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STARTING AND OPERATING A BUSINESS IN GEORGIA Copyright © 2000, Michael D. Jenkins
CONTENTS OF THIS CHAPTER:
I. INTRODUCTION I. INTRODUCTION Georgia has a fairly typical tax and legal structure under which businesses must operate. However, it is notable for having a very favorable business climate, and low tax rates. Georgia is a right-to-work state and has a relatively low level of unionization of its work force, making a favorite choice for relocation for many companies. Like most states, Georgia imposes an income tax, a franchise tax on corporations, a sales and use tax, various excise taxes, with property taxes imposed at the local level. The state also imposed a property tax on intangible assets such as stocks, bonds, and accounts receivable until recently, but that tax has been repealed. The state has also adopted a limited liability company (LLC) law and a limited liability partnership (LLP) law, so that businesses operating in Georgia in LLC or LLP form may now obtain the advantages of limited liability, without incorporating or becoming subject to corporate taxation, generally. At present, the state's economy is relatively robust, in terms of the level of unemployment and other economic measures. For example, in January, 2000, the Georgia rate of unemployment was only 3.6%, down from 4.2% a year earlier, and somewhat below the 4.0% national unemployment rate. In addition, the state has a relatively low cost of living, compared to national averages. To view the latest federal Bureau of Labor Statistics unemployment rate data for Georgia or any other state, visit the BLS website. II. LEGAL ENTITIES -- FILING FEES AND REPORTING REQUIREMENTS. (a) In General. A business that operates in Georgia can operate as a sole proprietorship, a general or limited partnership, a corporation, or a limited liability company. In addition, like the federal tax law, the state income tax law also recognizes S corporations, for income tax purposes, and generally allows the income or losses of an S corporation to "flow through" and be taxed or deducted at the shareholder level, rather than taxing the corporation itself as an entity. Georgia also provides for limited liability partnerships, in which no partner is liable for debts of the partnership, in general, as in the case of a corporation or LLC, but with fewer legal formalities than are required for either a corporation or an LLC. Each of the above entities is discussed below, along with the basic requirements for forming such an entity and any general ongoing (non-tax) reporting requirements that are applicable to it. The tax treatment of each form of legal entity is discussed in Section IV below. (b) Sole Proprietorships. In general, sole proprietorships in Georgia can be formed with no formalities. However, as is discussed in Section IV(b), it will generally be necessary to obtain one or more local business licenses from cities or counties in which you operate and, in some cases, state licenses, as well. No separate tax form filing is required, generally, for a sole proprietorship, under the Georgia income tax law. Instead, as with the Schedule C on your federal Form 1040, you simply report the net income or loss from your sole proprietorship on your state personal income tax return. See Section IV(c) for information on the Georgia income tax and filing requirements for individuals. As a sole proprietor, if you have no employees, you are not required to pay any unemployment taxes, withhold any federal or state income tax from wages, nor obtain workers' compensation coverage for yourself. (c) Partnerships. As a rule, general partnerships in Georgia can be formed with no formalities, although it is highly advisable to have a written partnership agreement. However, as discussed in Section IV(b), it will typically be necessary to obtain one or more local business licenses from cities or counties in which you operate and, in some cases, state licenses, for any type of partnership, including general or limited partnerships, or limited liability partnerships. Also, partnerships in Georgia customarily file a Statement of Partnership in each county where they conduct their business or own real property, although they are not required to do so. A limited partnership, in which there is at least one general partner (who is liable for partnership debts) and at least one limited partner (who is not liable for partnership debts), may also be formed under Georgia law. Unlike a general partnership, a limited partnership must generally have a written partnership agreement, and must file a certificate of limited partnership with the secretary of state, together with a $60 filing fee. A foreign limited partnership, one formed under the laws of another state, must apply to the secretary of state's office for a certificate of authority before doing business in Georgia, and must pay an application fee of $170. Both Georgia and foreign limited partnerships must file an annual registration and pay the applicable $15 fee. For information on limited partnership filing requirements, see the contact information for the offices of Georgia Secretary of State, listed in Section VI(a). Limited liability partnerships (LLPs) are a new form of partnership permitted under the laws of Georgia. Like an LLC, an LLP provides limited liability for its owners, while retaining the tax advantages of a partnership for federal and Georgia state income tax purposes. However, unlike an LLC, an LLP typically operates like a regular partnership, and