Georgia LLC Taxes — Step 8 of 8
The final step: understanding what you'll actually owe. As a default pass-through LLC, your profit flows to your personal return — taxed federally, hit with self-employment tax, and then Georgia's flat state rate on top. Here's the full picture, with an estimator.
By default, a Georgia LLC is a pass-through entity — profits flow to your personal 1040, taxed at federal rates plus 15.3% self-employment tax (Social Security + Medicare). Georgia then applies a flat 4.99% rate for 2026 on top, using its own $12,000 single / $24,000 MFJ standard deduction. Multi-member LLCs and S-corps can also elect Georgia's Pass-Through Entity Tax as a SALT-cap workaround. This is entirely separate from the $60 Annual Registration (Step 6) and any local sales tax (Step 7).
- Default tax status
- Pass-through
- SE tax rate
- 15.3%
- GA state tax
- Flat 4.99%
- GA std. deduction
- $12,000 / $24,000
- Local income tax
- None
- Pass-Through Entity Tax
- Elective, ~4.99%
- Previous step
- ← Step 7
How a Georgia LLC Is Taxed by Default
An LLC itself pays no federal income tax — it's a "pass-through" entity by default. Profits flow to the owners' personal returns, where multiple layers of tax apply:
- Single-member LLCs report profit on Schedule C, attached to the owner's personal Form 1040.
- Multi-member LLCs file Form 1065 (informational) and issue each owner a Schedule K-1 showing their share of profit.
- Self-employment tax (15.3%) applies to net profit — this covers Social Security and Medicare, since there's no employer withholding it for you.
- Federal income tax applies via the standard progressive brackets, after the QBI deduction and standard deduction.
- Georgia's flat 4.99% tax then applies on top, using its own state standard deduction ($12,000 single, $24,000 MFJ) — Georgia's flat-tax system is straightforward compared to states with graduated brackets.
Federal + Georgia Tax Estimator
Enter your expected net profit to estimate total federal + Georgia tax as a default pass-through LLC:
Estimate only, assumes federal standard deduction (no itemizing), the simplified 20% federal QBI deduction, and half of SE tax deducted above the line. Georgia's calculation uses profit minus half SE tax minus Georgia's own standard deduction, taxed at the flat 4.99% rate. Doesn't include the $60 Annual Registration, local sales tax, or the elective Pass-Through Entity Tax. Not tax advice — consult a CPA for your specific situation.
The Pass-Through Entity Tax (Elective)
Georgia offers an elective Pass-Through Entity Tax (PET) that eligible S-corps and partnerships can use as a workaround for the federal SALT deduction cap. The entity pays Georgia tax at a rate matching the individual flat rate directly, which is then deductible as a business expense on the federal return — helping bypass the SALT cap that would otherwise limit an individual's deduction. Owners lose the ability to claim a credit for taxes paid to other states if they elect, so multi-state owners should weigh that tradeoff carefully. Single-member LLCs and sole proprietors don't qualify — the election is only available to entities taxed as partnerships or S-corps. The election is made annually and is irrevocable once filed, so it requires careful coordination with a CPA.
The S-Corp Election Option
Once your LLC's profit grows substantially, electing S-corp tax status (via Form 2553) can reduce your self-employment tax burden — you pay yourself a reasonable salary (subject to payroll tax) and take remaining profit as a distribution (not subject to SE tax). This adds payroll complexity and cost, so it typically only makes sense once net profit clears roughly $60,000–$80,000/year. Electing S-corp status also opens the door to Georgia's Pass-Through Entity Tax election described above, which single-member LLCs otherwise can't access.
Georgia's income tax is separate from everything else in this guideThe flat state tax has nothing to do with the $60 Annual Registration (Step 6), which is a flat filing fee regardless of profit, or local sales tax (Step 7), which only applies if you sell taxable goods. Budget for all three separately — they don't offset each other.
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Georgia LLC Taxes — FAQ
Ahmad Adil is the founder and CEO of LLC School. The tax figures here — the 15.3% self-employment rate, Georgia's flat 4.99% state rate for 2026, and the elective Pass-Through Entity Tax — reflect current IRS and Georgia Department of Revenue guidance. This is educational information, not tax advice; consult a CPA for your specific situation.
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From naming your LLC to understanding your tax bill, you now have everything you need to form and run a Georgia LLC with confidence. Bookmark this guide — you'll likely come back to it as your business grows.