Georgia Business License Basics

Launching a business in Georgia involves navigating a series of legal and administrative hurdles. For many entrepreneurs, questions like “Which business structure should I choose?” “Where do I register my business name?” and “What licenses do I need?” stop many from ever pursuing their dream.

This guide answers these questions and more to help you navigate this stage. It offers a straightforward roadmap to registering your business in Georgia. We’ve distilled the process into easy-to-follow steps, giving you the knowledge to handle the registration process so your business starts on the right foot.

Related: Starting A Business In Georgia Checklist

Step 1: Choose a Business Structure

The first decision to establish your Georgia business is to select a business structure. This choice shapes how your company operates, influencing its tax obligations, operational requirements, and the extent of personal liability for the owners.

In Georgia, entrepreneurs typically choose from four main business entities: sole proprietorships, general partnerships, corporations, and Limited Liability Companies (LLCs).

Related: Comparison of Business Structures

Sole Proprietorship

Sole proprietorships represent the most straightforward and cost-effective business structure. In this setup, a single individual owns and manages the business without legal separation between the owner and the business. Consequently, the owner assumes full personal responsibility for all business debts and liabilities.

Related: How to Form a Georgia Sole Proprietorship

General Partnership

General partnerships involve two or more individuals sharing ownership and business responsibilities. Like sole proprietorships, general partners bear personal liability for the partnership’s financial obligations and legal issues.

Corporation

Unlike sole proprietorships and general partnerships, corporations are distinct legal entities owned by shareholders. This structure offers limited liability protection, generally shielding shareholders from personal responsibility for corporate debts or legal judgments.

Related: How to Form a Georgia Corporation

Limited Liability Company

Limited Liability Companies (LLCs) offer a hybrid option, blending the limited liability protection of corporations with the operational flexibility of sole proprietorships or partnerships. LLC members enjoy protection from personal liability for company debts and obligations. Additionally, LLCs provide the most versatile tax options among business structures.

Related: How to form a Georgia LLC

Step 2: Select a Business Name

Once a business structure has been chosen, the next step is to select a name for your Georgia business. The process of registering your chosen name varies depending on your business structure.

Sole Proprietorships and Partnerships

If you’re operating a sole proprietorship or partnership in Georgia and want to use a name other than the full legal name(s) of the owner(s), you’ll need to register a Georgia Trade Name, also known as a “Doing Business As” (DBA) name with the County Clerk’s Office in the county where the business is located.

Corporations and LLCs

For corporations and Limited Liability Companies (LLCs), the process of choosing and registering a business name is integrated into the formation process:

• Name Availability Check: Your name will be registered when filing the entity paperwork, but you will want to conduct a Georgia business name search through the Georgia Secretary of State’s website before filing your formation documents. This step ensures your desired name isn’t already being used by another registered business in the state, as it will delay the processing of the paperwork.
• Name Selection: Choose a name that complies with Georgia’s naming requirements. For corporations, the name must include “Corporation,” “Incorporated,” “Company,” “Limited,” or an abbreviation of one of these terms. LLCs must include “Limited Liability Company,” “LLC,” or “L.L.C.”

In either case, registering your business name doesn’t automatically protect it as a trademark. If you want exclusive rights to use your business name throughout the state or country, consider trademark registration at the state or federal level.

Step 3: Federal Employer Identification Number (FEIN)

The Federal Employer Identification Number (FEIN), sometimes called a Federal Tax Identification Number, is a unique nine-digit number assigned by the Internal Revenue Service (IRS). Think of it as a Social Security number for your company – it’s how the government recognizes your business for tax purposes.

Most Georgia businesses need an EIN, particularly if they have employees or operate as corporations or partnerships. Sole proprietors and single-member LLCs without employees aren’t required to register for one, though they can get one if they want. Obtaining an EIN is straightforward and free – you can apply online through the IRS website, which usually provides an immediate response. Alternatively, you can submit Form SS-4 by mail, though this method takes longer.

Learn How To Register for an EIN

Step 4: Professional Licensing

Many occupations in Georgia require professional licenses to operate legally. These licenses ensure that practitioners meet specific standards of education, experience, and competence in their respective fields. The Georgia Secretary of State’s office oversees the licensing process for numerous professions through its Professional Licensing Boards Division.

