How To Start a Business in Georgia: 10 Easy Steps (2024)

This content doesn’t contain and isn’t meant to provide legal, tax, or business advice.*

With more than 1.2 million small businesses, Georgia is a vibrant, dynamic market, offering many benefits to new business.

“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 starting a business in Georgia.

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
Obtain a business license and permits
Examine insurance options
Understand financial considerations
Market your business

1. Choose a 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?

Free: The Big List of Business Ideas

To help you find the inspiration to start, we compiled a list of 100+ in-demand business ideas, broken down into categories like fitness, apparel, and gaming.

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 your entity’s function 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 a DBA to your business in Georgia, you’ll need to register with the Clerk of the Superior Court in the county where your business is located. You are required 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.

Click here to create your business name with Shopify

3. Create a business plan

A comprehensive business plan is a necessary component of any business. A good one 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

Free: Business Plan Template

Business planning is often used to secure funding, but plenty of business owners find writing a plan valuable, even if they never work with an investor. That’s why we put together a free business plan template to help you get started.

4. Choose a business structure

Business structure determines how your company is taxed, how easily you can secure investments, and a number of other factors.

The types of business structures available to you in Georgia include:

Sole proprietorships, which are owned and run by one person
Partnerships, which have two or more owners
Corporations, which are legal entities separate from their owners
Limited liability companies (LLC), which are hybrids of corporations and partnerships

Georgia provides ample resources for all business types.

“Georgia boasts a vast network of support programs for businesses of every size. 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,” says Daniela Perry, vice president of the Georgia Chamber Foundation.

“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.”

Here are some factors to consider when choosing the right business structure for your venture:

Sole proprietorships

Sole proprietorships are default settings for all businesses that don’t formally incorporate and don’t have a partnership agreement—that is, they’re businesses owned and operated by a single person. Like partnerships and most LLCs, they’re taxed at the personal income of ownership one time instead of once on corporate income and once on personal income.

Limited liability companies

Limited liability companies are a popular choice of business structure. They offer many of the benefits of running simpler business entities like a sole proprietorship or partnership, plus many of the legal insulations afforded to larger corporations. The limited personal liability they provide helps ensure that an owner’s personal assets have a level of protection against creditors and legal judgments.

C corporations

C corporations offer that same degree of personal asset protection but are generally more work to incorporate and maintain. There’s more paperwork because the business is formed as an entity entirely separate from business owners. Still, it can be easier to raise capital for corporations by issuing stock.

S corporations

S corporations are similar to C corporations, but they provide a legal business structure with pass-through tax status. This means the corporation doesn’t pay corporate taxes and instead passes all income, losses, deductions, and credits to shareholders, who pay taxes themselves.

For information on what business taxes your Georgia business is subject to depending on its structure, you can visit the Georgia Department of Revenue’s website.

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 to new organizations for tax purposes. It functions similarly to an individual’s Social Security number.

Georgia state tax authorities will identify your business by its EIN. Having an EIN not only makes it easier to file taxes both at the federal and state levels, but it can also help 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.

7. 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.

8. 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 your business may need.

The two kinds of insurance that are required of businesses in Georgia are workers’ compensation insurance if your business employs at least three people, and commercial auto insurance for any vehicles used in connection with your business.

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 in connection with 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.

9. Understand financial considerations

In addition to purchasing insurance, you will likely also have to make other investments to get your Georgia business 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.

10. Market your business

A solid marketing strategy for your Georgia small business will include several key elements:

Market research. Market research is needed to better understand your company’s target customer.

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 a necessary ingredient for success.

Public relations. Leverage public relations to identify and cultivate relationships with media outlets that can increase your visibility organically.

New business and customer retention. Build genuine relationships with customers that 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.

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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, give careful thought to 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.

*This post is for information only. You are responsible for reviewing and using this information appropriately. Requirements are updated frequently and you should make sure to do your own research and reach out to professional legal, tax, and business advisers, as needed. Businesses outside of Georgia will have different steps and requirements. To sell products using the Shopify platform, you must comply with the laws of the jurisdiction of your business and your customers, the Shopify Terms of Service, the Shopify Acceptable Use Policy, and any other applicable policies.

by Shopify Staff

Last updated 27 Mar 2024