Most common business entity in Georgia
The LLC is the standard choice for most small- to mid-size businesses in Georgia. Like a US LLC, it provides limited liability protection separated from the owners' personal assets. Individual Entrepreneur status with Small Business Status pays 1% on revenue up to GEL 500k.
The full menu of Georgia business structures
| Structure | Liability | Tax | Best for |
|---|---|---|---|
| LLC | Limited | 15% corporate | Most operating businesses |
| Sole proprietor / self-employed | Unlimited personal | Personal income tax rates | Freelancers, one-person services |
| Partnership | Joint and several | Pass-through to partners | Professional services (law, accounting) |
| Branch of foreign company | Parent company liability | 15% on Georgia-source profits | Foreign companies entering Georgia market |
| Public limited company | Limited | Same as LLC but stricter | Companies preparing for listing |
Which one should you pick?
- Freelance or one-person service in Georgia? Self-employed structure if simple, LLC if you want liability protection.
- Software / e-commerce / agency? LLC — standard, scalable.
- Operating an existing foreign company in Georgia? Branch (simpler) or subsidiary LLC (more substance).
- Planning to raise venture capital? Confirm investors accept Georgia entities. Many require a US Delaware C-Corp flip — see US company formation.
- Holding company for IP or other companies? LLC with minimal substance requirements.
The LLC in one paragraph
LLC is Georgia's primary limited liability vehicle. Minimum paid-up capital: nominal. Headline corporate tax: 15%. Estonian-style: 0% on retained profits, 15% on distributions. Small Business Status = 1% on revenue < GEL 500k.. Banking accessibility: 7/10. Privacy: 6/10 (UBO non-public). Remote formation: yes. Processing time: 1 business day.
For US comparison, see Georgia vs USA. For non-resident formation specifics, see forming a Georgia company as a non-resident.