Professions Requiring Licenses

The list of regulated professions in Georgia is extensive. Some of the professions that commonly need licensing include:

• Healthcare: Doctors, nurses, dentists, pharmacists, optometrists
• Mental Health: Psychologists, counselors, social workers
• Legal: Attorneys (regulated by the State Bar of Georgia)
• Finance: Accountants, real estate agents, insurance agents
• Construction and Home Services: Contractors, electricians, plumbers, HVAC technicians
• Personal Care: Cosmetologists, barbers, massage therapists
• Education: Teachers, school administrators
• Design and Engineering: Architects, engineers, interior designers
• Other Specialized Fields: Veterinarians, landscape architects, private investigators

Step 5: Georgia Sales Tax Number

In Georgia, businesses selling tangible personal property, providing taxable services, or contracting to provide services within the state must register for a Georgia Sales Tax Number with the Georgia Department of Revenue (DOR).

Who Needs to Register?

You must register for a Georgia Sales Tax Number if your business:

• Sells physical goods (tangible personal property) in Georgia
• Provides certain taxable services in Georgia
• Contracts to provide services in Georgia
• Has a physical presence (nexus) in Georgia, including:
  • A store, office, or warehouse
  • Employees or sales representatives in the state
  • Regular deliveries made by company vehicles

Even out-of-state sellers may need to register if they meet certain economic nexus thresholds in Georgia.

Learn More About the Georgia Sales Tax Number

Step 6: Georgia Certificate of Exemption

After registering for a Georgia Sales Tax Permit, many businesses benefit from obtaining a Georgia Sales Tax Certificate of Exemption. This certificate, also known as a resale certificate, allows businesses to purchase inventory and certain other items without paying sales tax, provided these items are intended for resale to customers.

The primary purpose of the Certificate of Exemption is to avoid paying sales tax on items that will be resold, which helps businesses better manage their cash flow.

Who Should Obtain a Certificate of Exemption?

• Retailers selling tangible personal property
• Wholesalers
• Manufacturers purchasing raw materials
• Service providers who resell products as part of their services

Step 7: Local Business Licenses

While Georgia doesn’t require a general state-wide business license, many cities and counties within the state mandate local business licenses, often referred to as occupational tax certificates. These licenses allow businesses to operate legally within specific jurisdictions, and the requirements, costs, and processes vary depending on the location and nature of your business.

A few examples include:

Atlanta

• All businesses operating within Atlanta city limits must obtain a business license, available through the City of Atlanta’s Department of Finance.
• Additional registrations are required for specific business types (e.g., alcohol sales, bakeries, health clubs).

Columbus

• A business license is required for all businesses within city limits and is obtained through the City of Columbus Finance Department.
• Special licenses are needed for alcohol sales, pawnbrokers, and precious metals dealers.

Macon-Bibb County

• All businesses must apply for an Occupational Tax Certificate from the Macon-Bibb County Business License Office.
• Specific businesses require additional licenses (e.g., alcohol sales, pool halls, fortune tellers, massage therapists).

Savannah

• A Business Tax Certificate (business license) is mandatory for all businesses within city limits and is available through the City of Savannah’s Revenue Department.

Step 8: Local Building & Zoning Permits

Navigating local regulations is another step when starting or expanding a business in Georgia. While the state provides overarching guidelines, many specific rules are determined and enforced at the city or county level, and these requirements can vary widely depending on where you’re located.

Three key areas of local regulation that business owners need to be aware of are zoning, building permits, and signage permits. These regulations affect where you can operate your business, how you can modify or construct your business premises, and how you can advertise your presence to the public.

Zoning Regulations

In Georgia, local governments establish and enforce zoning laws to regulate land use and development. These regulations can significantly impact where you can operate your business and what activities are permitted at your location. Some cities have restrictions or require licensing for home-based businesses, such as in Athens-Clarke County. Here, restrictions include:

• No more than 25% of the home can be used for the business
• No external evidence of the business (except for a small sign)
• No employees other than residents of the home

Building Permits

Building permits and inspections are required for the construction, alteration, or repair of structures in Georgia and are typically issued by local building departments. The process and requirements vary by location, so be sure to research local building requirements before starting any work.

Signage Permits

Business signage in Georgia is regulated at the local level, with each city or county having its own requirements and permit processes. Sign permits are typically required before installation, and regulations often cover size, placement, lighting, and content. In addition, historical districts often have additional signage rules.

Savannah, known for its historic architecture, has very strict signage regulations for businesses in the Historic District, which the Development Services Department manages.