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
Learn about standard filing costs here for GA corporations.
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.
Anyone who takes earnings out of your Georgia corporation will need to pay Georgia state income tax. Find out more on the Georgia State Department of Revenue website.
If your GA corporation is selling products or services in Georgia, you may need to pay a state sales tax. Find out more on the Georgia Department of Revenue website.
You may need to pay other taxes and fees, depending on the type of Georgia corporation you run. Find out more on the Georgia Department of Revenue website.
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
Self-Employment Tax
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 IncfileTaxes Payable by Georgia C Corporations
Corporation Tax
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).
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