Guide

How to get a Georgia business license

To run a business in the Peach State, you need a GA business license. Let's look at the requirements and how to apply.

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Written by Kari Brummond—Content Writer, Accountant, IRS Enrolled Agent. Read Kari's full bio

Published Thursday 11 September 2025

Table of contents

Key takeaways

  • Most Georgia businesses need a local business license, often called an “occupational tax certificate.”
  • Requirements vary by city or county – check with your local government before applying.
  • You may also need to register with the Georgia Secretary of State, get an EIN from the IRS, and set up tax accounts with the GA Department or Revenue.
  • Renew your license annually and stay up to date on local compliance to avoid fines or shutdowns.

What is a Georgia business license?

A State of Georgia business license gives you the legal right to operate a business in this state. In most cases, you register the business with the state and then get a license (typically called an occupational tax certificate) from your local city or county government.

Which businesses need a Georgia business license?

Most businesses – whether they're home based, bricks-and-mortar, or online – need a business license in Georgia. The requirements vary depending based on your business’s structure, location, and industry:

  • LLCs, corporations, and partnerships must register with the Georgia Secretary of State (SOS), while sole props don't need to.
  • Sole props or other entities that use a DBA "doing business as" name should register it with their county's Clerk of the Superior Court.
  • If working in a regulated industry – healthcare, finance, etc. – you may also need an occupational or professional license from the state.
  • Businesses should set up tax accounts with the Georgia Department of Revenue (DOR) to pay corporate income tax, sales tax, and withholding tax if they have employees.
  • Almost all businesses need a local license – typically called an occupational tax certificate.

How to apply for a Georgia business license

For most businesses there are five steps in the GA business license process. For sole proprietors it’s easier – you may only need to take three of these steps.

1. Choose your business structure

Your structure affects your personal liability for business debts and taxes, how you're taxed, and registration requirements.

  • Sole proprietorship

One owner – the easiest structure to set up, and you don’t need to register it with the state (except for tax accounts). You're personally liable for all of the business's taxes.

  • Partnership

Two or more owners – you must register with the state, and all partners are personally liable for the business's tax debts.

  • Limited liability company (LLC)

One or more owners – you must register with the state, and be taxed as sole proprietor if one member or partnership if multiple members (unless you elect to be taxed as a corporation). Owners have some protection (limited liability) for business debts and taxes.

  • Corporation

Can be complex to set up – you must register with the state, you’re taxed on the business level, and owner/shareholders aren't liable for business debts.

2. Register your business with the state if needed

LLCs, partnerships, and corporations must register with the Secretary of State. You need basic details about your business, like its name, location, activities, and owners. Check with the Georgia SOS website for the details and to register. Once you’re done, the SOS sends you a Certificate of Incorporation ( often called a Certificate of Existence).

The annual fee to register a business with the Secretary of State is $55 online or $60 on paper. Nonprofits pay a reduced fee.

3. Apply for an EIN if needed

All entities that register with the SOS need an employer identification number (EIN). If you’re a sole proprietor and plan to hire staff, open bank accounts in the business's name, or if you don't want to use your Social Security number on business tax forms.

You can get an EIN from the IRS website in just a few minutes.

4. Set up state tax accounts

You also need to register for tax accounts – you can do that online with the Georgia Tax Center. Corporations must register for corporate income tax.

All businesses that sell taxable goods must register for sales tax. Employers must register to pay withholding tax and set up an account with the Georgia Department of Labor.

5. Apply for your local license

Most towns and cities require businesses to have an occupational tax certificate. Contact your local government to review costs and application requirements. Check zoning requirements, too – you can usually operate businesses only in certain areas of your city, and you’ll need to apply for an exception to run a business outside those areas.

Local licensing requirements

In Georgia, the terms “local business license” and “occupational tax certificate” typically refer to the same thing. Most businesses need to get a local occupational tax certificate. Here are some things to keep in mind.