is not required to file articles of organization. To form an LLP in Georgia, you must file an election to become an LLP with the clerk of the superior court in each county where you do business and pay to the clerk the applicable fee, which can be the same as the fee for filing a Statement of Partnership. A foreign LLP must register with the secretary of state for a certificate of authority and pay a registration fee of $200. Foreign LLPs must file an annual registration with the secretary of state and pay an annual filing fee of $25. For more information on LLP registration and reporting requirements, contact the clerk of the superior court in your county and see the contact information for the offices of the Georgia Secretary of State, listed in Section VI(a). Note that one potential drawback of LLPs, if you will do business in other states besides Georgia, is that some states, like California and New York, only recognize certain types of professional partnerships as LLPs. If yours is not a professional partnership, such other states may simply treat your LLP like an ordinary general partnership, with no limitation of liability. A partnership agreement, for any type of partnership, should spell out in considerable detail such matters as the following:
Partnerships, as entities, are not subject to state income tax in Georgia. Instead, the income or losses of the partnership, as allocated among the partners, must be reported on the personal income tax returns of the individual partners (or on the corporate tax returns of any corporate partners). Partnerships are required to file an annual tax information return with the state. For details on Georgia partnership tax return filing requirements, see Section IV(c). (d) Corporations. To form a corporation in Georgia, you must file articles of incorporation with the Georgia Secretary of State and pay a filing fee of $60. A foreign corporation (one formed under the laws of another state or a foreign country), must obtain a certificate of authority before it may legally conduct business in Georgia, by filing an application for a certificate of authority and paying a filing fee of $170. For more information on filing articles of incorporation or applying for a certificate of authority to do business in Georgia, see the contact information for the offices of the secretary of state, listed in Section VI(a). In addition, once your corporation is formed, it will be required to file annual reports and a filing fee of $15 with the Georgia Secretary of State each year. Failure to file this report on a timely basis could result in suspension or revocation of your corporation's charter. In addition to paying federal income taxes on its income, a corporation that does business in Georgia must also file corporate income tax returns with the state. See Section IV(c) for a discussion of state corporate income tax rates and tax return filing requirements. Corporations that do business in Georgia are also subject to a corporate franchise tax. This is a tax on a corporation's capital, which includes its issued capital stock, paid-in capital and retained earnings. In the case of a foreign corporation, a formula is used to compute the amount of its capital and surplus that is deemed to be employed in Georgia. The franchise tax ranges from a minimum of $10 on a company with $10,000 or less of capital to a maximum of $5,000 a year for a company with over $22 million of capital. A franchise tax report is due by the 15th day of the third month after the beginning of the tax year. For tax forms and more information on corporate income and franchise taxes in Georgia, see the contact information for the offices of the Georgia Department of Revenue, listed in Section VI(a). (e) S Corporations. An S corporation is simply a regular corporation that has elected, for federal or state income tax purposes, or for both, to be taxed somewhat like a partnership, with its income, losses and tax credits flowing through to its owners, who report such income, losses, or credits on their individual tax returns. Georgia recognizes S corporations for income tax purposes, and treats them in a manner similar to the federal tax treatment. However, if an S corporation has nonresident shareholders, its S corporation status is not recognized unless all nonresident shareholders file a consent form, agreeing to pay Georgia income tax on their share of the Georgia net income of the corporation. (f) Limited Liability Companies. Georgia, like every other state, has now adopted a limited liability company (LLC) law. Thus, in addition to the traditional choices of a sole proprietorship, partnership, or corporation, a business that operates in Georgia may also choose to operate in the form of an LLC. In most states, LLCs are very attractive entities for many small businesses, in that they offer the same protection as a corporation from creditors for debts of the business, while offering much of the flexibility plus the flow-through tax treatment of a partnership for federal tax purposes. See Section IV(c) for a discussion of the income tax treatment of LLCs under Georgia tax laws. To form an LLC under the laws of Georgia, one or more persons must file articles of organization with the Georgia Secretary of State. There is a filing fee of $75. Foreign LLCs, those formed under the laws of another state, must register to do business in Georgia, by filing an application for a certificate of authority with the secretary of state and paying a filing fee of $200. Georgia law now authorizes the formation of one-member