Franchise Taxes on Business Income in Georgia

April 13, 2006

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Georgia imposes a franchise tax on the difference between assets and liabilities (paid-in capital). This franchise tax applies to both Georgia corporations and non-Georgia corporations for the privilege of doing business in the state. The amount of tax ranges from $10 on corporate paid-in capital not exceeding $10,000, to $5,000 on paid-in capital over $22,000,000.

For purposes of this calculation, paid-in capital includes the following items:

the value of the corporation's issued capital stock ( capital stock is the total amount of stock authorized for issue by a corporation)
the value of any additional contributions the shareholders have made to the company
the value of the retained earnings (the corporation's reinvested income not distributed to shareholders as dividends) of the corporation