How to start your LLC in Columbus, GA

How to select a name for a Georgia LLC? A great starting place for any business is deciding on the name. While you likely have some ideas, it’s essential to understand the legal requirements.

Find the basic guidelines in Georgia Code section 14-11-207. Each Georgia LLC name must include one of the following:

• Limited Liability Company
• LLC
• L.L.C.

You can leave out the “limited” part of the name or the abbreviated version. And you must stick to less than 80 characters, including spaces and punctuation.

Georgia also places certain restrictions on what you can use in the name of your LLC. Terms related to insurance, banking, and education need specific approval.

Another critical element is for any new Georgia LLC name to be distinguishable. Use the Secretary of State’s Business Search function to discover what’s already used. Avoid names that would confuse people.

A common technique used by many entities is the use of a doing-business-as (DBA) name. These let you operate under a name that’s different from the LLC. For example, “Columbus Restaurant Services LLC” can use “Columbus Produce Provider.”

Domain names (URLs) are also worth considering. Even if you don’t want to start a website immediately, securing the rights to matching domain names is a wise step.

What is a registered agent? All businesses must supply contact information as the central point of communication. The registered agent performs this role. Georgia law requires one under sections 14-11-209.

The main purpose of the registered agent is to receive service of process. This means that if your LLC gets sued, the legal paperwork goes to the registered agent. As you can imagine, this is a vital role to handle with care.

Georgia allows any resident or licensed company to serve as the registered agent. Business owners can appoint themselves. But seasoned leaders understand the value of using a registered agent service.

Choosing to use yourself as the registered agent comes with some advantages, such as:

• It’s cheap: You don’t have to pay someone for what you can do.
• It’s simple: You only need to update one address.
• It’s reliable: All documents come to you.

But it’s not all fun and games. Electing yourself as the registered agent has the following disadvantages:

• No privacy: The Secretary of State makes the contact information of your registered agent public. The authority lists it on its website.
• Junk mail/spam: Since anyone can see the registered agent’s address, it will receive junk mail. You’ll have to sort through this to ensure you don’t miss vital documents.
• No breaks: Registered agents don’t get time off. They must be available to receive service of process during all business hours.
• Business interruptions: If you operate at the same address, customers may see you served with legal notices. This can be damaging to your reputation.
• It’s your fault if you miss something: There’s no one else to help sort the mail to verify you don’t miss anything. It all falls on your shoulders.

To avoid these problems, we generally recommend using a registered agent service.

Costing around $100-$150 per year, registered agent services sort through your mail. Hiring one also keeps your address confidential. Some attorneys provide the same service but may charge up to $500 per year.

If you choose to start your LLC by using a business formation company, they often include a registered agent service in their packages. Feel free to take a look at our registered agent recommendations article for more information.

What do you need to file the Articles of Organization for a Georgia LLC? Now is an excellent time to make sure you’re paying close attention. Filing the Articles of Organization transforms your business from an idea into a real legal entity.

Your LLC doesn’t exist until these are filed and processed.

Georgia’s filing requirements aren’t extensive. Some people assume that only attorneys can complete this step. But it’s likely much easier than you believe. To simplify the process, Georgia provides a fillable form you can use.

When filing the Articles, you’ll also need to include Form CD231. This has more information than the fillable Articles of Organization. Yet it still only needs basic information, including:

• The LLC name and address;
• Contact information for the person filing and the organizers; and
• The registered agent information.

Be prepared to pay a filing fee of $100 to file online or $110 for paper filing. You should also expect 10 days of processing time for online filings or up to 15 days for paper filings.

If you need to form your Georgia LLC quickly, select one of the expedited processing services. The Georgia Secretary of State offers three expediting options:

• Two business days: $100
• Same-day service: $250
• One-hour processing: $1000

To save time and avoid the hassle of LLC filings, all seasoned entrepreneurs use LLC formation services. For recommendations, check out our article on the best LLC services.

Do I need an Operating Agreement? Georgia law doesn’t require LLCs to have an operating agreement. But seasoned owners will draft and sign one anyway to protect their interests and business.

An operating agreement is a private contract between the LLC members. The best ones cover nearly any situation the LLC might find itself in. By creating this contract, you can tailor the manner your LLC operates. It also helps handle disputes between the members or managers of the LLC.

If you choose not to have an operating agreement, your LLC will fall back to state law. This might not align with your expectations or best interests. Not having one can cause uncertainty and downstream troubles.

Operating agreements usually include the roles of members and managers. They’ll also provide methods for adding or removing members.

You can customize the agreement according to your desires and expectations, including:

• They determine the rights and duties of LLC members. If one LLC member is responsible for running the business or managing the books, the operating agreement should say so.
• They say whether the LLC has a member or non-member manager and what the manager has the right to do. Managers also have special duties to the company and its members. The operating agreement should state these.
• They outline what the LLC is legally able to do. The operating agreement should also set down how the company is allowed to conduct its business from day to day.
• They say how new members can join the company. They also have rules about how exiting members can leave.
• They set down how and when profits are paid to members. They can also create different types of membership and payment schemes.
• They say whether members or managers are in charge. They also say how to hire and fire managers.
• They say how and under what circumstances the LLC should end. You might not want to dissolve your business now, but you might in the future. It’s best to think about it and plan before it becomes an issue.
• They say how to change the rules. You may need to amend your operating agreement in the future. The operating agreement should set down the rules for making changes.

Georgia law allows you to include the operating agreement in the Articles of Organization. But you’d have to pay a $20 fee for any amendment, should you decide to change it at any point in the future.

Instead, we encourage LLC owners to draft a separate operating agreement. It is a private contract between the LLC members that you can change without paying a State fee.

Setting aside the time to draft a solid operating agreement can pay dividends. To make this step easy, the best LLC formation services include templates for as little as $50.

Does your Georgia LLC need an EIN? The IRS uses Employer Identification Numbers (EINs) to track tax information for businesses. These are like Social Security Numbers for commercial operations.

The IRS requires some businesses to get an EIN. If you answer yes to any of the following questions, you must get an EIN:

• Will your LLC have more than one member?
• Are you going to hire any employees?
• Is your LLC taxed as a C corporation or an S corporation?

Even if your business doesn’t meet one of these requirements, it is a good idea to get one anyway. Not all businesses need them, but banks frequently require EINs to open business bank accounts. And some states need them to file state taxes.

The IRS makes the process quick and painless. You can apply for one online in just a few minutes. There is no reason to pay someone to do this unless it’s part of a wider LLC formation package.