Combine Legal Georgia Startup For Sole Proprietorship Forms For Free

LLCs are considered to be distinct legal entities from their owners or members. Sole proprietorships are not. LLCs' income must be split between members in some manner, and they are taxed as distinct entities. Sole proprietorship income goes solely to the owner, but that income is taxed as personal income.

Good news, Georgia doesn't require a ?general? business license at the state-level for Sole Proprietors. So there's nothing to do for this step. However, depending on your industry, and where you're doing business, you may need an industry-specific license or a license issued by your municipality (ex: county or city).

Four Hidden Costs of the Sole Proprietorship: Unlimited personal liability. This means you are personally liable for all debts of the company. ... Difficulty in raising investment capital. ... Difficulty in getting a business loan or line of credit. ... No business write-offs.

As previously noted, however, the sole proprietorship can only involve one person. Therefore, you cannot bring in any other partners or employees. Once this occurs, you must formally register as some other type of legal business structure, whether it is a corporation, partnership, or limited liability company (LLC).

Sole proprietors are not required to register their business name at the state level and their names are not filed with the Secretary of State. They should check with the Clerk of Superior Court in the county where the primary place of business will be located.

The fees vary from county to county but the average fee to set up a sole prop in Georgia is $160. Do I need to register as a sole proprietorship in Georgia? Georgia doesn't require sole props to register their business name with the state.