Georgia Sole Proprietorship vs LLC:
Fees, Taxes, and Decision Guide (2026)
Georgia is a moderate-cost state for LLC formation: $100 to file, $50 annual registration, no franchise tax. Both structures pay the flat 5.39% state PIT on business profit.
Georgia LLC Fees
$100
Articles of Organization filing fee
$50 / yr
Annual registration fee
5.39% flat
GA state PIT (2026)
5-7 days
Standard processing time
5-Year Cost Comparison for Georgia Residents
| Structure | Year 1 | Years 2-5 (each) | 5-Year Total (state-level) |
|---|---|---|---|
| Sole Proprietorship | $0-$45 DBA | $0 | $0-$45 |
| Georgia LLC | $150 | $50 | $350 |
State PIT 5.39% applies to business profit under both structures and is not included above.
Georgia-Specific Considerations
Flat 5.39% PIT for 2026, phasing down
Georgia moved from a 6.0% top-bracket PIT to a flat 5.39% rate effective 2024, with statutory phase-down to 4.99% scheduled over coming tax years. The flat rate applies identically to sole proprietors (Schedule C income) and pass-through LLC members. No bracket advantage either way.
Annual Registration is real, due 1 April
Every Georgia LLC must file an Annual Registration with the Secretary of State by 1 April each year, $50 fee. Failure to file by 1 May results in administrative dissolution. The registration confirms the registered agent and principal office address; no financial disclosure required.
No franchise tax
Unlike Delaware ($300/yr franchise), Tennessee (franchise + excise), or California ($800 minimum franchise), Georgia does not impose a franchise tax on LLCs. The state-level cost is the $50 annual registration plus PIT on profit.
Sole prop trade name registration
Sole proprietors using a name other than their legal name must file a Trade Name (DBA) with the Clerk of Superior Court in the county of operation, with the filing fee typically $25 to $45. LLCs use the registered LLC name directly without separate DBA filing.
Specific Recommendations for Georgia Residents
Stay sole prop if...
- Revenue under $30k and low-risk work
- The $50 annual registration is meaningful relative to net profit
- No clients require LLC status
Form a Georgia LLC if...
- Revenue above $40k-$50k
- Physical services or liability-heavy work
- Bringing on a partner or hiring employees
Sources: Georgia Secretary of State - Corporations Division; Georgia Department of Revenue - Individual Income Tax.
Not legal or tax advice. Consult a licensed CPA or business attorney admitted in Georgia for specific guidance.