Sole Proprietor or LLC?
Most Georgia cottage food sellers start as sole proprietors — there is no registration required to begin, you report income on your personal tax return, and the complexity is minimal. An LLC offers liability protection and a more formal business identity, and at $100 to form in Georgia with a $50 annual report fee, it is one of the most affordable in the country.
The right choice depends on your risk tolerance, how seriously you're building the business, and whether you plan to sell to retail stores — which may ask for proof of a registered business entity and liability insurance.
Sole Proprietor
Most Common to StartLLC
Best for GrowthSetting Up as a Sole Proprietor
Operating as a sole proprietor in Georgia requires no state registration. You can start selling cottage food products under your legal name immediately after completing your food safety training and creating compliant labels.
If you want to operate under a business name other than your legal name — "Sweet Peach Preserves" instead of "Jane Smith" — you need to file a DBA (Doing Business As), also called a trade name registration. In Georgia, DBA filings are handled at the county level through the Clerk of Superior Court.
Forming a Georgia LLC
Georgia LLCs are formed by filing Articles of Organization with the Georgia Secretary of State's Corporations Division. The online filing system is called eCorp, and the process is straightforward — most sellers can complete it in under 30 minutes.
- Search for your business name Use the free eCorp name search to confirm your chosen LLC name is available in Georgia.
- File Articles of Organization online Go to ecorp.sos.ga.gov. File online for $100. Have your registered agent's name and Georgia address ready.
- Create an operating agreement Not required, but important — document ownership, roles, and how decisions are made. Many templates are available free online.
- Get your EIN from the IRS Apply free at irs.gov/ein. Instant online. Required to open a business bank account and file taxes as an LLC.
- Open a business bank account Keep business finances separate from personal. You will need your EIN, Articles of Organization, and an operating agreement for most banks.
- File your first Annual Registration Due between January 1 and April 1 of the year following your formation. File at ecorp.sos.ga.gov. Cost: $60.
Getting Your EIN (Federal Tax ID)
An Employer Identification Number (EIN) is a federal tax ID issued by the IRS. LLCs need one to file taxes and open business bank accounts. Sole proprietors can use their Social Security number, but an EIN is strongly recommended to keep your SSN off business forms and tax documents.
Georgia Income Taxes for Food Sellers
Georgia transitioned to a flat income tax rate beginning January 1, 2024. All self-employment income — including cottage food business income — is subject to this flat rate regardless of how much you earn. The rate has been declining by roughly 0.1% per year and is scheduled to reach 4.99% by 2029 (subject to fiscal triggers).
| Tax Year | Georgia Flat Rate | Notes |
|---|---|---|
| 2024 | 5.39% | Accelerated reduction signed by Gov. Kemp |
| 2025 | 5.29% | Scheduled — confirm fiscal triggers were met |
| 2026 | 5.19% | Scheduled — subject to revenue conditions |
| 2027–2029 | 5.09% → 4.99% | Gradual reduction to target rate |
Georgia's flat tax applies to all income — wages, self-employment income, investment income. There are no brackets. The state also has a generous standard deduction: $12,000 for single filers and $24,000 for married filing jointly (as of 2024).
Naming Your Georgia Food Business
Your business name is one of the most important early decisions you make. It will appear on every label, every market table, every social media profile, and eventually on product reviews. Names that lean into Georgia's food identity — peaches, pecans, Vidalia, Southern tradition — often create instant recognition with local buyers.