How to Register for a Sales Tax Permit in Georgia

Running a successful business requires planning, hard work and dedication as well as great business relationships. You are always looking to keep your costs down while maximizing the profit margin. Among the things you have to take care of are the regulatory requirements that make sure you are running the business within the boundaries of the law.

Whether starting a large operation or a small business within the state of Georgia specifically, there are a few things to look at. Starting your business on the right foot is important and this means filing all the necessary paperwork, getting all the permits, collecting taxes and securing financing for your start-up, if needed.

The state of Georgia offer incentives for small businesses, including loan guarantees or tax relief. But to start off this guide, let’s first look at the way you start your business within the state of Georgia.

Starting Your Business in Georgia

As in the majority of US states, registering your business requires you to select the legal form of your operation, which in Georgia includes sole proprietorship, corporation, partnership, or limited liability company.

You have to apply for the right licenses you might need, register a trade name, if necessary become familiar with your taxation requirements and see whether any other requirements might be specific for your county/city. For a detailed guide, visit here, as this guide provides the basic information and directions to the relevant authorities, and is aimed to make the registration of your business as easy and smooth as possible.

Georgia’s Secretary of State office runs a First Stop Business Information Center with all the information any new business owner or entrepreneur needs to start and operate a business.

Georgia Sales Tax Permits

Depending on a number of reasons, you might or might not need the sales tax permit. The first goal is to establish who needs a sales tax permit in Georgia and whether you should register for one. In any case, when starting your business, the second step, after selecting the legal form of your operation, is to register for an Employer Identification Number (EIN), also known as a Federal Tax Identification Number. This can be done online through the Internal Revenue Service (IRS).

Once you have the EIN, you need to find out whether you need the sales tax permit or not. The general rule is that all businesses engaged in selling tangible items in the state of Georgia must have a sales tax permit. In addition, you must have a significant presence in the state, called a sales tax nexus. This means that you have to have an office, an employee or goods in a warehouse or ownership of real or personal property within the state of Georgia. You have a sales tax nexus also if you deliver merchandise in the state or have representatives and contractors in Georgia. For more details on sales tax nexus in Georgia, visit the state’s Department of Revenue.

If you have established that you have a sales tax nexus in Georgia, it is time to verify that the products and services you are offering are taxable. In general, services are not taxable while tangible products are. There are, however, a few exceptions, including groceries, machinery or chemicals used in research and development or prescription medicine and medical devices. If you are among those who need a sales tax permit, your next step is to visit the Georgia Tax Center and follow the “Register your New Georgia Business” link to start the process.

To register for a sales tax permit in Georgia you have to provide business history including any previous state IDs you might have had, your entity type, business name and address, any info on additional business ownership or relationships, you business activity data, withholding information. In case you have business partners, you must provide additional personal identification data.

Application for a sales tax permit in Georgia is free of charge and the process is very swift, up to two days if you apply online. If you are doing it the old-fashioned way, through the mail, it could take up to two weeks for you to receive your permit. However, once you do receive it, there is no need to re-apply every year, as the state of Georgia does not require sales tax permit renewal.  For a detailed guide on taxes, visit Georgia’s Department of Revenue. One specific thing that has to be mentioned is that the rates for collecting taxes depend on the destination of the product you are selling as Georgia is a destination-based sales tax state.

Sales Tax Exemptions in Georgia

For businesses looking to purchase products to resell there are ways to completely avoid paying tax. If you are running a wholesale business or purchase merchandise to sell online or in your store, you can avoid paying taxes if you present the seller with a Georgia Sales Tax Certificate of Exemption. Using the Sales Tax Certificate of Exemption is not complicated, simply fill in the required information and make sure to specify that you are purchasing the products in order to resell them. In case you are presented with a Sales Tax Certificate of Exemption make sure the form has been completed and signed. You can verify the buyers sales tax ID number at Georgia Department of Revenue’s website, or you can call at 877-423-6711 and choose the option #1.

Georgia State Business Licenses

The state of Georgia requires you to apply for business licenses on a city or county level. While this guide shows that the process is fairly similar to other states in the US, it is recommended that you consult an attorney or other professional entity that could help you in the process.

Depending on the place of your residence, you might be required to obtain a state tax ID, complete the mentioned trade name registration and get a zoning approval for your business‘ location. You might also need specific licenses or other operating permits. You can see whether your business needs a special permit and apply online through the dedicated department of Georgia’s Secretary of State.

Georgia Incentives for Small Businesses

In order to support small businesses, the state of Georgia offers a number of incentives that make small business owners’ lives a lot easier. Among those incentives are tax reliefs that allow the small business owner faster depreciation on equipment deduction. While this is usually done over a period of several years, the state of Georgia allows the expense claim to be completed in one year.

Through its Entrepreneurial and Small Business Development Loan Guarantee Program, the state offers financing of up to $250,000 for small businesses in rural Georgia counties. In addition to financing, the state offers investors who provide funding for small businesses to claim income tax credits of 30 percent of their investment.

The state also offers you the chance to get your business online, by establishing a website, finding customers and grow through partnerships with Google and Intuit.

While this guide provides the basic information about the process of setting up your business in the state of Georgia and registering for a sales tax, for detailed information we encourage you to seek information at your local or county offices or by contacting any of the departments listed below.

Contact Details

Georgia Secretary of State

214 State Capitol
Atlanta, Georgia 30334
Phone: 844-753-7825

Department of Revenue

1800 Century Boulevard, NE
Atlanta, GA 30345
Commissioner’s Office Phone: 404-417-2100

Regional offices list

Georgia Department of Economic Development

Technology Square, 75 5th Street N.W., Suite 1200
Atlanta, GA 30308
Phone: 404-962-4000

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Henley Johnson

Henley currently works as a sales representative for Direct Liquidation, assisting businesses with product sourcing of liquidated merchandise from the largest retailers in the world. Whether you are looking for a pallet or a truckload Henley is here to help you grow your business.

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