Georgia Single-Member LLC Tax Filing Requirements

A single-member limited liability company (SMLLC) in Georgia offers a business structure with specific tax filing obligations. This entity is legally separate from its owner, providing a layer of personal asset protection. Understanding the tax requirements at both the federal and state levels is a primary responsibility for the business owner. This guide explains the foundational tax classifications, necessary registrations, and specific filing obligations for a Georgia SMLLC.

Federal and State Tax Classification

By default, the Internal Revenue Service (IRS) classifies a single-member LLC as a “disregarded entity.” For federal income tax purposes, the LLC is not seen as separate from its owner. The business’s income and expenses are reported on the owner’s personal tax return through pass-through taxation.

The state of Georgia aligns with this federal treatment, meaning the Georgia Department of Revenue also considers the SMLLC a disregarded entity. The business’s profits and losses are reported on the owner’s personal state income tax return.

An SMLLC owner can elect to change this default status and have the LLC taxed as an S Corporation or a C Corporation. This election is made by filing specific forms with the IRS and alters how the business is taxed at both the federal and state levels. Choosing corporate taxation introduces different forms, deadlines, and tax considerations.

Required Information and Registrations

Federal Employer Identification Number

An SMLLC needs a Federal Employer Identification Number (EIN) if it has employees, files certain federal excise tax returns, or elects to be taxed as a corporation. If none of these apply, the owner can use their Social Security Number (SSN). An EIN is obtained by filing Form SS-4, “Application for Employer Identification Number,” which requires the LLC’s legal name, mailing address, the owner’s name and SSN, and the business activity.

Georgia Taxpayer ID Number

An SMLLC must register with the Georgia Department of Revenue for a state tax ID number if it collects sales tax or has employees and remits state payroll withholding taxes. To register online through the Georgia Tax Center portal, the owner must provide the business’s federal EIN, legal and trade names, and business address. The owner will also need to provide details about the specific state taxes the business will be responsible for.

Georgia Annual Registration

Every LLC in Georgia must file an annual registration with the Georgia Secretary of State to maintain its good standing. The registration is due between January 1 and April 1 each year and is submitted online. The form requires confirming or updating the LLC’s principal office address and the name and address of its registered agent. Failure to file can lead to administrative dissolution.

Georgia State Tax Filing Obligations

Income Tax

The net income or loss from the business, calculated on federal Schedule C, flows to the owner’s personal Georgia income tax return, Form 500. Through this pass-through approach, the owner pays Georgia income tax on the LLC’s profits at their individual tax rate.

Sales and Use Tax

If an SMLLC sells tangible personal property or certain services in Georgia, it is required to register for, collect, and remit sales tax. This obligation is triggered by having a business presence, or “nexus,” in the state. The business must file sales and use tax returns at a frequency determined by the amount of tax collected. Returns are filed electronically through the Georgia Tax Center, where the business reports its total sales, taxable sales, and pays the collected tax.

Withholding (Payroll) Tax

An SMLLC with employees in Georgia must withhold state income tax from their wages. The business must remit these funds to the Georgia Department of Revenue on a set schedule, such as monthly or quarterly. The LLC must also file periodic withholding tax returns to reconcile the amount of tax withheld with payments made to the state.

Federal Tax Filing Obligations

Form 1040, Schedule C (Profit or Loss from Business)

The federal filing requirement for a disregarded entity SMLLC is Form 1040, Schedule C, “Profit or Loss from Business.” This form is part of the owner’s personal federal income tax return. On Schedule C, the owner reports the LLC’s gross income and deducts all ordinary and necessary business expenses. The resulting net profit or loss is carried over to the main Form 1040 and combined with the owner’s other income.

Form 1040, Schedule SE (Self-Employment Tax)

The net profit from Schedule C is subject to self-employment tax, which is reported on Form 1040, Schedule SE, “Self-Employment Tax.” This tax covers Social Security and Medicare for the business owner. For 2024, the self-employment tax rate is 15.3%, consisting of 12.4% for Social Security on earnings up to the annual limit and 2.9% for Medicare with no earnings limit. The owner calculates this tax on the net earnings from self-employment, and the resulting liability is added to their total income tax obligation.