Reviewed and updated October 16, 2026

Does the business qualify?

Georgia permits eligible partnerships and S corporations to elect entity-level income taxation. An LLC label alone is not enough: an ordinary disregarded single-member LLC does not qualify merely because it is registered as an LLC. Confirm the federal tax classification and applicable Georgia eligibility rules.

This election is a Georgia statewide planning option. An Atlanta address does not create a separate city version of the election.

How and when is the decision made?

Georgia’s Department of Revenue describes making the election on the applicable Form 600S or Form 700, with the required schedules. The election is annual and becomes irrevocable after the applicable return due date, including an extension where relevant. Coordinate the decision with the return-preparation calendar.

Electing entities also need to review estimated payments. Personal payments already made by an owner should not be treated as automatically transferable to the entity. The state’s instructions address payment and underpayment issues separately.

What should the comparison include?

Ask for a side-by-side projection covering entity payments, each owner’s federal and state treatment, credits, losses, other-state obligations and the cash needed to make payments. Tax law and owner circumstances can change the result from one year to the next.

For example, an entity payment changes who pays the state, while owner-level adjustments and federal treatment determine the overall effect. A lower figure on one return does not, by itself, demonstrate a lower combined tax cost.

Prepare for a planning conversation

Provide the most recent business and owner returns, ownership details, current financial statements, payment history and expected changes in profit. Identify nonresident owners and activities outside Georgia early. Discuss implementation before the filing deadline rather than treating the election as a last-minute checkbox. Our team can review the filing needs and whether further specialist coordination is appropriate.

Official sources

This guide provides general information. The rules depend on the tax year, jurisdiction and your circumstances. Ask our team which filing or planning steps apply to you.