How Georgia Taxes LLCs in 2025
Georgia imposes a graduated income tax on LLC pass-through income with rates ranging from 1% to 5.75% across six brackets. The top marginal rate of 5.75% kicks in relatively quickly at just $7,001 for single filers and $10,001 for married filing jointly. Georgia does not impose a separate entity-level tax on pass-through LLCs.
Georgia is currently in the process of transitioning to a flat tax rate of 5.49% (enacted through HB 1437), which is expected to take full effect once certain revenue triggers are met. For 2025, the graduated structure remains in place with the 5.75% top rate.
Transition Note: Georgia enacted legislation to eventually move to a flat income tax rate of 5.49%. The transition depends on revenue triggers being met. Until those triggers are satisfied, the graduated 1%-5.75% bracket structure remains in effect for 2025.
Georgia Income Tax Brackets (2025)
| Taxable Income (Single) | Tax Rate |
|---|---|
| $0 - $750 | 1% |
| $751 - $2,250 | 2% |
| $2,251 - $3,750 | 3% |
| $3,751 - $5,250 | 4% |
| $5,251 - $7,000 | 5% |
| Over $7,000 | 5.75% |
Georgia's standard deduction is $12,000 for single filers and $24,000 for married filing jointly (2025). Additionally, Georgia allows a personal exemption of $2,700 per individual and $3,000 per dependent.
Georgia LLC Annual Registration
- Annual Registration fee: $50
- Due date: April 1 annually
- Filing: Filed with the Georgia Secretary of State online
- No franchise tax: Georgia does not impose a separate franchise tax on LLCs
- Penalty for late filing: $25 per month, up to a maximum penalty
- Administrative dissolution: Failure to file for two consecutive years can result in dissolution
Federal Taxes for Georgia LLCs
- Self-Employment Tax: 15.3% (12.4% Social Security on income up to $176,100, 2.9% Medicare on all income, plus 0.9% Additional Medicare Tax above thresholds)
- Federal Income Tax: 10% to 37% based on filing status
- QBI Deduction: Up to 20% of qualified business income under Section 199A
Effective Rate Example: A Georgia single LLC owner earning $100,000 in net income pays approximately $4,922 in state income tax (after the standard deduction). This is comparable to states like Colorado (4.4% flat = ~$3,758) and lower than California or New York.
Georgia Sales and Use Tax
- State sales tax: 4%
- Local option sales taxes: Up to 4% additional (varies by county)
- Average combined rate: 7.4%
- Atlanta (Fulton County): 8.9% combined
- Food (grocery items): Exempt from state sales tax; local taxes may still apply
- Digital goods: Generally not taxed (software licenses may be)
Georgia LLC Formation Costs
- Articles of Organization: $100 (online) or $110 (mail)
- Annual Registration: $50 per year
- Registered Agent: Required; can be a member or commercial service ($50-$300/year)
- Publication requirement: Georgia requires LLCs to publish a notice of formation in the county's legal organ newspaper once a week for two consecutive weeks. Cost: $40-$100.
- Name reservation (optional): $25
Georgia Pass-Through Entity Tax (PTET) Election
Georgia enacted a PTET election that allows qualifying LLCs to pay state income tax at the entity level:
- Tax rate: 5.75% (or applicable rate) on Georgia-source income
- Members receive a corresponding credit on their individual Georgia returns
- The election must be made annually on a timely filed return
- Works as a workaround for the federal $10,000 SALT deduction cap
- Estimated payments are required quarterly
Georgia Employment Taxes
- Unemployment Insurance (UI): 0.04% to 8.1% on the first $9,500 of wages per employee (new employer rate: 2.7%)
- Workers' Compensation: Required for employers with 3 or more employees
- Administrative Assessment: 0.08% surcharge on UI taxable wages
Georgia LLC vs. Other Southeastern States
| State | Top Income Rate | Sales Tax | LLC Annual Fee | Filing Fee |
|---|---|---|---|---|
| Georgia | 5.75% | 4% + local | $50 | $100 |
| Florida | 0% | 6% + local | $138.75 | $125 |
| Alabama | 5% | 4% + local | $100 BPT min | $200 |
| South Carolina | 6.4% | 6% | $0 | $110 |
| North Carolina | 4.5% | 4.75% | $200 | $125 |
| Tennessee | 0% | 7% + local | $300 min | $300 |
| Mississippi | 5% | 7% | $0 | $50 |
Filing Deadlines for Georgia LLCs
- Individual return (Form 500): April 15
- Partnership return (Form 700): March 15 for multi-member LLCs
- Annual Registration: April 1
- Extension: Automatic 6-month extension with federal extension
- Estimated tax payments: April 15, June 15, September 15, January 15
- Sales tax: Monthly or quarterly based on liability
Atlanta-Specific Considerations
Many Georgia LLCs operate in the Atlanta metropolitan area. Specific considerations include:
- High combined sales tax: Atlanta's combined rate of 8.9% is among the highest in the Southeast
- City of Atlanta business license: Required for businesses operating within Atlanta city limits. Annual fee based on gross receipts.
- Fulton County occupation tax: Separate business license/tax from the city
- Film industry incentives: Georgia offers generous film tax credits (up to 30%) that can benefit production-related LLCs
Common Mistakes Georgia LLC Owners Make
- Missing the April 1 annual registration: The deadline is earlier than the tax filing deadline, and late penalties accrue monthly.
- Skipping the publication requirement: Georgia requires newspaper publication after formation. Failure to publish does not dissolve the LLC but may create legal issues.
- Not accounting for local taxes: Georgia's 4% state sales tax is low, but local additions can push combined rates to nearly 9% in some areas.
- Overlooking the PTET election: If you itemize federal deductions, the entity-level tax election can provide significant federal savings.
- Confusing the flat tax transition: Until revenue triggers are met, the graduated 1%-5.75% rate structure still applies. Do not assume the flat 5.49% rate is in effect yet.
Tax Planning Tips for Georgia LLC Owners
- Maximize retirement contributions: SEP IRA (up to $69,000) or Solo 401(k) reduce both federal and state tax
- Georgia standard deduction: $12,000 (single) or $24,000 (MFJ) provides meaningful tax relief
- QBI Deduction: Ensure you qualify for the full 20% Section 199A deduction
- PTET Election: Consider the pass-through entity tax for SALT cap savings
- Film tax credits: If applicable, Georgia's generous film industry credits can offset significant tax liability
- Consider S-Corp election: For high-income LLCs, S-Corp status can reduce self-employment tax
- Track all deductions: Georgia begins with federal AGI, so maximizing federal deductions directly reduces state tax