduct a search using the Georgia Secretary of State’s business entity search feature.
- Is the domain name available? You’ll want to check whether a marketable domain name is available that adequately aligns with your chosen business name.
- Is it memorable? In general, a good business name is one that effectively communicates the function of your business entity in a catchy, memorable way and reflects your business’s mission.
- Does it include the required suffix? If you form an LLC in Georgia, your company name must contain the phrase “Limited Liability Company,” “Limited Company,” or its abbreviation (LLC, L.L.C., LC, or L.C.). If you don’t want to operate publicly under this name, you can file for a doing business as (DBA) name to operate under.
- Should you use a DBA? If you want to apply for a DBA for your business in Georgia, you’ll need to register with the clerk of the Superior Court in the county where your business is located. Additionally, you’ll have to publish a copy of your trade name in a local newspaper the county sheriff’s office uses for legal ads, at least once a week for two consecutive weeks.
3. Create a business plan
A comprehensive business plan is a necessary component of any business. A business plan outlines a company’s goals, target market, financial projections, and operational strategy. It is essential for securing funding, guiding decision making, and ensuring long-term success by providing a clear roadmap for growth.
You can customize your business plan to suit your needs, but generally a good business plan will include the following sections:
- Executive summary
- Detailed company description
- Market analysis
- Outline of organizational and managerial structure
- List of products and/or services
- Customer segmentation report
- Marketing plan
- Logistics and operations plan
- Financial plan
4. Choose a business structure
Your chosen business structure determines how your company is taxed, how easily you can secure investments, and several other factors.
Here are the types of business structures available to you in Georgia:
- Sole proprietorship. The default for businesses with a single owner that don’t formally incorporate. If you are a sole proprietor, profits are taxed once at the owner’s personal income rate.
- Partnership. A business with two or more owners. Partnerships are easy to set up and avoid corporate taxation, with profits passing through to partners’ personal tax returns. However, liability and decision-making responsibilities are shared.
- Corporation. A separate legal entity from its owners, offering strong personal asset protection. While corporations require more paperwork and compliance, they can raise capital by issuing stock. S corporations function similarly but offer pass-through taxation, avoiding corporate taxes.
- Limited liability company (LLC). A hybrid of corporations and partnerships, offering liability protection with simpler tax and management structures. LLCs provide personal asset protection while avoiding double taxation.
Georgia provides ample resources for all business types.
“Georgia boasts a vast network of support programs for businesses of every size,” says Daniela Perry, vice president of the Georgia Chamber Foundation. “Initiatives like the University of Georgia’s Small Business Development Center and the Georgia Institute of Technology’s Advanced Technology Development Center are just a couple of examples of the programs that serve as resources for entrepreneurs looking to start, grow, and develop their businesses.”
“Of course, our local chambers are champions for the small business community in every corner of the state and provide tailored benefits for the companies in their communities. Reaching out to your local chamber is a great way to find the programs best suited to fit your needs,” she adds.
Visit the Georgia Department of Revenue’s website to learn about what taxes you’ll need to pay based on your business structure.
5. Get an EIN
Once you’ve decided what form your Georgia business is going to take, you’ll have to apply for an employer identification number (EIN). This is a nine-digit number assigned by the IRS and functions similarly to an individual’s Social Security number.
Georgia state tax authorities will identify your business by its EIN. Having an EIN makes it easier to file taxes both at the federal and state levels, helps you secure lines of credit and business credit cards, and allows you to hire employees.
6. File your articles of incorporation, if relevant
If you’re creating a corporation, you’ll need to file articles of incorporation with the Secretary of State’s office to register the company, which must include, at minimum:
- Your business’s name or a valid name reservation number
- The name and address of the person filing on behalf of the business
- A valid email address for the business
- The mailing address of the business’s principal or main offices
- The name and address of its registered agent (who must have an address in Georgia)
- The name and address of each incorporator
- The number of authorized shares, if you’ve decided to issue any at the outset
Within 90 days of incorporation, you must also file an initial annual registration that lists three key officers and pay a fee of $50 for for-profit ventures and $30 for non-profit.
7. Find financing
Most businesses need some investments at the outset to get them up and running. This could include rent toward a brick-and-mortar retail space or costs associated with a professionally designed website, ad placements, equipment, and ecommerce software. You may also want to hire a lawyer, an accountant, or other professionals.
You may get lucky and find a low investment business idea, or choose to bootstrap your business, or use personal funds. But small business owners in Georgia who need some capital can access funding through several sources:
- State and local grants. Programs like the Georgia Small Business Development Center(SBDC) and local economic development agencies offer grants and resources.
- Small business loans. Options include SBA loans through banks and credit unions, microloans from nonprofit lenders and traditional bank loans.
- Venture capital and angel investors. Look for local organizations like the Atlanta Technology Angels and local investment firms that fund startups with high growth potential.
- Crowdfunding and peer-to-peer lending. Crowdfunding platforms like Kickstarter, GoFundMe, and Kiva help businesses raise capital from individuals.
- Business incubators and competitions. Startup accelerators like Atlanta Tech Village provide funding, mentorship, and networking opportunities.
8. Obtain a business license and permits
Your Georgia business will need to have a general business license provided by the city or county in which it operates. If your business deals in certain industries, such as the sale of liquor, firearms, or tobacco, you may need additional licensing and permits.
To find out who regulates industry-specific business licenses in the county or city where you’ve set up your Georgia LLC, you can contact the Georgia Chamber of Commerce or use the Georgia Municipal Association’s handy search tool.
9. Examine insurance options
Business insurance helps protect your Georgia business and assets in the event of an unforeseen loss. The Georgia Office of Insurance and Safety Fire Commissioner offers resources for determining what kind of insurance your business may need.
