The Peck Group, LC
  • Comprehensive Tax Law Representation Since 1995

    We handle every aspect of tax law: preparing tax returns, representing clients during audits, resolving IRS and state tax controversies, and creating tax planning strategies for the future.

  • Problems With The IRS Or State Tax

    Our attorneys are committed to providing efficient and effective tax solutions for individuals and businesses in Georgia and nationwide.

  • Planning For The Future

    Our lawyers help individuals and businesses with all aspects of estate and tax planning. We help our clients use proactive strategies to minimize tax implications in the future

  • Changing The Balance Of Power

    Does it feel like the government has all the power? Taxpayers have rights, too. We use our knowledge of tax law to shift the balance of power and ensure that your rights are protected.

  • Tax Solutions … And Peace Of Mind

How will state tax matters affect your new corporation?

Let us say you have recently formed a corporation: It is a very busy and exciting time for you and your staff.

While up-to-date on federal tax matters, you are not yet familiar with the corporate tax requirements of the state of Georgia. Here is a review of the basics.

Understand who pays Georgia income tax

The state of Georgia imposes income tax on corporations. The tax is a non-graduated percentage calculated using the federal taxable net income for your corporation. If the corporation does business in Georgia, receives income from sources in Georgia or owns property in the state, you will pay corporate income tax. The rate is 6% of the Georgia taxable net income for your corporation.

The net worth tax

You may also qualify to pay a net worth tax. As indicated, this is a tax calculated on the net worth of your corporation as of January 1, 2018, or after. If the net worth of your corporation is less than $100,000, you do not have to pay this tax, but you will have to file a return. As a corporation doing business in the state of Georgia for the first time, you must file a net worth tax return by the 15th day of the third calendar month following your incorporation.

A word about S Corporations

If you have an S Corporation doing business in Georgia, the shareholders will pay the state income tax instead of the corporation paying it.

Moving forward

Whilst breathing life into a new corporation, you have to operate the business following corporate policies and procedures and attend to state and federal regulations at the same time. When it comes to the unfamiliar territory of Georgia state tax matters, seek professional help. Explore your legal options to ensure you remain compliant and can avoid making any costly tax missteps.

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The Peck Group, LC
5855 Sandy Springs Circle N.E., Suite 190
Atlanta, GA 30328

Phone: 770-884-6914
Fax: 770-933-2369
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