Frequently Asked Questions

How does a corporation in Georgia calculate its state income tax and net worth tax obligations?

In Georgia, the process of calculating state income tax and net worth tax obligations for a corporation differs from that of a Limited Liability Corporation (LLC). Unlike an LLC, which is a pass-through entity where taxes are passed to the owner, corporations are required to pay corporate income tax. The corporate income tax in Georgia is set at 6 percent. For instance, if a corporation has a taxable income of $1 million, it would owe the state of Georgia $60,000 in state income taxes. In addition to the income tax, corporations are also required to pay a net worth tax. The amount owed for the net worth tax is calculated based on the corporation's net worth and the IT 611 tax table. To pay these taxes, corporations must obtain a State Tax Identification Number (STIN) which can be applied for online or in person at a Georgia Tax Center. Business taxes are paid quarterly and are due to the IRS by the 15th day of the fourth, sixth, ninth, and 12th months of the year.