LLCs. In addition to initial filing fees, both domestic and foreign LLCs must subsequently file an annual registration and pay an annual registration fee of $25. For more information on filing articles of organization for an LLC, see the contact information for the offices of the Division of Corporations, Georgia Secretary of State, listed in Section VI(a). III. BUSINESS ACQUISITIONS (a) In General. When acquiring an existing business, there are a number of state legal and tax issues you or, preferably, your business attorney, should attend to before closing the purchase. These include matters such as doing a title search for any real property that is being acquired, checking for any recorded security interests on personal property items, and thoroughly researching county, state, and federal records for any judgment liens, tax liens, or other liens, before property is acquired. You will also benefit from consulting a tax advisor before the agreement of sale is negotiated, in order to seek a structuring of the agreement so that the purchase price is allocated among the assets in a way that favors you. You may be able to obtain considerable tax savings if the purchase price is allocated in a way that gives you the best possible tax results under federal and state income tax laws, and other state tax laws, such as sales/use tax or property tax laws. Depending upon the state (or states) in which the seller's assets are located, you may also have to comply with state bulk sale or bulk transfer laws. You should also obtain tax releases from various state taxing agencies, as discussed below. (b) Bulk Sale Laws. Typical bulk sale laws require either publication of legal notices to all creditors in advance of the sale and recording of such notices in some cases, or maintenance of detailed lists of the property to be transferred, for inspection by the public. Georgia has a bulk sale law and you will need to comply with this law when you purchase assets of an existing business. Failure to do so will expose you to liability to creditors of the seller who do not get paid off when the sale of the business occurs. The Georgia bulk sale law generally follows the Uniform Commercial Code, with the seller required to furnish you a list of names and addresses of all creditors, and to jointly prepare, with you, a list of all property to be transferred, which you must keep on file and available to the public for six months. Each creditor must be notified in advance of the sale by certified mail, in person, or by publication in a newspaper. Compliance with the bulk sales law should be handled by a competent business attorney, as its requirements are quite specific and very technical in nature. (c) Tax Releases. When you acquire an existing business, you will want to make sure that you do not unwittingly become liable for any unpaid taxes owed by the seller. Typically, to protect yourself, you will need to receive a tax release or releases from various state taxing agencies, for such taxes as sales and use tax, income tax withholding, and state unemployment taxes, in each state in which the seller does business. If you fail to obtain such a release or written statement from the tax agency that the seller is not delinquent on any tax payments, you will be held responsible for such tax if it is not withheld from the purchase price proceeds and paid to the state at the time the sale of the business transpires. In Georgia, you should require the seller to obtain a tax release from the Unemployment Insurance Division of the Georgia Department of Labor regarding state unemployment tax liabilities of the seller, and a sales and use tax release from the Georgia Department of Revenue. As buyer, you must withhold enough (up to 100%) from the sales price to cover any sales and use tax liabilities of the seller, until the seller gives you a receipt from the Department of Revenue showing that no tax, penalties or interest are owed by the seller. The seller is required to file a final sales and use tax return within 15 days after selling the business. (d) Unemployment Tax Rating of Seller. In addition to obtaining tax releases, you may find it advantageous to succeed to the seller's unemployment tax experience rating, if the seller has a tax rate lower than you would otherwise obtain as a new business. To obtain the seller's favorable experience rating as a successor employer, you will need to apply on a timely basis to the Unemployment Insurance Division of the Georgia Department of Labor, requesting that you be treated as a successor employer. (e) Withholding Tax on Real Estate Purchases. If your business purchase includes an acquisition of real estate, you are required to withhold Georgia income tax at a rate of 3% of the purchase price or, if less, the entire amount of the net proceeds payable to the seller. No withholding is required if the seller gives you an affidavit stating that he, she or it is a resident of Georgia or an entity that is registered to do business in Georgia. IV. GEORGIA TAXES AND OTHER GENERAL REQUIREMENTS. (b) State and Local Licensing. Nearly any business, operated anywhere in the United States, will have to have at least one government license of some kind. In most cases, this will be a local license, issued by your city or county. Before you open your business, contact your local city or county hall and find out if your particular business needs one or more local licenses. Most kinds of local business licenses are granted upon payment of a fee, with no further requirements, except possibly for annual