Making the Most of Georgia Corporation and Partnership Law

Protect your assets with Georgia corporate law

The key to making the most of Georgia corporation and partnership law is the decision to incorporate your business. A corporation affects your ability to gain capital, controls the amount of debt you assume and determines your tax obligations. However, these advantages must be balanced against the additional taxes your business will incur.

Georgia partnership law makes a partnership subject only to personal income tax, unlike a corporation. On the other hand, business partners may be held responsible for business debts.

There are several options for forming a company under GA corporate law. These include:

1. Georgia incorporation as a profit or non-profit corporation. An S corporation (S-corp) is taxed under Subchapter S of the Internal Revenue Code which generally does not include income taxes.

2. A Georgia limited liability company (LLC). This is a hybrid business entity that shares the characteristics of both a corporation and partnership. It pays incomes taxes and is more suitable for a small business with one owner.

3. A Georgia limited partnership. This type of partnership has limited partners in addition to general partners.

 

Determine the type of corporation that best suits your business under Georgia corporation law

The most important factors to consider are the personal liability obligations and tax implications. You should also familiarize yourself with the operating requirements and reporting regulations.
Try: The Georgia Secretary of State has extensive instructions and other information regarding the incorporation of businesses in Georgia. Incorporate in Georgia describes the differences between the various business types available in Georgia.

Find an attorney that specializes in Georgia LLC law

Businesses in Georgia must comply with the disclosure, operating and reporting requirements. Georgia corporation law specifies these requirements in detail.
Try: Cogburn & Dodson in Griffin publishes a newsletter with articles that describe the business structures available in Georgia. Whelchel, Dunlap, Jarrad & Walker is located in Gainsville and provides corporate law services including business formation.

Seek out sites to assist you in starting a corporation in Georgia

You must file the registration forms and pay the associated fees as required by Georgia corporation law in order to perform Georgia LLC registration. You may also need to file Articles of Incorporation, depending on the type of corporation you decide to register.
Try: His CPA provides business formation services and has a detailed article on choosing a business structure in Georgia. DivisionofCorporations.com provides specific information on forming a business including the differences between the various structures.

 

• Georgia corporation law requires annual fees and filings to maintain your corporation. Corporations are automatically C-corps unless they specifically register as S-corps with the primary difference being the way they are taxed. One person may frequently hold more than one position in these corporations and many if not all shareholders are also directors in a small corporation.

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