In Georgia, a general partnership is when two or more people work together to run a business, sharing profits and responsibilities. Discover essential insights in our guide below for successfully establishing a general partnership in the Peach State.
You can create a general partnership in Georgia simply by joining someone in a for-profit business. There’s no requirement to file paperwork and register your partnership. General partnerships offer great tax advantages and are easy to form and maintain.
Let’s start by going over the pros and cons of general partnerships and then explain how to form a general partnership in Georgia.
While general partnerships are convenient to create, you need to understand the good and the bad that comes with this business structure. We’ll explain some of the pros and cons of a Georgia general partnership.
Partnerships provide the following advantages:
General partnerships also offer great flexibility in terms of management.
A general partnership might not have all the qualities your business needs. Here are some disadvantages of partnerships:
If you’re unsure about starting a general partnership in Georgia, speak with a legal and financial professional.
It’s important to choose a name that reflects your business, the products you sell, or the services you offer. Unregistered partnerships typically use the last name of the partners as their official business name.
There’s no requirement to register your business name unless you want to use a DBA (“doing business as”) name.
With a DBA, your business can operate under a different name than its legal one. Businesses usually have a DBA name for branding purposes.
In Georgia, you must register your DBA name with the county in which your business is located. Here’s how to register your DBA name in Georgia:
You can also reserve your business name with the Georgia Secretary of State while you set up your business.
With a Georgia general partnership, you can make most of the rules for running your business. By writing and adopting a Georgia general partnership agreement, you can determine the following:
This list is just a small example of what you can do with a partnership agreement. If you choose not to adopt one, then Georgia’s Uniform Partnership Act governs. You may not like how the law solves your business problems, so it’s important to write your own partnership agreement.
When operating a general partnership, you’re subject to the same federal, state, and local licensing requirements as other businesses. Depending on your location and business activities, you may need a combination of licenses, permits, clearances, and certificates.
Our partners at Avalara can create a Business License Report for you to know what’s required at the federal, state, and local levels.
An EIN is a unique nine-digit number that the IRS assigns to businesses to identify them. Your general partnership needs an EIN to pay taxes, get financing, hire employees, and open a business bank account. You can either apply for one online or let us handle it for you with our EIN Service.
Any entity that conducts business in Georgia may have to pay taxes depending on the type of business activity. Although general partnerships don’t pay income tax (since it passes through to the partners), they may still owe other types of tax, like sales and use tax or withholding tax.
To register your general partnership online and receive a tax account number, visit the Georgia Tax Center’s website.
After you’ve taken the steps listed above, there are a few more things to do to get your general partnership ready for business.
Open a business checking account. This will help separate your personal and business finances and simplify filing taxes.
Get insurance to protect yourself and your business. Some types of insurance are legally required in Georgia, so be sure to get the coverage you need.
Starting a general partnership in Georgia is typically a straightforward process. When it comes to maintaining your business and staying legally compliant, that’s where the difficulty comes in. We’re here to help you with that side of doing business. We offer a wide range of products and services that are designed to keep your business on track.
Depending on your business goals, a limited liability company (LLC) or corporation may be a better business structure for you. With our Georgia LLC and Corporation Formation Services, we can help you form your dream business.
Disclaimer: The content on this page is for information purposes only, and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.
There’s no requirement to register as a general partnership in Georgia. You may only need to register with the state if you’re using a DBA name.
General partnerships don’t pay income tax but rather pass it through to the partners who report it on their personal income tax returns. However, general partnerships are still subject to other types of state and local taxes depending on what services and products they offer.
Partners have both an ownership interest and a management interest, meaning they own and run the business.
You form a general partnership simply by conducting business for profit with at least one other person. From there, you can create a partnership agreement that governs your business organization structure, management, and any other aspect of operating the company.
Unless otherwise agreed, each partner is responsible for any debts of the general partnership.
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