or other periodic renewal fees. However, if you are engaging in any kind of food business, you will usually need to also obtain a health department permit and show that you are in compliance with health department food-handling requirements. In addition, be sure to check with an attorney or local government zoning or planning department officials to determine if your business will be in compliance with all local zoning and planning restrictions. If you own or rent any type of facility, you will generally need fire department permits, showing that you meet fire safety codes and, of course, any construction or improvements to an existing structure will almost always require a building permit. Even if you intend to simply operate your business from your home, you may be in violation of local zoning requirements, but this is less likely to be a concern if you don't have clients, customers, suppliers, or employees coming to your house on business, on a regular basis. State governments have also traditionally required special licenses for many kinds of professionals, such as physicians, dentists, lawyers, and accountants. To further protect consumers, Georgia has expanded the list of occupations that must be licensed by the state to include many other occupations. Most state licenses not only require payment of fees, but are only issued for a given profession or occupation upon showing that you have completed certain educational or experience requirements, or passed certain tests, or some combination of the foregoing. For information on state licensing and business registration requirements in Georgia, see the contact information for the offices of the Examining Board Division of the Secretary of state, which is in charge of managing most of the various state licensing boards. Its address is listed in Section VI(a). (c) Income and Franchise Taxes. Georgia has both an individual income tax and a corporate income tax, as well as a franchise tax on corporations. The Georgia individual income tax is imposed at a maximum tax rate of 6%, on taxable income of over $10,000 on a joint return or a head of household return. Individual taxpayers pay state income tax on their business earnings from a sole proprietorship, or on their share of the earnings of a pass-through entity, such as a partnership, S corporation, or LLC. The Georgia personal income tax return is Form 500, which must be filed with the Department of Revenue, on or before April 15th of the following taxable year. Partnerships, or entities taxable as partnerships, such as LLCs, are not subject to state income taxation in Georgia, but must file an information return with the Department of Revenue each year, showing each partner's share of taxable income, losses, and credits, on Form 700. The partnership information return is due by April 15th of the following year, in the case of a calendar year partnership. Individual taxpayers doing business as sole proprietors, or who are partners in partnerships, or members of LLCs, are generally required to make payments of estimated Georgia individual income taxes, on Form 500ES, if they have over $1,000 of nonwage income for the year. Estimated tax payments are due in four installments, on the 15th day of the 4th, 6th, and 9th months of the taxable year, and the 15th day of the first month of the following year. At least 70% of the current year's tax liability, or 100% of the prior year's liability, if less, must be paid in as estimated tax or withholding, to avoid penalty, generally. The Georgia corporate income tax rate, on corporations other than S corporations, is imposed at a flat rate of 6%. The state corporation income tax return is Form 600, or Form 600S for an S corporation. The return must be filed with the Income Tax Division of the Georgia Department of Revenue by the 15th day of the third month following the end of the taxable year, or by March 15th in the case of a corporation whose taxable year is the calendar year. Corporations are required to make estimated tax payments of their state corporate income tax in advance, if their tax liability for the year exceeds $25,000. Estimated tax payments are due in advance, in four equal installments, on the 15th day of the 4th, 6th, 9th, and 12th months of the taxable year. Estimated tax payments must be at least equal 70% of the current year's tax liability to avoid underpayment penalties, or , if the preceding year was a full year of 12 months and a return was filed, the current year payments need only be equal to 100% of the prior year's tax liability, if that is less than 70% of the current year's tax. Penalties will be imposed for failure to make the required estimated tax payments on a timely basis. In Georgia, a limited liability company (LLC) is taxed in the same manner as a partnership, thus avoiding the possible double taxation of income that can occur with a corporation. Georgia law allows the formation of an LLC by one person, and, effective since July 1, 1997, also allows an LLC to have only one member. (d) Sales and Use Tax. Georgia imposes a general sales tax on retail sales of tangible personal property and certain other transactions, including rentals of tangible personal property, short-term lodgings of less than 90 days, and amusement or entertainment activities, at the statewide rate of 4%. In addition, local governments are allowed to adopt local sales taxes of up to 1%, plus additional taxes for special purposes, such as education. Sellers are required to obtain a sales tax permit and to collect and pay over the state and local