Fees and Taxes for Your Georgia State Corporation
You’ll need to pay certain taxes and fees for your Georgia S Corp or C Corp. We’ve included the more common ones below.
Common Fees for a Georgia Corporation
A yearly fee when you file your Annual Report.
These are the fees for creating or renewing your licenses and permits on a regular basis. These depend on the type of Georgia corporation you’re operating and where you’re located.
Taxes You and Your Georgia Corporation Need to Pay
Georgia S Corporations and C Corporations are taxed differently. Find the details below.
Both S Corporations and C Corporations in Georgia Need to Pay These Taxes
Your Georgia corporation will need to pay employer payroll tax to the IRS on salaries paid to employees.
Your Georgia Corporation Will Need to Pay Estimated Taxes
Most Georgia corporations will need to pay estimated taxes throughout the year, depending on the amount of income and profit you expect to make. The most common types of estimated tax are:
- Federal income tax
- Federal self-employment tax
- Georgia state tax
Most Georgia S Corporations and C Corporations will pay estimated taxes four times a year. Speak to your accountant for more information.
Employee Insurance and Taxes for Your Georgia Corporation
If your GA corporation employs workers, you will need to pay insurance and taxes to the state for each employee.
Get more requirements from the Georgia Department of Labor website.
Taxes Payable by All Individuals Working for Georgia Corporations
Pay Federal Income Tax on Georgia Corporation Earnings, Dividends and Distributions
You will need to pay regular federal income tax when you file your tax return every year.
Georgia S Corporations — Additional Tax Liabilities
In a Georgia S Corporation, your earnings “flow through” from the business to your personal tax return. This means you must pay self-employment tax on those earnings, at a rate of 15.3%. Note that you can deduct standard tax deductions and business expenses.
You will be able to deduct your business expenses from your income when working out how much self-employment tax you owe. Here are some examples of how much self-employment tax you may need to pay, depending on your earnings:
- On profits of $10,000, you would pay self-employment tax of $1,530
- On profits of $30,000, you would pay self-employment tax of $4,590
- On profits of $60,000, you would pay self-employment tax of $9,180
- On profits of $120,000, you would pay self-employment tax of $18,360
In some cases, part of the income from an S Corporation can be paid as a “distribution” rather than “salary,” so it would not be subject to self-employment tax.File Your Georgia S-Corp Tax Election with Incfile
Taxes Payable by Georgia C Corporations
Georgia C Corporations must file corporate tax returns with the IRS and pay corporation taxes on their profits. Shareholders must also pay tax on dividends received from a Georgia C Corporation, which does result in “double taxation.”
Stock Dividends From C Corporations
A Georgia C Corporation may pay shareholders dividends as a share of the profits of the company. The value of dividends that each shareholder is entitled to depends on how many shares they own.
Dividends that are distributed to shareholders are taxed twice: first at the corporate level as profit (on the corporation’s Form 1120) and again at the individual level as stock dividends (on the shareholder's Form 1040).
Ready to Start Your Georgia Corporation?
Incfile provides a cost-effective service to help you create your Georgia corporation. We guide you through the process and handle most of the administrative steps, such as filing the necessary forms on your behalf.
Our basic package also provides a free Registered Agent service for the first year. If you're looking for help starting an S Corporation or C Corporation, our comprehensive services provide outstanding value.