What the $2,500 Flat Fee Includes
The Hive Law’s S-Corp formation fee covers every document and filing required to legally operate your corporation in Georgia and be taxed as an S-Corp by the IRS:
- Articles of Incorporation — the founding document filed with the Georgia Secretary of State ($100 state fee paid separately)
- Corporate bylaws — the internal rules governing how your corporation operates, holds meetings, and makes decisions
- Initial shareholder agreement — defines ownership percentages, transfer restrictions, and buy-sell provisions
- Organizational meeting minutes — records the first official action of the board of directors
- IRS Form 2553 — S-Corp election — the federal filing that tells the IRS to treat your corporation as an S-Corp for tax purposes. Must be filed within 75 days of formation (or by March 15 of the tax year). Missing this deadline defaults you to C-Corp taxation.
- Registered agent service — first year — Georgia requires every corporation to maintain a registered agent with a Georgia street address. The first year is included; renewal is $99/year after that.
- EIN application — the federal Employer Identification Number required to open a business bank account, hire employees, and file taxes
After formation is complete, you will receive a full corporate kit with all documents organized and ready for your bank and accountant.
S-Corp vs LLC in Georgia
Most business owners in Georgia choose between an LLC and an S-Corp. Both limit personal liability. The difference is in how they are taxed and governed.
LLC taxation. A single-member LLC is taxed as a sole proprietorship by default — all profit flows to your personal return and is subject to self-employment tax (15.3%) on the full amount. A multi-member LLC is taxed as a partnership.
S-Corp taxation. An S-Corp allows you to split income between a W-2 salary and shareholder distributions. You pay self-employment tax only on the salary portion, not on distributions. On $150,000 of profit, this can save $10,000 to $20,000 per year in self-employment taxes depending on your salary structure.
S-Corp requirements. To qualify for S-Corp status, your corporation must have:
- 100 or fewer shareholders
- U.S. citizen or resident shareholders only — no foreign owners
- One class of stock — all shares have identical rights
When an LLC makes more sense. If your net profit is under $50,000 per year, the administrative cost of running an S-Corp (payroll, annual minutes, potentially separate tax return) often exceeds the tax savings. An LLC with an accountant is simpler and less expensive at lower income levels.
LLC taxed as S-Corp. You do not have to form a corporation to get S-Corp tax treatment. An LLC can elect to be taxed as an S-Corp by filing Form 2553 with the IRS. This gives you the tax savings without the corporate governance requirements. We can advise on which structure fits your situation.
How S-Corp Taxation Works in Georgia
An S-Corp is a pass-through entity — the corporation itself does not pay federal income tax. Profit and loss flow through to shareholders and are reported on personal tax returns.
At the federal level, S-Corp shareholders who work in the business must pay themselves a reasonable salary. The IRS defines reasonable as comparable to what you would pay someone else to do the same job. Underpaying yourself to avoid self-employment tax is an audit risk.
Georgia follows the federal S-Corp election. Georgia does not have a separate S-Corp election — once you file Form 2553 with the IRS, Georgia automatically recognizes the S-Corp status. Georgia’s corporate income tax rate is 5.75% on net income allocated to Georgia shareholders.
S-Corps file a federal return on Form 1120-S and issue a Schedule K-1 to each shareholder showing their share of income, deductions, and credits. Each shareholder reports K-1 income on their personal Form 1040.
Georgia S-Corps must also file a Georgia Form 600S annual return. The due date is March 15 for calendar-year corporations (same as the federal deadline).
Who Should Form an S-Corp in Georgia
An S-Corp is the right structure when you meet all of the following:
- Net profit consistently above $50,000 per year — the tax savings justify the added administrative cost
- You work in the business — you must be able to justify a reasonable salary separate from distributions
- U.S. citizens or resident owners only — foreign shareholders disqualify the election
- You want liability protection — personal assets are protected from business debts and lawsuits
- You plan to stay under 100 shareholders — S-Corps cannot have more than 100 shareholders at any time
S-Corps are common among self-employed consultants, contractors, physicians, dentists, and real estate professionals who generate significant income and want to reduce self-employment taxes.
If you are unsure whether an S-Corp, LLC, or LLC taxed as S-Corp is the right structure, a 30-minute strategy call is the fastest way to get a direct answer for your situation.
