Georgia is the eighth-largest restaurant state in the country, with Atlanta driving the majority of independent restaurant activity. The Georgia Restaurant Association estimates over 19,000 independent restaurants operate in the state. Georgia's regulatory environment is relatively business-friendly, but there are specific steps that operators must complete when closing -- and the county-level liquor licensing system creates complexity that most owners do not anticipate.
Georgia Liquor License
Georgia is unique in that liquor licenses are issued at the county or city level, not the state level. There is no single Georgia state liquor authority. If you operate in Atlanta, your license is issued by the City of Atlanta Department of Finance. In unincorporated Fulton County, it is issued by Fulton County. In Gwinnett County, by Gwinnett County.
When you close, contact your issuing authority directly to surrender the license or initiate a transfer. Georgia county liquor licenses have limited secondary market value compared to states like Pennsylvania or California, because most Georgia jurisdictions issue licenses based on need rather than quota. However, in high-demand Atlanta neighborhoods, a license attached to a desirable location can facilitate a business sale.
Georgia Final Paycheck Law
Under Georgia Code 34-7-2, if you discharge an employee, final wages are due by the next regular payday. Georgia does not require payout of accrued vacation unless your written policy promises it.
Georgia does not have a state agency that proactively enforces wage claims the way California or Illinois does. Employees must file a civil lawsuit to recover unpaid wages. However, Georgia courts award attorney's fees in successful wage claims, which makes even small unpaid balances worth pursuing for employees.
Georgia WARN Act
Georgia does not have a state WARN Act. You are subject only to the federal WARN Act (100+ employees, 50+ layoffs within 30 days). The Georgia Department of Labor administers federal WARN Act notifications in Georgia.
Georgia Sales Tax
File a final sales tax return with the Georgia Department of Revenue. Georgia's sales tax rate is 4% statewide plus applicable local rates (most Georgia counties add 3-4%, bringing the effective rate to 7-8%). Cancel your Sales and Use Tax Registration after the final return is accepted.
Georgia Corporate Income Tax
If your restaurant is structured as a corporation, file a final Georgia corporate income tax return with the Georgia Department of Revenue. LLCs taxed as partnerships file a final Georgia Form 700. Obtain a tax clearance before filing dissolution documents.
Georgia Secretary of State Dissolution
To dissolve a Georgia LLC, file Articles of Dissolution with the Georgia Secretary of State. For a Georgia corporation, file Articles of Dissolution. The filing fee is $10. Georgia does not require a tax clearance certificate before dissolution, but ensure all state tax accounts are closed.
Atlanta-Specific Considerations
If you operate in Atlanta, you may also hold a City of Atlanta Business License. Notify the City of Atlanta Department of Finance of the closure and request license cancellation. Atlanta also has specific health department closure procedures -- contact the Fulton County Board of Health to cancel your food service permit.
For the full cost picture, see What Does It Actually Cost to Close a Restaurant. For the equipment liquidation, Restaurant Equipment Liquidation: What Your Kitchen Is Actually Worth covers what to expect from Georgia buyers.
The Correct Sequence
Notify employees, pay final wages by next regular payday, file final sales tax return, cancel all local licenses (county liquor, city business, health department food permit), file final state income tax return, file dissolution with the Secretary of State.