Does a sole proprietor need a business license in georgia

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The process of starting a new business can be exciting, but it can also feel daunting and overwhelming. If there wasn’t already so much to do, you need to be sure to get the legal aspects of your business right. To help you get started, here’s how to get a Georgia business license so you can focus on growing a profitable business.

Does Georgia Require a Business License?

Georgia doesn’t issue business licenses at the state level, but all Georgia businesses need to obtain an operating license from the city or county where they’re based. An operating license may also be called a business license, a business tax certificate or an occupational tax certificate. Contact your county or city government or local chamber of commerce to find out how to get a license in your locality.

When Do You Need a Business License in Georgia?

Every business will need to get a business license from its locality. In addition, business owners may need to apply for a business license that pertains to the type of business they are operating.

Depending on your business, these additional licenses may be issued by the state or by your city or county. A few industries are regulated by the federal government. Certain professions such as lawyers and architects have specific licensing requirements. And you may also need permits that allow you to do such things as collect sales tax or occupy your place of business.

To determine if your business needs a professional license from the state of Georgia, check with The Licensing Division of the Georgia Secretary of State’s Office. Search the state government website and contact your local city and county government for other licensing requirements.

Types of Business Licenses

There is no general state business license in Georgia but some types of businesses will need specific licenses from the government to operate. Many businesses and professions in the state of Georgia are regulated, such as home inspectors, daycare centers and plumbers.

At the state level, if you are a business selling products at retail, you’ll need a sales tax identification number. At a local level, some towns or cities may require a specialized business license for certain types of businesses.

Some common licenses and permits a business will register for in Georgia:

• Occupational Tax Certificate
• Building and Zoning Permits
• Sales and Use Tax Registration
• Professional License
• Alcohol License
• Food Sales License

Steps to Getting Your Georgia Business License

Step 1. Name and Establish the Legal Structure of Your Business

If you’re planning to operate your business as a limited liability company (LLC), corporation or other formal legal entity, you should create your business before you apply for business licenses. You can do this by filing business formation documents with the Secretary of State. If you plan to operate as a sole proprietorship or general partnership, you don’t need to file formation documents, but you’ll need to register a trade name, or “DBA” with your county if you don’t plan to use your own personal name(s) as your business name.

Step 2. Get a Federal EIN

Depending on your business type and needs, you’ll want to obtain an Employer Identification Number (EIN) for tax purposes. The EIN identifies your business to the IRS. It is similar to a Social Security number (SSN) but solely attached to your business.

If you are a one-owner business or LLC with no employees it is not required to obtain an EIN, but it is still highly recommended to protect the privacy of your SSN. You will need an EIN if you:

• Have employees
• Operate as a corporation or a partnership
• File any of these tax returns: Employment, Excise or Alcohol, Tobacco and Firearms
• Withhold taxes on income, other than wages, paid to a nonresident alien
• Have a Keogh plan
• Are involved in organizations such as trusts, estates, real estate mortgage investment conduits, nonprofits, farmers cooperatives and plan administrators

Even if the IRS doesn’t require you to get an EIN for your business, an EIN may make it easier to open a bank account and apply for licenses and permits.

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Step 3. Register With the Department of Revenue

If you run a business that sells goods or sells regulated products such as tobacco or alcohol, you may be required to register with the Department of Revenue to collect and periodically pay various types of business taxes. To register your business or manage your accounts, you can access the Georgia Tax Center. What you will need to register:

• Business entity type
• Business location address
• Mailing address
• Primary and secondary email address
• Account type (example: Alcohol License, International Fuel Tax, Corporate Income Tax, Tobacco License)
• Registration fees or tax payments for certain account types
• NAICS code
• Names of additional officers and/or registered agent
• Any additional documents to be uploaded

Step 4. Register With the Department of Labor

If you have employees, you may also need to register with the Georgia Department of Labor. As an employer, you may be liable to pay unemployment insurance taxes to the Georgia Department of Labor.

To determine if you are liable, you can access the Online Employer Tax Registration on the Department of Labor’s website. After filling out the required information, you will receive a determination stating if you are responsible for paying unemployment insurance taxes.

Step 5. Apply for Local Permits and Licenses

All Georgia businesses need a business license issued by the city or county where their main office is. Contact your locality for specific forms, fees and requirements. You may need to provide additional information such as confirmation that you are complying with zoning ordinances or that your premises have passed fire and health inspections.

Make sure you obtain any additional permits needed such as signage permits, building permits, environmental permits, etc. You may also need to obtain additional licenses that pertain to your specific profession or business.

How Much Does a Business License Cost in Georgia?

The cost of your business license can vary and is determined by the type of business, including location, processing fees and recurring fees. Every business must apply for a general business license, and many businesses need multiple licenses or permits. Some licenses also must be renewed on a yearly basis.

Bottom Line

There are many types of business licenses issued by state, federal and local agencies, and the application process can seem complex. But getting your business properly licensed helps keep the public safe and helps you avoid fines and penalties for failing to comply with the law.

Frequently Asked Questions (FAQs)

Where can I apply for a business license in Georgia?

In the state of Georgia, business licenses may be acquired from the county and/or city in which the primary place of business would be located. Please contact your local city hall, or find out who regulates business licenses in your county by contacting the Georgia Chamber of Commerce at (404) 223-2264 or gachamber.com

How can I get a business license in Atlanta?

All businesses operating in the city of Atlanta must have a general business license issued by the city. You can apply online.

What is a NAICS code?

NAICS stands for North American Industry Classification System. The NAICS code is used to
classify business establishments for the purpose of collecting data related to the U.S. business economy. You can look up your NAICS code before the registration process.

Do Sole proprietors need to register with the state of Georgia?

Who needs a business license in GA?

How do I know if I need a business license in GA?

Does a sole proprietor need a business number?