GEORGIA BUSINESS FORMATION
S-Corp Formation in Georgia
The Hive Law forms S-Corps in Georgia for a $1,750 flat fee. That covers the IRS Form 2553 election, a shareholder agreement, EIN application, and registered agent for the first year. No hourly billing and no surprise invoices.
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How to Form an S-Corp in Georgia — and Whether You Should
An S-Corp is a federal tax election that reduces self-employment taxes for profitable Georgia business owners. At $100,000 in net profit, the tax savings typically run $6,000 to $7,500 per year. The Hive Law handles the entire formation for a $1,750 flat fee.
What Most Business Owners Get Wrong About S-Corps
An S-Corp is not a type of business entity. It is a federal tax election. You file IRS Form 2553 to tell the IRS you want your corporation or LLC taxed as an S-Corp. Most formation services help you file the paperwork. They do not tell you whether the election makes financial sense for your situation.
The IRS gives you 75 days from the date of incorporation to file Form 2553. Miss that window and you are paying self-employment tax at 15.3% on every dollar of profit until you file a late election, which requires demonstrating reasonable cause. That is a recoverable mistake, but it costs money and time you should not have to spend.
Beyond the election, an S-Corp requires ongoing compliance: a reasonable salary for owner-employees, payroll filings, Georgia Form 600S, and annual corporate minutes. An underpaid salary combined with high distributions is one of the most common S-Corp audit triggers. Formation services file the paperwork. They do not advise on any of this.
What Is an S-Corp in Georgia?
An S-Corp is a federal tax election, not a separate business entity. You form a corporation or LLC under Georgia law, then elect S-Corp status with the IRS by filing Form 2553. After the election, business income passes through to shareholders and is reported on personal returns, avoiding the double taxation of a C-Corp.
The primary benefit: self-employment tax savings. As a sole proprietor or single-member LLC, you pay 15.3% self-employment tax on every dollar of net profit. As an S-Corp owner, you split income into a reasonable salary (subject to payroll taxes) and distributions (not subject to self-employment tax). At $100,000 in net profit with a $60,000 salary, that split saves approximately $6,000 to $7,500 per year.
Is an S-Corp Right for Your Business?
An S-Corp makes financial sense when net business profit exceeds $50,000 to $60,000 per year. Below that threshold, the cost of running payroll, filing Form 600S, and maintaining corporate formalities typically erases the tax savings.
S-Corp is likely the right choice if: Your net profit consistently exceeds $60,000. You are the only owner or have a small number of shareholders. You are a US citizen or permanent resident. You want to reduce self-employment taxes without C-Corp double taxation.
S-Corp may not be the right choice if: Your net profit is below $50,000. You have or plan to have foreign shareholders. You want to offer different stock classes to investors. You are not prepared to run payroll and pay yourself a reasonable salary every year.
S-Corp vs. LLC in Georgia
An LLC is a business entity. It protects your personal assets from business debts. By default, a single-member LLC is taxed as a sole proprietorship, all profit flows to your personal return and is subject to 15.3% self-employment tax.
An S-Corp is a tax election. You can elect S-Corp status for an LLC or a corporation. The election does not change liability protection. It changes how the IRS taxes your income. Most Georgia business owners who elect S-Corp status do so on top of an existing LLC. See our LLC formation service page if you are comparing structures.
How to Form an S-Corp in Georgia
Form Your Business Entity
File Articles of Incorporation or Articles of Organization with the Georgia Secretary of State through the eCorp portal. Filing fee: $100 online. The Hive Law handles this as part of the flat fee.
Obtain an EIN
Apply for an Employer Identification Number with the IRS. An EIN is required before filing Form 2553 or opening a business bank account. The Hive Law handles the EIN application as part of the flat fee.
File IRS Form 2553
Submit Form 2553 to the IRS to elect S-Corp tax status. The deadline is within 75 days of formation for a same-year election, or by March 15 of the prior year for a retroactive election. All shareholders must sign. The Hive Law prepares and files Form 2553 as part of the flat fee.
Register With the Georgia DOR
File Georgia Form 600S to register as an S-Corp with the Georgia Department of Revenue. If you have nonresident shareholders, file Form 600 S-CA as well. Georgia accepts the federal S-Corp election automatically, no separate state election is required.
Set Up Payroll and Annual Compliance
Pay yourself a reasonable salary and run payroll before taking distributions. File Georgia annual registration by April 1 each year ($50 fee). File Form 600S annually by the 15th day of the third month after your tax year closes.
