Georgia is a business-friendly country which has developed a long-lasting relationship with other jurisdiction over the years. Its company incorporation policies are straight-forward and are framed in a way such that investors would find setting up a company in Georgia much easier than any other country. A way through which entrepreneurs can start their business in Georgia is by forming a C Corporation. There can be a little confusion while forming a corporation since Georgia has two major types of Corporation, they are, S Corporation and C Corporation. There is a widespread confusion regarding the roles of both the types of corporations. We are here to help you fix the doubt.
When a corporation is originally chartered by Georgia, it exists as a C Corporation. If you do nothing more after forming the corporation, it will stay as a C Corp. Your Georgia Corporation becomes an S Corp only when, with the consent of all the shareholders, a special tax treatment is passed by filing a form with the IRS. You don’t have to choose between an S Corp and C Corp until after forming a Corporation in Georgia.
Things to Know while Forming a C Corp in Georgia
How to Form a C Corp in Georgia?
1. Verify and Secure Your Company Name
Find the perfect name for your business and kick-start your first step. The name should not resemble the company name of an existing business.
2. Appoint a Registered Agent
Now that you will officially register your company in Georgia, you must look for a registered agent. The appointed agent will be responsible for accepting a ton of important documents on your behalf, including tax forms, service of process notices and other legal paperwork.
3. File Articles of Incorporation
You can file your AoI online or on paper, depending on your preference. The document will ask for:
4. Obtain EIN
Now it’s time for obtaining Employer Identification Number or EIN. The federal government will use the number to monitor your business activity, and it will be necessary for pretty much every financial move you make going forward.
5. Open a Business Bank Account
To start off on solid financial footing, you’ll need to open up a business bank account for your corporation. There’s no room to mix your personal and professional expenses here.
6. Obtain Taxation and Licensing Permits
The final step to check off your to-do list is securing any necessary permits/licenses and taking care of any special taxes. It will involve researching on federal, state and local requirements.
Other than the aforementioned steps, Georgia requires corporations to create certain business records, such as bylaws, corporate minute books and meeting minutes, as these records help to maintain your corporate status. It's smart to create and maintain these documents, even if Georgia doesn't officially require them because they help protect the legality of your corporate status and they can shield you from personal liability for corporate debts.
If you are looking to start a C Corp in Georgia, we at Business Setup Worldwide can make it easy for you. Our advisors in Georgia have years of experience in this field and make the process efficient, cost-saving, and hassle-free. Contact us today to know more.