Georgia Corporation: Everything You Need to Know
A Georgia Corporation is a company or group of people in the state of Georgia that are permitted by law to act as an individual when conducting business.4 min read
What Is a Georgia Corporation?
A Georgia Corporation is a company or group of people in the state of Georgia that are permitted by law to act as an individual when conducting business.
Georgia Corporation Formation
Every state has different requirements for forming a company. If you are starting an enterprise or incorporating a business already in existence, you'll need to know the state necessities for incorporation in the state of Georgia.
Benefits of a Corporation
A corporation is a restricted liability entity, which implies that shareholders of a company usually are not personally responsible for the company's monetary or legal obligations. Many individuals form corporations for this reason, as well as for possible tax advantages.
Choose a Corporate Name
Your company's title should not be greater than 80 characters in length (together with punctuation and spaces) and it should end with one of the following phrases or its abbreviation:
The name cannot state or indicate that the company is organized for some objective aside from the one outlined in its articles of incorporation. Your company's name should be different from the names of the different enterprise entities already on file with the Georgia Secretary of State Corporations Division. Names could also be checked for availability within the Corporations Division business name database.
The name reservation process takes about 30 days and costs $25. The reservation can also be made on the Corporations Division website.
Prepare and File Certificate of Incorporation
Your company is legally created by submitting Articles of Incorporation with the Georgia Secretary of State CorporationsDivision. The Articles of Incorporation should include the following:
- Company name
- Name and address of an agent for service of process
- Variety of shares the company is permitted to hold
- Name and address of every incorporator
Georgia doesn't have an Articles of Incorporation form for candidates to complete.
You must draft your individual articles on an 8.5" x 11" piece of paper. An in-depth article provided by the Corporations Division, titled Submitting Procedures, explains methods to draft your articles and provides useful examples. The submission price for Articles of Incorporation is $100, and the articles should be filed by postal mail.
Appoint a Registered Agent
Each Georgia business should have an agent for service of process within the state. A registered agent is a person or business entity that agrees to simply accept authorized credentials on the company's behalf if it is sued. The registered agent could also be either a resident or business that's licensed to do business in Georgia. The agent should agree to simply accept service of process on your company's behalf before designation.
Set Up a Corporate Records Book
Arrange a company information e-book by which you retain all of your company's vital papers, together with the minutes of the director and shareholder conferences, inventory certificates, and inventory certificate stubs. Keep your company's information e-book in the principal workplace of your company. You should utilize a three-ring binder as the company information e-book or order a corporate records kit from a corporate kit provider.
Prepare Corporate Bylaws
Bylaws are an inside company document that set out the fundamental base guidelines for running your company. Bylaws should not be filed with the state. Your company shouldn't be legally required to have company bylaws, however it is best to create them to: (1) set up your company's working guidelines, and (2) demonstrate to present banks, collectors, the IRS, and others that your company is reliable.
Appoint Initial Corporate Directors
The incorporator - the one who signed the articles - should appoint the preliminary company administrators who will serve on the board until the primary annual assembly of shareholders (when the board members who will serve for the subsequent time period are elected by the shareholders). The incorporator should fill in an Incorporator's Statement, displaying the names and addresses of the preliminary administrators. The incorporator should sign the statement and place a copy within the company information e-book. The copy does not need to be filed with the state. The primary assembly of the company's board of administrators should be held so the administrators can appoint company officers, review bylaws, choose a company financial institution, authorize issuance of shares of inventory, set the company's fiscal year, and undertake an official inventory form and company seal. Moreover, if the company is to be an S company, the administrators should approve the election of S company status. It's often obligatory to assemble the minutes over one or two weeks and then send them to all members of the administration for signatures.
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