Georgia · LLC tax election
Georgia LLC: S corp or C corp?
Georgia's S election has a catch that most states do not: your out-of-state owners have to sign for it.
See Georgia at a glanceShort answer
Georgia taxes a C corporation at a flat 4.99% for 2026, and an S corporation pays no income tax itself, so most small owners take the S election once profit is steady. Georgia only honors it if every nonresident shareholder signs Form 600S-CA, and both entity types owe the net worth tax.
Last checked .Georgia at a glance
| Question | Georgia |
|---|---|
| S election recognized? | Yes, Georgia follows the federal election1 |
| Separate state form and deadline | Form 600S-CA (one per nonresident shareholder)2 |
| Tax the S corp itself pays | None at the entity level3 |
| C corp rate and minimum | 4.99% flat4 |
| Entity tax on a default LLC | None for a default LLC5 |
| Personal income tax | Yes, on wages and pass-through income6 |
What is different about Georgia?
Most states quietly follow the IRS when you elect S status. Georgia follows it too, with a string attached. If any shareholder lives outside Georgia, that person has to complete Form 600S-CA and agree to pay Georgia income tax on their share of Georgia income. Miss the form and the Commissioner can terminate the election for Georgia purposes, which would leave the company taxed as a C corporation at 4.99% for 2026. On top of that, Georgia charges a net worth tax on corporations, S or C, based on the prior year's balance sheet and topping out at $5,000. So the choice here is less about the rate and more about paperwork you can actually keep up with.
Does Georgia recognize a federal S corp election?
Georgia recognizes your federal S election, so the shareholders pay Georgia income tax and the corporation does not. The catch is Form 600S-CA, which each nonresident shareholder must complete and you attach to Form 600S. The return is due on or before the 15th day of the 3rd month after year end, which is March 15 for a calendar-year company. Without the 600S-CA, Georgia will not recognize the election. The corporation still files the net worth portion of Form 600S every year, even with no income.
Does my LLC need a separate Georgia election or form?
Georgia requires a Form 600S-CA for each nonresident shareholder, attached to the Form 600S return, or the S election is not recognized.2
What does Georgia tax an S corp or LLC at the entity level?
- Georgia does not tax a recognized S corporation on its income; the shareholders pay the tax instead of the corporation.3
- A single-member LLC that is disregarded owes no Georgia net worth tax itself.5
- Georgia charges S corporations and C corporations a net worth tax on the prior year's balance sheet, graduated by net worth and topping out at $5,000.7
Is a Georgia LLC taxed as a C corp ever better?
Georgia taxes a C corporation at a flat 4.99% of its Georgia taxable net income for 2026, a single flat rate. There is no graduated income bracket to worry about. The corporation also owes the net worth tax, which grows with net worth and tops out at $5,000. Because the C corporation pays its own tax and then you pay again on dividends, the 4.99% is only the first layer.
Run your Georgia numbers
The S election starts to pay off once the business clears a reasonable salary for you with profit left over, because that leftover escapes self-employment tax. Georgia's side of the math is simple: no entity-level income tax, but you still pay net worth tax, and any nonresident owner adds one more form each year. If you have no out-of-state owners, the extra cost is small.
Result
How much would a Georgia LLC owner save as an S corp?
| Taxed as | At $80,000 profit | At $150,000 profit |
|---|---|---|
| Default LLC | $11,304self-employment tax $11,304 + Georgia LLC tax $0 | $21,194self-employment tax $21,194 + Georgia LLC tax $0 |
| S corp | $9,344payroll tax $7,344 + Georgia S corp tax $0 + $2,000 payroll and prep | $15,770payroll tax $13,770 + Georgia S corp tax $0 + $2,000 payroll and prep |
| C corp | $17,326payroll tax $7,344 + Georgia tax $1,597 + federal $6,385 + $2,000 payroll and prep | $30,735payroll tax $13,770 + Georgia tax $2,994 + federal $11,971 + $2,000 payroll and prep |
Assumes a 60% salary9 and a single filer. Income tax is left out. C corp dividends are taxed again.
When is the Form 2553 deadline for a Georgia LLC, and what if I miss it?
Late relief: federal steps, deadline guide.
What to do next
How to start one, or have us form it from $123.75.
Registered agent $74.25/yr, annual report.
LLC vs S corp guide, election deadline, Form 2553 filed for $165.
More on Georgia: How to start a Georgia LLC · How to start a Georgia corporation · Georgia LLC cost · Georgia annual report · Annual report late fees by state
File the S-Corp Election for your Georgia LLC
We file Form 2553 for a flat $165.
Get the S-Corp ElectionCommon questions
Does Georgia recognize an LLC's S corp election?
Yes, with a condition. Georgia follows the federal election, but every nonresident shareholder must complete Form 600S-CA or the election is not recognized for Georgia. Resident-only owners have no extra form.
What is the Georgia corporate income tax rate for 2026?
4.99% of the corporation's Georgia taxable net income. The Department of Revenue's corporate tax page states the rate as a single flat figure, so there are no brackets.
Does an S corporation pay Georgia net worth tax?
Yes. Georgia says any corporation that does business or owns property in the state, or is registered with the Secretary of State, files the net worth portion of Form 600 or 600S every year. The tax is graduated and tops out at $5,000.
When is the Georgia S corporation return due?
The return is due on or before the 15th day of the 3rd month after the tax year ends. For a calendar-year S corporation that is March 15, a month earlier than a C corporation's due date.
Does a Georgia single-member LLC owe net worth tax?
No, a disregarded single-member LLC does not. Once the LLC elects to be taxed as a corporation, though, the corporation is subject to the net worth tax.
Sources 10 links, checked Nov 6, 2026
- Georgia recognizes the federal S election when S status is recognized for Georgia purposes, and then the shareholders rather than the corporation pay the income tax. dor.georgia.gov, checked Nov 6, 2026
- Georgia requires a Form 600S-CA for each nonresident shareholder, attached to the Form 600S return, or the S election is not recognized. dor.georgia.gov, checked Nov 6, 2026
- Georgia does not tax a recognized S corporation on its income; the shareholders pay the tax instead of the corporation. dor.georgia.gov, checked Nov 6, 2026
- Georgia taxes a C corporation's Georgia taxable net income at a flat 4.99% for tax year 2026. dor.georgia.gov, checked Nov 6, 2026
- A single-member LLC that is disregarded owes no Georgia net worth tax itself. dor.georgia.gov, checked Nov 6, 2026
- Georgia taxes the income of S corporation shareholders on their own returns; nonresident shareholders must agree to pay Georgia income tax on their share. dor.georgia.gov, checked Nov 6, 2026
- Georgia charges S corporations and C corporations a net worth tax on the prior year's balance sheet, graduated by net worth and topping out at $5,000. dor.georgia.gov, checked Nov 6, 2026
- IRS: Form 1120 instructions, C corp rate irs.gov, checked Nov 6, 2026
- IRS: S corp reasonable compensation irs.gov, checked Nov 6, 2026
- IRS: Form 2553 instructions irs.gov, checked Nov 6, 2026
Last verified Nov 6, 2026.
This page explains the rules; it is not tax advice. Run your numbers with a CPA or enrolled agent before you elect.
Last verified Nov 6, 2026.