  • If your business is within city limits, contact the town for requirements. If it’s outside the city limits, check with the county.
  • Some home-based businesses – like cottage baking, in-person services, or daycare – need local tax certificates. But you might not need one if you’re a freelancer who works online.
  • Your local government will let you know if they need to inspect your business for its compliance with local rules. Nail salons, for example, need approval from the local health department, while retail stores or short-term rentals might need a fire inspection.
  • Some businesses need to work with multiple layers of government – for instance, a restaurant may need to contact the city for an occupational tax certificate, the county for health inspections, and the state for a liquor license.

Local business permit costs tend to be around $25–$75. Most municipalities also assess an occupational tax based on the number of employees and/or gross receipts – for instance:

  • In Atlanta, businesses must pay a flat fee of $75, a percentage of gross receipts, and $25 per employee (with the first one exempted)
  • In the little town of Helen, there's an admin fee of $15, extra fees if you have a grease trap, and a tax of between $350 and $875 depending on how many staff you have

Additional permits and licenses by industry

You may need specific licenses or permits to run certain types of businesses. Here are some industries that need extra permits, and who to get in touch with in each case:

  • Food service – your county health department
  • Childcare – Georgia Department of Early Care and Learning
  • Alcohol sales – Georgia Department of Revenue for sales (for retailers like liquor stores, restaurants, and so on) and the federal Alcohol and Tobacco Tax and Trade Bureau (TBB) if you’re a brewer, distiller, or other type of manufacturer
  • Construction and trades – state licensing for general contractors and specific trades, like electrician licenses from the Georgia State Board of Electrical Contractors
  • Professional services – state licensing for attorneys, CPAs, real-estate professionals, medical professionals, and others

Maintaining and renewing your licenses

You’ll need to renew most business and professional licenses every year or two.

Note the renewal requirements when you register your business, apply for a sales tax license, or get local permits – then set reminders in your calendar so you don't miss any deadlines. EINs and DOR business tax accounts (besides sales tax) don't need to be renewed.

And when you renew your license, note any changes like new addresses or phone numbers. Make sure you report certain fundamental changes, like new ownership, as soon as they occur.

Closing your business

If you're registered with the Secretary of Statelet know that you're closing down.

  • LLCs and partnerships file a certificate of termination.
  • Corporations must file a Certificate of Dissolution.

Just follow the prompts on the Secretary of State website.

Then, file your final returns, pay outstanding taxes, and close your tax accounts with the IRS and the Georgia Department of Revenue. Let your town or county know that you’re not renewing your local license, if it’s required in your area.

Get your business set up right with Xero

You’ve got the right licenses and everything else ready. Now, Xero can help you stay on top of accounting before you even open your doors. Xero’s intuitive bookkeeping tools help you track your costs and handle your invoicing, contractor payments, bank reconciliation, and lots more. And, it integrates with all kinds of tools and apps so you can streamline all your financial management and tailor the software to your business.

FAQs on getting a Georgia business license

Now that you know how to apply for a business license in GA, you probably still have a few questions. Here are some of the most common.

What’s the difference between a business license and an occupational tax certificate in Georgia?

Not much. In Georgia, these terms are often used interchangeably – most municipalities require businesses to obtain an occupational tax certificate that's sometimes referred to as a business license.

Do I need a Georgia business license if I run an online business?

Possibly – check with your city or county for local requirements. You'll need a sales tax license if you're in Georgia and sell taxable goods or services, and if you are also operating in another state, you'll need a GA sales tax license if you have more than 200 sales or over $100,000 in sales revenue in that other state.

Can I operate in multiple Georgia counties with one business license?

It depends. If you only have one location, you generally only need a license in that local area, even if you have customers in other parts of the state. But if you have multiple locations, you'll need a business license in each area.

What happens if I don’t have a business license in Georgia?

If you don't get the right State of Georgia business licenses, you can’t operate your business legally, sell taxable goods or services, or hire employees.

Are there special licensing rules for home-based businesses in Georgia?

No – Georgia does not have any special rules for online businesses. Check with your local government to learn about the licensing or permit requirements in your area.

Disclaimer

Xero does not provide accounting, tax, business or legal advice. This guide has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the content provided.

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