City Taxes — Not Only Luck

Each year, every business in Atlanta (including startups) is supposed to register with the city to pay business taxes. Registration costs start around $200, if your business does not have much Georgia revenue, and go up from there. My guess is that many early startups are blissfully ignorant of this requirement. However, avoiding registration can be costly if you’re discovered. Atlanta is aggressive at collecting.

A few years ago, the city sent a collector to the ATDC floor. The collector went around to every startup and handed paperwork requiring registration. Many of us were hit with a $700 fine (not including the registration fee) for not having registered on-time. Thankfully, representatives from ATDC intervened on our behalf and helped us get a waiver for the fines. A lesson was learned: Do not ignore city taxes and registrations.

Today I saw a post by Mayor Kasim Reed declaring an amnesty interval in which you can register your startup with the city (if you are currently not compliant) and not be assessed any fines. I recommend startups take advantage of that opportunity to become compliant without repercussion.

What are your thoughts on city registration and business taxes?

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