The Peck Group, LC - Tax Law
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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.

How will state tax matters affect your new corporation?

| May 31, 2019 | Uncategorized |

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.

We insist that your taxpayer rights are protected and your options are known.

Our services are confidential and are protected under the attorney-client privilege as allowed by law.