Do I need an EIN to start a business in Georgia?

Most businesses benefit from obtaining an EIN to separate business and personal tax reporting, open business bank accounts, and fulfill payroll and tax filing requirements.

When should I register for sales tax and payroll accounts?

Register for sales tax before making taxable sales and set up payroll accounts before the first payroll run to ensure proper collection and remittance of state and payroll taxes.

How to Start a Business in Georgia: Accounting & Tax Checklist

Here’s a real-world guide to getting your accounting and taxes right from day one—so you can actually focus on running your business, not untangling a mess later. Follow along, step by step, and you’ll avoid a ton of headaches.

1. Pick your business structure and learn the tax rules

First up, decide what kind of business you want to run. Are you going solo, teaming up, forming an LLC, or setting up a corporation? Your choice changes everything: which taxes you owe, how you report income, and what kind of bookkeeping you’ll be dealing with. Before you lock it in, think about how much money you expect to bring in, who’s involved, and how much paperwork and liability protection you’re comfortable with. Set up your accounting system and tax calendar to match your decision.

2. Register with the state

Once you’ve settled on a structure, register your business with Georgia. This makes things official and usually means you’ll have to file something and pay a fee every year. Keep every bit of paperwork—those formation records and confirmation letters are gold when tax season rolls around or you need to prove your business exists.

3. Get your EIN

Think of your Employer Identification Number as your business’s Social Security number. You’ll need it for federal taxes, opening a business bank account, and hiring people. Even if you’re on your own, getting an EIN helps keep your business and personal taxes separate. Keep this number handy and use it everywhere: payroll, tax returns, vendor forms, the works.

4. Open a business bank account and set up your accounting habits

Don’t mix your money. Open a business checking account right away, and if you use a credit card, make sure it’s just for business. Get in the habit of tracking income and expenses every week. Build a chart of accounts that actually fits your business—set up categories for sales, expenses, payroll, taxes, and whatever else you need. Doing this early saves you from endless reconciling later.

5. Decide on your accounting method and pick your tools

You’ll need to choose between cash-basis and accrual accounting. Cash-basis is easier, especially for small service shops, but accrual gives you a clearer picture if you’re dealing with inventory or invoices. Figure out how you’ll send invoices, track expenses, and who’s handling the books. Write down your process so you can hand it off if you need to.

6. Set up payroll and handle payroll taxes

Hiring anyone—including yourself? You’ll need payroll in place before that first paycheck goes out. Register with the state for tax withholding and unemployment insurance. Decide how often you’ll run payroll, calculate the right taxes, and set your reporting schedule. Track everything—hours, wages, tax withholdings—so you’re covered.

7. Register for sales and use tax if you need to

If you’re selling goods or taxable services, get your sales tax permit and start collecting sales tax right away. Pay attention to local rates and what’s exempt. Keep your sales records straight and file returns on time to avoid fines.

8. Know your estimated tax payments and deadlines

If you own a pass-through business or you’re a sole proprietor, you’ll probably need to make estimated tax payments throughout the year. Corporations have their own quarterly payment rules. Build a tax calendar with every deadline: federal and state filings, estimated payments, payroll deposits, and any local Georgia requirements.

9. Keep your records tight

Hang onto receipts, invoices, bank statements, payroll records, and all your tax filings. Good records make life easier at tax time and back you up if you ever get audited. Name your digital files clearly, keep backups, and make sure every expense gets put in the right spot on your books.

10. Put internal controls and review habits in place

Decide who’s allowed to approve spending, who checks the bank balances, and who reviews your financial statements—yes, even if you’re the only one, regular reviews matter. Reconcile your bank account every month, look over your expenses, and review profit and loss statements to spot issues before they grow.

Tackle these steps early and you’ll stay focused on actually growing your business, not scrambling to fix preventable problems.

11. Get ready for year-end reporting and annual requirements

Figure out which annual filings your business needs, and set reminders so nothing slips through the cracks. Pull together your year-end reports—profit and loss, balance sheet, payroll summaries. Reconcile your receivables and payables, take a look at fixed assets, and prep any depreciation schedules if you need them. Don’t forget about any state-specific registrations or reports that come around each year.

12. Plan your taxes and deductions with intention

Know which expenses you can deduct, and set up a plan to make the most of them while staying on the right side of the rules. Track your home office costs, vehicle use, supplies, professional fees, and those early startup expenses. Work with an accountant when you’re dealing with depreciation, amortization, or business credits—and choose tax strategies that actually fit where your business is headed.

13. Budget for pros and for growth

When your business starts picking up, it’s worth thinking about hiring a licensed accountant for tax prep, an advisor for payroll, or a bookkeeper for the day-to-day. Set aside money for these services, and weigh their cost against the time and headaches they’ll save you—and the extra peace of mind you get from having a pro keep an eye on things.

14. Keep up and fine-tune your systems

Tax laws and accounting rules change all the time. Once a year, take a step back and review your accounting processes and tax approach. Update your chart of accounts if you need to, tweak your bookkeeping flows if your transaction volume has jumped, and sharpen your internal controls as your team and roles shift.

Final checklist (what to do next):

Choose your entity and register with the state.
Get your EIN and open a business bank account.
Set up your chart of accounts and your bookkeeping routine.
Register for payroll and sales tax accounts if you need them.
Make a tax calendar for estimated payments and key filings.
Put recordkeeping, reconciliations, and internal controls in place.
Prepare your year-end financials and plan your deductions.
Budget for professional help as your business grows.

If you’re starting a business in Georgia, get your accounting and tax setup right from day one. This checklist helps you stay compliant, keeps your finances clear, and gives you a strong base to grow from. Keep your records tidy, automate where you can, and check your tax strategy every year so you’re ready for changes in revenue, structure, or legal requirements.