Benefits and Drawbacks of Establishing an LLC in Georgia

One of the most frequent thoughts that keep running in the minds of many who are planning to expand their companies to large corporations with large stocks is how to set up a solid structure that will rise up to become one of the most successful LLCs in Georgia. If you are one of those who share this initiative or you are planning to come up with a new one. You need to weigh in the benefits and drawbacks involved in the setting of an LLC in Georgia. Irrespective of the nature of your business setting up and LLC in Georgia is generally less complicated. However, there are other important worthy of consideration areas to having a successful LLC in Georgia.

Taxation

Pros

The taxation of LLCs in Georgia is to an extent dictated by the number of members of the corporation. For instance, if the organization is still the two-member partnership type, there is no taxation option for the company. However, if there are more members, the organization covers the pay the bears the grunt of the tax themselves with no stakeholder having to pay when the company faces a loss or gain.

Cons

These major stakeholders who are not obliged to pay tax may however have to pay a double tax when the profits are divided and paid individually since the taxes are also counted on the individual profits.

Registration Costs

Pros

It is almost impossible to register an LLC business type anywhere in Georgia. However, the cost of registering an LLC in Georgia is relatively cheap and should range to around a hundred dollars if you are setting up your company for the first time. And then subsequent costs for other registration is half of the amount. Also, an important part of registration is getting an agent to handle the official documents of the corporation. Regular rates of hiring such agents in Georgia can also range from forty to a few hundred dollars.

Cons

Again the cost of registering an organization as a limited liability company is definitely one of the significant factors to consider during setup. However, this is not the same for other business types such as sole proprietorships. For businesses like this, no registration is required upfront.

Capital

Pros

It is very easy and quick to raise capital among the major stakeholders of an LLC. With this, there are constant funds in circulation for many average activities of the organization. However, there has to be a general agreement among the major stakeholders of the company.

Cons

As much as easy as it is to gather funds for average operations, It can, however, be difficult to raise huge funds among the major stakeholders, and borrowing from other companies can be difficult because corporations such as banks find it hard to borrow from organizations who have no sole owner to hold responsible for any possible inability in payment of a debt.

Setting up an LLC company in Georgia is a cool option if you are well familiar with the benefits and downsides of the Company.