What are Georgia's tax obligations for a foreign-owned LLC selling to Georgia customers?

Georgia's income tax applies to nonresidents on Georgia-source income. The rates are progressive, ranging from 1% to 5.49% (the rate has been decreasing under recent legislation).

For a single-member LLC, the income passes through to the owner. With $75,000 in Georgia-source income, you would owe approximately $3,500-$4,100 in Georgia income tax, depending on deductions and the applicable rate for that year.

You would file Form 500 (Georgia Individual Income Tax Return) with Schedule 3 (Nonresident Computation).

Georgia also has a 4% state sales tax (plus local taxes that bring the total to 7-9% depending on the county). After the South Dakota v. Wayfair decision, Georgia requires remote sellers to collect sales tax if they exceed $100,000 in sales or 200 transactions in Georgia.

With $75,000 in Georgia sales, you may be approaching or exceeding the 200-transaction threshold depending on your average order size. If you exceed either threshold, you must register for a Georgia sales tax certificate, collect sales tax on Georgia sales, and file regular sales tax returns.

Tangible personal property (like handmade jewelry) is generally subject to Georgia sales tax. You would need to register with the Georgia Department of Revenue and begin collecting and remitting sales tax.

If you are "transacting business" in Georgia, you may need to register your Delaware LLC as a foreign LLC in Georgia. The registration fee is $225 plus $10 for the Certificate of Authority.

Having significant sales to Georgia customers may constitute transacting business. However, the definition is not always clear-cut — merely selling products that are shipped to Georgia from outside the state may not require registration in all cases.

Consult with a Georgia business attorney to determine whether your level of activity requires registration. The consequences of not registering when required include the inability to file lawsuits in Georgia courts and potential penalties.

Your Georgia filing obligations may include:

1. Form 500 with Schedule 3: Due April 15. Report GA-source income and pay income tax. 2. Estimated tax payments: Due quarterly if you expect to owe $1,000+ in GA tax. 3. Sales tax returns: Monthly, quarterly, or annually depending on sales volume. Filed with the Georgia Department of Revenue. 4. Annual registration renewal: If registered as a foreign LLC in Georgia.

Georgia offers electronic filing for all tax returns through the Georgia Tax Center online portal.