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Georgia is home to more than 1.2 million small businesses, making it a vibrant and dynamic market with many benefits for new businesses.
“Georgia has been ranked the #1 state for doing business for an unprecedented 10 years in a row. area development Magazine,” said Chris Clark, president and CEO of the Georgia Chamber of Commerce. “Georgia's predictable tax environment, robust infrastructure network, and extensive entrepreneurial community make Georgia the best place in the country to start and grow a business.”
That being said, there are some complications for entrepreneurs looking to start a business locally. This step-by-step guide will teach you how to start a business in Georgia.
How to start a business in Georgia
- Choose a business idea
- name your business
- Create a business plan
- Choose a business structure
- Get an EIN
- Submit articles of incorporation if relevant
- Obtain business licenses and permits
- Consider insurance options
- Understand financial considerations
- market your business
1. Choose a business idea
Choosing a viable business idea is more than just deciding what products to sell or what services to provide. There are other considerations to take into account before deciding on your Georgia small business idea.
Who is your customer?
The best business ideas are based on a clear understanding of who you're selling to. To develop this understanding, you can conduct a competitive analysis of other businesses in your market, analyze markets where similar products and services are sold, research potential customers, and learn about industry trends. You can do some research.
What is the expected profitability?
Determine the profitability of your idea by considering price, sales opportunities, business model, and costs to build your business and manufacture your product. What is your break-even point? How many products or services do you need to sell to at least cover your costs?
2. Name your business
Naming your Georgia business entity is one of the most important decisions you will make as an entrepreneur. It also takes into account branding, marketing, and even customer retention. Here are some things to consider when choosing your business name:
- Is it rare in Georgia? All business names in Georgia must be unique. You can perform a search using the Georgia Secretary of State's Business Entity Search feature.
- Is the domain name available? You should check to see if a marketable domain name is available that properly matches your chosen business name.
- Is it memorable? In general, a good business name effectively communicates the company's capabilities in a catchy, memorable way and reflects the mission of the business.
- Does it contain the required suffixes? When forming an LLC in Georgia, the company name must include the phrase “limited liability company,” “limited liability company,” or an abbreviation thereof (LLC, LLC, LC, or LC). If you do not wish to operate publicly under this name, you can apply for a business operating under the (DBA) name.
- Should I use a DBA? If you want to apply a DBA to your business in Georgia, you must register with the Clerk of Superior Court in the county where your business is located. He must publish a copy of the business name at least once a week for two consecutive weeks in a local newspaper used by the county sheriff's office for legal advertising.
Click here to create a business name with Shopify
3. Create a business plan
A comprehensive business plan is a necessary element for any business. Good ones include the following sections:
4. Choosing a business structure
Your business structure determines how your company collects taxes, how easily it secures investment, and many other factors.
The types of business structures available in Georgia are:
Georgia provides ample resources for all types of businesses.
“Georgia boasts a vast network of support programs for businesses of all sizes. Initiatives like the University of Georgia's Small Business Development Center and the Georgia Institute of Technology's Center for Advanced Technology Development help businesses launch , are just a few examples of programs that serve as a resource for entrepreneurs looking to grow and develop,” says Daniela Perry. She is vice president of the Georgia Chamber of Commerce Foundation.
“Of course, our local chambers of commerce are champions for small business communities in every corner of the state, offering benefits tailored to businesses in our communities. Find the best program to fit your needs The best way to find out is to contact your local chamber of commerce.”
Here are some factors to consider when choosing the right business structure for your venture.
Sole proprietorship
Sole proprietorship is the default setting for all businesses that are not formally incorporated and do not have a partnership agreement in place. In other words, a sole proprietorship is a business that is owned and operated by one individual. As with partnerships and most LLCs, the ownership's personal income is taxed once, rather than once on corporate income and once on personal income.
Limited company
A limited liability company is a popular business structure of choice. These offer many of the advantages of operating a simpler business entity such as a sole proprietorship or partnership, plus much of the legal insulation afforded to large corporations. The limited personal liability they provide helps ensure that the owner's personal assets have a level of protection against creditors and legal judgments.
C corporation
C corporations offer a similar level of personal asset protection, but generally require more effort to form and maintain. Because the business is formed as a completely separate entity from the owner, there is more paperwork involved. Still, companies may find it easier to raise funds by issuing shares.
