--- title: "Georgia Permanent Establishment Risk and Tax Presence" description: "See how hiring in Georgia can create tax presence for your company, what it costs to register there, and how Teamed's EOR keeps you clear of it." canonical: https://www.teamed.global/country-hiring-guides/united-states/georgia/permanent-establishment-risk --- ![Georgia business district.](/cluster-assets/country-hiring-guides/united-states/georgia/permanent-establishment-risk/images/hero.webp) # How do you avoidpermanent establishment risk in Georgia. Teamed's Georgia entity absorbs employer tax presence, so hiring staff there never creates permanent establishment risk for your company. Served by Teamed US Inc., Delaware · Payroll via SUNA Solutions Last reviewed 22 September 2026 · Georgia guide At a glance ## Georgia tax presence, in brief Georgia taxes corporate income at 5.19% and applies a minimum franchise tax of $0 on a margin basis, once a company registers to do business in the state. Registering costs a $110 filing fee. Hiring through Teamed means none of that attaches to your company, because Teamed's entity is the employer on paper and in practice. Corporate income tax5.19% Minimum franchise tax$0 Franchise tax basismargin Formation / registration fee$110 Permanent establishment ## What actually creates tax presence in Georgia Permanent establishment risk shows up when your company starts acting like it has a real footprint in Georgia, not just a mailing address. That usually means an employee working from the state, someone with authority to sign contracts on your behalf, or a physical office. Once that presence exists, Georgia can treat your company as doing business there, which pulls you into its corporate income tax and franchise tax rules. The trigger is behavior, not paperwork. A single remote hire can be enough if that person is negotiating deals or managing a team, while a narrower support role might not tip the scale at all. Most companies get surprised by this after the hire is made, not before. The Georgia numbers ## What a registered Georgia entity actually pays If your company does register in Georgia, corporate income tax runs at 5.19%. The state also applies a franchise tax on a margin basis, though the minimum sits at $0, so smaller or early-stage operations are not automatically on the hook for a floor payment. Getting registered in the first place means a filing fee of $110 with the Georgia Secretary of State. None of this is punitive by state standards, but it is a real, recurring compliance obligation once you cross into having presence, not a one-time cost you pay and forget. How Teamed keeps you out of it ## The mechanism that removes the risk Teamed's entity in Georgia is the legal employer of record for your staff there. It runs payroll, handles the employment relationship, and carries whatever tax presence that employment creates. Your own company never registers, never files a Georgia corporate return, and never shows up as the entity with a footprint in the state. This works cleanly as long as the Georgia-based person is doing employee work, not acting as your company's agent for contracts or sales. If you already have that kind of independent presence in Georgia, an EOR arrangement sits alongside it rather than replacing it, and that's worth a direct conversation before you assume it solves everything. Before you commit ## Sometimes an employer of record is the better fit An employer of record is sometimes the better answer, not a lesser one, especially for a small or still-changing team in Georgia or when you're testing the market before committing to a full entity. Talk to a member of the team about your specific plans, and use the crossover calculator to see when your own Georgia entity would actually make sense. Contractors, employer of record and your own entity all run on one platform at Teamed, so moving between them later does not mean changing provider or re-onboarding anybody. Real HR and legal experts handle the work rather than a ticket queue. Talk to a member of the team and we will tell you plainly which one suits where you are. If you would rather look at the numbers yourself first, the crossover calculator models it on local salaries and employer costs rather than on a headcount rule of thumb. Talk to a member of the team Model the crossover for the United States Who carries it ## Your own entity, when it's time. We set it up, migrate you in, and hand it back intact. Global Entity and Employment Operations, which we call GEMO, is how Teamed forms your company, registers it for tax and payroll, runs it month to month and keeps its filings current, across 100+ countries. You stay the employer. We do the work behind it. In Georgia, that means handling the state's $110 registration filing, getting your corporate income tax position right at 5.19%, and setting up the margin-based franchise tax correctly from day one, including its $0 minimum, so the entity is compliant and funded before your team is on payroll under it. Entity Management (GEMO) The Graduation Model Employer cost calculator > They set up our EU entity and moved hires across without missing a payroll. *Helene Dubois, COO* Talk to an expert about Georgia Questions ## Georgia tax presence questions Does hiring one remote employee in Georgia create permanent establishment? It depends on what that person does, not just where they sit. Someone signing contracts or managing local operations is far more likely to create presence than a support or engineering role with no external authority. Teamed's EOR structure is built specifically to keep the employment relationship, and the tax presence that comes with it, off your company's books. What corporate taxes apply if my company registers in Georgia? A registered entity pays corporate income tax at 5.19% and is subject to a franchise tax calculated on a margin basis, though the minimum franchise tax is $0. These apply once you have a registered, operating presence in the state. What does it cost to register a company in Georgia? The Georgia Secretary of State charges a $110 filing fee to register a business entity. That's separate from the ongoing corporate income and franchise tax obligations that follow once you're registered. How is Georgia's franchise tax actually calculated? Georgia calculates its franchise tax on a margin basis, and the minimum tax owed is $0. This means smaller or lower-margin operations aren't guaranteed a floor payment simply for being registered. Can Teamed help if my company already has some presence in Georgia? Yes, but it's worth discussing directly rather than assuming. An EOR hire sits alongside existing presence rather than erasing it, so the right approach depends on what your company is already doing in the state. Talk to a member of the team to map it out. Where these figures come from ## Sources Figures on this page are drawn from the Georgia Department of Revenue's corporate income and net worth tax guidance and the Georgia Secretary of State's filing fee schedule. ## More on entities in Georgia - [Hiring in Georgia, overview](/country-hiring-guides/united-states/georgia)parent - [Georgia setting up](/country-hiring-guides/united-states/georgia/entity-setup)sibling - [Georgia running costs](/country-hiring-guides/united-states/georgia/entity-running-costs-and-filings)sibling - [Georgia entity or eor](/country-hiring-guides/united-states/georgia/eor-vs-entity)sibling - [Georgia moving from an eor](/country-hiring-guides/united-states/georgia/moving-from-eor-to-your-own-entity)sibling - [Set up an entity, by country](/entity-setup-by-country)hub - [Entity Management (GEMO)](/entity-management)core - [Talk to an expert about Georgia](https://www.teamed.global/contact?from=permanent-establishment-risk)CTA