Entrepreneurs interested in starting up a new business in the Atlanta Metropolitan Area have a lot of great opportunities at their fingertips. New start ups have been booming for years now in and around Atlanta, especially in the tech industry, but also across the full spectrum of industries, and Georgia is consistently ranked as one of the most “business-friendly” of U.S. states.
But even with a great business concept, a detailed (and realistic) business plan, and years of managerial experience on your resume, there are a few insider tips that every new Atlanta business owner should know.
- If possible, locate in the Atlanta suburbs, within 30 miles of the city center, where average profit margins for new start ups are particularly high. Along major transportation routes, however, the whole area is very promising for business.
- Take advantage of Atlanta’s tech industry, which now rivals that of Silicon Valley. For tech companies, avail yourself of special deals in Atlanta Tech Village, Opportunity Hub, or Advanced Technology Development Center. For other businesses, staff your IT department from among the 2,400 engineers annually graduating from Atlanta universities or use local Atlanta IT support firms, which are some of the best in the country.
- Adjust to the lower cost of living. Compared to California and big Eastern cities, Atlanta’s under-$140,000 median home prices are quite low. There is an excellent local talent pool to hire from, and payrolls can be much more affordable and perks/amenities more frugal and still more than satisfactory.
- Enjoy the lower business tax rates: Georgia’s corporate income tax rate of 6% (as of 2106) is significantly below average among states that have such a tax. It is one of the main draws that is fueling Atlanta’s economic growth.
- Maintain detailed, well-organized financial records: To maximize write-offs and keep your business “audit-ready” at all times, it is best to hire a CPA with deep understanding of complex federal and state tax laws. Georgia tax incentive programs for new hires, retraining existing employees, creating high-paying and/or large numbers of jobs, and for re-investment of profits can lower or eliminate your state corporate income tax bill.
- Investigate the benefits of being an S-Corporation: Self-employment taxes, Social Security, Medicare, and personal federal income tax can put a 40% tax burden on sole proprietors. Anything over 33%, and you are probably better off incorporating under Subchapter-S so you disperse business profits among shareholders and save on taxes in various other ways as well.
Fricke & Associates can provide your new Atlanta start up with expert assistance from experienced CPAs, who specialize in the legal and financial paperwork involved in setting up a new business entity. Avoid missed opportunities, maximize your tax advantages and make sure your business flourishes. We offer timely advice on state/federal taxes, incorporation options, payroll optimization, and more.
To learn more or to schedule an appointment in one of our local Atlanta offices, contact Fricke & Associates, Certified Public Accountants, today at 770-216-2226 or fill out our online form.