If your business in Georgia employs at least three people, you’ll need workers’ compensation. And if you use any vehicles in connection with your business, you’ll need commercial auto insurance.
Other useful types of business insurance in Georgia include:
- Liability insurance. Liability insurance covers your business for any legal actions resulting from accidents, injuries, or negligence. This is typically required as part of a commercial lease.
- Commercial property insurance. Commercial property insurance protects your business from costs associated with fire, weather damage, or theft.
- Professional liability insurance. Professional liability insurance protects manufacturers, wholesalers, distributors, and retailers from liability arising from unsafe products and services.
- Cyber liability insurance. Cyber liability insurance offers protection to businesses from costs associated with suffering a data breach or cyber attack.
- Umbrella insurance. This type of insurance helps cover unforeseen costs that exceed policy limits on other insurance plans.
10. Set up a business bank account
Opening a business bank account is essential for Georgia entrepreneurs because it separates personal and business finances, making accounting and tax filing easier. This extra organizational step is key when you’re the one managing your books in the early days. Other benefits include:
- Increased credibility. Having a business bank account enhances your credibility with customers, lenders, and investors.
- Legal protection. Helps maintain liability protection for LLCs and corporations by keeping finances separate.
- Easier bookkeeping and taxes. Simplifies tracking business income, expenses, and deductions.
- Access to business financing. Banks require a business account for business loans and lines of credit.
- Professionalism. Accepting payments under a business name builds trust with customers and vendors.
11. Market your business
A solid marketing strategy for your Georgia small business will include several key elements:
- Market research. Market research can help you better understand your company’s competitors, pricing, and target customers.
- Advertising and promotion. Get the word out about your product through paid advertising. You can do this yourself or hire an agency to do it on your behalf.
- Social media. The world turns on social media. Promoting your products on Facebook, Instagram, Google, and YouTube may be necessary ingredients for success.
- Public relations. Your public relations efforts can help you identify and cultivate relationships with media outlets that can increase your visibility.
- New business and customer retention. Building genuine relationships with customers keeps them coming back for more. When satisfied customers spread the word via word-of-mouth marketing to friends, family, and colleagues, they drive more traffic to your store.
Resources and tips for starting a business in Georgia
Starting a business in Georgia takes time, effort, and funds, but with the right resources, the task becomes much easier:
- A business checklist. This free checklist from Shopify will help ensure you don’t miss any important steps when starting your Georgia business.
- Georgia Secretary of State. Handles business registration, licensing and compliance.
- Georgia Department of Economic Development (GDEcD). Offers business incentives, grants, and networking opportunities.
- Small Business Development Center (SBDC). Provides free consulting, market research and other resources to help.
- SCORE Georgia and local Chambers of Commerce. Gives you access to mentorship opportunities, networking events, and business workshops.
- Georgia Small Business Administration office. The Georgia Small Business Administration helps entrepreneurs by providing access to funding through loans and grants and by offering mentorship opportunities and training programs.
Start your business in Georgia
Following these steps helps lay the foundation to building a successful business in Georgia’s growing market. But before setting up shop in the Peach State, think carefully about whether your business goals align with what the state has to offer. Research state demographics, business laws, and infrastructure to ensure your venture can fit seamlessly into its ecosystem—so you can benefit from the energetic business community already in place.
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How to start a business in Georgia FAQ
What do you need to incorporate a business in Georgia?
To incorporate your new business in Georgia, you must file Articles of Incorporation with the Georgia Secretary of State. This includes your business name, registered agent details, principal office address, and incorporator information. You must also obtain an employer identification number (EIN) from the IRS and file an initial annual registration within 90 days of incorporation. Depending on your industry, you may need additional state or local business licenses and permits.
Does Georgia require a statewide business license?
Luckily, Georgia doesn’t have a universal statewide business license. Instead, business licenses are issued at the city or county level, depending on where your business operates. Certain industries, including health care, construction, and food service, may require additional state-level permits or professional licenses. It’s important to check with local city or county offices to determine specific licensing requirements based on your business type and location.
How much does it cost to register an LLC in Georgia?
Registering an LLC in Georgia requires a $105 filing fee if submitted online or $110 if filed by mail. LLCs must also file an annual registration with the Georgia Secretary of State, which costs $55 ($60 if you file by mail). Some businesses may also need special permits or industry-specific licenses, which could add to the overall cost. When you make your business plan, account for all startup costs and ongoing licensing costs that you’ll need to pay.
Can I start a business in Georgia without a physical location?
Plenty of entrepreneurs in the Peach State start a successful business without a physical location. Some online businesses, consultants, ecommerce businesses, and freelancers can work just fine without a storefront or office space. That being said, you will still need to provide a registered agent address within the state for legal and tax purposes. Some business owners use a virtual office or coworking space as their official address. Don’t forget to check local zoning laws if you plan to run a home business to ensure compliance with city or county regulations.
Is Georgia considered a good place to start a business?
Georgia is consistently ranked as one of the best states for business due to its pro-business tax policies, strong infrastructure, and access to a skilled workforce. The state offers various incentives, including tax credits for job creation and investment. Georgia also has a diverse economy, a growing startup ecosystem, and numerous small business resources, such as the Georgia Small Business Development Center (SBDC), Georgia Small Business Administration, and various incubators.
What are the zoning laws for businesses in Georgia?
Zoning laws in Georgia vary by city and county, determining where specific types of businesses can operate. Businesses must comply with local zoning ordinances, which classify areas for residential, commercial, industrial, or mixed-use purposes. If you plan to run a home-based business, you may need special permits or variances. Check with your local planning and zoning department in your city or county to ensure your business location aligns with zoning regulations and obtain any necessary permits before operating.
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