What the $1,500 Flat Fee Includes
The Hive Law’s LLC formation fee covers every document and filing needed to legally operate your LLC in Georgia:
- Articles of Organization — filed with the Georgia Secretary of State ($100 state fee paid separately). This is the public document that legally creates your LLC.
- Operating agreement — the internal governing document that defines ownership percentages, management structure, profit distribution, voting rights, and what happens if a member wants to leave or dies. Banks require this to open a business account. Courts use it to resolve disputes. Online services do not provide a properly customized version of this document.
- EIN application — the federal Employer Identification Number required to open a business bank account, hire employees, and file taxes
- Registered agent service — first year — Georgia requires every LLC to maintain a registered agent with a Georgia street address to receive legal notices. The first year is included; renewal is $99/year after that.
- Formation consultation — a 30-minute call to discuss management structure (member-managed vs manager-managed), ownership percentages, and whether you should also elect S-Corp tax treatment
LLC vs S-Corp in Georgia
This is the most common question we get from business owners. The short answer: an LLC is simpler to run, and an S-Corp saves more in taxes at higher income levels.
Default LLC taxation. A single-member LLC is taxed as a sole proprietorship — all profit flows to your personal return and is subject to self-employment tax (15.3%) on the full amount. This is straightforward but expensive at higher income levels.
S-Corp taxation. An S-Corp (or an LLC taxed as an S-Corp) lets you split income between a W-2 salary and distributions. Self-employment tax applies only to the salary, not the distributions. At $150,000 of net profit, this can save $10,000 to $20,000 per year depending on the salary you set.
The tradeoff. S-Corp status requires running payroll, holding annual meetings, maintaining minutes, and filing an extra tax return (Form 1120-S). These administrative costs run $1,500 to $3,000 per year with a CPA. Below $50,000 in net profit, the tax savings usually do not exceed the overhead. Above $80,000, they typically do.
LLC taxed as S-Corp. You do not have to form a separate corporation to get S-Corp tax treatment. Your LLC can file IRS Form 2553 to elect S-Corp status. This is the most common structure for small business owners in Georgia who want tax savings without full corporate governance requirements.
Single-Member vs Multi-Member LLC
A single-member LLC has one owner. It is taxed as a sole proprietorship by default and is the simplest structure for solo business owners and freelancers.
A multi-member LLC has two or more owners. It is taxed as a partnership by default — profit and loss flow to each member’s personal return based on their ownership percentage. Multi-member LLCs file a federal Form 1065 and issue a Schedule K-1 to each member.
For multi-member LLCs, the operating agreement is especially critical. It should address:
- Ownership percentages — how profit, loss, and equity are split
- Management authority — who can sign contracts, open accounts, and make decisions
- Buy-sell provisions — what happens if a member wants to sell their interest, becomes disabled, or dies
- Deadlock procedures — how to resolve a dispute when 50/50 partners disagree
A generic online operating agreement does not cover these provisions adequately. We draft operating agreements specific to your ownership structure and business type.
How LLC Taxation Works in Georgia
Georgia does not have a separate LLC tax return for pass-through LLCs. Single-member LLCs report income on federal Schedule C (sole proprietorship) or Schedule E (rental). Multi-member LLCs file a federal Form 1065 and Georgia Form 700.
Georgia imposes a net worth tax on LLCs that is separate from income tax. The rate is based on the net worth of the LLC:
- Under $100,000 net worth: $50 minimum
- $100,000 to $500,000: $150
- $500,000 to $1 million: $200
- Over $1 million: scales up to $5,000 maximum
Georgia LLCs must also file an annual registration with the Secretary of State by April 1 each year. The fee is $50 per year. Missing the deadline results in a $25 late fee and eventual administrative dissolution if not corrected.
LLCs that elect S-Corp tax treatment file a federal Form 1120-S and a Georgia Form 600S, both due March 15 for calendar-year filers.