sales and use taxes to the Sales and Use Tax Division of the Georgia Department of Revenue. Register for sales and use tax on Form CRF-002. Form CRF-002 will also serve as your state registration as an employer, for state income tax withholding. There are numerous exemptions from the sales tax, the most important of which is the resale exemption. If you are a wholesaler or retailer who purchases goods that you will resell, your purchase of such goods may qualify as an exempt sale for resale. Similarly, if you sell goods to wholesalers or retailers for resale by them, your sale may also qualify as an exempt sale for resale. In any such transaction, the exemption is ordinarily available only if the purchaser gives the seller a valid resale certificate, certifying that the items are being purchased for resale, and not for use or consumption by the buyer. A shadow tax, the use tax, is also imposed at the same rate as the sales tax. It is primarily intended to tax property that is acquired from sources outside of the state, in transactions not subject to sales tax, when such property is used or consumed within Georgia. Use tax may also apply to items purchased on an exempt basis, such as for resale, if such items end up being used or consumed, instead of being resold. For more information on Georgia sales and use tax registration and compliance, see contact information for the offices of the Sales and Use Tax Division of the Department of Revenue in Section VI(a). (e) Real and Personal Property Taxes. In Georgia, as in every other state, any business real estate you own will be subject to real property taxes. In general, there is little that you must do, unless you wish to challenge your assessed valuation, since the assessor will bill you for each year's property taxes as they come due. However, when a business acquires real estate, it may have to file a real property tax report with the county tax commissioner between January 1 and April 1 (March 1 in some counties). Georgia also imposes personal property taxes on tangible personal property. However, certain business personal property, such as business inventories, are exempt from personal property tax in Georgia. While Georgia generally taxes tangible personal property, it no longer imposes a property tax on intangible personal property, such as stocks, bonds, promissory notes, and other such paper assets. The intangibles tax has been repealed, effective as of January 1, 1996. (f) Other Business Taxes. Georgia imposes a number of other taxes on businesses, including:
(g) Trade Names. A trade name, also known as a fictitious or assumed name, is any name used in the course of business that does not include the actual legal names of all the owners of the business. Thus, if your business goes by any name other than your own real name, it is operating under a trade name. The same is true of a corporation, if it operates under a name other than its legal name. A trade name might also be one that suggests the existence of additional owners, by using such words as "company," "associates," or "group." In most states where you do business, it will be necessary to register a trade, fictitious, or assumed name, so that people who do business with you can find out who the actual owners of your business are. You may also want to register any such trade name, as a means of protecting against other companies usurping that particular trade name. Georgia requires any firm or person doing business under a fictitious name to register the name within 30 days with the clerk of the superior court in the county where you do business, including an affidavit as to the true names of the persons who own the business. Notice of the filing must also be published for two weeks in a legal publication in the county where registered. A corporation, LLC, or limited partnership doing business under its own name is not required to register. V. EMPLOYER REQUIREMENTS IF YOU HAVE EMPLOYEES (a) Employer Registration and Withholding. If you have any employees, you will already be withholding federal income tax and FICA taxes from their wages. In addition, since Georgia imposes a state income tax on the income of individuals, you will need to also withhold Georgia income tax from the wages of your employees. Before you begin to pay wages, you must register as an employer with the Department of Revenue on Form CRF-002 (which can also serve as your sales and use tax registration). You should also request a copy of the helpful Employer's Tax Guide, published by the Income Tax Division of the Department of Revenue. For more information on Georgia income tax withholding and registration requirements for employers, see the contact information for the offices of the Income Tax Division of the Georgia Department of Revenue, listed in Section VI(a). (b) Unemployment and Other State Payroll Taxes. If your business employs one or more individuals in each of 20 weeks during any calendar year or if your payroll amounts to $1,500 in any calendar quarter, you, as an employer will be required to pay state unemployment tax based on the amount of such wages paid. New employers are required to pay tax at a rate of 2.7% in 2000 on the first $8,500 of wages paid to each employee. After you have had employees for a while, you will develop an unemployment tax experience rating. This rating is based on the number of employees you terminate who then claim unemployment benefits and the amount of such benefits paid to those former employees, under complex formulas. The state will inform you when they have assigned