Georgia Franchise Tax

January 31, 2021

Georgia Franchise Tax Rules & Calculation

Georgia Franchise Tax

For eCommerce businesses operating out of Georgia, the franchise tax obligations for your business will depend on whether your business entity is formed as a limited liability company (i.e., LLC), partnership, or corporation. Below we outline the 411 on Georgia franchise taxes for your business.

Note that the due dates we included are for calendar year taxpayers and may not apply to you if your business has a tax year that does not end on December 31. In addition, the information below refers only to franchise or net worth tax and does not include registration fees or other regulatory payments that may be due by your business.

For more information on Franchise taxes, check out the following Blog.

LLC and Limited Partnerships – Due Date: N/A

What Online Sellers Need to Know

  • Single member LLCs and LLCs treated as partnerships are generally not subject to the Georgia net worth tax (also known as the franchise tax).
  • However, if the member(s) of the LLC is a corporation, the corporation may be subject to the Georgia net worth tax if the LLC does business or owns property in Georgia.

Corporations – Due Date: March 15 (S Corps) or April 15 (C corps)

What Online Sellers Need to Know

  • Georgia imposes a net worth tax (like a franchise tax) in addition to the corporate income tax. The net worth tax is based on a corporation’s issued capital stock, paid-in surplus, and earned surplus employed within Georgia.
  • The net worth tax applies to C and S corporations and LLCs electing to file taxes as corporations.
  • Net worth tax is computed on the net worth of the corporation as reported on the prior year ending balance sheet and is due on or before the 15th day of the fourth month (C Corporations) or third month (S Corporations) following the beginning of the corporation's tax year.
  • If you file your return or pay tax late, penalties and interest may be due.
  • The net worth tax is filed on the same form as the corporate income tax- Form 600 for C corps or 600S for S Corps. The beginning and ending dates for net worth tax on the corporate return would be one year later than the income tax beginning and ending dates. For example, the income tax beginning and ending dates are 1/1/20 through 12/31/20. The net worth tax beginning and ending dates would be 1/1/21 through 12/31/21.
  • The tax is imposed at flat dollar amounts depending on a corporation’s apportioned net worth. The tax range is from $125 to $5,000.
  • Corporations with a net worth of $100,000 or less are not subject to tax but must file a return.

The information provided on this website does not, and is not intended to, constitute legal advice. All information, content, and materials available on this site are for general informational purposes only. Readers are advised to consult with their attorney or accountant with any questions or concerns.

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