Form with which a corporation may resolve to alter its corporate status top that of a subchapter (S) corporation.
Business For Status In Georgia
State:
Multi-State
Control #:
US-0046-CR
Format:
Word;
Rich Text
Instant download
Description
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FAQ
Because of the one-class-of-stock restriction, an S corporation cannot allocate losses or income to specific shareholders. Allocation of income and loss is governed by stock ownership, unlike partnerships or LLCs taxed as partnerships where the allocation can be set in the partnership agreement or operating agreement.
A: Georgia defines a small business as one that is independently owned and operated and must have either fewer than 300 employees or less than $30 million in gross receipts per year. Georgia does not have a Small Business Enterprise (SBE) designation or certification requirement.
After you form a Georgia LLC, you may need to obtain a business license or permit. Your requirements are determined by the industry you are in and where your Georgia Limited Liability Company is located.
As a Georgia LLC, LLP, partnership or sole proprietorship, you are subject to the 15.3% Self Employment/FICA tax on all of your net earnings. The S corporation, on the other hand, pays you a deductible salary (which is subject to FICA), and then the profits flow through your personal return via a Schedule K-1.
If you own a Limited Liability Company, C Corporation, or other registered business entity in Georgia and you want to open a business bank account, expand your business into another state, seek funds from investors, or conduct certain other business activities, you'll need to have a Certificate of Existence.
A Limited Liability Company (LLC) is a business entity that offers certain limited personal liability on the part of the owner, like a corporation. It also offers the possibility of certain “pass-through” tax benefits, like a partnership. Therefore, an LLC is essentially a cross between a partnership and a corporation.
LLC cons: Unlike a corporation, an LLC cannot issue shares of stock. Any new investor would need to become a member of the LLC, which is more complicated. Furthermore, many outside investors consider LLCs risky, and prefer to invest in corporations.
To meet the government's small business definition, an enterprise must conform to size standards created by the U.S. Small Business Administration (SBA). These specifications are based either on your revenue or the number of people you employ and vary based on your industry.
To perform a Georgia LLC lookup, visit the Georgia Secretary of State website. Use the business search tool, enter the required LLC information, and review the search results to access details about the company's registration and activity status.