you an individual tax rate based on your firm's experience rating. That rate may be higher or, if you have had relatively few benefit claims charged to your account, lower than the standard new employer tax rate you initially were paying. All state unemployment taxes are imposed upon you as the employer, and, under Georgia law, cannot be charged to your employees or withheld from their wages. For more information on your Georgia unemployment tax obligations as an employer, see the contact information for the offices of the Unemployment Insurance Division of the Georgia Department of Labor, listed in Section VI(a), and request a copy of their Employer's Handbook publication. (c) Workers' Compensation. In Georgia, virtually all businesses with three or more employees are required by law to have workers' compensation insurance, except those able to self-insure or participate in a group self-insurance plan. Note, however, that a sole proprietor or a partner in a partnership is generally not considered an employee. Workers' compensation provides wage loss and medical benefits to employees injured on the job and it protects you, as an employer, from legal action for damages for injuries or job-related illnesses suffered by your employees. In effect, it is a "no-fault" insurance system for work-related injuries or illnesses. Thus, if you fail to obtain required workers' compensation insurance, and an employee is injured on the job, you will have opened yourself to unlimited liability and severe legal consequences, so it is very important to obtain workers' compensation insurance for your employees. Be aware that neither general liability nor health and accident insurance can properly substitute for workers' compensation insurance. For more detailed information regarding your obligations as an employer under the Georgia workers' compensation laws, contact your insurance carrier or see the contact information for the offices of the State Board of Workers' Compensation, listed in Section VI(a). (d) State Wage and Hour Laws. Some employees of certain small firms not engaged in interstate commerce are not covered by the federal minimum wage and overtime laws. However, even if few or none of your employees are covered by the federal wage-hour laws, because your firm does less than $500,000 a year in gross sales and the employees in question are not deemed to "...engage in (interstate) commerce...," they will still generally be subject to the Georgia wage-hour laws, which provide for a state minimum hourly wage that is currently $5.15 an hour. The Georgia minimum wage law contains a number of exemptions not found in the federal law, such as for employers with fewer than five employees or employers with sales of less than $40,000 per year. In addition to wage-hour laws, most businesses are subject to federal child labor laws, which put numerous restrictions on the working hours and kinds of work in which minors under the age of 18 may engage. Your business must also be cognizant of similar state child labor laws, in Georgia. With few exceptions, you will not be able to hire a minor under the age of 18 unless he or she provides you a certificate from a school superintendent (or principal of a private school) showing the minor's age and stating that he or she is physically fit to perform the job you are offering. Children under age 16 may not work in any occupations designated as hazardous. (e) State Occupational Safety and Health Laws. Approximately half of the states have their own OSHA-like agency, charged with administering the state's own occupational safety and health laws. The remaining states have no such enforcement agency, and thus rely instead on the federal Occupational Safety and Health Administration (OSHA) to administer the federal job safety rules within such states. Note that while you may obtain a free safety consultation from federal OSHA experts, they must and will cite you for any violations they discover at your workplace. This is not the case in states with their own OSHA programs, where, if you request a safety consultation from the state agency and they detect violations, they will not cite you if you promptly correct the unsafe conditions. Georgia is one of the states that does not have its own local equivalent of OSHA. For information on your job safety and health obligations as an employer and OSHA required posters, see the contact information for the Atlanta offices of the federal OSHA (U.S. Department of Labor), listed in Section VI(a). (f) Other Miscellaneous State Labor Laws. Other Georgia labor laws you need to be aware of, as an employer, include the following: (1) Wage payments to employees. State law requires that you pay wages to employees at least twice a month, in general. (2) Right-to-work laws. About half the states have enacted "right-to-work" laws, which guarantee that no person may be denied employment for refusing to join a union or for not paying union dues, thus banning either "union shop" or "agency shop" agreements, or both. In a union shop, an employee not belonging to a union may be hired but then must join the union, usually within 30 days. In an agency shop, an employee need not join the union but, to remain employed, must pay union dues. Georgia has a right-to-work law. (3) State anti-discrimination laws. In addition to complying with federal anti-discrimination laws, employers must also be aware of and comply with state civil rights laws in Georgia, and display a poster informing employees of their rights under the sex discrimination provisions of state