Corporate law in Georgia is a general term which is used to refer to the system of law which governs corporations in the state of Georgia. It was created in Georgia in 1878 and has been updated several times since then. This law is mainly incorporated through the Georgia Company Act and the Georgia Non-Profit Corporation Act.
The benefits of Georgia corporate law
- It does not have a minimum sale requirements
This is one of the main benefits that most states use to attract companies. If a company does not meet the sale requirements, it will remain with its original state. In Georgia, however, this is not an issue because there is no minimum sales requirement. Anything from any industry can be incorporated in Georgia as long as they meet all requirements and they comply with all laws set by the state.
- It has better enforcement
This was beneficial to most companies in the 1980s when corporations were able to avoid paying taxes on foreign income and capital gains in case of sale or even simple loss of investment in stocks or bonds. Also, it is beneficial for corporations because they are less likely to face lawsuits by their shareholders or their customers.
- It has more protection of shareholders’ money
Since a corporation cannot be sued by shareholders or customers and is not required to pay taxes on stocks and bonds held in the name of the company, most companies will prefer to invest in Georgia because they will have extra protection against liability. This means that whenever people invest in a corporation they get a lot of protection in case things go wrong with the company.
- It has better life and death for corporations
In the state of Georgia, it is easier to dissolve a corporation than in other states. This means that even if a company goes out of business or just sells all their property, they can easily be dissolved without having to go through any complicated court proceedings. This makes Georgia one of the best states for corporations because they do not have to worry about being sued by any parties which might have invested in them in case they go out of business or close shop.
- It has lower taxes
Corporations based in Georgia do not have to pay capital gains taxes on stocks, bonds or other investments. This makes it better than other states because there is more protection for corporations’ properties and shareholders’ money is not exposed to excessive taxation.
- It has better property rights
The state of Georgia has a unique protection which is called the corporate veil. This means that a shareholder is not liable for any debts or lawsuits which might arise from the company’s activities. This provides extra protection in case something goes wrong with the company and they face legal action from the state.
- It has better resources
Georgia offers many new programs for corporations. Some of the best benefits are being eligible for more favorable tax treatment and having access to more money through loans and grants. Also, Georgia has a lot of investors which is good for any corporations at any stage in their life. If a corporation wants to expand or bring in new investments it does not have to worry about getting investors because Georgia has the needed resources throughout the state in more than 300 industries.