Company S
S corporations are similar to C corporations, but provide a legal business structure with pass-through tax status. This means that a company does not pay corporate taxes, but instead passes all income, losses, deductions, and deductions to its shareholders, who pay the taxes themselves.
To learn more about how Georgia businesses are subject to business taxes depending on their structure, visit the Georgia Department of Revenue website.
5. Get an EIN
Once you have decided on the type of business you want to do in Georgia, you will need to apply for an Employer Identification Number (EIN). This is a 9-digit number assigned to new organizations by the IRS for tax purposes. This works similarly to an individual's social security number.
Georgia tax authorities identify your business by your EIN. Obtaining an EIN not only makes it easier to file taxes at both the federal and state level, but it also allows you to secure credit and business credit card lines and hire employees.
6. Submit articles of incorporation, if necessary.
If you form a corporation, you must file articles of incorporation with the Secretary of State's office to register your company. The articles of incorporation must include at least the following:
- Your company name or valid name reservation number
- Name and address of the person applying on behalf of the business
- A valid business email address
- Business principal office address
- Name and address of registered agent (must have an address in Georgia)
- Name and address of each incorporator
- Number of authorized shares (if it is decided to issue them first)
Additionally, within 90 days of incorporation, you must file an annual registration listing your three principal officers and pay a $50 fee if you are a commercial business.
7. Obtain business licenses and permits
Businesses in Georgia must obtain a general business license issued by the city or county in which they operate. If you operate in a specific industry, such as selling alcohol, firearms, or tobacco, you may need additional licenses or permits. To find out who regulates industry-specific business licenses in the county or city where you formed your Georgia LLC, you can contact the Georgia Chamber of Commerce or use the Georgia Cities Association's handy search tool.
8. Consider insurance options
Business insurance can help protect your Georgia business and assets in the event of an unexpected loss. The Georgia Office of the Insurance, Safety and Fire Commissioner offers resources to help you determine what your business needs.
The two types of insurance required for businesses in Georgia are workers' compensation insurance for businesses with three or more employees and commercial motor vehicle coverage for vehicles used in connection with business. It's insurance.
Other business insurance options available in Georgia include:
- Liability insurance. Liability insurance protects your business against any legal action resulting from an accident, injury, or negligence. This is typically required as part of a commercial lease.
- Professional liability insurance. Professional liability insurance protects manufacturers, wholesalers, distributors, and retailers from liability related to unsafe products or services.
- Cyber liability insurance. Cyber liability insurance protects your business from the costs associated with data breaches and cyber attack damage.
- Umbrella insurance. This type of insurance helps cover unexpected expenses that exceed the coverage limits of other insurance plans.
9. Understand financial considerations
In addition to purchasing insurance, you will likely need to make other investments to get your Georgia business up and running. This may include rent for brick-and-mortar retail space and costs associated with a professionally designed website, advertising placement, equipment, and e-commerce software. You can also hire lawyers, accountants, and other professionals.
📖Read more: 9 Startup funding options and how to get them
10. Marketing your business
A solid marketing strategy for small businesses in Georgia includes several key elements.
- Market research. Market research is necessary to better understand a company's target customers.
- advertising and promotion. Spread the word about your products through paid advertising. You can do this yourself or hire an agency to do it for you.
- public relations. Use public relations to identify and cultivate relationships with media outlets that can organically increase your company's visibility.
- New business and customer retention. Build genuine relationships with your customers and keep them coming back again and again. Traffic to your store increases when satisfied customers spread the word to their friends, family, and co-workers through word-of-mouth marketing.
Start a Business in Georgia
Following these steps will help you lay the foundation for building a successful business in Georgia's growing market. But before setting up shop in the Peach State, think carefully about whether your business goals align with what the state has to offer. Research a state's demographics, business laws, and infrastructure to ensure your venture can fit seamlessly into its ecosystem. That way, you can benefit from the vibrant business community that already exists.
*This post is for informational purposes only. It is your responsibility to review this information and use it appropriately. Requirements are updated frequently, so be sure to do your own research and, if necessary, contact your legal, tax, and business advisors. Businesses outside of Georgia have different procedures and requirements. To sell products using the Shopify Platform, you must comply with the laws of the jurisdictions of your business and your customers, the Shopify Terms of Service, the Shopify Terms of Service, and other applicable policies.