law. You can obtain state civil rights posters from the Georgia Equal Employment Opportunity Commission, at the address listed in Section VI(a). (4) Reporting new hires. Under new federal welfare reform laws, employers in all states are now required to report newly-hired (or rehired) employees to a designated state agency (the Georgia New Hire Reporting Center for Georgia employers) within 20 days after the date of hire. See the contact information in Section VI(a), and the web site URL for the Georgia New Hire Reporting Center in Section VI(c). VI. STATE SOURCES OF HELP AND INFORMATION (a) Key State Agencies Contact Information. Like many other states, Georgia now has a "one-stop" single agency to whom you can go for help with all your licensing and permitting requirements for your business under the laws of Georgia. While this office, the First Stop Business Information Center (part of the office of the Georgia Secretary of State) offers a central location where you can get advice about which licenses and permits should be obtained, you will still need to contact the various Georgia government agencies that are mentioned in this book or listed below on an individual basis, to obtain needed forms, official posters, information and other assistance from each such agency. The First Stop Center also publishes the Consolidated Registration and Information Book identifying other resources provided by state government to assist small businesses. For further information contact the First Stop center at the address listed below for the Georgia Secretary of State. Also, you can register your business with the Georgia state Department of Revenue for sales and use tax, state employer withholding tax identification numbers, and various other taxes, such as alcohol, tobacco, and fuel taxes. Request their helpful booklet, entitled "Taxpayer Registration," which includes the various tax registration forms and instructions on completing each of them. To obtain tax registration forms and a Taxpayer Registration booklet, contact:
Or (street address):
Addresses and other contact information for other key Georgia state government agencies mentioned in this book are listed below for your convenience. BUSINESS STARTUP INFORMATION. A key office that can provide helpful information on getting your business up and running in Georgia is the lead Small Business Development Center (SBDC) in Georgia. See the address information on Georgia SBDCs, which is listed in Section VI(b). SECRETARY OF STATE. Contact the Secretary of State's office for information on:
STATE LICENSES. The secretary of state is the main Georgia agency that manages the numerous state licensing boards. For information about any state licensing requirements, contact:
NEW HIRE REPORTING. Report newly hired (or rehired employees) to the following agency, by mail, fax or telephone call, at the following address:
STATE SALES TAX. Obtain your sales and use tax license or permit and information on the Georgia sales and use tax law, from the Department of Revenue at the separate addresses listed above for that agency, for registration and for general sales tax matters. STATE UNEMPLOYMENT TAX. Contact the Unemployment Tax Division of the Georgia Department of Labor to determine whether you are an employer subject to payment of state unemployment taxes, and for information on your tax and other obligations under the unemployment compensation law, at the address listed above for the Georgia Department of Labor. WORKERS' COMPENSATION INSURANCE. If you employ workers for whom you must supply workers' compensation coverage, contact the following agency for further information:
(b) Small Business Development Centers. A number of Small Business Development Centers (SBDCs) are located throughout Georgia to assist you. These centers, usually located on college campuses, provide a wealth of start-up information and sponsor frequent business-oriented seminars. Contact the lead office below for information, or for the location of other SBDCs nearer to you.
(c) Internet Sites. If you have access to the Internet, there is a wealth of state and even local business information provided by state and local governments. All states now have a state government Web page, and most major state agencies also have sites on the Internet where you can obtain useful small business information on matters such as state taxes, financing sources, or the addresses and phone numbers (or e-mail addresses) of various state and federal agencies' offices in Georgia. Since new sites are appearing constantly, you might also want to search for other Georgia government Web sites by using one of the popular Internet search engines, such as Excite! or Yahoo. To start your Internet search for Georgia government information, you may want to begin with the following Internet sites: State of Georgia Home Page: Georgia Department of Revenue home page: Georgia Department of Labor: Georgia Secretary of State (and First Stop Business Information Center): State Workers' Compensation Board: Georgia New Hire Reporting Center: Atlanta Development Authority: (d) Financing Sources. For information and help on locating financing for your small business, contact the nearest U.S. Small Business Administration office in Georgia, or contact the following Atlanta agency for information on small business loans in the city of Atlanta:
The address of the SBA Regional Office in Atlanta is:
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Copyright © 2000 Michael D. Jenkins
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