The Salary Requirement
The IRS requires S-Corp owner-employees to pay themselves a reasonable salary for the services they perform. This is the most commonly misunderstood S-Corp rule and the most commonly audited.
A reasonable salary is based on what the market would pay someone to do your specific job. Tax professionals typically use a 60/40 split as a starting point: 60% of net profit as salary, 40% as distributions. Paying yourself below market to maximize distributions is the primary S-Corp audit trigger. The Hive Law advises on compensation structure as part of the formation engagement.
Georgia S-Corp Tax Obligations
Georgia Form 600S. The annual Georgia S-Corp income tax return, due by the 15th day of the third month following your tax year close. For calendar-year filers, that is March 15.
Georgia net worth tax. All corporations doing business in Georgia owe a net worth tax. S-Corps with net worth under $100,000 file but owe nothing. The return must still be submitted.
Georgia income tax on distributions. S-Corp income passes through to shareholders at the Georgia individual income tax rate of 5.19% (effective 2025).
Why Use an Attorney
Formation services file Articles of Incorporation and submit Form 2553. They do not draft the governing documents that protect you when things go wrong.
Shareholder agreement. Determines what happens when a shareholder dies, becomes disabled, or wants to sell. Without one, shares could end up with someone who disqualifies your S-Corp election.
Corporate bylaws and consent resolutions. Required for the IRS to treat your S-Corp as a legitimate corporate entity. Absence of corporate minutes is a factor in piercing the corporate veil.
Reasonable salary guidance. The Hive Law advises on compensation structure. Formation services do not.
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Melissa delivers your completed documents and explains exactly what your family needs to do. You leave knowing your plan is in place and your family is protected.
Melissa Breyer
Georgia Estate Planning Attorney
Melissa Breyer is a Georgia estate planning attorney who works exclusively on trust-based estate planning and LLC formation. She personally designs and drafts every plan at The Hive Law after the initial call. Every plan is built from scratch for your specific family, your specific assets, and your specific wishes.
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Frequently Asked Questions
An LLC can be an S-Corp in Georgia. You form an LLC under Georgia law, then file IRS Form 2553 to elect S-Corp tax status. The LLC remains intact as the legal entity. The S-Corp election changes how the IRS taxes the income. Most Georgia business owners elect S-Corp status on top of an LLC rather than forming a separate corporation.
You have 75 days from the date of entity formation to file Form 2553 for a same-year S-Corp election. For a retroactive election covering the prior tax year, the deadline is March 15. Late elections are possible but require demonstrating reasonable cause to the IRS.
The IRS requires S-Corp owner-employees to pay themselves a reasonable salary, meaning what the market would pay someone to perform your role. There is no fixed formula, but tax professionals typically use a 60/40 split as a starting point: 60% of net profit as salary and 40% as distributions. Underpaying yourself is a primary S-Corp audit trigger.
Georgia accepts the federal S-Corp election automatically. S-Corp income passes through to shareholders and is taxed on their personal returns at the Georgia individual income tax rate of 5.19% (effective 2025). The corporation itself does not pay Georgia income tax, but it must file Georgia Form 600S annually and is subject to the Georgia net worth tax.
Form 600S is the Georgia S-Corp income tax return. It is due by the 15th day of the third month following the close of the tax year. For calendar-year filers, that is March 15. If you have nonresident shareholders, you must also file Form 600 S-CA, a nonresident shareholder consent agreement.
The Hive Law charges a $1,750 flat fee for S-Corp formation in Georgia. That covers the Articles of Incorporation or Organization, IRS Form 2553 election, EIN application, shareholder agreement, and registered agent for the first year. The Georgia Secretary of State filing fee of $100 is paid separately.
If you miss the 75-day Form 2553 filing window, you can file a late election and request relief under IRS Revenue Procedure 2013-30. The IRS will generally grant the relief if you can show the failure was due to reasonable cause. You will continue to be taxed as a sole proprietor or LLC until the late election is accepted.
You are not legally required to use an attorney, but a formation service cannot draft your shareholder agreement, advise on reasonable salary, prepare consent resolutions, or issue stock certificates. These are the documents that protect you if the IRS challenges your election or if a shareholder dispute arises. The Hive Law handles both the filing and the governing documents.
Find Out Where You Stand
You’ve been meaning to do this for a while now. That’s normal. Most families wait until something happens, then wish they hadn’t.
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